Perseus awards Lycopodium $132m Yaouré contract

Mineralisation at Yaoure. Image: Perseus Mining

Gold-focused Perseus Mining has chosen Lycopodium to supply engineering and supply works at the Yaouré gold project in Côte d’Ivoire, West Africa.

The $US95.1 million ($132.3 million) deal extends the two companies’ working relationship. Lycopodium has already delivered the Yaouré project’s definitive feasibility study (DFS) — completed in November last year — and front end engineering and design (FEED).

In addition, the engineering company also collaborated with Perseus at its Sissingué gold project (also in Côte d’Ivoire) after being awarded a $38.4 million contract in August 2016.

The Yaouré contract is subject to finalisation of the contract documentation, full funding and receipt of mining permit, according to Lycopodium managing director Peter De Leo.

Western Australia-based Perseus Mining is dual listed on the Australian (ASX) and Canadian (TSX) stock exchanges. The company owns gold projects in Ghana and Côte d’Ivoire.

The in-development Yaouré project, which is budgeted to cost just under $263 million, hosts a JORC-compliant ore reserve of 26.8 million tonnes at an average 1.76 grams per tonne of contained gold, translating to 1.52 million ounces of gold overall.

Perseus anticipates annual production of 215,000 ounces over the first five years of Yaouré’s estimated 8.5-year mine life at an all-in sustaining cost of $US734 per ounce.