TORONTO, ONTARIO -- (Marketwired) -- 04/03/17 -- Teranga Gold Corporation ("Teranga" or the "Company") (TSX: TGZ)(ASX: TGZ) is pleased to announce the second round of results from its ongoing 115-hole drill program at its Niakafiri deposit, situated within 5 kilometres of the mill on the Company's Sabodala mine license in Senegal, West Africa.
HIGHLIGHTS
-- Drill results from the first 60 holes at the Company's Niakafiri deposit extend the mineralisation along strike and at depth, providing potential for re-optimization of the life of mine plan. -- Positive drilling success in the Niakafiri Main zone includes the following highlight intervals from the 33 holes released today representing some of the widest mineralised intervals encountered within the Niakafiri deposit to date: -- 4.18 g/t Au over 23 metres including 6.52 g/t Au over 12 metres in MDD17-279 -- 2.99 g/t Au over 33 metres including 4.23 g/t Au over 17 metres in MDD17-277 -- 2.41 g/t Au over 29 metres including 6.51 g/t Au over 6 metres in MDD17-281 -- 3.19 g/t Au over 21 metres at the end-of-hole in MDD17-284 -- Results from the first 27 holes were released February 27, 2017 and include: -- 6.90 g/t Au over 8 metres including 45.5 g/t Au over 1 metre in MDD17-242 -- 2.45 g/t Au over 17 metres including 3.25 g/t Au over 11 metres in MDD16-235 -- 1.89 g/t Au over 12 metres including 5.25 g/t Au over 3 metres in MDD17-239
"The drill results confirm our belief that there is considerable opportunity to extend the mineralisation both along strike and to depth at Niakafiri," said Paul Chawrun, Chief Operating Officer of Teranga. "These encouraging results could result in the re-sequencing of Niakafiri in the current mine plan, filling in the production gaps at Sabodala to extend the life of open pit mining and to defer the start of underground mining."
"We are very pleased with our most recent results, which represent some of the widest mineralised intervals encountered within the Niakafiri deposit to date," stated David Mallo, Vice President Exploration of Teranga. "Our drill program at Niakafiri will continue to focus on extending the mineralisation along trend and to-depth."
Since re-initiation of this program with one (1) drill in late 2016, the Company has increased the number of drills to four (4). The current phase of the Niakafiri drill program, 115 proposed core holes totaling 12,000 metres, is ongoing at both the eastern and western components of the Niakafiri deposit (see Figure 2 in Appendix 1). Drill results received to date will be included in a mid-year resource and reserve update. The balance of the current year program will be included in a year-end resource and reserve update.
The majority of the Niakafiri deposits were delineated at the inception of the Sabodala project in 2009 and they represent a combined measured and indicated resource of approximately 600,000 ounces, an inferred resource of approximately 220,000 ounces and reserves of over 300,000 ounces((1)) included within the total resource estimate (see Tables 1A and 1B in Appendix 1). The Niakafiri deposits are within 5 kilometres of the Sabodala mill (see Figure 1 in Appendix 1).
Niakafiri East
The results received to date from the eastern portion of the Niakafiri deposit drilling (see Figure 2 in Appendix 1) are encouraging. They fill in gaps between previously outlined resource pit shells, extend mineralisation up-dip in a number of areas of the deposit and fill in previous widely spaced drill intersections.
In addition, there have been positive results from a set of drill holes targeting the down-dip depth extent of the existing reserve and resource pit shells in the central portion of Niakafiri Main (Table 1 on the next page highlights many of these results). These deep mineralised intersections extend as far as downhole to 270 metres (approximately 200 metres below surface), and are the deepest intersected at Niakafiri Main to date, with mineralisation remaining open at depth. Examples of this down-dip drilling success in central Niakafiri Main are shown in two representative drill sections as Figures 3 and 4 in Appendix 1.
The most advanced portion of Niakafiri is the eastern component - Niakafiri Main, Niakafiri Southeast and Dinkokono - where the first phase of planned drill holes is now complete. A second phase drill program will follow-up on these successful initial drill results focusing primarily in the vicinity of the wider mineralised intervals in the central portion of Niakafiri Main.
Niakafiri West
In addition to the ongoing drill program on Niakafiri East, drilling has begun on the western component of the resource - Niakafiri West and Soukhoto. The objectives at Niakafiri West are to upgrade the resource categories from inferred to indicated, and potentially to fill in the current gap of approximately 1.5 kilometres extending northwards towards known mineralisation at Soukhoto. An additional phase of drilling will be undertaken based on interpretation of the results from the current program.
Pending further favourable results at Niakafiri, the Company expects to evaluate the impact on pit sequencing in the life of mine plan and the timing of village relocation.
Table 1: Niakafiri Drilling Highlights(i)
A listing of the more favourable Niakafiri deposit drill hole intersections, being reported in this news release, is outlined in the following table. A complete listing of all the significant intersections for the 33 new drill results is included in Table 2 in Appendix 1. A complete listing of all significant results from the first 60 holes of the Company's extensive drilling program at the Niakafiri deposit is available at www.terangagold.com.
---------------------------------------------------------------------------- Core Interval Length Grade (m) (m) (g/t Au) Hole # Northing Easting Azimuth Dip From To ---------------------------------------------------------------------------- MDD17-259 1455548 813092 112 -51 138 147 9 1.48 ---------------------------------------------------------------------------- incl. 138 141 3 2.67 ---------------------------------------------------------------------------- MDD17-264 1455068 812960 113 -48 28 42 14 1.24 ---------------------------------------------------------------------------- incl. 36 41 5 2.20 ---------------------------------------------------------------------------- MDD17-272 1456423 813277 111 -49 30 42 12 1.74 ---------------------------------------------------------------------------- incl. 36 41 5 2.67 ---------------------------------------------------------------------------- MDD17-274(ii) 1456500 813302 110 -58 30 42 12 1.86 ---------------------------------------------------------------------------- incl. 36 42 6 2.76 ---------------------------------------------------------------------------- 44 51 7 1.86 ---------------------------------------------------------------------------- incl. 45 48 3 3.61 ---------------------------------------------------------------------------- 55 64 9 2.23 ---------------------------------------------------------------------------- incl. 60 63 3 4.06 ---------------------------------------------------------------------------- 105 110+ 5+ 2.16 ---------------------------------------------------------------------------- incl. 108 110+ 2+ 3.04 ---------------------------------------------------------------------------- MDD17-275 1456460 813293 111 -58 6 16 10 1.53 ---------------------------------------------------------------------------- incl. 11 13 2 4.34 ---------------------------------------------------------------------------- MDD17-276 1456654 813184 112 -49 187 212 25 1.97 ---------------------------------------------------------------------------- incl. 195 197 2 4.38 ---------------------------------------------------------------------------- and 205 209 4 3.25 ---------------------------------------------------------------------------- MDD17-277 1456691 813203 109 -58 167 189 22 1.45 ---------------------------------------------------------------------------- incl. 175 179 4 2.99 ---------------------------------------------------------------------------- 213 246 33 2.99 ---------------------------------------------------------------------------- incl. 226 243 17 4.23 ---------------------------------------------------------------------------- MDD17-278 1456729 813215 111 -62 258 276 18 4.21 ---------------------------------------------------------------------------- incl. 260 265 5 5.99 ---------------------------------------------------------------------------- and 267 270 3 6.71 ---------------------------------------------------------------------------- MDD17-279 1456798 813267 113 -66 129 168 39 2.27 ---------------------------------------------------------------------------- incl. 135 141 6 3.98 ---------------------------------------------------------------------------- 186 207 21 2.99 ---------------------------------------------------------------------------- incl. 198 206 8 3.97 ---------------------------------------------------------------------------- 210 233 23 4.18 ---------------------------------------------------------------------------- incl. 211 223 12 6.52 ---------------------------------------------------------------------------- MDD17-280 1456654 813184 112 -57 216 238 22 2.28 ---------------------------------------------------------------------------- incl. 229 232 3 5.44 ---------------------------------------------------------------------------- 265 270 5 2.28 ---------------------------------------------------------------------------- MDD17-281 1456799 813267 86 -62 145 174 29 2.41 ---------------------------------------------------------------------------- incl. 163 169 6 6.51 ---------------------------------------------------------------------------- MDD17-282 1456708 812536 112 -59 4 9 5 3.41 ---------------------------------------------------------------------------- MDD17-284 (ii) 1456744 813248 98 -68 109 11 2 20.5 ---------------------------------------------------------------------------- 149 162 13 1.50 ---------------------------------------------------------------------------- 186 193 7 1.58 ---------------------------------------------------------------------------- 255 276+ 21+ 3.19 ----------------------------------------------------------------------------
(i)Intervals calculated using a 0.4 g/t Au cut-off and 2 metres maximum internal dilution. True widths are unknown and intercept gold values are determined from uncapped assays. UTM Coordinates are WGS84 30N.
(ii) Drill hole ends in mineralisation.
Endnotes
(1) Proven and Probable reserves of 8.95 Mt at 1.09 g/t for 314 Koz (see Table 1A in Appendix 1).
Competent Persons Statements
The technical information contained in this document relating to the open pit mineral reserve estimates is based on, and fairly represents, information compiled by Mr. William Paul Chawrun, P. Eng who is a member of the Professional Engineers Ontario, which is currently included as a "Recognized Overseas Professional Organization" in a list promulgated by the ASX from time to time. Mr. Chawrun is a full time employee of Teranga and is not "independent" within the meaning of National Instrument 43-101. However, he is a "Qualified Person" as defined in NI 43-101. Mr. Chawrun has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Chawrun is a "Qualified Person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Chawrun has consented to the inclusion in this Report of the matters based on his compiled information in the form and context in which it appears in this Report.
The technical information contained in this Report relating to mineral resource estimates for Niakafiri 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, which is currently included as a "Recognized Overseas Professional Organization" in a list promulgated by the ASX from time to time. Ms. Nakai-Lajoie is a full time employee of Teranga and is not "independent" within the meaning of National Instrument 43-101. Ms. Nakai- Lajoie has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Ms. Nakai-Lajoie is a "Qualified Person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Ms. Nakai-Lajoie has consented to the inclusion in this Report of the matters based on her compiled information in the form and context in which it appears in this Report.
Teranga's exploration programs 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. Mr. Mann has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Mann is a "Qualified Person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects. The technical information contained in this news release relating 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 samples are prepared at site and assayed in the SGS laboratory located at the site. Analysis for diamond drilling is sent for fire assay analysis at ALS Johannesburg, South Africa. 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.
Teranga's disclosure of mineral reserve and mineral resource information is governed by NI 43-101 under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM ("CIM Standards"). CIM definitions of the terms "mineral reserve", "proven mineral reserve", "probable mineral reserve", "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource", are substantially similar to the JORC Code corresponding definitions of the terms "ore reserve", "proved ore reserve", "probable ore reserve", "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource", respectively. Estimates of mineral resources and mineral reserves prepared in accordance with the JORC Code would not be materially different if prepared in accordance with the CIM definitions applicable under NI 43-101. There can be no assurance that those portions of mineral resources that are not mineral reserves will ultimately be converted into mineral reserves.
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, results of operations (including, without limitation, future production and capital expenditures), performance (both operational and financial) and business prospects (including the timing and development of new deposits and the success of exploration activities) and opportunities. Wherever possible, words such as "potential", "belief", "believe", "expects", "potential" or "potentially", "estimates", "estimated", "plans", trends", "anticipated", "ability" and similar expressions or statements that certain actions, events or results "could", "should", "would", 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, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and energy costs, future economic conditions, the ability to resettle the community within anticipated timeline, 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 dated March 30, 2017, 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 report 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 5,000km(2) of land located on prospective gold belts.
Since its initial public offering in 2010, Teranga has produced more than 1.2 million ounces of gold from its operations in Senegal. Following its recent acquisition of Gryphon Minerals, the Company is fast-tracking the completion of a feasibility study for the Banfora Project. Concurrent with its production and development activities, exploration programs are underway to seek to increase the Company's reserve base through resource conversion and making new discoveries. Teranga has a strong balance sheet and the financial flexibility to continue to grow its business.
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 2015 responsibility report, which is available at www.terangagold.com/2015responsibilityreport, is prepared in accordance with its commitments under the United Nations Global Compact and in alignment with the Global Reporting Initiative guidelines.
APPENDIX 1
To view Figure 1: Map of Sabodala Mine License please visit the following link: http://media3.marketwire.com/docs/1090765_Figure-1.jpg
To view Figure 2: Plan Map - Niakafiri Drilling Area please visit the following link: http://media3.marketwire.com/docs/1090765_Figure-2.jpg
To view Figure 3: Representative Drill Section - Niakafiri Main NNE Section 440 N please visit the following link: http://media3.marketwire.com/docs/1090765_Figure-3.jpg
The 2017 drill holes targeted potential mineralisation extensions below the current resource and reserve pit outlines. As demonstrated, MDD17-0277 has successfully intersected very good grades over extensive widths, as targeted.
To view Figure 4: Representative Drill Section - Niakafiri Main: Section 560 N please visit the following link: http://media3.marketwire.com/docs/1090765_Figure-4.jpg
The 2017 drill holes targeted potential mineralisation extensions below the current resource and reserve pit outlines. As demonstrated, MDD17-0279 has successfully intersected very good grades over extensive widths, as targeted.
Table 1A: Current Niakafiri Open Pit and Underground Mineral Reserves Summary (as of December 31, 2015) ---------------------------------------------------------------------------- Proven Probable Proven and Probable --------------------------------------------------------------- Deposits Tonnes Grade Au Tonnes Grade Au Tonnes Grade Au (Mt) (g/t) (Koz) (Mt) (g/t) (Koz) (Mt) (g/t) (Koz) ---------------------------------------------------------------------------- Niakafiri Main 4.06 1.23 161 3.41 0.94 103 7.47 1.10 264 Niakafiri SE 0.00 0.00 0 1.12 1.09 39 1.12 1.09 39 Niakafiri SW 0.00 0.00 0 0.37 0.92 11 0.37 0.92 11 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total 4.06 1.23 161 4.89 0.97 153 8.95 1.09 314 ----------------------------------------------------------------------------
Notes for Mineral Reserves Summary
1. CIM definitions were followed for Mineral Reserves. 2. Mineral Reserve cut off grades range from 0.35 g/t to 0.63 g/t Au for oxide and 0.42 g/t to 0.73 g/t Au for fresh based on a $1,100/oz gold price 3. Sum of individual amounts may not equal due to rounding. 4. The Niakafiri Main deposit is adjacent to the Sabodala village and relocation of at least some portion of the village will be required, which will necessitate a negotiated resettlement program with the affected community members.
There have been no material changes made to these mineral reserve estimates since December 31, 2015, except for the depletion of reserves due to production over 2016. All material assumptions and technical parameters previously disclosed continue to be applicable. The Company plans to update its mineral reserve and resource estimates in 2017.
Table 1B: Current Niakafiri Open Pit and Underground Mineral Resources Summary (as of December 31, 2015) ---------------------------------------------------------------------------- Measured Indicated ---------------------------------------------------- Deposits Tonnes Grade Au Tonnes Grade Au (Mt) (g/t) (Koz) (Mt) (g/t) (Koz) ---------------------------------------------------------------------------- Niakafiri Open Pit 4.91 1.33 210 7.22 0.98 228 Main Underground ---------------------------------------------------------------- Combined 4.91 1.33 210 7.22 0.98 228 ---------------------------------------------------------------------------- Niakafiri Open Pit West Underground ---------------------------------------------------------------- Combined ---------------------------------------------------------------------------- Niakafiri Open Pit 0.77 0.81 20 SW Underground ---------------------------------------------------------------- Combined 0.77 0.81 20 ---------------------------------------------------------------------------- Niakafiri Open Pit 4.44 0.98 140 SE Underground 0.07 2.60 6 ---------------------------------------------------------------- Combined 4.51 1.01 146 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Open Pit 4.91 1.33 210 12.43 0.97 388 Total Underground 0.07 2.60 6 ---------------------------------------------------------------- Combined 4.91 1.33 210 12.50 0.98 394 ---------------------------------------------------------------------------- Table 1B: Current Niakafiri Open Pit and Underground Mineral Resources Summary (as of December 31, 2015) ---------------------------------------------------------------------------- Measured and Indicated Inferred ---------------------------------------------------- Deposits Tonnes Grade Au Tonnes Grade Au (Mt) (g/t) (Koz) (Mt) (g/t) (Koz) ---------------------------------------------------------------------------- Niakafiri Open Pit 12.13 1.12 438 2.47 1.09 87 Main Underground 0.18 2.51 15 ---------------------------------------------------------------- Combined 12.13 1.12 438 2.66 1.19 102 ---------------------------------------------------------------------------- Niakafiri Open Pit 2.57 1.29 107 West Underground 0.09 2.82 8 ---------------------------------------------------------------- Combined 2.66 1.34 115 ---------------------------------------------------------------------------- Niakafiri Open Pit 0.77 0.81 20 0.03 0.67 1 SW Underground ---------------------------------------------------------------- Combined 0.77 0.81 20 0.03 0.67 1 ---------------------------------------------------------------------------- Niakafiri Open Pit 4.44 0.98 140 0.16 0.96 5 SE Underground 0.07 2.60 6 0.02 2.64 1 ---------------------------------------------------------------- Combined 4.51 1.01 146 0.18 1.11 6 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Open Pit 17.34 1.07 598 5.23 1.18 199 Total Underground 0.07 2.60 6 0.29 2.61 24 ---------------------------------------------------------------- Combined 17.41 1.08 604 5.52 1.26 223 ----------------------------------------------------------------------------
Notes for Mineral Resources Summary
1. CIM definitions were followed for Mineral Resources. 2. Open pit oxide Mineral Resources are estimated at a cut-off grade of 0.35 g/t Au 3. Open pit transition and fresh rock Mineral Resources are estimated at a cut-off grade of 0.40 g/t Au 4. Underground Mineral Resources are estimated at a cut-off grade of 2.00 g/t Au. 5. High grade assays were capped at grades ranging from 1.5 g/t Au to 110 g/t Au. 6. The figures above are "Total" Mineral Resources and include Mineral Reserves. 7. Open pit shells were used to constrain open pit resources. 8. Mineral Resources are estimated using a gold price of US$1,450 per ounce. 9. Sum of individual amounts may not equal due to rounding.
There have been no material changes made to these mineral resource estimates since December 31, 2015, except for the depletion of reserves through production over 2016. All material assumptions and technical parameters previously disclosed continue to be applicable. The Company plans to update its mineral reserve and resource estimates in 2017.
Table 2: Summary of Most Recent Niakafiri Drilling Results (i) ---------------------------------------------------------------------------- Core Interval Length Grade (m) (m) (g/t Au) Hole # Northing Easting Azimuth Dip From To ---------------------------------------------------------------------------- MDD17-252 1456249 813321 111 -62 89 99 10 1.09 ---------------------------------------------------------------------------- MDD17-253 1456324 813342 110 -61 NSR ---------------------------------------------------------------------------- MDD17-256 1456363 813350 112 -56 NSR ---------------------------------------------------------------------------- MDD17-257 1456069 813366 110 -48 NSR ---------------------------------------------------------------------------- MDD17-258 1455521 813060 111 -53 30 33 3 2.16 ---------------------------------------------------------------------------- 38 42 4 1.28 ---------------------------------------------------------------------------- incl. 38 39 1 2.97 ---------------------------------------------------------------------------- MDD17-259 1455548 813092 112 -51 138 147 9 1.48 ---------------------------------------------------------------------------- incl. 138 141 3 2.67 ---------------------------------------------------------------------------- MDD17-260 1455568 813187 110 -49 55 58 3 1.07 ---------------------------------------------------------------------------- MDD17-261 1455487 813192 110 -49 12 25 13 0.93 ---------------------------------------------------------------------------- incl. 15 16 1 2.54 ---------------------------------------------------------------------------- MDD17-262 1455460 813119 111 -50 42 50 8 1.07 ---------------------------------------------------------------------------- incl. 44 46 2 2.40 ---------------------------------------------------------------------------- 90 97 7 0.87 ---------------------------------------------------------------------------- incl. 94 96 2 1.89 ---------------------------------------------------------------------------- MDD17-263 1455446 813179 113 -54 0 8 8 1.04 ---------------------------------------------------------------------------- incl. 7 8 1 1.96 ---------------------------------------------------------------------------- 53 57 4 1.33 ---------------------------------------------------------------------------- MDD17-264 1455068 812960 113 -48 28 42 14 1.24 ---------------------------------------------------------------------------- incl. 36 41 5 2.20 ---------------------------------------------------------------------------- MDD17-265 1455514 813220 111 -48 8 10 2 1.16 ---------------------------------------------------------------------------- MDD17-266 1454963 812930 112 -47 7 11 4 1.11 ---------------------------------------------------------------------------- MDD17-267 1455440 813205 111 -46 NSR ---------------------------------------------------------------------------- MDD17-268 1456754 812519 108 -57 45 48 3 1.65 ---------------------------------------------------------------------------- MDD17-269 1456722 812482 111 -57 83 85 2 1.48 ---------------------------------------------------------------------------- MDD17-270 1456104 813230 109 -65 NSR ---------------------------------------------------------------------------- MDD17-271 1456382 813279 110 -55 88 90 2 1.79 ---------------------------------------------------------------------------- 98 100 2 1.22 ---------------------------------------------------------------------------- 114 116 2 1.24 ---------------------------------------------------------------------------- MDD16-272 1456423 813277 111 -49 30 42 12 1.74 ---------------------------------------------------------------------------- incl. 36 41 5 2.67 ---------------------------------------------------------------------------- 87 94 7 0.89 ---------------------------------------------------------------------------- incl. 87 89 2 1.83 ---------------------------------------------------------------------------- MDD17-273 1456449 813336 110 -58 2 7 5 1.36 ---------------------------------------------------------------------------- 15 17 2 1.07 ---------------------------------------------------------------------------- 43 49 6 1.66 ---------------------------------------------------------------------------- MDD17-274 (ii) 1456500 813302 110 -58 21 25 4 1.19 ---------------------------------------------------------------------------- 30 42 12 1.86 ---------------------------------------------------------------------------- incl. 36 42 6 2.76 ---------------------------------------------------------------------------- 44 51 7 1.86 ---------------------------------------------------------------------------- incl. 45 48 3 3.61 ---------------------------------------------------------------------------- 55 64 9 2.23 ---------------------------------------------------------------------------- incl. 60 63 3 4.06 ---------------------------------------------------------------------------- 105 110+ 5+ 2.16 ---------------------------------------------------------------------------- incl. 108 110+ 2+ 3.04 ---------------------------------------------------------------------------- MDD17-275 1456460 813293 111 -58 6 16 10 1.53 ---------------------------------------------------------------------------- MDD17-275 1456460 813293 111 -58 incl. 11 13 2 4.34 ---------------------------------------------------------------------------- 24 29 5 0.97 ---------------------------------------------------------------------------- 32 35 3 1.14 ---------------------------------------------------------------------------- 51 58 7 0.86 ---------------------------------------------------------------------------- 64 72 8 1.04 ---------------------------------------------------------------------------- incl. 67 69 2 2.32 ---------------------------------------------------------------------------- 75 78 3 1.42 ---------------------------------------------------------------------------- 98 102 4 1.15 ---------------------------------------------------------------------------- 132 134 2 1.63 ---------------------------------------------------------------------------- 143 148 5 1.26 ---------------------------------------------------------------------------- MDD17-276 1456654 813184 112 -49 65 70 5 0.82 ---------------------------------------------------------------------------- incl. 69 70 1 2.19 ---------------------------------------------------------------------------- 173 182 9 1.25 ---------------------------------------------------------------------------- incl. 174 176 2 3.12 ---------------------------------------------------------------------------- 187 212 25 1.97 ---------------------------------------------------------------------------- incl. 195 197 2 4.38 ---------------------------------------------------------------------------- and 205 209 4 3.25 ---------------------------------------------------------------------------- 214 217 3 1.19 ---------------------------------------------------------------------------- 235 239 4 1.04 ---------------------------------------------------------------------------- MDD17-277 1456691 813203 109 -58 48 49 1 2.10 ---------------------------------------------------------------------------- 53 55 2 1.82 ---------------------------------------------------------------------------- 67 68 1 4.04 ---------------------------------------------------------------------------- 160 166 6 1.08 ---------------------------------------------------------------------------- 167 189 22 1.45 ---------------------------------------------------------------------------- incl. 175 179 4 2.99 ---------------------------------------------------------------------------- 193 200 7 1.49 ---------------------------------------------------------------------------- 202 204 2 1.47 ---------------------------------------------------------------------------- 213 246 33 2.99 ---------------------------------------------------------------------------- incl. 226 243 17 4.23 ---------------------------------------------------------------------------- 251 255 4 1.28 ---------------------------------------------------------------------------- MDD17-278 1456729 813215 111 -62 80 84 4 2.61 ---------------------------------------------------------------------------- incl. 80 81 1 8.20 ---------------------------------------------------------------------------- 167 169 2 1.40 ---------------------------------------------------------------------------- 172 175 3 0.97 ---------------------------------------------------------------------------- 195 199 4 1.66 ---------------------------------------------------------------------------- 232 237 5 2.39 ---------------------------------------------------------------------------- 258 279 18 4.21 ---------------------------------------------------------------------------- incl. 260 265 5 5.99 ---------------------------------------------------------------------------- and 267 270 3 6.71 ---------------------------------------------------------------------------- MDD17-279 (ii) 1456798 813267 113 -66 129 168 39 2.27 ---------------------------------------------------------------------------- incl. 135 141 6 3.98 ---------------------------------------------------------------------------- 186 207 21 2.99 ---------------------------------------------------------------------------- incl. 198 206 8 3.97 ---------------------------------------------------------------------------- 210 233 23 4.18 ---------------------------------------------------------------------------- incl. 211 223 12 6.52 ---------------------------------------------------------------------------- 239 240+ 1+ 4.19 ---------------------------------------------------------------------------- MDD17-280 1456654 813184 112 -57 68 69 1 2.28 ---------------------------------------------------------------------------- 72 74 2 1.15 ---------------------------------------------------------------------------- 171 179 8 1.12 ---------------------------------------------------------------------------- MDD17-280 1456654 813184 112 -57 incl. 176 179 3 2.31 ---------------------------------------------------------------------------- 190 198 8 1.00 ---------------------------------------------------------------------------- 199 204 5 1.05 ---------------------------------------------------------------------------- 216 238 22 2.28 ---------------------------------------------------------------------------- incl. 229 232 3 5.44 ---------------------------------------------------------------------------- 255 260 5 1.08 ---------------------------------------------------------------------------- 265 270 5 2.28 ---------------------------------------------------------------------------- incl. 269 270 1 7.78 ---------------------------------------------------------------------------- 276 277 1 7.93 ---------------------------------------------------------------------------- MDD17-281 1456799 813267 86 -62 89 96 7 1.09 ---------------------------------------------------------------------------- incl. 89 91 2 2.18 ---------------------------------------------------------------------------- 95 96 1 1.45 ---------------------------------------------------------------------------- 145 174 29 2.41 ---------------------------------------------------------------------------- incl. 163 169 6 6.51 ---------------------------------------------------------------------------- 180 185 5 2.54 ---------------------------------------------------------------------------- 226 232 6 1.06 ---------------------------------------------------------------------------- incl. 231 232 1 3.08 ---------------------------------------------------------------------------- 234 235 1 2.32 ---------------------------------------------------------------------------- MDD17-282 1456708 812536 112 -59 4 9 5 3.41 ---------------------------------------------------------------------------- incl. 5 6 1 9.67 ---------------------------------------------------------------------------- 65 67 2 1.25 ---------------------------------------------------------------------------- 78 79 1 3.02 ---------------------------------------------------------------------------- MDD17-283 1456699 812571 112 -59 41 42 1 1.74 ---------------------------------------------------------------------------- 66 72 6 1.62 ---------------------------------------------------------------------------- incl. 71 72 1 4.10 ---------------------------------------------------------------------------- 79 86 7 1.19 ---------------------------------------------------------------------------- incl. 79 81 2 2.08 ---------------------------------------------------------------------------- 123 126 3 2.06 ---------------------------------------------------------------------------- 136 137 1 4.30 ---------------------------------------------------------------------------- MDD17-284 (ii) 1456744 813248 98 -68 109 112 3 13.8 ---------------------------------------------------------------------------- incl. 109 111 2 20.5 ---------------------------------------------------------------------------- 149 162 13 1.50 ---------------------------------------------------------------------------- 154 156 2 3.50 ---------------------------------------------------------------------------- 165 171 6 1.22 ---------------------------------------------------------------------------- 186 193 7 1.58 ---------------------------------------------------------------------------- 195 198 3 1.19 ---------------------------------------------------------------------------- 255 276+ 21+ 3.19 ---------------------------------------------------------------------------- MDD17-285 1457013 813396 111 -52 7 26 19 1.23 ---------------------------------------------------------------------------- incl. 19 20 1 4.01 ---------------------------------------------------------------------------- MDD17-286 1456689 812608 111 -59 25 26 1 1.16 ---------------------------------------------------------------------------- 29 30 1 1.96 ---------------------------------------------------------------------------- 66 69 3 1.23 ---------------------------------------------------------------------------- 72 73 1 1.82 ---------------------------------------------------------------------------- 77 78 1 5.95 ---------------------------------------------------------------------------- 112 123 11 1.38 ---------------------------------------------------------------------------- incl. 120 122 2 3.14 ---------------------------------------------------------------------------- 130 133 3 1.13 ----------------------------------------------------------------------------
(i)Intervals calculated using a 0.4 g/t Au cut-off and 2 metres maximum internal dilution. True widths are unknown and intercept gold values are determined from uncapped assays. UTM Coordinates are WGS84 30N
(ii) Drill hole ends in mineralisation
Table 3: Niakafiri Drilling Results Released on February 27, 2017 (i) ---------------------------------------------------------------------------- Interval (m) Core Grade Length Hole # Northing Easting Azimuth Dip From To (m) (g/t Au) ---------------------------------------------------------------------------- MDD16-227 1457522 813507 110 -47 6 7 1 2.93 ---------------------------------------------------------------------------- MDD16-228 1457509 813556 111 -47 8 12 4 1.09 ---------------------------------------------------------------------------- 42 54 12 1.01 ---------------------------------------------------------------------------- incl. 43 46 3 2.63 ---------------------------------------------------------------------------- MDD16-229 1457274 813506 112 -45 29 37 8 1.72 ---------------------------------------------------------------------------- incl. 32 37 5 2.45 ---------------------------------------------------------------------------- MDD16-230 1457284 813457 112 -45 19 20 1 1.13 ---------------------------------------------------------------------------- MDD16-231 1457196 813487 112 -45 22 24 2 1.24 ---------------------------------------------------------------------------- 49 52 3 1.88 ---------------------------------------------------------------------------- MDD16-232 1457158 813475 108 -47 22 26 4 1.11 ---------------------------------------------------------------------------- 44 45 1 2.31 ---------------------------------------------------------------------------- MDD16-233 1457208 813444 111 -49 50 55 5 1.63 ---------------------------------------------------------------------------- incl. 53 55 2 3.31 ---------------------------------------------------------------------------- MDD16-234 1455830 813173 109 -46 71 72 1 1.78 ---------------------------------------------------------------------------- MDD16-235 1455851 813253 110 -53 0 22 22 0.92 ---------------------------------------------------------------------------- incl. 4 11 7 1.42 ---------------------------------------------------------------------------- 24 41 17 2.45 ---------------------------------------------------------------------------- incl. 24 35 11 3.25 ---------------------------------------------------------------------------- MDD16-236 1455772 813220 110 -58 6 11 5 0.95 ---------------------------------------------------------------------------- incl. 6 7 1 2.77 ---------------------------------------------------------------------------- 14 17 3 1.41 ---------------------------------------------------------------------------- 24 29 5 1.12 ---------------------------------------------------------------------------- incl. 24 27 2 2.15 ---------------------------------------------------------------------------- 35 37 2 1.10 ---------------------------------------------------------------------------- MDD17-237 1455811 813248 109 -48 33 35 2 0.76 ---------------------------------------------------------------------------- MDD17-238 1456105 813388 112 -46 6 8 2 0.66 ---------------------------------------------------------------------------- 12 17 5 0.96 ---------------------------------------------------------------------------- incl. 12 13 1 3.25 ---------------------------------------------------------------------------- MDD17-239 1456189 813384 110 -47 0 7 7 0.81 ---------------------------------------------------------------------------- incl. 0 2 2 1.62 ---------------------------------------------------------------------------- 9 10 1 1.73 ---------------------------------------------------------------------------- 11 23 12 1.89 ---------------------------------------------------------------------------- incl. 15 18 3 5.25 ---------------------------------------------------------------------------- MDD17-240 1456229 813389 110 -45 2 5 3 3.97 ---------------------------------------------------------------------------- 19 27 8 1.86 ---------------------------------------------------------------------------- incl. 24 27 3 4.20 ---------------------------------------------------------------------------- 31 32 1 1.74 ---------------------------------------------------------------------------- 38 40 2 1.17 ---------------------------------------------------------------------------- MDD17-241 1456257 813280 111 -63 20 28 8 1.34 ---------------------------------------------------------------------------- incl. 26 27 1 5.56 ---------------------------------------------------------------------------- 100 103 3 0.85 ---------------------------------------------------------------------------- 110 114 4 0.81 ---------------------------------------------------------------------------- MDD17-242 1456267 813402 110 -60 17 25 8 6.90 ---------------------------------------------------------------------------- incl. 20 21 1 45.5 ---------------------------------------------------------------------------- MDD17-243 1456296 813288 112 -58 20 22 2 1.76 ---------------------------------------------------------------------------- 58 60 2 1.05 ---------------------------------------------------------------------------- 84 86 2 0.80 ---------------------------------------------------------------------------- MDD17-244 1456146 813389 112 -47 NSR NSR NSR ---------------------------------------------------------------------------- MDD17-245 1457474 813521 112 -51 28 29 1 2.59 ---------------------------------------------------------------------------- MDD17-246 1457442 813487 109 -45 53 54 1 1.72 ---------------------------------------------------------------------------- MDD17-247 1457430 813539 112 -45 17 18 1 1.39 ---------------------------------------------------------------------------- 36 38 2 1.02 ---------------------------------------------------------------------------- 42 43 1 1.44 ---------------------------------------------------------------------------- MDD17-248 1457362 813485 111 -53 62 65 3 0.97 ---------------------------------------------------------------------------- MDD17-249 1457469 813549 112 -45 10 12 2 1.27 ---------------------------------------------------------------------------- 34 40 6 1.50 ---------------------------------------------------------------------------- incl. 35 36 1 6.80 ---------------------------------------------------------------------------- MDD17-250 1457352 813522 110 -46 5 7 2 0.96 ---------------------------------------------------------------------------- MDD17-251 1456237 813356 111 -56 57 58 1 2.10 ---------------------------------------------------------------------------- 65 66 1 2.63 ---------------------------------------------------------------------------- 90 91 1 1.25 ---------------------------------------------------------------------------- 108 109 1 1.24 ---------------------------------------------------------------------------- MDD17-252 1456248 813321 111 -61 Pending Pending Pending Pending ---------------------------------------------------------------------------- MDD17-253 1456324 813342 110 -61 Pending Pending Pending Pending ---------------------------------------------------------------------------- MDD17-254 1456286 81330 111 -62 23 24 1 0.92 ---------------------------------------------------------------------------- MDD17-255 1456335 813295 112 -58 1 2 1 4.51 ---------------------------------------------------------------------------- 13 18 5 1.68 ---------------------------------------------------------------------------- 22 23 1 2.87 ---------------------------------------------------------------------------- 34 35 1 12.3 ---------------------------------------------------------------------------- 51 52 1 1.20 ---------------------------------------------------------------------------- 62 63 1 1.32 ---------------------------------------------------------------------------- 90 91 1 1.63 ---------------------------------------------------------------------------- 96 97 1 2.15 ----------------------------------------------------------------------------
(i)Intervals calculated using a 0.4 g/t Au cut-off and 2 metres maximum internal dilution. True widths are unknown and intercept gold values are determined from uncapped assays. UTM Coordinates are WGS84 30N
APPENDIX 2
JORC Code, 2012 Edition - Table 1 Report
Section 1: Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections)
---------------------------------------------------------------------------- Criteria 2012 JORC Code explanation Commentary ---------------------------------------------------------------------------- Sampling - Nature and quality of - A total of 115 Diamond Core techniques sampling (e.g. cut channels, holes (DD) for 12,000 m are random chips, or specific planned for the current drill specialised industry standard program at Niakafiri. Results measurement tools appropriate from 33 holes are reported to the minerals under herein. The first 27 holes investigation, such as down were reported in a previous hole gamma sondes, or Company news release handheld XRF instruments, (February 27, 2017). Sampling etc.). These examples should is half core from the DD not be taken as limiting the drilling. broad meaning of sampling. - Include reference to - Drill core was sawn in half measures taken to ensure over defined 1-metre sample representivity and the sampling intervals with one appropriate calibration of half retained and one half any measurement tools or sampled and assayed for gold. systems used. Oriented core markings were used as guides for sawing. - Aspects of the - Initially all core is determination of sampled along the entire hole mineralisation that are to Material to the Public determine the nature of Report. mineralisation and relationship to logged lithology, alteration and structure. Based on the detailed sampling results, mineralisation zones were defined with additional drilling and sampling, specifically across the mineralisation and along the mineralised shoulders on either side. - In cases where 'industry - Industry standard standard' work has been done analytical techniques have this would be relatively been utilized. simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. ---------------------------------------------------------------------------- Drilling - Drill type (e.g. core, - A diamond core drilling techniques reverse circulation, open- program is being conducted. hole hammer, rotary air Diamond drill holes are blast, auger, Bangka, drilled using standard HQ or sonic, etc.) and details NQ sized rods. Wider diameter (e.g. core diameter, triple HQ core is utilized through or standard tube, depth of the upper oxide and diamond tails, face- transitional portions of the sampling bit or other type, stratigraphy and size whether core is reduction occurs to NQ in oriented and if so, by what fresh material. Oriented core method, etc.). is utilized once appropriate NQ core size is being drilled. ---------------------------------------------------------------------------- Drill sample - Method of recording and - Diamond core recoveries are recovery assessing core and measured and recorded for chip sample recoveries and each 1-metre sample interval. results assessed. Core was sampled on nominal 1 m intervals. - Measures taken to maximise - Diamond drill contractor sample recovery and ensure has experience in drilling representative nature of the within the geologic host samples. environment and all measures to maximize recoveries are employed. - Whether a relationship - There is no evidence to exists between sample suggest a relationship recovery and grade and between sample recovery and whether sample bias may have grade as there is no occurred due to preferential significant loss of material. loss/gain of fine/coarse Sample recoveries are of very material. good quality. ---------------------------------------------------------------------------- Logging - Whether core and chip - Core samples were samples have been geologically and geologically and geotechnically logged geotechnically logged to a following established level of detail to support standard operating procedures appropriate Mineral Resource and includes sufficient and estimation, mining studies appropriate detail to support and metallurgical studies. Mineral Resource estimation, mining and metallurgical studies. - Whether logging is - Logging is qualitative in qualitative or quantitative nature. All core is in nature. Core (or costean, photographed to provide a channel, etc.) photography. continuous record. Half core is also stored for future reference and utilization. - The total length and - All recovered core is percentage of the relevant logged in detail. intersections logged. ---------------------------------------------------------------------------- Sub-sampling - If core, whether cut or - Drill core sampling is techniques and sawn and whether quarter, undertaken on clearly marked sample half or all core taken. standardized 1-metre preparation intervals then cut in half with a diamond saw along the core length following orientation lines. Half core is analyzed over one-meter lengths. - If non-core, whether - Not applicable - all core riffled, tube sampled, rotary drilling. split, etc. and whether sampled wet or dry. - For all sample types, the - Core handling is closely nature, quality and monitored under standard appropriateness of the sample industry methods from drill preparation technique. to lab. Sample preparation procedures at the analytical lab are also industry standard and closely monitored. -Quality control procedures - Standard Reference adopted for all sub-sampling Materials (Various Standards stages to maximise and blind Blanks) are representivity of samples. inserted into the sample stream at industry accepted intervals. Blind sample duplicates are also collected. - Measures taken to ensure - Field duplicate data that the sampling is indicates acceptable representative of the in situ variability indicating coarse material collected, including gold is not a significant for instance results for issue in the sampling. field duplicate/second-half sampling. - Whether sample sizes are appropriate to the grain size of the material being sampled. ---------------------------------------------------------------------------- Quality of assay - The nature, quality and - Gold assays for half-core data and appropriateness of the samples form the core laboratory assaying and laboratory drilling were obtained from tests procedures used and whether the independent SGS operated the technique is considered lab on-site at the Sabodala partial or total. Mine facility which provides an AA (Atomic Absorption) finish gold result. Selected samples from mineralised intervals are periodically re-analyzed at the independent ALS lab in Johannesburg, South Africa to provide an FA (Fire Assay) finish. - For geophysical tools, - Not applicable. spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. - Nature of quality control - Certified reference procedures adopted (e.g. materials (SRM's), blanks and standards, blanks, duplicates are regularly duplicates, external inserted into the sample laboratory checks) and preparation and analysis whether acceptable levels of process with approximately accuracy (ie lack of bias) 10% of all samples being and precision have been related to quality control. established. - Data is reviewed before being accepted into the database. Any batches failing QAQC analysis are resubmitted for check assays. Dataset QAQC contains acceptable levels of precision and accuracy. ---------------------------------------------------------------------------- Verification of - The verification of - All results and all sampling and significant intersections by significant intersections assaying either independent or have been reviewed by staff alternative company geologists to check the personnel. geological context. - The use of twinned holes. - Some twin core holes have been undertaken in this program to verify and confirm previous RC drilling results. - Documentation of primary - All sample and recovery data, data entry procedures, data is recorded to paper and data verification, data electronic forms at the time storage (physical and of logging. Geological electronic) protocols. logging is directly logged into template log sheets by Toughbook computer. The templates are then provided to an internal database manager for loading in database management software. Referential integrity is checked as part of the data loading process. - Discuss any adjustment to - No adjustments were made to assay data. assay data returned from the laboratory. ---------------------------------------------------------------------------- Location of data - Accuracy and quality of - Drill hole collar locations points surveys used to locate drill were surveyed by trained site holes (collar and down-hole based technicians using real surveys), trenches, mine time differential GPS (DGPS) workings and other locations to a sub decimetre accuracy used in Mineral Resource in horizontal and vertical estimation. position. Vertical precision was supplemented using a Digital Surface Model. Down hole drill hole surveys were undertaken by the drill contractor utilizing a Reflex EZ-Shot downhole survey instrument. Survey intervals were collected at collar, periodic intervals down the hole and end of hole were routinely collected. -Specification of the grid - Both UTM and mine-grid system used. systems are utilized for locating drill collar locations. - Quality and adequacy of - Tographic control is based topographic control. on the Digital Surface Model. The quality and accuracy of topographic control is considered to be reasonable. ---------------------------------------------------------------------------- Data spacing and - Data spacing for reporting - Drilling is nominally on a distribution of Exploration Results. 40 m by 40 m spacing, with exceptions based on data interpretation. - Whether the data spacing - Geological interpretation and distribution is based on drill spacing has sufficient to establish the identified continuity of degree of geological and geology and grade and is grade continuity appropriate determined to be sufficient for the Mineral Resource and for estimating Mineral Ore Reserve estimation Resources and Mineral procedure(s) and Reserves. Experimental classifications applied. variograms generated for mineralised zones with sufficient data, have confirmed the grade continuity ranges based on the drill hole spacing. - Whether sample compositing - Diamond drill core were has been applied. sampled on nominal 1 meter intervals down the hole, and assayed. Sample compositing was not applied during the current exploration drilling program. ---------------------------------------------------------------------------- Orientation of - Whether the orientation of - Drill hole azimuths and data in sampling achieves unbiased dips have been oriented relation to sampling of possible perpendicular to the geological structures and the extent to interpreted mineralised zones structure which this is known, in order to intersect the considering the deposit type. true widths of the zones as closely as possible. Occasionally, drilling was planned at oblique angles when the mineralisation trends were not yet well defined or if the optimal collar location was not accessible. Generally, the majority of drilling is oriented such that the sampling of mineralisation is unbiased. - If the relationship between - The small percentage of the drilling orientation and holes oriented oblique to the the orientation of key mineralisation are located in mineralised structures is areas with sufficient drill considered to have introduced density oriented a sampling bias, this should perpendicular to be assessed and reported if mineralisation, and will not material. introduce a significant sampling bias. ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Sample Security - The measures taken to - Samples are removed from ensure sample security. the field immediately upon drilling and stored in a secure compound for sub sampling and preparation for lab dispatch. Samples are delivered directly from the site logging / sampling facility to the on site SGS laboratory or the ALS laboratory in South Africa using securely sealed sample bags and a secure chain of custody. Sample submission forms are sent in paper form with the samples as well as electronically to the laboratory. Reconciliation of samples occurs prior to commencement of sample preparation of dispatches. ---------------------------------------------------------------------------- Audits or - The results of any audits - All QA/QC data is reviewed reviews or reviews of sampling in an ongoing hole-by-hole techniques and data. basis and reported both as per hole and in monthly summaries. All QAQC data has been reviewed by the QP's for this release. ---------------------------------------------------------------------------- Section 2: Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) ---------------------------------------------------------------------------- Criteria 2012 JORC Code explanation Commentary ---------------------------------------------------------------------------- Mineral tenement - Type, reference - Drilling reported here has and land tenure name/number, location and been completed at the status ownership including Niakafiri deposit area of the agreements or material issues Sabodala Mine Lease in with third parties such as Senegal, West Africa. joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. - The security of the tenure - Teranga Gold Corporation is held at the time of reporting 100% holder of the Sabodala along with any known Mine Lease. impediments to obtaining a licence to operate in the area. - No historical sites, wilderness or national parks are located in the Mine Lease area. Portions of Niakafiri occur within the limits of the Sabodala village. - Tenure is considered very secure. ---------------------------------------------------------------------------- Exploration done -Acknowledgment and appraisal - The majority of the by other parties of exploration by other Niakafiri deposit area parties. exploration and resource estimation has been conducted by Teranga Gold Corporation. Two portions, Niakafiri Southwest and Niakafiri Southeast, were drilled by Oromin Explorations Ltd, on behalf of the OJVG between 2005 and 2012. Teranga acquired the OJVG in 2013. ---------------------------------------------------------------------------- Geology - Deposit type, geological - The Sabodala Gold Project setting and style of (Mine Lease and Regional mineralisation. Permits) covers greenstone belts and intra belt granitoids of the Proterozoic Birimian Shield. The oldest rocks within the concession are interpreted to be tholeitic to calc-alkaline basalts, andesites and volcaniclastic sediments. Predominately mafic, volcano- sedimentary packages dominate the younger parts of the local stratigraphy. Numerous phases of plutonic activity have intruded the earlier sequences ranging from gabbroic to granitic in composition. Known mineralisation is structurally controlled and widely associated with silicification, quartz veining, iron carbonate, sericite, pyrite and locally albitic alteration. Both the mafic volcano-sedimentary packages and the coarse grained intrusive rocks host significant mineralisation in the project area. ---------------------------------------------------------------------------- Drill hole - A summary of all - All drill hole collar Information information material to the locations, azimuth, dip and understanding of the gold assay intercept data exploration results including received to date is available a tabulation of the following on the Teranga Gold company information for all Material website at drill holes: http://www.terangagold.com/. All same information for the - easting and northing of the current drill program results drill hole collar are designated within the assay Tables herein. - elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar - dip and azimuth of the hole - down hole length and interception depth - hole length. - If the exclusion of this - Not Applicable. information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. ---------------------------------------------------------------------------- Data aggregation - In reporting Exploration - Gold intercepts are methods Results, weighting averaging reported as length-weighted techniques, maximum and/or average grades in grams per minimum grade truncations tonne, with a maximum of 2 (e.g. cutting of high-grades) metres internal dilution and and cut-off grades are no external dilution. Assays usually Material and should are not capped prior to be stated. averaging. A 0.4 g/t Au minimum cut-off grade per sample was applied for all reported intervals. - Where aggregate intercepts - Grade intersections and incorporate short lengths of inclusive higher grade high grade results and longer intersections are reported lengths of low grade results, separately and available on the procedure used for such the Teranga Gold company aggregation should be stated website at and some typical examples of http://www.terangagold.com/. such aggregations should be Similarly, higher grade shown in detail. intervals within the broader reported intervals have been separated and designated within the Tables herein. - The assumptions used for - Not Applicable. any reporting of metal equivalent values should be clearly stated. ---------------------------------------------------------------------------- Relationship - These relationships are - Down hole core lengths are between particularly important in the reported, as true widths have mineralisation reporting of Exploration not yet been determined. widths and Results. intercept lengths - If the geometry of the - Not Applicable. mineralisation with respect to the drill hole angle is known, its nature should be reported. - if it is not known and only - Is included within the the down hole lengths are Tables herein. reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known'). ---------------------------------------------------------------------------- Diagrams - Appropriate maps and - A detailed Plan view map of sections (with scales) and drill hole collar locations, tabulations of intercepts (Planned and Completed) for should be included for any the Niakafiri drill program significant discovery being is available in Appendix 1 reported These should herein. Representative include, but not be limited Sections form the current to a plan view of drill hole drilling program are also collar locations and included in Appendix 1 appropriate sectional views. herein, of this news release. ---------------------------------------------------------------------------- Balanced - Where comprehensive - A comprehensive listing of reporting reporting of all Exploration all significant gold Results is not practicable, intercept results for all of representative reporting of the 33 holes reported in this both low and high-grades press release is presented in and/or widths should be a complete Table of results practiced to avoid misleading in Appendix 1 herein, of this reporting of Exploration press release. Results for Results. all 60 holes completed at Niakafiri during this current program are listed in a Table on the Company's website at http://www.terangagold.com/ ---------------------------------------------------------------------------- Other - Other exploration data, if - No other meaningful or substantive meaningful and material, material exploration data has exploration data should be reported including been collected.in reference (but not limited to): to this current exploration geological observations; drilling program at geophysical survey results; Niakafiri. geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. ---------------------------------------------------------------------------- Further work -The nature and scale of - All data will be compiled planned further work (e.g. and analysed for future tests for lateral extensions follow-up programs at the or depth extensions or large- Niakafiri deposit area, scale step-out drilling). initially towards generating an updated resource estimation for H2 2017. - Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. ----------------------------------------------------------------------------
Contacts:
Teranga Gold Corporation
Richard Young
President & CEO
+1 416-594-0000
ryoung@terangagold.com
Teranga Gold Corporation
Trish Moran
Head of Investor Relations
+1 416-564-4290
tmoran@terangagold.com