Teranga Gold Corporation (“Teranga” or the “Company”) (TSX:TGZ)
(OTCQX:TGCDF) is pleased to announce an updated mineral resource
estimate for its Wahgnion gold development project (“Wahgnion”) in
Burkina Faso, West Africa.
Based on drill results from a 73,000-metre
infill drill program completed in 2017, the updated combined
measured and indicated mineral resource is now 50.5 million tonnes
at a grade of 1.51 g/t for 2.4 million contained ounces of
gold. This represents a 33% increase from 1.8 million
contained ounces of gold previously announced in the feasibility
study released on September 7, 2017. Teranga expects to release an
updated mineral reserve estimate and related NI 43-101 technical
report for Wahgnion in the third quarter of 2018.
“Based on these excellent results, we are
targeting a conversion rate of more than 50% of these additional
600,000 ounces of mineral resources into reserves, exceeding our
guidance range of between 175,000 and 350,000 ounces of gold,” said
Richard Young, President and Chief Executive Officer.
Added Mr. Young, “With financing in place and
major construction advancing, we are on our way to building a
mid-tier gold producer in West Africa.”
Wahgnion, which will be the Company’s second
mine, is expected to increase company-wide annualized production by
50% to between 300,000 and 350,000 ounces. First gold pour is
expected by the end of 2019.
“The 2017 drill program and subsequent resource
modeling has identified areas within the reserve deposits for a
future follow-up drill program, providing an opportunity to further
increase reserves. In addition, we will continue to focus on
a number of highly prospective exploration targets within trucking
distance of the plant in order to further extend Wahgnion’s mine
life. Ultimately, we think Wahgnion has the potential to have
a mine life in the 15 to 20 year range as we continue to develop
these targets,” said Paul Chawrun, Chief Operating Officer.
Wahgnion Construction
Update
Construction at Wahgnion is on track. The
plant design is complete and detailed engineering is on schedule to
support site construction. Major construction of the processing
facility is underway, with structural concrete of the leach circuit
and mill foundations having commenced in May. The development of
site infrastructure is also moving forward on schedule: the water
harvest dam is complete, permanent camp facilities are near
completion and preparation of the mine services area, site access
roads and tailings management facility are progressing well.
Open Pit Mineral Resources
Summary
2018 Mineral Resources
|
Measured Resources |
Indicated Resources |
Measured + Indicated Resources |
Inferred Resources |
Deposit |
Mtonnes |
Grade (Au g/t) |
Moz |
MTonnes |
Grade (Au
g/t) |
Moz |
MTonnes |
Grade (Au g/t) |
Moz |
MTonnes |
Grade (Au g/t) |
Moz |
Nogbele N/Nangolo |
1.62 |
1.26 |
0.07 |
22.50 |
1.40 |
1.02 |
24.12 |
1.39 |
1.08 |
2.65 |
1.27 |
0.11 |
Samavogo |
0.00 |
0.00 |
0.00 |
8.06 |
1.91 |
0.49 |
8.06 |
1.91 |
0.49 |
1.46 |
1.65 |
0.08 |
Stinger |
0.16 |
2.15 |
0.01 |
8.30 |
1.56 |
0.42 |
8.46 |
1.58 |
0.43 |
0.57 |
1.56 |
0.03 |
Nogbele S |
0.46 |
1.81 |
0.03 |
4.71 |
1.29 |
0.19 |
5.18 |
1.33 |
0.22 |
0.33 |
1.14 |
0.01 |
Fourkoura |
0.59 |
1.63 |
0.03 |
4.10 |
1.42 |
0.19 |
4.69 |
1.45 |
0.22 |
0.24 |
1.53 |
0.01 |
Total |
2.83 |
1.48 |
0.13 |
47.67 |
1.51 |
2.31 |
50.50 |
1.51 |
2.44 |
5.25 |
1.41 |
0.24 |
Notes for Mineral Resources Estimate (effective
May 31, 2018):
- CIM definitions were followed for Mineral Resources.
- Mineral Resources are reported at cut-off grades ranging from
0.320 g/t Au to 0.403 g/t Au in oxide, and at cut-off grades
ranging from 0.388 g/t Au to 0.541 g/t Au in transition and primary
rock.
- High grade assays were capped at grades ranging from 5 to 48
g/t Au.
- Mineral Resources are estimated using a long-term gold price of
US$1,500 per ounce, adjusted to match existing industry
standards.
- A minimum thickness of two metres was applied.
- Mineral Resources are inclusive of Mineral Reserves.
- Mineral Resources are constrained by resource pit shells.
- Totals may not add due to rounding.
2017 Mineral Resources
|
Measured Resources |
Indicated Resources |
Measured + Indicated Resources |
Inferred Resources |
Deposit |
Mtonnes |
Grade (Au g/t) |
Moz |
MTonnes |
Grade (Au g/t) |
Moz |
MTonnes |
Grade (Au g/t) |
Moz |
MTonnes |
Grade (Au g/t) |
Moz |
Nogbele |
1.17 |
1.47 |
0.06 |
17.92 |
1.43 |
0.82 |
19.08 |
1.43 |
0.88 |
9.11 |
1.18 |
0.34 |
Samavogo |
0.00 |
0.00 |
0.00 |
6.62 |
2.05 |
0.44 |
6.62 |
2.05 |
0.44 |
3.75 |
1.92 |
0.23 |
Stinger |
0.16 |
2.16 |
0.01 |
6.09 |
1.67 |
0.33 |
6.24 |
1.69 |
0.34 |
1.98 |
1.45 |
0.09 |
Fourkoura |
0.36 |
1.57 |
0.02 |
3.02 |
1.60 |
0.16 |
3.38 |
1.60 |
0.17 |
0.98 |
1.33 |
0.04 |
Total |
1.68 |
1.55 |
0.08 |
33.65 |
1.61 |
1.74 |
35.33 |
1.61 |
1.83 |
15.82 |
1.40 |
0.71 |
Notes for Mineral Resources Estimate:
- CIM definitions were followed for Mineral Resources.
- Open pit oxide Mineral Resources are estimated at cut-off
grades ranging from 0.35 g/t Au to 0.45 g/t Au.
- Open pit transition and fresh rock Mineral Resources are
estimated at cut-off grades ranging from 0.45 g/t Au to 0.55 g/t
Au.
- High grade assays were capped at grades ranging from 2.5 g/t Au
to 48.0 g/t Au.
- Mineral Resources are estimated using a gold price of $1,450
per ounce.
- A minimum thickness of two metres was applied.
- Mineral Resources are inclusive of Mineral Reserves.
- Mineral Resources are constrained by resource pit shells.
- Totals may not equal due to rounding.
Qualified Persons Statement
The technical information contained in this
document relating to Wahgnion mineral resource estimates is based
on, and fairly represents, information compiled by Ms. Patti
Nakai-Lajoie. Ms. Nakai-Lajoie, P. Geo., is a Member of the
Association of Professional Geoscientists of Ontario. Ms.
Nakai-Lajoie is a full time employee of Teranga and is not
"independent" within the meaning of NI 43-101. Ms.
Nakai-Lajoie has sufficient experience which is relevant to the
style of mineralization and type of deposit under consideration and
to the activity which she is undertaking to qualify as a "Qualified
Person" under NI 43-101 Standards of Disclosure for Mineral
Projects. Ms. Nakai-Lajoie has consented to and approved the
inclusion in this document of the matters based on her compiled
information in the form and context in which it appears in this
document.
In 2017 the Company prepared an independent NI
43-101-compliant technical report for the Wahgnion Gold Project
(then known as the Banfora Gold Project) which is available under
the Company's SEDAR profile at www.sedar.com: “Technical Report on
The Banfora Gold Project, Burkina Faso, West Africa”, prepared by
Roscoe Postle Associates Inc., and with an effective date of
September 7, 2017.
This technical report includes relevant
information regarding the effective dates and the assumptions,
parameters and methods of the mineral resource estimates for the
Wahgnion Gold Project as well as information regarding data
verification, exploration procedures and other matters relevant to
the scientific and technical disclosure contained in this press
release.
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. Specific forward-looking statements in this
press release include statements regarding better economics and
longer mine life at the Wahgnion Gold Project resulting from
increased mineral resources, statements about the anticipated
increase in mineral resources of between 175,000 to 350,000 ounces
of gold, 50% conversion of the 600,000 additional mineral resources
into reserves, statements about the Wahgnion Gold Project
increasing annualized gold production by 50% to between 300,000 and
350,000 ounces, and statements about first gold pour in 2019.
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, the accuracy of mineral reserves and
mineral resources estimates, accuracy of sampling, results of
analytical and test data, changes in gold price, exchange rates,
fuel and energy costs, future economic conditions, and anticipated
future estimates of free cash flow, the availability of equipment
and infrastructure, the ability of parties to contracts to perform
as anticipated, the possibility of terrorism, civil strife or war,
and lack of unforeseen technological, engineering or geological
problems. Teranga cautions you not to place undue reliance upon any
such forward-looking statements.
In addition, this press release also contains
references to estimates of mineral resources and mineral reserves.
The estimation of mineral resources is inherently uncertain and
involves subjective judgments about many relevant factors.
Estimates of mineral reserves provide more certainty but still
involve similar subjective judgements. Mineral resources that are
not mineral reserves do not have demonstrated economic viability.
The accuracy of any such estimates is a function of the quantity
and quality of available data, and of the assumptions made and
judgments used in engineering and geological interpretation
(including estimated future production from the company's projects,
the anticipated tonnages and grades that will be mined and the
estimated level of recovery that will be realized), which may prove
to be unreliable and depend, to a certain extent, upon the analysis
of drilling results and statistical inferences that ultimately may
prove to be inaccurate. Mineral resource or mineral reserve
estimates may have to be re-estimated based on: (i) fluctuations in
the price of gold or other minerals; (ii) results of drilling;
(iii) metallurgical testing and other studies; (iv) proposed mining
operations, including dilution; (v) the evaluation of mine plans
subsequent to the date of any estimates and/or changes in mine
plans; (vi) the possible failure to receive required permits,
approvals and licences; and (vii) changes in law or regulation.
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 6,400 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