In accordance with the new LOM plan, the project will be mined and processed from seven open pits across its remaining life, comprising the AF Gap and Fobinso deposits which are currently being mined, as well as the Fetish, Chirawewa, Esuajah north and south and Bokitsi deposits.

The project will be mined to produce 240,000 ounces of gold each year at an average cost of $US937 per ounce ($A1198/oz) between the 2016 and 2023 financial years.

Based on a US dollar gold price of $1200 per ounce the project has a net present value of $324 million assuming a discount rate of 6.5%.

The new LOM plan is based on an updated mineral resource comprising 149.5 million tonnes measured and indicated at 1.1 grams per tonne for 5.2 million ounces, and an inferred 68.1Mt at 1gpt for 2.2Moz.

The project’s updated proven and probable ore reserve is estimated at 61.6Mt at 1.2gpt for 2.35Moz.

The new LOM plan updates the previously released mine plan from October 2013.

When adjusted to factor in mining depletion, the new LOM plan increases tonnes of ore mined to waste moved by 4% but reduces overall ore tonnes by 18% and contained gold by 10%.

The project’s head grade increases by 8%, and the overall mine life is reduced by 14 months to conclude in July 2023.

Perseus managing director Jeff Quartermaine said the updated mine life demonstrated the project’s ongoing economic viability.

“The updated life of mine plan clearly demonstrates that Edikan is an economically robust operation that has successfully come through an extended ramp-up phase,” he said.

“Based on this updated plan, the future prospects of Edikan, and therefore Perseus, are both very positive.

“Over the past 12 months we have demonstrated that by focusing on achieving incremental improvements to both the technical and commercial aspects of our operation, we can consistently deliver credible results.

“The external environment in which we operate can be unpredictable and challenging at times, however, based on recent performance, we are very confident that we have a highly professional site team that is adaptable and more than capable of rising to these challenges when they occur.”

Perseus was recently hampered at Edikan by the Ghanaian government’s move to considerably reduce the amount of power available to mining companies in the country, which prompted the purchase of four diesel generators by Perseus last month.

The company reduced its financial year production guidance to 200,000-210,000oz as a result, and said the new LOM plan would not affect this target.

Shares in Perseus were up 3.4% at 30.5c today.