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Perseus personnel return to Sudan gold mining site

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Khartoum, the Sudanese capital, has been the scene of intense fighting over the last eight weeks. Image credit: Wikimedia Commons

Perseus personnel return to Sudan gold mining site

While fighting between Sudan’s Armed Forces (SAF) and soldiers of the Rapid Support Force (RSF) entered its 8th week on Monday, Australian listed Perseus Mining announced yesterday that some of its employees and contractors have returned to the Meyas Sand Gold Project in Northern Sudan.

An armed conflict between the SAF and RSF, two rival factions of the military government of Sudan, broke out on 15 April this year when the RSF attacked several government sites. The most intense fighting happened in and around the capital city of Khartoum and in the Darfur region.

The RSF leader Mohamed Hamdan “Hemedti” Dagalo and Sudan’s army chief Abdel Fattah al-Burhan have disputed control of government sites, including the general military headquarters, the Presidential Palace, Khartoum International Airport and Burhan’s official residence.

Perseus Mining owns 70% of the Meyas Sand Gold Project (MSGP), located in northern Sudan, about 75km south of the border with Egypt and nearly 900 kilometres north of Sudan’s capital city, Khartoum.

When fighting between the two warring factions escalated in late April, Perseus decided to withdraw most of its employees from the MSGP site pending a resolution of the conflict.

Perseus said in an announcement yesterday that there have been no reported incidents in an area of approximately 250,000 square kilometres around the site.

Drilling activity to continue (Perseus personnel return to Sudan gold mining site)

“Therefore, Perseus has allowed its employees and contractors to return to the MSGP site and preliminary site works and confirmatory drilling activities are due to re-commence by month end.

“The MSGP site will be secured by a security force led by Perseus’s in-house security personnel, and include representatives of the Sudanese Mining Police, a body that operates under the control of the Ministry for Minerals, as well as representatives of our host communities.

“Perseus’s office in Khartoum that was established to service the MSGP, remains closed with alternative arrangements in place to service the MSGP site.

According to Perseus’s Managing Director and CEO Jeff Quartermaine the decision to temporarily withdraw employees and contractors from the Meyas Sand Gold project site was taken with their safety and security in mind.

No undue risk (Perseus personnel return to Sudan gold mining site)

“With further assessment of the situation, it appears that the perceived immediate threat has abated, and we are comfortable with the prospects of returning to work at the Meyas Sand site without undue risk.

“We are however closely monitoring the situation and remain prepared and equipped to act if necessary. Our Sudanese exploration and pre-development assets currently comprise a relatively small part of our asset portfolio and the recent events in Sudan have had no impact on our gold production activities that take place in West Africa, specifically, Ghana and Cote d’Ivoire,” says Quartermaine.

Perseus currently delivers more than 500,000 ounces of gold per year at an all-in sustaining cost (AISC) of less than USD1,000 per ounce. In the first two months of the June 2023 quarter, Perseus’s operations have continued to perform strongly.

Considerable exploration potential (Perseus personnel return to Sudan gold mining site)

The Meyas Sand Gold Project sits on the Arabian-Nubian Shield (ANS), close to Sudan’s northern border near Egypt. The exploration license incorporates two main deposits – Galat Sufar South and Wadi Doum – and covers almost 1,000 square kilometres. Perseus has a 70% interest in the project, with the Government of Sudan holding a 20% stake and Meyas Nub, a local Sudanese enterprise, holding a 10% stake.

Although Sudan is one of the largest producers of gold in Africa, much of this is driven through unregulated, artisanal mining. The country is relatively under explored using modern exploration techniques. Perseus considers there to be significant exploration potential in the region and sees opportunity in being one of the first to develop a large-scale, long life commercial gold mine in Sudan.

The Project has strong support from the Sudanese government and is fully permitted, including the Mining Lease, Royalty Agreement and Water Permit.

The geology of Meyas Sand is dominated by two distinct geological domains ‐ the andesite dominated Gabgaba terrain of the Arabian Nubian Shield (ANS) to the east and the marine sediments of the Keraf Suture in Western Gabgaba, separated by the Eastern Gabgaba Fault System (EGFS). The central part of the licence is dominated by the Northern Gabgaba Graben, a downthrown portion of the Keraf that has been infilled by recent clastic sediments.

Perseus personnel return to Sudan gold mining site

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Perseus personnel return to Sudan gold mining site

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