Teranga Gold Corporation ("Teranga" or the "Company") (TSX:TGZ;
OTCQX:TGCDF) is pleased to announce that its second mine, Wahgnion
Gold Operations (“Wahgnion”), began processing ore during August.
Wahgnion, which is located in the southwest portion of Burkina
Faso, West Africa, is expected to produce 30,000 to 40,000 ounces
of gold in 2019.
Commissioning: August Plant
Physicals
- 117,712 tonnes of low-grade ore
processed during commissioning
- Average grade: 1.04 grams of gold
per tonne
- Average recovery rate: 94.7%
- Gold production: 3,720 ounces
- Gold poured: 1,743 ounces
“During August, we successfully commissioned the
Wahgnion plant and are pleased to report that all aspects of the
plant are now operational. Fine tuning will continue during
September with throughput and grade expected to ramp up during the
fourth quarter, in line with our guidance. Typical with
commissioning, low grade ore was used to ensure the extraction
process is working well before putting higher grade material into
the circuit,” said Paul Chawrun, Chief Operating Officer. “We were
able to start production ahead of schedule due to the dedication of
our owner’s team led by Metifex, as well as our EPCM partner
Lycopodium.”
Mr. Chawrun added, “With safety front and
centre, the commissioning phase was completed without a single lost
time injury, encompassing over 5.3 million hours worked. This
accomplishment reflects the hard work and dedication of all of our
employees and contractors, and is aligned with our commitment to
responsible mining.”
Wahgnion Highlights
- 13-year mine life
- Proven & probable mineral
reserves: 1.61 million ounces of gold (31.07 million ore tonnes
grading 1.61 grams per tonne)
- First five years of operation
(2020-2024):○ Average annual gold production of 132,000
ounces○ Average mill grade of 1.83 grams per
tonne○ Average all-in sustaining costs of $761 per
ounce(1)
- First gold pour achieved two months
ahead of original schedule
- Construction costs expected to be
under budget
- Consolidated annual gold production
expected to increase by 50% to 300,000-350,000 ounces in
2020(2)(3)
“We are very excited to report that construction
is complete and that we have achieved first gold pour at Wahgnion,
two months ahead of schedule. This moves us a step closer to
reaching our goal of becoming a mid-tier gold producer in West
Africa,” said Richard Young, President and Chief Executive
Officer.
“We want to thank the government of Burkina Faso
for their support since we purchased Wahgnion in October 2016, and
to commend our entire team for taking this project from exploration
to production in less than three years, ahead of the original
schedule and expected to be under budget,” added Mr. Young.
During construction, Teranga recruited and
trained more than 650 skilled workers to work at Wahgnion.
Recently, the Company transitioned 70 of these employees from
construction into operational roles. In addition to a smooth ramp
up to commercial production, Teranga is focusing on its local
social responsibility efforts, such as building new housing and
providing livelihood restoration programs to some near-mine
communities, including the development of irrigated agriculture,
increased crop production, animal husbandry, training and support
to launch small businesses, and sustainable income-generating
activities for local women.
Increasing Production and Achieving
Multi-jurisdictional Status at a Time of Strong Gold
Prices
With Wahgnion now producing gold and Sabodala,
the Company’s flagship mine in Senegal, Teranga now operates two
mines in two jurisdictions. Teranga anticipates its 2020
consolidated annual production to increase to between 300,000 and
350,000 ounces(2)(3). Free cash flow is expected to be used to fund
Teranga’s growth plans at Wahgnion, Sabodala, and Golden Hill, the
Company’s most advanced exploration property.
Wahgnion Drill Program Aimed at Future
Growth
Commencing in 2020-2021, the Company plans to
embark on a multi-year exploration and drilling program, which will
focus on highly prospective exploration targets within trucking
distance of the plant, to further optimize the mine plan and extend
Wahgnion’s mine life. The current reserve estimate and mine plan
include only the four initial deposits on the mine license.
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Endnotes |
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(1) |
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The Wahgnion NI 43-101 technical report was amended and restated
following comments from the OSC as part of its review of the
Company’s application to file a preliminary shelf prospectus. The
amendments related only to an updated cash flow model using various
discount rates. For further details, please refer to the Amended
and Restated Wahgnion Gold Operations technical report dated July
31, 2019, filed on the Company’s website
www.terangagold.com or www.sedar.com. |
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(2) |
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This production target is based on proven and probable ore reserves
only for Teranga’s Wahgnion Gold Operations as at May 31, 2018. For
more information regarding the Wahgnion’s Mineral Reserves and
Resources and related notes, please refer to the NI 43-101
compliant technical report for the Amended and Restated Wahgnion
Gold Operations dated July 31, 2019 available on the Company’s
website at www.terangagold.com and SEDAR at
www.sedar.com. |
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(3) |
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This production target is based on proven and probable reserves
only from Teranga’s Sabodala Gold Operations as of December 31,
2018. For more information regarding Teranga Gold’s Mineral
Reserves and Resources and related notes, please refer to the
Company’s Amended Annual Information Form, which is available on
the Company’s website at www.terangagold.com and on SEDAR at
www.sedar.com. |
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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 press release include,
but are not limited to, forecasting gold production of between
215,000 and 230,000 ounces of gold at Sabodala and between 30,000
and 40,000 ounces at Wahgnion in 2019, and consolidated gold
production of between 300,000 and 350,000 ounces in 2020. 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.
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, 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 approximately 6,400 km2 of land located on
prospective gold belts. Since its initial public offering in 2010,
Teranga has produced more than 1.8 million ounces of gold at its
Sabodala operation in Senegal. Focused on diversification and
growth, the Company is preparing for the first gold pour at its
second gold mine, Wahgnion, which is located in Burkina Faso, as
well as carrying out exploration programs in three West African
countries: Burkina Faso, Côte d’Ivoire and Senegal. The
Company had more than 4.1 million ounces of mineral gold reserves
as of December 31, 2018. Teranga applies a rigorous capital
allocation framework for its investment decisions and is focused on
funding future organic growth plans responsibly.
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 participant 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.
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Contact Information |
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Richard Young |
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Trish Moran |
President & CEO |
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VP, Investor Relations & Corporate Communications |
T: +1 416-594-0000 | E: ryoung@terangagold.com |
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T: +1 416-607-4507 | E: tmoran@terangagold.com |
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A photo accompanying this announcement is available
at: https://www.globenewswire.com/NewsRoom/AttachmentNg/0f98b524-1006-46a7-84da-51a1d2dd6507