West African gold developer Perseus Mining's (ASX: PRU) shares have been running with the bulls since July, and a picture is beginning to emerge of a 6-10 million ounce gold company, that is on the verge of even greater things in Ghana and the Ivory Coast.
Located in the Ashanti Gold Belt, host to over 100Moz of gold, Perseus' Ayanfuri project and Ghana has reserves and resources of over 6 million ounces of gold.
As importantly, for investors, only 2.5Moz of Measured & Indicated resources from three of the eight deposits with resources at Ayanfuri were considered for the estimation of the maiden 2.1Moz Proven and Probable Reserves.
So it would be a brave man who would bet against further significant increases in gold inventory, given the prospectivity of the ground.
A Phase 2 feasibility study is now underway to incorporate the remaining 3.2Moz of resources with the view to increasing reserves, the mine life and the project economics at Ayanfuri.
Fast forward, and Perseus has just released a stunning array of exploration results from a RC and diamond drilling program at the Sissingue prospect situated in its Tengrela gold project in the West African nation of Ivory Coast.
Mark Calderwood and his team at Perseus have intercepted some huge high grade gold, including a spectacular 20m at 65.5g/t, 14m at 28.7g/t, 15m at 15.1g/t and 32.8m at 4.9g/t Au.
Gold resource at Tengrela is 1 million ounces.
Year one production from Ayanfuri alone is targeted at 230,000 oz in Q3 2011. With country risk out largely out of the equation in mining-friendly Ghana, positions Perseus as one to watch and bound to be on the "watch-list" of larger investors and producers.
Gold production is targeted for 2012 of approximately 100,000 ozpa at Tengrela.
Mark Calderwood said the company is pleased to get continuity to the very high grade mineralisation at Tengrela in a region renowned for exceptional gold grades, such as at Morila and Tabakoroni. These grades have the potential to enhance the feasibility study which is currently underway.
RAB drilling 4.5 km along strike to the north of the previous northern limit of the Sissingue zone intercepted significant mineralisation, including 16m at 1.1gpt and 4m at 10.3 gpt Au. Additional drilling will be undertaken between Sissingue and the recent discovery to test potential below transported cover.
Major shareholder Dundee Corporation knows a thing or two about backing potential large scale mines, at early stages.