Dual-listed Perseus Mining on Tuesday announced a final investment decision (FID) for the development of the CMA project at its Yaouré gold mine, leading Côte d’Ivoire into an era of mechanised underground mining.

The approval marks a critical step towards the start of the CMA underground project which is due to begin in mid-2025 with the development of the first portal.

CEO Jeff Quartermaine said in a statement that the decision was a milestone for Perseus and the country’s mining sector. “Perseus is proud to be playing a pioneering role in Côte d’Ivoire’s mining sector with our affirmative decision to invest in the development of the CMA underground project at our Yaouré gold mine. This investment decision reaffirms our commitment to being a long-term partner in the development and production of minerals resources in Côte d’Ivoire,” he said.

The project’s approved capital expenditure (capex) is set at $124.6-million, which includes $2.6-million of pre-approved funding. The investment will cover surface infrastructure, mobilisation of underground equipment, underground development, and capitalised pre-production expenses.

The majority of capex is scheduled for the 2026 and 2027 financial years. Preparation work is already under way, with $4.1-million spent on upgrades to camp facilities, mine services, and long lead item procurement.

Mobilisation of the Australian underground contractor, Byrnecut, is planned for April 2025. Given that the CMA underground project will become Côte d’Ivoire’s first mechanised underground mine, an important element of Byrnecut’s role will be the training of Ivorian miners in the skills and disciplines of underground mining, particularly safe working practices. 

The FID follows in-principle approval from the Ministry of Mines, Petroleum and Energy, announced by Minister Sangafowa Coulibaly in November. However, Perseus said the project’s start was contingent upon the approval of the environmental and social impact assessment and the granting of a Ministerial decree.

LIFE EXTENSION

The CMA underground project will extend the Yaouré mine’s operational life to at least 2035. Based on the August 2024 resource estimates, the project contributes a combined 1.48-million ounces to measured, indicated, and inferred resources, with underground reserves estimated at 0.56-million ounces.

Once operational, the underground mine will account for 20% of Yaouré’s ore production by tonnage but nearly half of its gold output. Underground ore will be mined at a rate of 700 000 t/y to 770 000 t/y at an average mining cost of $75/t of material mined.

“Since producing first gold at Yaouré in December 2020 at the height of the Covid pandemic, Yaouré has become the flagship operation of Perseus’ business. With the decision to proceed with the underground operation, we have ensured that this will continue to be the case for some time to come,” Quartermaine said.

Perseus intends to publish updated life-of-mine plans in mid-2025, incorporating the CMA underground project and the anticipated development of the Nyanzaga mine in Tanzania.

The company is targeting sustained production of 500 000 oz/y to 600 000 oz/y at a cash margin of no less than $500/oz.