Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) plans to resume preliminary site works and confirmatory drilling activities at the 70%-owned Meyas Sand Gold Project (MSGP) in northern Sudan by the end of this month.
With the MSGP well away from hostilities in Sudan and no immediate threat to the project, Perseus has allowed its employees and contractors to return to the site.
MSGP is 75 kilometres south of the border with Egypt and nearly 900 kilometres north of Sudan’s capital city Khartoum.
Sudan conflict
In late April 2023, following an escalation of armed conflict largely in and around Khartoum between the Sudanese Armed Forces (SAF) and an influential militia group, the Rapid Support Force (RSF),
Perseus withdrew most of its employees from the MSGP site pending resolution of the conflict.
Perseus has been actively monitoring the situation in Sudan, along with a team of international security specialists as the safety of all of staff is the number one priority in this situation.
The company has a range of measures in place to appropriately respond to any change in circumstances.
“Threat has abated”
Although hostilities between the combatants continue in certain parts of Sudan, the area in which MSGP is located has not been the scene of conflict, and in fact there have been no reported incidents in an area of about 250,000 square kilometres around the site.
Perseus managing director and CEO Jeff Quartermaine said: “Our decision to temporarily withdraw our people from the Meyas Sand Gold Project site in April was taken with their safety and security in mind.
"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."
Secured by security force
The MSGP site will be secured by a security force led by Perseus’ 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’ office in Khartoum which was established to service the MSGP, remains closed with alternative arrangements in place to service the MSGP site.
No impact on gold production
"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 and currently deliver more than 500,000 ounces of gold per year at an AISC of less than US$1,000 per ounce,” Quartermaine said.
"In the first two months of the June 2023 quarter, Perseus’ operations have continued to perform strongly, strengthening our balance sheet and placing the company in a position to continue to prudently grow our business and deliver material benefits to all of our stakeholders.”
The company’s Board of Directors was scheduled to make a Final Investment Decision on the MSGP in the second half of 2023 however, this decision has been deferred for the foreseeable future.