PRU - Perseus Mining

[Sean K]

I thought your posts were of high quality, and food for thought Flyboy, and hope you continue to post.

I wouldn't let forum disagreement put you off, thats par for the course on forums.

Yes, I agree. I would like to see flyboy post with less emotion. I have no control over it. I am a retired Mod simply stating my thoughts. Keep posting your ramps flyboy, and you can attack me to your hearts content as well!

 

[awg]

Yes, I agree. I would like to see flyboy post with less emotion. I have no control over it. I am a retired Mod simply stating my thoughts. Keep posting your ramps flyboy, and you can attack me to your hearts content as well!

enjoy yr posts as well kennas, very informative, especially on the smaller goldies.

rebuttal of posts is useful to less informed posters.

I also dont mind some tantrum chucking, and a bit of verbal jousting, gives me some amusemement, and replaces the office politics of my former existence.

havent held this stock very long, picked it up in the mid 80c range.

 

[oldblue]

I was enjoying the discussion on this thread - until the abusive personal attacks started.

Must say I'm surprised that Moderators have allowed this to continue - and particularly that a "retired Mod" is involved.



Can we get back to discussing the stock, PRU?

 

[prawn_86]

Can we get back to discussing the stock, PRU?

Agreed. Lets all just focus on facts and figures (which is in most posts), and leave the snide comments out of it.

Thanks

Prawn

 

[enigmatic]

I would like to note that from an Australian prospective Gold prices reached there peaks when we were a round 70cents US, gold has dropped a fair amount recently for any Australian companies, and no mater how you look at as an investor we get paid in australian. dollars.

Obviously any mine outside of australian in PRU case has some advantage as operation cost stay relatively cheap in comparison to the gold price, however if you do a $AUS/gold price you will find we have leveled out for the last few months well below our peak.

PRU is still a great buy, however i do believe there are alot better stories out there for the time being, this has run far to hard and overshoot its worth.

This is my personal opinion DYOR.

 

[TabJockey]

Any interpretation on the late ann. today? Seems like pretty good news because the SP bounced as soon as it came out. Just unsure on how this effects future forecasts?

 

[jman2007]

Any interpretation on the late ann. today? Seems like pretty good news because the SP bounced as soon as it came out. Just unsure on how this effects future forecasts?

Well it seemed to cause a bit of a blip in the sp,

It looks like what they're doing is searching for a zone which may have underground potential underneath one of their current pit designs. The current pit designs give an indication of how far they can mine down profitably, given the amount of waste material they'll have to remove i.e. the stuff with no gold in it.

Their current pit shells seem to be robust and economic to relatively low grades by Australian standards I suppose, but for a viable underground operation, 6-6.5 g/t Au would be the bare minimum given that development costs are about $20,000 per vertical meter. Most open cuts that are fortunate enough to progress underground will generally have a portal constructed in the base of the pit, followed by decline development to reach the high-grade ore at depth.

Hope that makes sense

 

[Miner]

I tried to trade on PRU today at about 1.30 PM . Commsec site advised it was a preopen condition and on market was refused. I thought market was closed. However could trade another scrip at the same time.

One more thing when market was supposedly to be open and PRU showed as Pre Open the buying price for PRU was much more than the selling offer .

Honestly confused or probably something I need to learn.

Any one could share these two mysteries please.

Regards

 

[TabJockey]

Their current pit shells seem to be robust and economic to relatively low grades by Australian standards I suppose, but for a viable underground operation, 6-6.5 g/t Au would be the bare minimum given that development costs are about $20,000 per vertical meter. Most open cuts that are fortunate enough to progress underground will generally have a portal constructed in the base of the pit, followed by decline development to reach the high-grade ore at depth.

Hope that makes sense

And they have found 3.1 to 6.8 g/t ? 37m of 6.8 and the rest less.

Doesnt sound like that much of a find really does it?

 

[Sean K]

Yeah, looks like it's just the one hole that is pretty good (FBDD041), with most returning in the 1-2 g/t region. 127m@3.1 g/t is quite a wide intercept with the true width approx 110m.

Interesting points jman. 6 g/t! That would have to be over a pretty wide zone and decent strike length too to make it worthwhile wouldn't it. It sounds like this particular shoot is closed off laterally but may continue to run at depths. So, they need a few more shoots like this to mine it?

Seems to be a lot of decent intersections inderneath the current pit design at Fobinso...

DEEPER DRILL HOLE INTERCEPTS HIGH GRADE MINERALISATION AT AYANFURI GOLD PROJECT

Perseus Mining Limited (ASX: PRU) is pleased to provide an update on the progress of exploration drilling at the Company’s flagship Ayanfuri Gold Project in Ghana.

As part of a long term drilling program at Ayanfuri a number of deeper drill holes have been completed to test below the limits of previous resource estimates.

Results to date have confirmed the continuation of gold mineralisation of generally similar tenor, except for the Fobinso deposit, where high grade gold mineralisation was encountered over a substantial width. Core hole FBDD041, the first deeper hole at Fobinso, returned 127m at 3.1g/t Au from 125m, including 37m at 6.8g/t Au from 126m. The true widths of the intercepts are about 110m and 32m respectively. The intercept grades were reasonably consistent, with low ‘nugget effect’. 11 individual values were between 10g/t and 22g/t Au and 13 values were between 5g/t and 10g/t Au (see Table 2 below). FBDD041 is the second best hole drilled to date on the 2km long, 2.1Moz, Abnabna-Fobinso zone.

Holes 40m on either side of core hole FBDD041 also encountered significant but weaker gold mineralisation. The high grade shoot is associated with strong quartz veining in a flexure zone within the granite host rock. Although apparently limited in strike length by drilling to date, this new high grade shoot is open at depth.

The current pit design at Fobinso is to about 100m vertical depth however, mineralisation intercepted in FBDD041 extends from 10m to 120m below the pit design.

 

[jonojpsg]

Any reason why they couldn't just extend the depth of their pit? Those grades would have to make it worth going deeper - if it's possible?

 

[Sean K]

Any reason why they couldn't just extend the depth of their pit? Those grades would have to make it worth going deeper - if it's possible?

All a matter of economics I think jono. The problem would be widening the pit. If it costs x million to widen it, then x million to dig it out, the sale of the yellow stuff might not cover the costs. If the pit wall is on a 30% angle, imagine how much extra dirt would need to be removed to get down another 150-200m. jman will have a smarter answer than that I think.

 

[shag]

u have to batter the sides, keep yr pit shell at reasonable slopes, so like u say just a simple b/c thing.
but some mines start an underground operation from below to claw out good ore lodes, from the pit, as i understand. waihi in nz is doing both.
the more depth, the waste goes up exponentially in general.

 

[exgeo]

Emailed to clients of BGF Equities this morning.......................................................

The enthusiasm for PRU is gaining traction. Below is a paragraph taken from Rodman and Renshaw research out of New York.

“Raising our target price to AUD 4.00 from AUD 2.75

Our target price is based on the Perseus shares trading at 2x our estimated NAV of AUD 1.90/share. Perseus Mining owns one of the largest undeveloped gold deposits in West Africa having a total resource base of 7 MM ozs of gold. We expect the resource size to be increased to 10 MM ozs with more drilling at which point every major gold producer in Ghana will take a closer look at the company. We believe that at the current gold price, Perseus is a take-out target and the acquirer will have to pay a significant premium to the current share price”

 

[jman2007]

All a matter of economics I think jono. The problem would be widening the pit. If it costs x million to widen it, then x million to dig it out, the sale of the yellow stuff might not cover the costs. If the pit wall is on a 30% angle, imagine how much extra dirt would need to be removed to get down another 150-200m. jman will have a smarter answer than that I think.

Yes you are correct kennas

To maintain an economic pit shell, the amount of waste removed compared to ore mined (the strip ratio) has to be maintained at a level at which the pit still makes money. Once mining commences and a pit design is chosen, it is generally too late to alter its shape, unless the gold price goes to astronomical levels I suppose .

Even extending a pit below its current optimised shell by a few tens of meters would have an enormous impact on its profitability, as this potentially adds millions of tonnes of extra waste to be removed from the walls by making it wider, as shag and yourself mentioned.

 

[Miner]

All a matter of economics I think jono. The problem would be widening the pit. If it costs x million to widen it, then x million to dig it out, the sale of the yellow stuff might not cover the costs. If the pit wall is on a 30% angle, imagine how much extra dirt would need to be removed to get down another 150-200m. jman will have a smarter answer than that I think.

You were abs right Kennas.

Just to add : mine planning and depillaring is an extensive engineering task. the current pit design and availability of suitable cut is also important. Then comes the access for trucks. Finally $$$ to make it viable. Sometimes it is worthwhile not to extend the mine pit until a sustainable cash return makes it viable on a very long term basis.

Now a days if the mine planning did not include EMRP then without another EIS and EMRP (environmental stuff) one can not expand the mine hole. God forbids if you get a spider while digging then greenies will come and you get stuffed - no approval. If it is in CHina they will even kill a human being found on the way. We will however gladly buy from them but in Australia killing a spider - you are joking. Sorry digraced out of frustration as now a days we face from so called uneconomic EMRP and EIS stuff.

 

[Skip1jz]

Gone into trading halt at market open this morning. Interesting... any ideas? The trading halt request leaves no clues.

 

[shag]

You were abs right Kennas.

Just to add : mine planning and depillaring is an extensive engineering task. the current pit design and availability of suitable cut is also important. Then comes the access for trucks. Finally $$$ to make it viable. Sometimes it is worthwhile not to extend the mine pit until a sustainable cash return makes it viable on a very long term basis.

Now a days if the mine planning did not include EMRP then without another EIS and EMRP (environmental stuff) one can not expand the mine hole. God forbids if you get a spider while digging then greenies will come and you get stuffed - no approval. If it is in CHina they will even kill a human being found on the way. We will however gladly buy from them but in Australia killing a spider - you are joking. Sorry digraced out of frustration as now a days we face from so called uneconomic EMRP and EIS stuff.

go to nz if u want to get pissed off. if u followed all the regs u couldnt walk on the grass, let alone dig a hole.
to make it more ironic and worse, they allowed billions of dollars worth of dodgy housing stock to b built, for yrs, the leaky housing debacle.

 

[Ajax]

page two of the trading halt announcement refers to a capital raising................................................

 

[Sean K]

Yes, was always going to be more capital to be raised.

Flyboy was spot on :

April:

The issue of dilution is far from "obvious"...... me thinks they'll get gobbled up before then.

In any event, from experience, the greater part of the Ayanfuri will be project financed i.e. debt funded and MC has already stated that Tengrela can be funded (the equity component) out of cashflow from Ayanfuri.

Since then, they raised $75m @ .82c a share in May and now they're raising more money. So much for no dilution.

Crystal ball needs a tune up I think. lol