Teranga Gold Corporation ("Teranga" or the "Company") (TSX:TGZ)
(OTCQX:TGCDF) is pleased to announce that its phase 2 diamond drill
program at the C-Zone prospect on the Golden Hill property in
Burkina Faso, West Africa has returned near surface and deeper
high-grade gold intersections.
Teranga has an earn-in agreement on Golden Hill
with Boss Resources Limited (ASX:BOE) pursuant to which Teranga, as
operator, can earn an 80% interest in the joint venture upon
delivery of a feasibility study and the payment of AUD2.5
million.
C-Zone Prospect – Phase 2 Highlight
Results
- 7 m @ 21.86 g/t gold, including 1 m @ 136.01 g/t gold
(GHDD-290) uncut grade from 26 m downhole depth (DHD) – refer to
Table 1 for both uncut and cut grade intervals for GHDD-290
- 10 m @ 6.03 g/t gold, including 1 m @ 23.85 g/t gold (GHDD-247)
from 91 m DHD
- 12 m @ 3.91 g/t gold, including 5 m @ 6.66 g/t gold (GHDD-245)
from 84 m DHD
- 8 m @ 3.64 g/t gold (GHDD-272) from 35 m DHD
“The phase 2 drill results released today
elevate C-Zone to the category of advanced exploration prospect
from a drill target. Significantly, these results substantiate the
continuity of gold mineralization in all dimensions with room to
expand mineralization laterally and to depth,” said Richard Young,
President & CEO. “This second phase of results from C-Zone
strengthen our confidence that Golden Hill will play a key role in
helping us achieve our vision of becoming the next multi-asset,
mid-tier gold producer in West Africa.”
C-Zone is just one of a series of advanced
exploration prospects at Golden Hill all located within six
kilometres of a central point (Figure 1 in Appendix). To-date, the
Company has drill tested C-Zone with diamond core drilling over a
minimum strike extent of approximately 600 metres (Figure 2 in
Appendix). Gold mineralization is localized within a discrete,
mafic volcanic hosted, northwest-southeast striking shear zone
system that displays alteration, veining and breccia
characteristics similar to those observed at Golden Hill’s nearby
high-grade Ma and Ma North prospects.
Work at Golden Hill is advancing rapidly.
Teranga is investing $8 million in Golden Hill drill programs in
2018. The Company plans to release an initial resource for the
project’s most advanced prospects by year end. Preliminary
metallurgical test work programs are underway and base line
environmental studies are planned for later this year. Teranga has
secured $25 million for future advancement of its Golden Hill
project to feasibility study.
C-Zone Prospect: ~600-Metre Strike Extent
The C-Zone prospect is located just south of
Peksou, another of the Companies advanced prospects at Golden Hill,
and now has a defined strike length of approximately 600 metres.
Historical drilling at C-Zone was at shallow depths, below which
the Company has targeted down-dip extensions of previously
intersected gold mineralization.
The Company’s phase 1 drilling at C-Zone
confirmed that the gold mineralized zones continue to depth and
include previously released drill results (Teranga news release
dated February 1, 2018) of:
- 6 m @ 4.64 g/t Au (GHDD-188) from 52 m DHD
- 11 m @ 4.87 g/t Au (GHDD-189) from 52 m DHD
- 14 m @ 1.76 g/t Au (GHDD-190) from 67 m DHD
- 8 m @ 3.76 g/t Au (GHDD191) from 61 m DHD
- 10 m @ 1.91 g/t Au (GHDD-192) from 45 m DHD
Highlight diamond drill results from the recent
phase 2 drilling at C-Zone are reported within this news release
(Table 1). Two representative cross-sections, demonstrating very
good correlation of results from our ongoing drilling evaluation at
C-Zone, are included (Figures 3 and 4 in the Appendix). Cumulative
results from the C-Zone prospect drilling are available on the
Company’s website www.terangagold.com under Exploration.
“Our drilling program at Golden Hill continues
to provide excellent gold intersections at multiple prospects,”
said David Mallo, Vice President, Exploration. “Through C-Zone’s
recently completed phase 2 drill program, we have identified both
lateral and to depth extensions of favorable gold mineralization
beyond the limited historical drilling. We are also encouraged to
observe a nearly identical host scenario to that identified at our
most advanced set of Ma prospects.”
Golden Hill Property
The Golden Hill property is comprised of three
adjacent exploration permits covering 470 km2 located in southwest
Burkina Faso in the central part of the Houndé Greenstone Belt.
This belt hosts a number of high-grade gold discoveries, including
the Siou, Yaramoko and Houndé deposits, the latter being contiguous
with Golden Hill. To the south of Golden Hill is another large land
position where active exploration programs are well underway.
Drilling Results Tables
Table 1: C-Zone Prospect – Selected Drill
Highlights
Hole # |
Northing * |
Easting * |
Elevation |
Azimuth |
Dip |
EOH(m) |
Interval (m)* |
Core length (m)* |
Grade (g/t Au) |
GHDD-245 |
1227284 |
451772 |
306 |
020 |
-55 |
116 |
50-51 |
1 |
2.55 |
|
|
|
|
|
|
|
57-58 |
1 |
3.58 |
|
|
|
|
|
|
|
84-96 |
12 |
3.91 |
|
|
|
Including |
|
|
|
90-96 |
6 |
6.34 |
|
|
|
|
|
|
|
99-101 |
2 |
4.46 |
|
|
|
|
|
|
|
112-113 |
1 |
29.99 |
|
|
|
|
|
|
|
|
|
|
GHDD-246 |
1227280 |
451809 |
305 |
020 |
-55 |
119 |
74-80 |
6 |
1.33 |
|
|
|
|
|
|
|
90-93 |
3 |
6.33 |
|
|
|
|
|
|
|
|
|
|
GHDD-247 |
1227256 |
451845 |
306 |
020 |
-55 |
119 |
32-33 |
1 |
2.60 |
|
|
|
|
|
|
|
91-100 |
9 |
6.04 |
|
|
|
Including |
|
|
|
91-94 |
3 |
11.30 |
|
|
|
And |
|
|
|
98-99 |
1 |
14.15 |
|
|
|
|
|
|
|
|
|
|
GHDD-249 |
1227328 |
451999 |
302 |
020 |
-55 |
92 |
12-14 |
2 |
2.08 |
|
|
|
|
|
|
|
23-27 |
4 |
2.59 |
|
|
|
|
|
|
|
29-33 |
4 |
1.03 |
|
|
|
|
|
|
|
|
|
|
GHDD-250 |
1227226 |
451920 |
306 |
020 |
-55 |
131 |
76-77 |
1 |
1.79 |
|
|
|
|
|
|
|
94-99 |
5 |
1.11 |
|
|
|
|
|
|
|
|
|
|
GHDD-272 |
1227397 |
451682 |
314 |
020 |
-55 |
81 |
35-43 |
8 |
3.64 |
|
|
|
|
|
|
|
|
|
|
GHDD-273 |
1227301 |
451946 |
303 |
020 |
-55 |
75 |
28-30 |
2 |
6.19 |
|
|
|
|
|
|
|
39-43 |
4 |
3.45 |
|
|
|
|
|
|
|
|
|
|
GHDD-274 |
1227409 |
451647 |
316 |
020 |
-55 |
56 |
37-41 |
4 |
2.18 |
|
|
|
|
|
|
|
|
|
|
GHDD-275 |
1227427 |
451610 |
312 |
020 |
-55 |
59 |
36-39 |
3 |
1.95 |
|
|
|
|
|
|
|
|
|
|
GHDD-276 |
1227362 |
451671 |
312 |
020 |
-55 |
78 |
57-59 |
2 |
2.84 |
|
|
|
|
|
|
|
|
|
|
GHDD-285 |
1227301 |
452075 |
299 |
020 |
-55 |
107 |
49-53 |
4 |
1.31 |
|
|
|
|
|
|
|
|
|
|
GHDD-286 |
1227278 |
452023 |
306 |
020 |
-55 |
119 |
55-56 |
1 |
2.18 |
|
|
|
|
|
|
|
69-70 |
1 |
2.39 |
|
|
|
|
|
|
|
77-78 |
1 |
10.13 |
|
|
|
|
|
|
|
|
|
|
GHDD-287 |
1227249 |
451973 |
301 |
020 |
-55 |
110 |
|
Results |
Pending |
|
|
|
|
|
|
|
|
|
|
GHDD-288 |
1227214 |
451960 |
301 |
020 |
-55 |
133 |
107-112 |
5 |
1.89 |
|
|
|
|
|
|
|
128-130 |
2 |
4.35 |
|
|
|
|
|
|
|
|
|
|
GHDD-289 |
1227286 |
452213 |
300 |
330 |
-55 |
89 |
25-27 |
2 |
4.83 |
|
|
|
|
|
|
|
57-58 |
1 |
3.72 |
|
|
|
|
|
|
|
63-68 |
5 |
1.44 |
|
|
|
|
|
|
|
|
|
|
GHDD-290 |
1227353 |
452267 |
299 |
330 |
-55 |
86 |
26-33** |
7** |
21.86** |
|
|
|
Including |
|
|
|
31-32** |
1** |
130.01** |
|
|
|
|
|
|
|
26-33*** |
7*** |
6.72*** |
|
|
|
including |
|
|
|
31-32*** |
1*** |
30.00*** |
|
|
|
|
|
|
|
35-36 |
1 |
4.00 |
|
|
|
|
|
|
|
63-67 |
4 |
1.99 |
|
|
|
|
|
|
|
71-75 |
4 |
4.81 |
* Intervals calculated with a 0.4 g/t Au cut-off and 2
metres maximum internal dilution. True widths are unknown. UTM's
are WGS84-30N |
Intervals with grade x thickness (gram x metre) of 10
or higher are highlighted in bold. **Uncut grade intervals for
GHDD-290. ***Cut grade intervals for GHDD-290 – individual
assays in excess of 30.0 g/t Au are cut to 30.0 g/t Au. |
Competent Persons Statements
Teranga's exploration programs in Burkina Faso
are being managed by Peter Mann, FAusIMM. Mr. Mann is a full time
employee of Teranga and is not "independent" within the meaning of
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects (“NI 43-101”). Mr. Mann has sufficient experience which is
relevant to the style of mineralization and type of deposit under
consideration and to the activity which he is undertaking to
qualify as a "Qualified Person" under NI 43-101. The technical
information contained in this news release relating to exploration
results are based on, and fairly represents, information compiled
by Mr. Mann. Mr. Mann has verified and approved the data disclosed
in this release, including the sampling, analytical and test data
underlying the information. The RC and diamond core samples are
assayed at the BIGS Global Laboratory in Ouagadougou, Burkina Faso.
Mr. Mann has consented to the inclusion in this news release of the
matters based on his compiled information in the form and context
in which it appears herein.
Forward-Looking Statements
This press release contains certain statements
that constitute forward-looking information within the meaning of
applicable securities laws ("forward-looking statements"), which
reflects management's expectations regarding Teranga's future
growth and business prospects (including the timing and development
of new deposits and the success of exploration activities) and
opportunities. Wherever possible, words such as “objective to”,
“likely”, “intend to”, “potential”, “belief”, “believe”, “expects”,
“estimates”, “plans”, “anticipated”, “ability” and similar
expressions or statements that certain actions, events or results
“should”, or "will" have been used to identify such forward-looking
information. Forward-looking statements include, without
limitation, all disclosure regarding possible events, conditions or
results of operations, future economic conditions and anticipated
courses of action. Although the forward-looking statements
contained in this press release reflect management's current
beliefs based upon information currently available to management
and based upon what management believes to be reasonable
assumptions, Teranga cannot be certain that actual results will be
consistent with such forward-looking statements. Such
forward-looking statements are based upon assumptions, opinions and
analysis made by management in light of its experience, current
conditions and its expectations of future developments that
management believe to be reasonable and relevant but that may prove
to be incorrect. These assumptions include, among other things, the
ability to obtain any requisite governmental approvals, including
renewals of the Golden Hill exploration permits in 2018, the
accuracy of sampling, analytical and test data underlying the
exploration results included herein, gold price, exchange rates,
fuel and energy costs, future economic conditions, and anticipated
future estimates of free cash flow. Teranga cautions you not to
place undue reliance upon any such forward-looking statements.
The risks and uncertainties that may affect
forward-looking statements include, among others: the inherent
risks involved in exploration and development of mineral
properties, including government approvals and permitting, changes
in economic conditions, changes in the worldwide price of gold and
other key inputs, changes in mine plans and other factors, such as
project execution delays, many of which are beyond the control of
Teranga, as well as other risks and uncertainties which are more
fully described in Teranga's Annual Information Form
dated March 29, 2018, and in other filings of Teranga with
securities and regulatory authorities which are available
at www.sedar.com. Teranga does not undertake any obligation to
update forward-looking statements should assumptions related to
these plans, estimates, projections, beliefs and opinions change.
Nothing in this document should be construed as either an offer to
sell or a solicitation to buy or sell Teranga securities. All
references to Teranga include its subsidiaries unless the context
requires otherwise.
About Teranga
Teranga is a multi-jurisdictional West African
gold company focused on production and development as well as the
exploration of more than 5,000 km2 of land located on
prospective gold belts. Since its initial public offering in 2010,
Teranga has produced more than 1.4 million ounces of gold from its
operations in Senegal, which as of June 30, 2017 had
a reserve base of 2.7 million ounces of gold. Focused on
diversification and growth, the Company is advancing its Wahgnion
Gold Project, with a recently released positive feasibility study,
and conducting extensive exploration programs in three countries:
Burkina Faso, Senegal and Côte d’Ivoire. Teranga has a
strong balance sheet and the financial flexibility to execute on
its growth strategy. The Company has nearly 4.0 million ounces of
gold reserves from its combined Sabodala Gold operations and
Wahgnion Gold Project.
Steadfast in its commitment to set the benchmark
for responsible mining, Teranga operates in accordance with the
highest international standards and aims to act as a catalyst for
sustainable economic, environmental, and community development as
it strives to create value for all of its stakeholders. Teranga is
a member of the United Nations Global Compact and a leading member
of the multi-stakeholder group responsible for the submission of
the first Senegalese Extractive Industries Transparency Initiative
revenue report. The Company's responsibility report is available at
www.terangagold.com/responsibilityreport and is prepared in
accordance with its commitments under the United Nations Global
Compact and in alignment with the Global Reporting Initiative
guidelines.
Contact Information
Richard Young President
& CEO T: +1 416-594-0000 | E: ryoung@terangagold.com |
Trish MoranHead of
Investor RelationsT: +1 416-607-4507 | E:
tmoran@terangagold.com |
Figure 1: Golden Hill Property – Prospect Location Plan
Map
http://resource.globenewswire.com/Resource/Download/3e12e016-011f-4114-8b4f-64f7c22d2735
Figure 2: C-Zone Prospect – Drill
Plan
http://resource.globenewswire.com/Resource/Download/f6817fec-d8e8-49e1-9f06-4ae2ac73a34a
Figure 3: C-Zone Prospect – Representative Drill
Section A-A’ (1+20 E)
http://resource.globenewswire.com/Resource/Download/5c17a487-5d01-4d64-831a-8f26c1361f79
Figure 4: C-Zone Prospect – Representative Drill
Section B-B’ (0+40 E)
http://resource.globenewswire.com/Resource/Download/bf21d32d-4414-435a-be8c-185fa8956fed