Lycopodium picks up Perseus work

PERSEUS Mining has awarded the engineering and supply contract for the Yaouré gold project in Côte d’Ivoire to Lycopodium.
Lycopodium picks up Perseus work Lycopodium picks up Perseus work Lycopodium picks up Perseus work Lycopodium picks up Perseus work Lycopodium picks up Perseus work

The Yaoure project

Staff reporter

The value of the contract is US$95.1 million, which will be spread across FY19, FY20 and FY21.

Lycopodium said it did not expect the award to have a material impact on earnings this financial year.

The contractor previously completed Perseus' Sissingué gold mine and the definitive feasibility study and front-end engineering and design for Yaouré.

The FEED study confirmed capital costs of $263 million.

At a $1250 an ounce gold price, the project has an internal rate of return of 27% and a 32-month payback period.

It is expected to produce 215,000 ounces of gold per annum at all-in sustaining costs of $734/oz in the first five years.

A subsequent scoping study confirmed the potential for an underground mine, based on an underground inferred resource of 595,000oz at 6.2 grams per tonne.

Shares in Lycopodium dropped 1.6% to A$4.83, while Perseus was up 1.7% to 41.7c.