TORONTO, ONTARIO -- (Marketwire) -- 07/11/11 -- Teranga Gold Corporation ("Teranga" or "the Company") (TSX: TGZ)(ASX: TGZ) is pleased to provide an interim quarter update of its Regional Exploration and Mine License exploration programs.
Highlights:
-- Drilling at the high-grade Gora deposit continues to return highly
mineralized intersections - with the resource remaining open in all
directions. A ground IP survey completed in June has delivered
additional anomalies for further follow up drilling.
-- Reconnaissance drilling has confirmed the potential for a new discovery
of a second regional deposit at Toumboumba, where drilling continues to
return ore-grade intersections.
-- Early drilling at Majiva returned several encouraging intersections from
the southern extension of the Niakafiri structural intersection. Further
exploration is planned.
-- Encouraging drill results on the Mine License suggest that the current
Sabodala pit will get deeper and extend to the north.
"We are getting some very exciting results from our Exploration Program, both regionally as well as on our Mine License," said Alan R. Hill, Chairman and CEO. "Though still early stages, I believe our objective of growing our reserve base in 2011 and 2012 is well underway."
Regional Exploration Update
Gora Project (located 22km from Sabodala Mill)
High-grade drill intersections continue to expand the potential footprint of the deposit, while a recently completed IP survey has revealed additional anomalies along strike and parallel to the current resource which are targeted for follow up drilling. The Company is running a number of processes in parallel to efficiently develop Gora as quickly as possible, including the ongoing exploration program, permitting and feasibility level economic analysis with the objective of having production as early as late 2012.
The exploration program continues to expand this high-grade deposit. The current drill program, scheduled to be completed this summer, is expected to test for the limits of the Gora vein system along strike and at depth and include sufficient close spaced drilling to understand the short range variability of the gold grades within the deposit. Follow up drilling to test the IP survey anomalies located both along strike and parallel to the current resource will require an expansion of the ongoing exploration program.
Drilling on the Gora deposit, where the Company has already (May 2, 2011) identified an inferred resource of 100,000+ ounces of gold at 6 grams per tonne ("gpt"), continues to return very high grade results. See Table 1, selected latest results include:
-- 2m @ 20.6 gpt Au from 88m from SKRCDD0039 -- 2m @ 27.3 gpt Au from 108m from SKRCDD0046 -- 2m @ 20.7 gpt Au from 79m from SKRCDD0047 -- 4m @ 23.2 gpt Au from 132m from SKRCDD0058 -- 3m @ 24.1 gpt Au from 155m from SKRCDD0059 -- 4m @ 34.1 gpt Au from 155m from SKRCDD0061
Drilling of the Gora Project began in early February with the following amounts of drilling completed this year:
-- In total, 107 reverse circulation ("RC") and diamond drill ("DD") holes
completed for a total of 18,000 drill metres.
-- Assay results are pending for fifteen holes.
The current phase drill program of approximately 25,000 metres of RC and DD drilling is scheduled to be completed by the end of July 2011. This program is designed to evaluate the resource of the deposit to a vertical depth of about 130 metres along its known strike extent.
Step out exploration drilling, beyond the current systematic program described above, aims to test key structural intersections located down dip where mineralized structures are expected to intersect a major intrusive body. Step out drilling has commenced with a minimum 2,400 metre DD drill program. Out of this nine hole program, five holes have been completed (SKRCDD0012, 67, 68, 69 and 90). Geological logging of these holes has confirmed the presence of the mineralized structure in all five holes to date with true widths of up to 12 metres. However, all assays are pending at this stage.
For the exploration of the immediate north and south strike extensions of the Gora vein system, a 6,200 metre program of mainly RC drilling is planned which may start as early as late July and continue through September, depending on rig availability and performance.
Beyond this, a further 10,000 metres of RC drilling and 5,000 metres of DD drilling will be required to test the entire strike extent of the Gora mineralized trend and nearby parallel IP anomalies. This program may commence as early as October 2011, or before if additional rigs can be sourced.
"We are very excited to see that the mineralization at Gora can be tracked well beyond the boundaries used in the last resource model. We are working on an updated model and resource estimate," added Mr. Hill. "Currently, grades from Gora are at least four times our reserve grade, which we expect will have a significant impact on our near term mill feed and potentially increasing production significantly."
Toumboumba (located 10km northwest of Sabodala Mill)
Toumboumba is the Company's latest discovery with potential to become the second regional deposit processed through the Sabodala Mill. The new discovery, located on the Sabodala North West permit, is largely covered by a laterite plateau with little to no outcrop. The original rotary air blast ("RAB") program, which began in April, has been expanded to encompass the entire structural domain that may host similar styles of mineralization. The expanded program also provides additional lines that are optimized to the mineralized structural trends. To date, 927 holes for 40,000 metres have been completed on nominal 100 x 50 metre grid. The current program will require a further 155 RAB holes for an estimated 6,200 metres which the Company expects to complete by August.
Assays for a large number of drill holes are currently pending. However, results to date have identified a series of north-south trending targets that are related to quartz veining and alteration hosted within a granitic intrusive body (Figure 1). As results are received additional target trends are being identified, expanding the exploration potential at Toumboumba. Of the latest assay results (Table 2) 27 RAB holes returned significant intersections over 0.5 gpt Au including:
-- 2m @ 6.65 gpt Au from 16m from SNWRB0230 -- 4m @ 6.06 gpt Au from 8m from SNWRB0299 -- 2m @ 32.87 gpt Au from 38m from SNWRB0314 -- 2m @ 3.57 gpt Au from 12m from SNWRB0385 -- 3m @ 6.34 gpt Au from 30m from SNWRB0386
In addition, 51 RAB holes returned intersections in the gold anomalous range (0.1 gpt Au to 0.5 gpt Au). The targets identified by the RAB program are the subject of the current RC drilling program.
To date, 33 RC holes for 5,400 metres have been completed, testing five north-south trending target zones defined by RAB drilling and historic surface gold geochemistry. RC drilling continues to return wide auriferous zones associated with hematite-carbonate-quartz alteration. Significant Aqua Regia based gold intersections received to date are listed in Table 3. Some of the most significant results include:
-- 6m @ 1.91 gpt from 17m including 1m @ 8.07 gpt from SNWRC007
-- 3m @ 17.15 gpt from 39m including 1m @ 50 gpt & 11m @ 1.12 gpt from 47m
including 1m @ 5.47 gpt from SNWRC009
-- 6m @ 2.68 gpt from 56m including 1m @ 8.79 gpt from SNWRC013
-- 3m @ 11.85 gpt from 36m including 1m @ 30.5 gpt from SNWRC015
-- 11m @ 5.18 gpt from 37m including 1m @ 37.6 gpt and 4m @ 6.23 gpt from
52m including 1m @ 21.8 gpt from SNWRC016
-- Results for holes SNWRC017 to SNWRC033 are pending.
A further 10 holes are planned to complete the preliminary testing of these trends. The RC rig will then be moved back to Majiva to continue the shallow RC testing on that prospect. The current rig has insufficient depth capacity to follow these targets down dip. Another rig and a booster compressor are on the way to improve the depth capacity. A second DD rig is also expected to be available for drilling at Toumboumba by mid-August.
The Company believes that at a minimum, Toumboumba could contain a near surface oxide resource, that may have potential for heap leach gold extraction. Significant upside remains at depth, which requires deeper drilling so that the oxide mineralization can be better traced into fresh bedrock. If the near surface mineralization continues at depth and can be confirmed in the other target zones, Toumboumba could become a significant deposit for the Company. A diamond rig as well as improved RC drill capacity are scheduled to arrive for further evaluation of this new discovery.
"Toumboumba is a very exciting target for us, we are seeing high grade veins within low-grade haloes and have currently identified 14 areas with multiple shear zones yet to be tested," added Mr. Hill.
Majiva (located 12 km south of Sabodala ML)
The Makana permit is one of several prospects located along a twelve kilometre strike length between Majiva and Niakafiri on the Sabodala ML. To date, a 5 kilometre strike length of gold-mineralized structure has been identified at Majiva.
Two diamond drill holes (MADD001 and MADD002) drilled in 2008 intersected a shear zone up to 80 metres wide with intense carbonate-silica-pyrite alteration, but at the time failed to intersect significant gold mineralization. RAB drilling in 2010 further evaluated this shear structure and identified a 2 kilometre long gold anomaly (Figure 2).
The Company has encountered encouraging early stage results from the first nine RC holes completed at Majiva, for a total of 1,800 metres. In total, 5,000 metres of RC drilling is planned for first pass exploration of the 5 kilometre target strike length. These holes are targeting a sub-surface gold anomaly defined by RAB drilling. The RC holes have intersected up to 50 metres of intense carbonate-silia-pyrite- albite alteration developed in basalts and felsic intrusive rocks. The alteration type is similar to what can be observed at the Niakafiri deposit on the Sabodala ML, a lower grade but softer ore that we anticipate can be processed through the Sabodala mill at a higher throughput rate than the harder ore from Sabodala. Aqua Regia gold results have been received for the nine RC holes listed in Table 4.
The mineralization encountered requires further drilling at depth and along strike to confirm its potential.
Mine License (ML) Update
Second quarter drilling results increases potential for Open Pit reserve expansion at Sabodala in 2011
Main Flat Extension
The Main Flat is the principal gold host in the Sabodala deposit. In the southern part of the deposit this structure dips shallowly to the west as it exits the ultimate pit. The Main Flat Extension drill program is designed to test the continuity of this structure to the north.
Drilling targeting the Main Flat Extension immediately adjacent to the current ultimate pit at a depth of 300 metres (about 50 metres below the ultimate pit bottom) confirms the continuation of the mineralized zone with further drilling planned. Gold grades intersected are typical of the Sabodala deposit, see Table 5. The Main Flat Extension remains open down plunge to the northwest.
"The Corridor"
Drilling continued in the structural corridor progressing outward and north from the Sabodala open pit. Drilling continues to intercept mineable widths of lower grade near surface gold mineralization along Ayoub's Thrust, a feature that defines the western limit of the Corridor. Mineralization has been traced more than 200 metres north of the existing Sabodala open pit along trend and remains open to the north and west. The orientation of the mineralization is understood to be a combination of flats stacked in multiple zones and shear related dipping steeply west to a depth of 150m vertically. Figure 3 shows the Long section at 10,100E showing relative position of significant intercepts in Ayoub's to recent drill results at pit bottom. SBRC1080D was previously released.
The results of drilling these two target areas are the delineation of two separate ore zones that have the potential to add reserve ounces to the Sabodala pit in 2011. The lower grade upper ore zone is anticipated to reduce waste stripping to the higher grade lower ore zone and may provide additional near surface ore feed for the Sabodala mill.
In order to increase reserves on the Sabodala Mine License it is anticipated that a total of five drill rigs will be testing new targets as well as converting existing resources to reserves at an estimated cost of $8 million in 2011.
"The Company's goal to expand proven and probable reserves from the current 1.5 million ounces of gold to 2 to 3 million ounces of gold from the Sabodala Mining License over the next 12 to 24 months is well underway. An expanded reserve base would increase the mine life to approximately 10 to 15 years at a run rate of about 200,000 ounces of gold produced annually and provide a solid production base to build on through the Regional Exploration Program," added Mr. Hill.
For further details on the geology, mineral occurrences and nature of mineralization found within the Corporations Regional Exploration and Mine License exploration programs please refer to Teranga's Prospectus filed on SEDAR November 11, 2010 as part of its initial public offering (the "Prospectus").
To view Table 1, "Gora, new significant intersections", please visit the following link: http://media3.marketwire.com/docs/tgz0711table1.pdf.
To view Table 2, "Toumboumba significant intersections", please visit the following link: http://media3.marketwire.com/docs/tgz0711table2.pdf.
To view Table 3, "Toumboumba significant intersections", please visit the following link: http://media3.marketwire.com/docs/tgz0711table3.pdf.
To view Table 4, "Majiva prospect, significant intersections", please visit the following link: http://media3.marketwire.com/docs/tgz0711table4.pdf.
To view Table 5, "Main flat extension", please visit the following link: http://media3.marketwire.com/docs/tgz0711table5.pdf.
To view Figure 1, "Toumboumba Prospect and RC holes completed to date", please visit the following link: http://media3.marketwire.com/docs/tgz0711figure1.pdf.
To view Figure 2, "Majiva Prospect with new RC holes and 2008 DD holes", please visit the following link: http://media3.marketwire.com/docs/tgz0711figure2.pdf.
To view Figure 3, "Ayoub's Long Section", please visit the following link: http://media3.marketwire.com/docs/tgz0711figure3.pdf.
About TERANGA
Teranga Gold Corporation is a Canadian-based gold company listed on the Toronto Stock Exchange (TSX: TGZ) and Australian Securities Exchange (ASX: TGZ). Teranga is principally engaged in the production and sale of gold, as well as related activities such as exploration and mine development.
Teranga was created to acquire the Sabodala gold mine and a large regional exploration land package, located in Senegal, West Africa, from Mineral Deposits Limited. Management believes the mine operation, together with the Company's prospective 1,488 km(2) land package, provides the basis for growth in reserves, production, earnings and cash flow as new discoveries are made and processed through the Company's existing mill.
The Sabodala Gold Operation, which came into operation in 2009, is located 650 kilometres east of the capital Dakar within the West African Birimian geological belt in Senegal, and about 90 kilometres from major gold mines and discoveries in Mali.
The Company's mission is to create value for all of its stakeholders through responsible mining. Its vision is to explore, discover and develop gold mines in West Africa, in accordance with the highest international standards, and to be a catalyst for sustainable economic, environmental and community development. All of its actions from exploration, through development, operations and closure will be based on the best available techniques.
Quality Control/Assurance Program
Please refer to Teranga's Prospectus for specific details on the Corporation's Quality Control/assurance program as well as data verification procedures.
Forward Looking Statements
Certain information included in this press release, including any information as to the Company's strategy, projects, exploration programs, joint venture ownership positions, plans, future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements". The words "believe", "expect", "will", "intend", "anticipate", "plan", "estimate" and similar expressions identify forward looking statements. Such forward-looking statements are necessarily based upon a number of estimates, assumptions, opinions and analysis made by management in light of its experience that, while considered reasonable, may turn out to be incorrect and involve known and unknown risks, uncertainties and other factors, in each case that may cause the actual financial results, performance or achievements of the Company to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements.
Such forward-looking statements are not guarantees of future performance. These assumptions, risks, uncertainties and other factors include, but are not limited to: assumptions regarding general business and economic conditions; conditions in financial markets and the future financial performance of the Company; the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; the supply and demand for, deliveries of, and the level and volatility of the worldwide price of gold or certain other commodities (such as silver, fuel and electricity); fluctuations in currency markets, including changes in U.S. dollar and CFA Franc interest rates; risks arising from holding derivative instruments; adverse changes in our credit rating; level of indebtedness and liquidity; ability to successfully complete announced transactions and integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; employee relations; availability and costs associated with mining inputs and labor; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves; changes in costs and estimates associated with our projects; the accuracy of our reserve estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based; contests over title to properties, particularly title to undeveloped properties; the risks involved in the exploration, development and mining business, as well as other risks and uncertainties which are more fully described in the Company's prospectus dated November 11, 2010 and in other Company filings with securities and regulatory authorities which are available at www.sedar.com.
Accordingly, readers should not place undue reliance on such forward looking statements. Teranga expressly disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws
Competent Persons Statement
The scientific and technical information contained in this release relating to exploration activities within the mining license is based on information compiled by Mr. Bruce Van Brunt, who is a Fellow with The Australasian Institute of Mining and Metallurgy and is also a registered professional geologist in the State of Washington, USA. He is qualified as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and as defined in NI43-101. Mr. Van Brunt has consented to the inclusion of this information in the form and context in which it appears in this release. Mr. Van Brunt is a full-time employee of Teranga and not independent of Teranga within the meaning of NI43-101.
The scientific and technical information contained in this release relating to the regional exploration is based on information compiled by Mr. Martin Pawlitschek, who is a member of the Australian Institute of Geoscientists. Mr. Pawlitschek is qualified as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and as a Qualified Person as defined in NI43-101. Mr. Pawlitschek has consented to the inclusion of this information in the form and context in which it appears in this release. Pawlitschek is a full-time employee of Teranga and not independent of Teranga within the meaning of NI43-101.
The latest grade estimates as presented have been classified as a combination of Measured, Indicated and Inferred Mineral Resources in accordance with CIM Definitions (2005) resource reporting classification guidelines and reconciled to the JORC Code (2004).
Mssrs. Van Brunt and Pawlitschek have reviewed and verified the data contained in this press release, including sampling, analytical and test data underlying the estimates provided. Verification of the data included numerous site visits, database validation of historical drill results and review of sampling and assaying protocols.
Contacts:
Teranga Gold Corporation
Kathy Sipos
Vice-President of Investor Relations
+1 416-594-0000
416-594-0088 (FAX)
ksipos@terangagold.com
www.terangagold.com
