Perseus said it advised the Sierra Leone authorities the Baomahun gold deposit “was not economically feasible at current gold prices andthat further exploration success and a positive feasibility study would be required before Perseus could consider committing to development”. 

Baomahun had a headline measured and indicated resource of 2.2Moz and an ore reserve of 1.2Moz when promoted as part of the Amara acquisition back in April.

Perseus said at the time it had “optionality to gold market recovery in Sierra Leone”.

A representative of Perseus told MNN that “a lack of infrastructure in Sierra Leone” had rendered the project uneconomic.

In any case, Baomahun was very much secondary to the centrepiece of the Amara acquisition, the Yaoure project in Cote d’Ivoire that is now the subject of a definitive feasibility study.

Meanwhile in Ghana production of 21,000oz by mid-quarter at Edikan was said to put the project on track to meet guidance for the half-year of 80-100,000oz.

Perseus announced awarding of a $US120 million miningcontract with Ausdrill’s African Mining Services for Ediken’s Esuajah North open pit, and flagged full scale mining at the new pit in October.

Elsewhere development work was continuing at Sissingue inCote d’Ivoire where first gold is expected by the end of next year.

Lycopodium was today awarded the $A38.4 million engineering,procurement and construction contract for the development, after earlier havingcompleted engineering works during the study phase.

Sissingue will be Perseus’ second mine in West Africa, wherethe aim is to have three operations producing a combined total of more than500,000oz per annum within 3-5 years.

Perseus shares were up half a cent to 55c.