Sabodala is well on track to produce at least
230,000 ounces of gold1 in 2018, Wahgnion is expected to add more
than 350,000 ounces to mineral reserves, and Golden Hill initial
resource to be released in January
Representatives of Teranga Gold Corporation ("Teranga" or the
"Company") (TSX:TGZ) (OTC:TGCDF) will speak this week and next at
two leading industry conferences, focusing on the Company’s strong
year-to-date operating results, its organic growth pipeline and its
path to becoming a multi-asset, mid-tier gold producer in West
Africa.
“We look forward to discussing the progress we
have made in 2018 at our production, development and exploration
properties with industry audiences during the upcoming conferences
in Colorado,” said Richard Young, President and Chief Executive
Officer. “Construction of our second mine, Wahgnion, is largely on
budget and is on schedule for first pour by the end of next year.
Once in operation, Wahgnion is expected to increase company-wide
production by 50% to between 300,000 and 350,000 ounces of gold,
moving the Company one step closer to mid-tier producer
status.”
Sabodala: Well on Track to Achieve 2018
Production and Cost GuidanceFollowing record production in
the first half of 2018, and with the expectation for a solid third
quarter, the Company’s flagship operation in Senegal is well on
track to meet 2018 production guidance of at least 230,000 ounces
of gold1 and to achieve per ounce cost guidance (cost of sales,
cash costs2 and all-in sustaining costs2).
Wahgnion: Upcoming Mineral Reserve
Estimate to Add at Least 350,000 OuncesBased on drill
results from a 73,000-metre infill drill program completed in 2017,
in June the Company announced a combined measured and indicated
mineral resource for Wahgnion of 2.4 million contained ounces of
gold3, an increase of 0.6 million ounces, or 33%, from the resource
previously announced in the feasibility study released on September
7, 2017. Teranga intends to issue an updated Wahgnion mineral
reserves estimate during the week of September 24, 2018, which it
anticipates will bring more than 50% of the additional 0.6 million
ounces of mineral resources into mineral reserves. An updated
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects technical report will be filed shortly thereafter.
Construction at Wahgnion, the Company’s second
mine, is progressing well. The project is on track with first pour
expected by the end of 2019. The capital budget remains largely in
line with the estimates outlined in the feasibility study. At the
half-way point through project commitments, the Company is not
seeing any material cost increases save for unfavourable variances
in fuel and foreign exchange rates during the construction
period.
Golden Hill: Advancing to Initial
ResourceGolden Hill continues to advance quickly. The
Company will issue an update on this advanced stage exploration
project later this week. Given the size and timing of the drill
program for the remainder of the year, an initial resource for
Golden Hill is expected in January 2019 rather than December 2018,
as originally planned.
Presentation Details
- Sepanta Dorri, Vice President Corporate and Stakeholder
Development, will present a live-streamed webcast at the Precious
Metals Summit in Beaver Creek, Colorado on Friday, September 21,
2018 at 8:45 a.m. MT / 10:45 a.m. ET.
- Richard Young, President and Chief Executive Officer, will
present at the Denver Gold Forum in Denver, Colorado on Tuesday,
September 25, 2018 at 5:00 p.m. MT / 7:00 p.m. ET. Webcasts for the
Denver Gold Forum are not live-streamed and will be available for
on-demand viewing starting Friday, September 28, 2018 at 7:00 a.m.
ET.
Both conference presentation webcasts will contain slides for
simultaneous viewing and will be accessible on Teranga’s website at
www.terangagold.com/events.
Endnotes
- This production target is based on proven and probable reserves
only from Teranga’s Sabodala Project as at June 30, 2017. For more
information regarding Teranga Gold’s Mineral Reserves and Resources
and related notes, please refer to the NI 43-101 compliant
technical report for the Sabodala Project dated August 30, 2017
available on the Company’s website at www.terangagold.com and
on SEDAR at www.sedar.com.
- Total cash costs and all-in sustaining costs per ounce are
non-IFRS performance measures with no standard meanings under IFRS.
For complete details of the Company’s Non-IFRS Performance
Measures, please see the Non-IFRS Performance Measures section in
Management’s Discussion & Analysis for the three and six months
ended June 30, 2018 available on the Company’s website at
www.terangagold.com.
- Please refer to the press release issued on June 7, 2018.
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 opportunities, results of operations,
performance (both operational and financial) and business prospects
(including the timing and development of new deposits and the
success of exploration activities) and other opportunities.
Wherever possible, words such as "plans", "expects", "does not
expect", "scheduled", "trends", "indications", "potential",
"estimates", "predicts", "anticipate" “to establish” or "does not
anticipate", "believe", "intend", "ability to" and similar
expressions or statements that certain actions, events or results
"may", "could", "would", "might", "will", or are "likely" to be
taken, occur or be achieved, have been used to identify such
forward looking information. Specific forward-looking statements in
this presentation include forecasting 2018 gold production of at
least 230,000 ounces in line with cost guidance, the conversion of
50% of the additional 0.6 million ounces of mineral resources into
mineral reserves and anticipated capital costs and timing of first
pour from the Wahgnion gold project. Although the forward-looking
information 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 information. 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
closing and timing of financing, the ability to obtain any
requisite governmental approvals, the accuracy of mineral reserve
and mineral resource estimates, gold price, exchange rates, fuel
and energy costs, future economic conditions, anticipated future
estimates of free cash flow, and courses of action. 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 licenses; 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 1.5
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 in Burkina Faso towards delivering its second
producing gold mine, as well as carrying out extensive exploration
programs in three West African countries: Burkina Faso, Côte
d’Ivoire and Senegal. The Company had nearly 4.0 million ounces of
gold reserves from its combined Sabodala Gold operations and
Wahgnion Gold Project as of June 30, 2017. Teranga applies a
rigorous capital allocation framework for its investment decisions
to execute on its growth strategy relying on a combination of cash
on the balance sheet, free cash flow from operations and debt.
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.
Contact
Information |
|
Richard Young |
Trish Moran |
President &
CEO |
Head of Investor
Relations |
T: +1 416-594-0000 | E:
ryoung@terangagold.com |
T: +1 416-564-4290 | E:
tmoran@terangagold.com |