PRU - Perseus Mining

[Donga]

For what it's worth PRU written up Wed in Fin Review as THE gold stock to perform in 2010 amongst ALL others, so now mainstream. Investors just need to get their arms around Ghana and for that matter all the other exotic places Aussie miners find themselves these days, in some part due to being able to raise funds in the Lucky country.

There are so many opportunites out there and wouldn't be cashed up during this recovery for quids. As long as Chindia doesn't implode

 

[jonojpsg]

Hey all, latest Tengrela results out with some more IMPRESSIVE hits!

SLC 014- Open ended 105m at 6.5g/t Au from 36m down hole, including 48m at 11.3g/t Au
from 76m down hole followed by 17m at 5.3g/t Au from 124m;
SLC 025 - Open ended 30m at 5.5g/t Au from 50m down hole, including 2m at 22.7g/t Au
from 56m and 4m at 14.2g/t Au from 76m to the bottom of the hole;
SRC 018- 106m at 1.6g/t Au from 4m down hole, including 16m at 3.1g/t Au from 92m.

While these are within the main body, it is the open ended 105m @6.5g/t which is particularly exciting as this is MASSIVE.

Definitely want to see some more drill results from outside this envelope though as this would really get the market interested (if it isn't already)

Riding this one for the long haul

 

[Sean K]

Hey all, latest Tengrela results out with some more IMPRESSIVE hits!

While these are within the main body, it is the open ended 105m @6.5g/t which is particularly exciting as this is MASSIVE.

Yes, not a bad intersection. I suggest this is not across the line but directly down one of these 'quartz stringer veins'. But, 6.5 g/t!!

It's going to be an outstanding deposit by the looks.

Again, for a peer comparison, CNT looks the most likely, if PRU can continue with their exploration success and start producing as expected.

CNT current mc $2.3b.
PRU $755m.

 

[Ajax]

Are further drilling results for Ayunfuri to be released soon?

From the September 2009 quartlery dated 30 October 2009 regarding Ayunfuri:-

"Exploration and resource drilling is continuing with three rigs currently on site."

http://www.stocknessmonster.com/news-item?S=PRU&E=ASX&N=467488

and from 19 October 2009 announcement

"Three rigs are currently on site at Ayanfuri to advance resource and reserve growth"

and from 27 November 2009 AGM presentation...

"3-4 Drill Rigs Ayanfuri
Resource and Reserve Drilling
Exploration Drilling"

There should hopefully also be news soon on Environmental Protection Agency approval for Ayunfuri and TSX listing date.

 

[Sean K]

More outstanding intersections in the infill drilling. DFS now due in April.

Perseus Mining Limited (ASX: PRU) is pleased to announce further significant RC and diamond drill results from the Sissingue prospect at its Tengrela Gold Project in Ivory Coast.

Recent intercepts include:
SLC 045- 26m at 19.5g/t Au from 24m down hole, including 2m at 232.9g/t Au from 42m down hole and another intercept of 18m at 4.9g/t Au from 62m;
SLC 074- Open ended 94m at 4.0g/t Au from 46m down hole, including 28m at 9.1g/t Au from 68m down; and
SLC 048 - Open ended 47m at 3.4g/t Au from 34m down hole, including 2m at 39g/t Au from 60m.

The intercepts summarised in Table 1 were predominantly from infill drilling. The results give additional support to high grade intercepts previously reported from within the Sissingue prospect’s core zone. High grades are typically associated with narrow quartz stringers containing abundant visible gold in altered felsic and granitic intrusives and metasediments.

26m @ 19.5 g/t really is outstanding.

The Sissingue prospect has a strike length of at least 5km and is up to 800m wide. Going to be a huge deposit with further drilling.

 

[Sean K]

Starting to go through a meaningful correction, along with POG, which is healthy. Will probably track gold and the market lower unless there's some upside surprises like a takeover offer. First real technical support across $1.80 and then major support at $1.50. Probably a good opportunity back at those levels.

 

[Miner]

Dear Flyboy 77

I am not going to explain you any thing as my crystal ball is missing at this point and probably got mixed up with the crystal ball used by Goldman Sachs and other pundits in the market.

It was a matter of my assumption and opinion - take it or reject it. Upto you.

Just put a trigger on this page and revisit in Feb 2010 to correlate what I said

I put a trigger in outlook to look into PRU and my thread posted about one yera back. I should have believed on myself about future of PRU

 

[jonojpsg]

Starting to go through a meaningful correction, along with POG, which is healthy. Will probably track gold and the market lower unless there's some upside surprises like a takeover offer. First real technical support across $1.80 and then major support at $1.50. Probably a good opportunity back at those levels.

Yep, nice to see a pull back. I will definitely be watching closely and jumping back in if it heads towards $1.50

Don't forget that all the DFS figures that looked so good were based on US$850-950/oz so even if gold corrects to those levels PRU still have an outstanding couple of projects heading to production in the next couple of years!

 

[jancha]

PERSEUS LISTS ON THE TORONTO STOCK EXCHANGE
AND
SATISFIES ESCROW RELEASE CONDITIONS

That should add a bit more depth and interest in the company.

 

[Pivotonian]

Yep, nice to see a pull back. I will definitely be watching closely and jumping back in if it heads towards $1.50

Don't forget that all the DFS figures that looked so good were based on US$850-950/oz so even if gold corrects to those levels PRU still have an outstanding couple of projects heading to production in the next couple of years!

Did you jump back in Monday when it dipped below $1.50? You'd have to be happy right now if you did ...

 

[jonojpsg]

Did you jump back in Monday when it dipped below $1.50? You'd have to be happy right now if you did ...

Mate I would have but in my STUPIDITY I had left most of my positions open during the run down over the last week or two and so had nothing to get into it with!!!! I saw it bleow $1.50m and thought that it had to jump, which it obviously did opening at $1.63 the next day

Anyway, I jumped back in then as I had enough margin cleared to get on at least a small parcel anyway, which has given me something to cheer about

TSX listing "should" get things happening now - no doubt it will jump again seriously when Tengrela JORC is released IMO.

 

[Sean K]

Anyone following the politial dramas in Ivory Coast at the moment? How is this going to effect the development of PRU's assets there, if at all? Hard to think a virtual civil war is good for business?

 

[Ajax]

Canary Events Perseus Mining presentation 18 February

I attended the Africa Gold conference held by Canary events at Tattersall's club in Sydney on Thursday 18 February.

There was a lot of good information by all presenters (Gryphon-Burkina Faso, Azumah-Ghana, Perseus-Ghana/Cote d-Ivoire , Castle-Ghana, MDL-Senegal and Chalice-Eritrea) with a very upbeat outlook for exploration in West Africa.

Mark Calderwood spoke on Perseus.

My comments posted on another forum included

"At one point Mark Calderwood said Perseus either had or would have 7 drilling rigs operating at Ayunfuri and 5 at Tengrela (12 rigs drilling similtaneously).

Also said would drill 220,000 metres (i.e. 220 kilometres) this (calendar?) year and that for every 50,000 metres drilled usually resulted in another 500,000 ounces (dependant on quality of ground of course).

Calderwood envisages adding at least 500,000 ounces each year into foreseeable future.

Said company had sufficient funds to develop Ayunfuri to completion now (if all drilling exploration ceased) but shareholders wanted more drilling.

There would be resource upgrades and increases later this year (around middle of year). Commencement of construction of Ayunfuri plant will occur once EPA approval received (which should be this quarter or early next quarter). He did not percieve any likely difficulties with EPA approval.

Perseus was the standout from presenters for size of gold resources.

Video available on Canary Events site soon. Videos from last years gold presentations only on site at the moment:-

http://www.canaryevents.com.au/pastforums/

Warwick Grigor-BGF Securities in introduction was asked which company stood out from presenters today (I think as value or enterprise value per ounce). He said Perseus. Grigor also said that gold could reach as much as $5000/ounce in next few years.

 

[Miner]

Re: Canary Events Perseus Mining presentation 18 February

I attended the Africa Gold conference held by Canary events at Tattersall's club in Sydney on Thursday 18 February.

There was a lot of good information by all presenters (Gryphon-Burkina Faso, Azumah-Ghana, Perseus-Ghana/Cote d-Ivoire , Castle-Ghana, MDL-Senegal and Chalice-Eritrea) with a very upbeat outlook for exploration in West Africa.

Mark Calderwood spoke on Perseus.

My comments posted on another forum included

"At one point Mark Calderwood said Perseus either had or would have 7 drilling rigs operating at Ayunfuri and 5 at Tengrela (12 rigs drilling similtaneously).

Also said would drill 220,000 metres (i.e. 220 kilometres) this (calendar?) year and that for every 50,000 metres drilled usually resulted in another 500,000 ounces (dependant on quality of ground of course).

Calderwood envisages adding at least 500,000 ounces each year into foreseeable future.

Said company had sufficient funds to develop Ayunfuri to completion now (if all drilling exploration ceased) but shareholders wanted more drilling.

There would be resource upgrades and increases later this year (around middle of year). Commencement of construction of Ayunfuri plant will occur once EPA approval received (which should be this quarter or early next quarter). He did not percieve any likely difficulties with EPA approval.

Perseus was the standout from presenters for size of gold resources.

Video available on Canary Events site soon. Videos from last years gold presentations only on site at the moment:-

http://www.canaryevents.com.au/pastforums/

Warwick Grigor-BGF Securities in introduction was asked which company stood out from presenters today (I think as value or enterprise value per ounce). He said Perseus. Grigor also said that gold could reach as much as $5000/ounce in next few years.

Thanks Ajax for sharing your learning from the presentation.

It is also heartening to see the upbeat shown by PRU .

PRU is no doubt the next gold king for 2010-2020.

I however will take the comment from BGF Securities with a pinch of salt. It is primarily Warwick / BGF has strong conflict of interest having raised money for PRU few times. The commission has helped the bulging of BGF Securities. It is a cash cow for them. Why should BGF would flatter any other gold company in the seminar ?

Cheers

 

[Sean K]

Re: Canary Events Perseus Mining presentation 18 February

I however will take the comment from BGF Securities with a pinch of salt. It is primarily Warwick / BGF has strong conflict of interest having raised money for PRU few times. The commission has helped the bulging of BGF Securities. It is a cash cow for them. Why should BGF would flatter any other gold company in the seminar ?

Cheers

Good point miner. I can't see how Grigor can be taken seriously with his comments on PRU, and I wouldn't just take them with a grain of salt, but completely ignore them.

In regard to my comments above about Ivory Coast, Lihir was well and truly grilled recently on the effect of the polical turmoil and they claim that it is business as normal in regard to their operations there, so maybe it's all ok for PRU? Maybe..

Should be some more news on Tengrela over the coming weeks.

From the last drilling update on 21 Jan:

Managing Director, Mark Calderwood’s comments

“Infill drilling is well advanced and resource modelling for the definitive feasibility study (“DFS”) is scheduled to be completed in April 2010, with the DFS completed in 2010.

“From late February onwards extensional and exploration drilling will again become the main focus at Tengrela. During the December Quarter the Company completed 24,000m of drilling at Tengrela and it is targeting 125,000m of drilling in 2010, mostly within the first three quarters.”

Some people scoff at H&S's but don't want this one to pander out. Hard to see $1.50 breaking down without a major gold and market correction though.

 

[Slipperz]

Re: Canary Events Perseus Mining presentation 18 February

Good point miner. I can't see how Grigor can be taken seriously with his comments on PRU, and I wouldn't just take them with a grain of salt, but completely ignore them.

In regard to my comments above about Ivory Coast, Lihir was well and truly grilled recently on the effect of the polical turmoil and they claim that it is business as normal in regard to their operations there, so maybe it's all ok for PRU? Maybe..

Should be some more news on Tengrela over the coming weeks.

From the last drilling update on 21 Jan:



Some people scoff at H&S's but don't want this one to pander out. Hard to see $1.50 breaking down without a major gold and market correction though.

Currently on the sidelines after a nice profit from it's last run up to 2.12.

SP seems to be tracking sideways waiting for news, but even after good drilling reports it tends to fall back after a spike.

Seriously undervalued IMHO given the resource they have and the potential out there in elephant country.

Might look to take a position again closer to the DFS which is only 4-8 weeks away at this stage.

 

[Ajax]

Hi Slipperz,

two items of interest posted on another forum.

(1) Possible inclusion of PRU in S & P /ASX 200 on March 19 when quarterly review of index announced on 5 March 2010.

"(MDL.AU) and Perseus Mining (PRU.AU) are likely to get S&P/ASX 200 index inclusion on March 19, according to Morgan Stanley. Notes S&P's next quarterly index review due to be announced on March 5."

(2) Mark Calderwood is attending the BMO Metals conference in Florida, US
(28 February to 3 March 2010) although Perseus is not presenting.

All the heavyweight gold miners are there- Anglogold Ashanti, Lihir, Newmont mining, Barrick Gold so the conference would be an good opportunity to meet with the directors of these companies.

Agenda/list of presenters:-

http://www.bmocm.com/conferences/showAgenda.aspx?id=270

List of participants:-

http://www.bmocm.com/conferences/metalsandmining2010/participating/

About BMO Metals conference:-

http://www.bmocm.com/conferences/metalsandmining2010/

 

[Sean K]

Perseus pounces on Burey Gold to boost gold exposure in Africa

Robin Bromby From: The Australian March 08, 2010 12:00AM

IT didn't rate much of a mention, but possibly the most intriguing deal of the week was the move by Perseus Mining (PRU) to take a 19.9 per cent stake in Burey Gold (BYR).

Perseus is gearing up to become a gold miner in Ghana, for which it has been raising big money, and has advanced exploration in Ivory Coast. So, at first blush, it seems an unnecessary diversion to be ploughing $1.39 million into a company that has few exploration runs on the board and is working in Guinea, a country just emerging from military rule and way up the political risk list.

Here at Pure Speculation (where, admittedly, we often put two and two together and come up with 28) the theory is that Perseus saw a bargain and grabbed it. Burey's share price has been hit by the political risk factor and Perseus, being a West Africa veteran, could see past that.

Moreover, if you want to make acquisitions in the region, there aren't many cheapies around. Burey is capitalised at just $7.8m, compared with $21.5m for the other penny stock, Signature Metals (SBL). Then it's a step up to Azumah Resources (AZM) at $39.3m and Adamus Resources (ADU) at $113m. Burey was probably the last of the bargain buys.

And while many thought Perseus's interest was the Mansounia gold project in Guinea, it is believed the Burey project to which it is most attracted is Balatindi, previously explored by Mining Italiana, which identified it as a primary gold, uranium and copper occurrence. While there has been plenty of work done at Mansounia, by contrast, none of it has lifted that project above its large but low-grade status.

Meanwhile, Stock Resource has put a "buy at up to $1.88" on Perseus, describing the company as one of its favoured West African gold explorers. Last month Perseus dual-listed on the Toronto Stock Exchange, and Stock Resource believes that move will see the company replicate the experience of the former Australia-listed company, Red Back Mining. Since moving to Toronto in 2004, Red Back's value soared and now stands at about $6 billion, 10 times that of Perseus. In other words, the PRU action should be on the upside.

Adamus called a trading halt on Friday. The word is that the junior is making a $9m placement to institutions, which we believe is several times oversubscribed, and will be raising another $21.5m through a one-for-five rights issue at 36c a share. The stock closed on Friday at 40c.

 

[Sean K]

That H&S didn't eventuate fortunately with the clear break up and then consolidation and further movement towards all time highs. Looks to have the potential to be building up to something now. Nice consolidation. Obviouslt LGL have thei own plans in the market, and surely PRU could be on the cards.

I'm not sure if it looks pricey or nat at about $90 oz au to EV for a developer, but as a long term producer still cheap. Just got to watch for whatever future dilution takes place with any more unscheduled capital raisings...

 

[Sean K]

In the Australian:

Perseus Mining (PRU) $2.05

STILL on big announcements, gold junior Perseus has trumpeted grades of up to 1216 grams a tonne at its Tengrela project on the Ivory Coast.

Tengrela is the second-string project to Central Ashanti in Ghana, a 7 million-ounce gorilla. Tengrela already has a 1 million-ounce resource, with a maiden reserves statement due by June's end. Combined, the projects put Perseus on course to be the third-biggest Australian-based producer with annual output of 400,000 ounces a year, which makes us wonder whether Newcrest, which has lobbed a bid for Lihir, chose the wrong target.

Criterion had Perseus as a spec buy at $1.24 last September and then a sell in December at $1.95. Miners, like children, should be rewarded for good grades so we'll promote Perseus to a hold.

1216 g/t isn't bad.

The full results announced on 8 April:

FURTHER HIGH GRADE DRILL RESULTS TENGRELA GOLD PROJECT
Best Results Include 8m at 325g/t Au

Perseus Mining Limited (ASX/TSX: PRU) is pleased to provide an update on exploration activities at the Company’s Tengrela Gold Project in the Ivory Coast.

Recent significant drill intercepts from resource drilling at the Sissingue prospect are summarized in Table 1 below. These included:

RC hole SLC228 - 8m at 325g/t Au from 96m including 2m at 1,216g/t Au from 98m, followed by 36m at 3.1g/t Au from 104m to the end of the hole;
RC hole SLC226 - 110m at 4.0g/t Au from 18m to the end of hole including 16m at 11.3g/t Au from 28m;
RC hole SLC224 - 84m at 3.6g/t Au from 16m to the end of hole including 2m at 73.4g/t Au from 30m;
RC hole SRC875 - 60m at 3.3g/t Au from 30m to the end of hole including 2m at 10.5g/t Au from 30m and 2m at 38.4g/t from 84m;
RC hole SLC230 - 22m at 1.4g/t Au from 14m and 56m at 3.4g/t Au from 84m to the end of the hole; and
RC hole SRC939 - 16m at 6.5g/t Au from 10m and 4m at 20.3g/t Au from 50m.

Some pretty impressive numbers there. Going to be a huge deposit eventually.

PRU seem destined to have at least 10m ounces in the ground across their 2 projects. Hopefully they can get mining while gold is still going well.

Really surprised that this has stayed independant. That mny ounces just laying about and untapped should have been picked up by a major over the past 2 years while it was cheap.