Perseus Mining Limited (TSX/ASX: PRU) has achieved another important milestone in the schedule for developing its third gold mine, Yaouré in Côte d’Ivoire, with the award of a mining services contract to EPSA Internacional SA.
EPSA is a privately owned, global earthmoving and mining contractor that is headquartered in Spain and provides a range of mining, civil works and earthmoving services to a blue-chip list of mining clients located in 15 countries where they employ approximately 4,000 employees and deploy nearly 1,600 pieces of equipment.
The mining services contract will run for a period of 65 months commencing on 1 November 2020 and envisages the movement of approximately 170 million tonnes of material, including 27 million tonnes of ore containing more than 1.5 million ounces of gold. EPSA is expected to commence mobilizing equipment to site in the March 2020 quarter, after which they will employ and train a predominantly Ivorian workforce in preparation for the formal commencement of the contract later in the year.
Perseus’s Managing Director and CEO, Jeff Quartermaine, said the award of the mining services contract to EPSA is the culmination of a competitive tendering process in which eight credible West African and international mining contractors participated.
“The award of the Yaouré mining contract to EPSA is yet another important milestone on the path to bringing the Yaouré Gold Mine into production.
“We are delighted to be working with EPSA, an international mining company of true substance, whose client list currently includes major gold mining companies such as Newmont Goldcorp, Agnico Eagle and Yamana Gold.
“To win this contract, EPSA successfully competed in a highly competitive tender process involving eight very good mining contractors. As well as offering a competitive price, EPSA currently has equipment available for immediate mobilization and has a proven track record of establishing greenfield mining sites in jurisdictions where employment and training of personnel from local catchment communities is a priority.
“EPSA’s corporate values are also closely aligned to those of Perseus and we are looking forward to establishing a long and mutually beneficial relationship at Yaouré, Perseus’s third gold mine and our second gold mine in Côte d’Ivoire.
“When Yaouré is fully operational, Perseus will be producing in excess of 500,000 ounces of gold per year. The average all-in site cost of producing gold at Yaouré over the first 5 years of the mine is forecast to be US$734 per ounce meaning that if gold prices are maintained at current levels, then very strong cashflows will be generated and available for funding benefits for our stakeholders,” Mr Quartermaine said.