Teranga Gold Files Technical Report for Sabodala
Lower Costs and Stronger Cash Flows Underpin New Life of Mine
/EINPresswire.com/ -- TORONTO, ONTARIO -- (Marketwired) -- 03/23/16 -- (All amounts are in U.S. dollars unless otherwise stated)
Teranga Gold Corporation ("Teranga" or the "Company") (TSX: TGZ)(ASX: TGZ) announces the filing of a National Instrument 43-101 Technical Report (the "Technical Report"), supporting the Company's updated life of mine ("LOM") plan released on January 29, 2016. The Technical Report titled "Technical Report on the Sabodala Project, Senegal, West Africa", which was prepared by Teranga and RPA Inc. and conforms to National Instrument 43-101 Standards of Disclosure for Mineral Projects, has been filed on SEDAR at www.sedar.com and on the Company's website at www.terangagold.com.
"A long-life, low-cost reserve base and strong cash flow underpin our new updated life of mine plan which projects undiscounted cash flows of $549 million(1)," said Richard Young, President and Chief Executive Officer. "We believe the upside potential on this base case plan is significant. With the only operating mill in Senegal and a large land package on an emerging world-class gold belt, we are focused on continuing to convert resources to reserves and to make new discoveries. Since our IPO at the end of 2010, we have increased our reserve base net of five years' production, by 80 per cent, through acquisition and exploration."
Highlights of the Technical Report
-- Large, 13.5-year mine life
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Open pit and underground mineral resources and
reserves summary Au Grade
(December 31, 2015)(2) (Moz) (g/t Au)
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Proven and Probable Reserves (2P) at $1,100/oz Au 2.63 1.38
Open Pit(i) 1.90 1.41
Underground(i) 0.35 5.01
Stockpiles 0.39 0.79
Measured and Indicated Resources (inclusive of
Reserves) 4.44 1.62
Inferred Resources 0.94 1.92
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(i)Average mined grade is 1.59 g/t Au for both open pit and underground
reserves.
Note: Refer to Appendix 1 and Appendix 2 for full Mineral Reserve and
Resource tables.
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-- Solid LOM production profile with gold production expected to average
over 200,000 ounces per annum through 2024. Sequencing of multiple open
pits designed to maximize annual cash flow at an $1,100 gold price per
ounce(3).
-- LOM all-in sustaining costs of $887 per ounce(4) and, when including the
cost of the Franco-Nevada gold stream, $960 per ounce(4). Low sustaining
capex of less than $10 million per annum over LOM.
-- Strong cash flow of $240 per ounce(5) at a $1,200 per ounce gold price.
-- Significant organic growth potential on emerging world-class gold belt
where more than 50 million ounces have been identified(6).
Endnotes
1. For Teranga, life of mine cash flows from the Sabodala project are
derived from the Company's NI 43-101 Technical Report filed on Sedar as
of March 23, 2016 and are determined as follows: Forecasted revenues
from production over the life of mine total $2,830 million (See Appendix
3 - Life of Mine Plan - 215,000 ounces at $1,100 per ounce and 2,154,000
ounces at $1,200 per ounce, see also Table 16-8 of the Technical Report
on page 16-14) less anticipated life of mine all-in sustaining cash
costs of $2,281 million (See Appendix 5 herein and Table 21-8 on page
21-15 of the Technical Report) for undiscounted cash flows totalling
$549 million before interest payments, income tax payments, repayment of
debt, working capital, closure costs and dividends. On a discounted
basis the present value of these life of mine cash flows would be $376
million at 5% and $307 million at 8%. Using an exchange rate of
0.7USD:1CAD, undiscounted life of mine cash flows total C$784 million,
and on a discounted basis, C$537 million at 5% and C$439 million at 8%.
2. Mineral Reserves and Mineral Resources estimates as at December 31, 2015
as per Company disclosure. For more information regarding Teranga Gold's
Mineral Reserves and Resources, please refer to Teranga Gold's December
Quarter and Year-end 2015 Report accessible on the Company's website at
www.terangagold.com.
3. This production guidance is based on existing proven and probable
reserves only from the Sabodala mining license as disclosed in Teranga
Gold's December Quarter and Year-end 2015 Report accessible on the
Company's website at www.terangagold.com.
4. Total cash costs figures are calculated in accordance with a standard
developed by The Gold Institute, which was a worldwide association of
suppliers of gold and gold products and included leading North American
gold producers. The Gold Institute ceased operations in 2002, but the
standard is considered the accepted standard of reporting cash cost of
production in North America. Adoption of the standard is voluntary and
the cost measures presented may not be comparable to other similarly
titled measure of other companies. The World Gold Council ("WGC")
definition of all-in sustaining costs seeks to extend the definition of
total cash costs by adding corporate general and administrative costs,
reclamation and remediation costs (including accretion and
amortization), exploration and study costs (capital and expensed),
capitalized stripping costs and sustaining capital expenditures and
represents the total costs of producing gold from current operations.
All-in sustaining cost excludes income tax payments, interest costs,
costs related to business acquisitions and items needed to normalize
earnings. Consequently, this measure is not representative of all of the
Company's cash expenditures. In addition, the calculation of all-in
sustaining costs does not include depreciation expense as it does not
reflect the impact of expenditures incurred in prior periods. Therefore,
it is not indicative of the Company's overall profitability. Life of
mine total cash costs and all-in sustaining costs figures used in this
release are before stockpile inventory value adjustments and government
waiver accruals. For more information regarding these measures, please
refer to the Company's 2015 Annual Management's Discussion and Analysis
accessible on the Company's website at www.terangagold.com.
5. Cash flow per ounce is based on the Company's life of mine average all-
in sustaining costs as set out in the Company's most recent NI 43-101
Technical Report before income tax payments, interest payments, debt
repayments, closure costs, dividends and working capital deducted
against a forecast gold price of $1,200 per ounce for 2017 and beyond.
6. Identified ounces on the Birimian greenstone belt, which straddles the
border of Senegal and Mali, West Africa, refers to gold ounces
historically mined in addition to gold ounces currently reported as
Measured and Indicated Resources, as available on GFMS Thomson Reuters
and the latest company reserve and resource statements as of March 23,
2016.
Competent and Qualified Persons Statement
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 mineralization 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 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 mineralization 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 mineralization 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.
The technical information contained in this document relating to the underground mineral reserves estimates is based on, and fairly represents, information compiled by Jeff Sepp, 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. Sepp is independent of Teranga and is a "Qualified Person" as defined in NI 43-101 and a "competent person" as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Sepp has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity 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. Sepp 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 the Technical Report.
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 2012 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 2012 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 release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Teranga, or developments in Teranga's business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of operations, future economic conditions and courses of action, the proposed plans with respect to mine plan, anticipated 2016 results, mineral reserve and mineral resource estimates, anticipated life of mine operating and financial results, and the completion of construction of the Gora deposit related thereto. Such 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. These assumptions include, among other things, the ability to obtain any requisite Senegalese governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and energy costs, future economic conditions and courses of action. Teranga cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. 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 the revised Company's Annual Information Form dated September 1, 2015, and in other company filings 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.
About Teranga
Teranga 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 in Senegal, West Africa.
Teranga'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 Senegal and 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. For more information, please refer to www.terangagold.com.
APPENDICES
APPENDIX 1: Open Pit and Underground Mineral Resources Summary as at December 31, 2015
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Deposit Domain Measured Indicated
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Tonnes Grade Au Tonnes Grade Au
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(g/t (g/t
('000s) Au) ('000s) ('000s) Au) ('000s)
----------------------------------------------------------------------------
Sabodala Open Pit 13,742 1.13 497 6,488 1.59 332
Underground 1,631 3.65 191
Combined 13,742 1.13 497 8,119 2.01 524
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Gora Open Pit 466 4.55 68 1,083 6.11 213
Underground 315 5.14 52
Combined 466 4.55 68 1,398 5.89 265
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Niakafiri Main Open Pit 4,909 1.33 210 7,222 0.98 228
Underground
Combined 4,909 1.33 210 7,222 0.98 228
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Niakafiri West Open Pit
Underground
Combined
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Soukhoto Open Pit
Underground
Combined
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Diadiako Open Pit
Underground
Combined
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Subtotal
Sabodala ML Open Pit 19,117 1.26 776 14,793 1.62 773
Underground 1,947 3.89 243
Combined 19,117 1.26 776 16,740 1.89 1,016
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Masato Open Pit 5,894 0.79 150 22,617 1.16 844
Underground 1,163 2.75 103
Combined 5,894 0.79 150 23,780 1.24 947
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Golouma Open Pit 6,800 2.98 653
Underground 2,134 4.09 280
Combined 8,934 3.25 933
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Kerekounda Open Pit 1,255 4.28 173
Underground 499 4.88 78
Combined 1,755 4.45 251
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Maki Medina Open Pit 2,112 1.22 83
Underground 109 2.71 10
Combined 2,221 1.30 93
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Niakafiri SW Open Pit 770 0.81 20
Underground
Combined 770 0.81 20
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Niakafiri SE Open Pit 4,439 0.98 140
Underground 73 2.60 6
Combined 4,512 1.01 146
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Kinemba Open Pit 24 1.06 1
Underground
Combined 24 1.06 1
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Kobokoto Open Pit 842 1.02 28
Underground
Combined 842 1.02 28
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Koulouqwinde Open Pit
Underground
Combined
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Kourouloulou Open Pit 96 11.51 36
Underground 59 9.15 18
Combined 156 10.61 53
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Kouroundi Open Pit 67 0.93 2
Underground
Combined 67 0.93 2
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Koutouniokolla Open Pit
Underground
Combined
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Mamasato Open Pit 560 1.45 26
Underground
Combined 560 1.45 26
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Sekoto Open Pit
Underground
Combined
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Subtotal Somigol
ML Open Pit 5,894 0.79 150 39,584 1.58 2,005
Underground 4,038 3.81 495
Combined 5,894 0.79 150 43,622 1.78 2,500
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Total Sabodala +
Somigol Open Pit 25,011 1.15 926 54,377 1.59 2,777
Underground 5,985 3.84 738
Combined 25,011 1.15 926 60,362 1.81 3,516
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Deposit Domain Measured and Indicated Inferred
------------------------------------------------
Tonnes Grade Au Tonnes Grade Au
------------------------------------------------
(g/t (g/t
('000s) Au) ('000s) ('000s) Au) ('000s)
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Sabodala Open Pit 20,230 1.28 829 2,525 1.23 100
Underground 1,631 3.65 191 460 3.60 53
Combined 21,861 1.45 1,021 2,985 1.60 153
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Gora Open Pit 1,549 5.64 281 53 4.95 8
Underground 315 5.14 52 59 4.83 9
Combined 1,864 5.56 333 113 4.88 18
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Niakafiri Main Open Pit 12,131 1.12 438 2,472 1.09 87
Underground 184 2.51 15
Combined 12,131 1.12 438 2,656 1.19 102
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Niakafiri West Open Pit 2,566 1.29 107
Underground 90 2.82 8
Combined 2,656 1.34 115
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Soukhoto Open Pit 550 1.46 26
Underground
Combined 550 1.46 26
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Diadiako Open Pit 178 1.27 7
Underground 663 2.89 61
Combined 841 2.54 69
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Subtotal
Sabodala ML Open Pit 33,910 1.42 1,548 8,344 1.25 335
Underground 1,947 3.89 243 1,456 3.14 147
Combined 35,857 1.55 1,792 9,800 1.53 482
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Masato Open Pit 28,511 1.08 994
Underground 1,163 2.75 103 1,984 2.85 182
Combined 29,674 1.15 1,097 1,984 2.85 182
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Golouma Open Pit 6,800 2.98 653 88 2.46 7
Underground 2,134 4.09 280 854 3.66 100
Combined 8,934 3.25 933 942 3.55 107
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Kerekounda Open Pit 1,255 4.28 173
Underground 499 4.88 78 235 5.70 43
Combined 1,755 4.45 251 235 5.70 43
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Maki Medina Open Pit 2,112 1.22 83 114 0.81 3
Underground 109 2.71 10 85 2.54 7
Combined 2,221 1.30 93 199 1.55 10
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Niakafiri SW Open Pit 770 0.81 20 30 0.67 1
Underground
Combined 770 0.81 20 30 0.67 1
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Niakafiri SE Open Pit 4,439 0.98 140 162 0.96 5
Underground 73 2.60 6 16 2.64 1
Combined 4,512 1.01 146 177 1.11 6
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Kinemba Open Pit 24 1.06 1 91 0.95 3
Underground 56 2.52 5
Combined 24 1.06 1 147 1.55 7
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Kobokoto Open Pit 842 1.02 28 335 0.86 9
Underground
Combined 842 1.02 28 335 0.86 9
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Koulouqwinde Open Pit 230 1.42 11
Underground 60 2.67 5
Combined 290 1.68 16
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Kourouloulou Open Pit 96 11.51 36 22 6.71 5
Underground 59 9.15 18 86 13.58 38
Combined 156 10.61 53 108 12.18 42
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Kouroundi Open Pit 67 0.93 2 42 0.74 1
Underground
Combined 67 0.93 2 42 0.74 1
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Koutouniokolla Open Pit 85 1.58 4
Underground 22 2.54 2
Combined 108 1.78 6
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Mamasato Open Pit 560 1.45 26 305 1.25 12
Underground 42 2.32 3
Combined 560 1.45 26 347 1.38 15
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Sekoto Open Pit 485 0.89 14
Underground 25 2.11 2
Combined 510 0.95 16
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Subtotal Somigol
ML Open Pit 45,478 1.47 2,155 1,989 1.16 74
Underground 4,038 3.81 495 3,465 3.48 387
Combined 49,516 1.66 2,650 5,454 2.63 462
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Total Sabodala +
Somigol Open Pit 79,388 1.45 3,703 10,333 1.23 409
Underground 5,985 3.84 738 4,921 3.38 534
Combined 85,373 1.62 4,441 15,254 1.92 944
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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, except for Gora at 0.48 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, except for Gora at 0.55 g/t Au.
4. Underground Mineral Resources are estimated at a cut-off grade of 2.00
g/t Au.
5. Measured Resources at Sabodala include stockpiles which total 9.2 Mt at
0.77 g/t Au for 229,000 oz.
6. Measured Resources at Gora include stockpiles which total 0.1 Mt at 1.30
g/t Au for 6,000 oz.
7. Measured Resources at Masato include stockpiles which total 5.9 Mt at
0.79 g/t Au for 150,000 oz.
8. High grade assays were capped at grades ranging from 1.5 g/t Au to 110
g/t Au.
9. The figures above are "Total" Mineral Resources and include Mineral
Reserves.
10. Open pit shells were used to constrain open pit resources.
11. Mineral Resources are estimated using a gold price of US$1,450 per
ounce.
12. Sum of individual amounts may not equal due to rounding.
There have been no revisions to the resource models for 2015, except for adjustments due to mining depletion and minor revisions to Niakafiri Main, Niakafiri SW, Maki Medina and Diadiako. For estimating 2015 Mineral Resources, Teranga has implemented a new reporting procedure, which includes the use of open pit shells to constrain open pit resources and reporting underground resources separately.
For reporting of open pit Mineral Resources, open pit shells were produced for each of the resource models using Whittle open pit optimization software. Only classified blocks greater than or equal to the open pit cut-off grades and within the open pit shells were reported. This is in compliance with the CIM (2014) resource definition requirement of "reasonable prospects for eventual economic extraction".
For reporting of underground Mineral Resources, only classified blocks greater than or equal to the underground cut-off grade outside of the open pit shells were reported. This is in compliance with CIM (2014) resource definition requirements. In addition, Deswik Stope Optimizer software was used to generate wireframe models to constrain blocks satisfying minimum size and continuity criteria, which were used for reporting Sabodala underground Mineral Resources.
The significant change between the Mineral Resources reported for 2014 and 2015 is due to this new reporting procedure, where the 2015 year end Mineral Resources have been constrained using open pit shells along with revised gold cut-off grades for both open pit and underground resources. Previously classified Mineral Resources that do not satisfy the revised reporting criteria for 2015 have been excluded, however, remain in the block models as mineralized material.
APPENDIX 2: Open Pit and Underground Mineral Reserves Summary
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Deposits Proven Probable Proven and Probable
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Tonnes Grade Au Tonnes Grade Au Tonnes Grade Au
(Mt) (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz)
----------------------------------------------------------------------------
Sabodala 1.57 1.57 0.08 2.33 1.36 0.10 3.90 1.44 0.18
Gora 0.31 4.94 0.05 1.15 4.74 0.17 1.46 4.78 0.22
Niakafiri
Main 4.06 1.23 0.16 3.41 0.94 0.10 7.47 1.10 0.26
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Subtotal ML 5.95 1.52 0.29 6.88 1.71 0.38 12.83 1.62 0.67
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Masato - - - 21.41 1.06 0.73 21.41 1.06 0.73
Golouma West - - - 3.23 1.96 0.20 3.23 1.96 0.20
Golouma South - - - 1.27 3.09 0.13 1.27 3.09 0.13
Kerekounda - - - 0.79 3.44 0.09 0.79 3.44 0.09
Maki Medina - - - 0.90 1.17 0.03 0.90 1.17 0.03
Niakafiri SE - - - 1.12 1.09 0.04 1.12 1.09 0.04
Niakafiri SW - - - 0.37 0.92 0.01 0.37 0.92 0.01
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Subtotal
SOMIGOL - - - 29.08 1.32 1.23 29.08 1.32 1.23
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Subtotal Open
Pit 5.95 1.52 0.29 35.96 1.39 1.61 41.92 1.41 1.90
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Golouma West
1 - - - 0.62 6.07 0.12 0.62 6.07 0.12
Golouma West
2 - - - 0.45 4.39 0.06 0.45 4.39 0.06
Golouma South - - - 0.47 4.28 0.06 0.47 4.28 0.06
Kerekounda - - - 0.61 4.95 0.10 0.61 4.95 0.10
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Subtotal
Underground 0.00 0.00 - 2.15 5.01 0.35 2.15 5.01 0.35
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Total 5.95 1.52 0.29 38.11 1.60 1.96 44.07 1.59 2.25
----------------------------------------------------------------------------
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Stockpiles 15.27 0.79 0.39 0.00 0.00 0.00 15.27 0.79 0.39
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Total
Including
Stockpile 21.23 0.99 0.68 38.11 1.60 1.96 59.34 1.38 2.63
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Notes for Mineral Reserves Summary:
1. CIM definitions were followed for Mineral Reserves.
2. Mineral Reserve cut off grades for range from are 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. Mineral Reserve cut off grades for Sabodala 0.45 g/t for oxide and 0.55
g/t for fresh based on a $1,100/oz gold price
4. Underground reserves cut-off grades ranged from 2.3-2.6 g/t based on
$1,200/oz gold price
5. Sum of individual amounts may not equal due to rounding.
6. 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.
APPENDIX 3: Life of Mine (2016 to 2029)
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2016-
2020
Unit LOM AVG 2016 2017 2018 2019 2020 2021
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Sabodala Ore Mined Mt 3.9 0.3 1.5 2.0
Ore Grade g/t 1.44 1.11 1.33 1.58
Contained
Oz Moz 0.18 0.01 0.07 0.10
Waste Mt 31.0 11.1 15.0 5.0
----------------------------------------------------------------------------
Masato Ore Mined Mt 21.4 0.5 0.7 0.4 1.1 2.8
Ore Grade g/t 1.06 1.10 0.74 0.70 0.86 0.93
Contained
Oz Moz 0.73 0.02 0.02 0.01 0.03 0.09
Waste Mt 110.2 0.2 16.2 5.8 19.4 27.2
----------------------------------------------------------------------------
Gora Ore Mined Mt 1.5 0.7 0.7 0.1
Ore Grade g/t 4.78 4.00 5.15 7.90
Contained
Oz Moz 0.22 0.08 0.12 0.02
Waste Mt 32.2 17.9 14.1 0.2
----------------------------------------------------------------------------
Kerekounda Ore Mined Mt 0.8 0.0 0.5 0.3
Ore Grade g/t 3.44 0.99 3.39 3.74
Contained
Oz Moz 0.09 0.00 0.06 0.03
Waste Mt 18.2 3.6 13.0 1.6
----------------------------------------------------------------------------
Golouma Ore Mined Mt 4.5 1.2 0.9 2.4 0.1
Ore Grade g/t 2.28 3.08 1.98 1.99 2.24
Contained
Oz Moz 0.33 0.12 0.06 0.15 0.00
Waste Mt 49.6 14.8 18.4 16.4 0.0
----------------------------------------------------------------------------
Niakafiri(1
) Ore Mined Mt 9.0 1.5
Ore Grade g/t 1.09 1.05
Contained
Oz Moz 0.31 0.05
Waste Mt 26.6 6.2
----------------------------------------------------------------------------
Maki Medina Ore Mined Mt 0.9 0.9
Ore Grade g/t 1.17 1.17
Contained
Oz Moz 0.03 0.03
Waste Mt 2.9 2.9
----------------------------------------------------------------------------
Underground Ore Mined Mt 2.1 0.1
Ore Grade g/t 5.01 5.00
Contained
Oz Moz 0.35 0.02
----------------------------------------------------------------------------
Summary Ore Mined Mt 44.1 3.1 2.3 1.6 3.4 4.7 3.5 3.0
Ore Grade g/t 1.59 1.94 2.91 3.74 1.51 1.42 1.63 1.09
Contained
Oz Moz 2.25 0.20 0.22 0.19 0.17 0.22 0.19 0.10
Waste Mt 270.7 36.3 36.4 38.2 35.9 35.4 35.8 27.2
Movement Mt 314.7 39.5 38.7 39.8 39.3 40.1 39.4 30.2
----------------------------------------------------------------------------
Stockpile
Ore
Balance Mt 13.7 11.1 10.1 10.4 9.4 7.9
Stockpile
Grade g/t 0.82 0.84 0.76 0.73 0.70 0.68
Contained
Oz Moz 0.36 0.30 0.25 0.24 0.21 0.17
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Ore Milled Mt 59.3 4.3 3.9 4.2 4.5 4.5 4.5 4.5
Head Grade g/t 1.38 1.66 1.93 1.85 1.56 1.54 1.46 0.99
Oxide % 21% 27% 37% 25% 26% 31% 19% 28%
Produced
Oz Moz 2.376 0.207 0.215 0.229 0.202 0.200 0.190 0.128
----------------------------------------------------------------------------
Notes:
(1) The schedule summarized Niakafiri from "Niakafiri Main" and "Niakafiri
SE". The portion of Niakafiri SE to be mined lies outside of the Sabodala
Village area and assumes relocation is not required.
Sum of individual amounts may not equal due to rounding.
The estimated ore reserves underpinning the production targets (as defined
in the ASX Listing Rules) set out in Appendix 1 above, have been prepared
by Mr. Paul Chawrun, who is a Competent Person, in accordance with the
requirements of the 2012 JORC Code.
This production guidance is based on existing proven and probable ore
reserves from the Sabodala mining license as at December 31, 2015.
Stockpile balances at January 1, 2016 included 15.3 Mt at 0.79 g/t for 0.39
million contained ounces
----------------------------------------------------------------------------
----------------------------------------------------------------------
2022 2023 2024 2025 2026 2027 2028 2029
----------------------------------------------------------------------
Sabodala Ore Mined
Ore Grade
Contained
Oz
Waste
----------------------------------------------------------------------
Masato Ore Mined 5.0 4.3 6.7
Ore Grade 1.00 1.02 1.27
Contained
Oz 0.16 0.14 0.27
Waste 21.5 11.6 8.2
----------------------------------------------------------------------
Gora Ore Mined
Ore Grade
Contained
Oz
Waste
----------------------------------------------------------------------
Kerekounda Ore Mined
Ore Grade
Contained
Oz
Waste
----------------------------------------------------------------------
Golouma Ore Mined
Ore Grade
Contained
Oz
Waste
----------------------------------------------------------------------
Niakafiri(1
) Ore Mined 4.0 3.5
Ore Grade 1.10 1.10
Contained
Oz 0.14 0.12
Waste 12.5 7.9
----------------------------------------------------------------------
Maki Medina Ore Mined
Ore Grade
Contained
Oz
Waste
----------------------------------------------------------------------
Underground Ore Mined 0.3 0.3 0.3 0.1 0.2 0.4 0.4 0.2
Ore Grade 4.95 4.63 4.33 4.39 5.55 5.36 5.52 4.76
Contained
Oz 0.05 0.05 0.04 0.01 0.03 0.06 0.07 0.02
----------------------------------------------------------------------
Summary Ore Mined 5.3 8.6 10.4 0.1 0.2 0.4 0.4 0.2
Ore Grade 1.22 1.20 1.29 4.39 5.55 5.36 5.52 4.76
Contained
Oz 0.21 0.33 0.43 0.01 0.03 0.06 0.07 0.02
Waste 21.5 24.2 16.1
Movement 26.8 32.8 26.5 0.1 0.2 0.4 0.4 0.2
----------------------------------------------------------------------
Stockpile
Ore
Balance 8.7 12.9 18.9 14.5 10.2 6.2 2.1
Stockpile
Grade 0.67 0.66 0.68 0.66 0.66 0.66 0.66
Contained
Oz 0.19 0.27 0.41 0.31 0.22 0.13 0.04
----------------------------------------------------------------------
----------------------------------------------------------------------
Ore Milled 4.4 4.5 4.4 4.4 4.4 4.4 4.4 2.3
Head Grade 1.35 1.73 2.06 0.82 0.85 1.06 1.09 0.94
Oxide 16% 29% 0% 17% 19% 18% 18% 18%
Produced
Oz 0.173 0.225 0.263 0.104 0.109 0.135 0.139 0.063
----------------------------------------------------------------------
Notes:
(1) The schedule summarized Niakafiri from "Niakafiri Main" and
"Niakafiri SE". The portion of Niakafiri SE to be mined lies outside
of the Sabodala Village area and assumes relocation is not required.
Sum of individual amounts may not equal due to rounding.
The estimated ore reserves underpinning the production targets (as
defined in the ASX Listing Rules) set out in Appendix 1 above, have
been prepared by Mr. Paul Chawrun, who is a Competent Person, in
accordance with the requirements of the 2012 JORC Code.
This production guidance is based on existing proven and probable ore
reserves from the Sabodala mining license as at December 31, 2015.
Stockpile balances at January 1, 2016 included 15.3 Mt at 0.79 g/t for
0.39 million contained ounces
----------------------------------------------------------------------
APPENDIX 4: Life of Mine Capital Expenditures
----------------------------------------------------------------------------
2016-
2020
Sustaining Capex Unit LOM AVG 2016 2017 2018 2019 2020 2021
----------------------------------------------------------------------------
Open Pit Mining USDM 29.9 3.7 4.9 3.5 4.0 1.5 4.7 6.0
Underground Mining USDM - - - - - - - -
Processing USDM 18.9 2.1 2.4 2.0 2.0 2.0 2.0 2.0
Admin & Other
Sustaining USDM 8.8 1.3 2.8 1.0 1.0 1.0 0.5 0.5
Community Relations USDM 25.0 0.2 1.0 - - - - 2.0
----------------------------------------------------------------------------
Total Sustaining Capex USDM 82.5 7.2 11.0 6.5 7.0 4.5 7.2 10.5
Capital Projects &
Development
----------------------------------------------------------------------------
OJVG & Gora
Development USDM 4.3 0.9 3.3 0.8 0.3 - - -
Underground Equipment
& Development USDM 102.1 4.9 - - - - 24.4 23.4
Other Projects &
Development USDM 21.8 2.9 11.3 1.9 1.4 - - 7.2
----------------------------------------------------------------------------
Total Projects &
Development USDM 128.2 8.7 14.6 2.7 1.7 - 24.4 30.6
----------------------------------------------------------------------------
Combined Total (USDM) USDM 210.8 15.9 25.7 9.2 8.7 4.5 31.6 41.1
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Sustaining Capex Unit 2022 2023 2024 2025 2026 2027 2028 2029
----------------------------------------------------------------------------
Open Pit Mining USDM 3.0 1.5 0.8 - - - - -
Underground Mining USDM - - - - - - - -
Processing USDM 2.0 1.0 1.0 1.0 0.5 0.5 0.5 -
Admin & Other
Sustaining USDM 0.5 0.3 0.3 0.3 0.3 0.3 0.3 -
Community Relations USDM 15.0 7.0 - - - - - -
----------------------------------------------------------------------------
Total Sustaining Capex USDM 20.5 9.8 2.1 1.3 0.8 0.8 0.8 -
Capital Projects &
Development
----------------------------------------------------------------------------
OJVG & Gora
Development USDM - - - - - - - -
Underground Equipment
& Development USDM 8.9 2.4 0.8 8.5 18.2 10.4 4.1 0.9
Other Projects &
Development USDM - - - - - - - -
----------------------------------------------------------------------------
Total Projects &
Development USDM 8.9 2.4 0.8 8.5 18.2 10.4 4.1 0.9
----------------------------------------------------------------------------
Combined Total (USDM) USDM 29.4 12.2 2.9 9.8 18.9 11.1 4.9 0.9
----------------------------------------------------------------------------
APPENDIX 5: Life of Mine Operating Costs
----------------------------------------------------------------------------
2016-
2020
Activity Unit LOM AVG 2016 2017 2018 2019 2020 2021
----------------------------------------------------------------------------
USD/t
Open Pit Mining mined 2.25 2.25 2.24 2.27 2.25 2.20 2.29 2.19
USD/t
Underground Mining milled 72.23 - - - - - - 76.30
USD/t
Processing milled 10.33 10.16 10.83 10.02 10.00 9.93 10.09 9.97
USD/t
General & Admin. milled 2.56 3.39 3.81 3.47 3.29 3.28 3.15 3.12
----------------------------------------------------------------------------
Mining USDM 702 88 86 91 89 87 89 66
Underground Mining USDM 155 - - - - - - 7
Processing USDM 613 44 42 43 45 44 45 44
General & Admin USDM 144 14 14 14 14 14 14 14
Refining & Freight USDM 12 1 1 1 1 1 1 1
Byproduct Credits USDM (4) (0) (0) (0) (0) (0) (0) (0)
----------------------------------------------------------------------------
Total Operating
Costs USDM 1,622 147 142 148 148 146 148 132
----------------------------------------------------------------------------
Deferred Stripping
Adjustment USDM (129) (13) (26) (6) - - (35) (35)
Royalties(1) USDM 145 13 13 16 12 12 11 8
----------------------------------------------------------------------------
Total Cash Costs(2) USDM 1,639 146 130 158 161 159 124 104
----------------------------------------------------------------------------
Total Cash Costs(2) USD/oz 690 706 602 691 798 792 655 810
----------------------------------------------------------------------------
Capex USDM 211 16 26 9 9 5 32 41
Capitalized Deferred
Stripping USDM 129 13 26 6 - - 35 35
Capitalized Reserve
Development USDM - - - - - - - -
Corporate Admin USDM 130 14 16 14 14 14 12 10
----------------------------------------------------------------------------
All-In Sustaining
Cash Costs(2) USDM 2,108 189 196 187 183 177 203 190
----------------------------------------------------------------------------
All-In Sustaining
Cash Costs(2) USD/oz 887 914 912 819 908 882 1,072 1,483
----------------------------------------------------------------------------
Franco Nevada Stream USDM 173 19 20 22 22 22 11 7
Franco Nevada Stream USD/oz 73 92 92 94 107 108 58 58
----------------------------------------------------------------------------
All-In Sustaining
Cash Costs(2) plus
stream USDM 2,281 208 216 209 205 198 214 198
----------------------------------------------------------------------------
All-In Sustaining
Cash Costs(2 ) plus
stream USD/oz 960 1,006 1,004 914 1,015 990 1,129 1,541
----------------------------------------------------------------------------
Notes:
(1) Royalties include Government of Senegal royalties on total production
and the NSR royalty due to Axmin on Gora production.
(2 ) Refer to endnote (4) on page 2 of this press release concerning the
definition of total cash costs and all-in sustaining costs.
This production guidance is based on existing proven and probable reserves
only from both the Sabodala mining license as disclosed in the Reserves and
Resources section of this Report.
Key assumptions: Gold spot price/ounce - US$1,200, Light fuel oil -
US$0.72/litre, Heavy fuel oil - US$0.43/litre, US/Euro exchange rate -
$1.10
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Activity Unit 2022 2023 2024 2025 2026 2027 2028 2029
----------------------------------------------------------------------------
USD/t
Open Pit Mining mined 2.31 2.17 2.36 - - - - -
USD/t
Underground Mining milled 74.94 73.32 77.25 79.72 76.46 66.49 64.35 78.11
USD/t
Processing milled 10.14 9.95 10.84 10.63 10.60 10.61 10.61 10.60
USD/t
General & Admin. milled 3.06 3.08 2.01 1.88 1.43 1.23 1.00 1.81
----------------------------------------------------------------------------
Mining USDM 61 71 62 - - - - -
Underground Mining USDM 22 26 20 7 13 24 25 12
Processing USDM 45 44 48 47 47 47 47 25
General & Admin USDM 13 13 8 8 6 5 4 4
Refining & Freight USDM 1 1 1 1 1 1 1 0
Byproduct Credits USDM (0) (0) (0) (0) (0) (0) (0) (0)
----------------------------------------------------------------------------
Total Operating
Costs USDM 141 154 139 63 66 77 76 41
----------------------------------------------------------------------------
Deferred Stripping
Adjustment USDM (25) (1) - - - - - -
Royalties(1) USDM 10 14 16 6 7 8 8 4
----------------------------------------------------------------------------
Total Cash Costs(2) USDM 127 167 154 69 73 85 85 45
----------------------------------------------------------------------------
Total Cash Costs(2) USD/oz 730 741 587 660 668 629 607 711
----------------------------------------------------------------------------
Capex USDM 29 12 3 10 19 11 5 1
Capitalized Deferred
Stripping USDM 25 1 - - - - - -
Capitalized Reserve
Development USDM - - - - - - - -
Corporate Admin USDM 10 10 6 6 6 5 4 4
----------------------------------------------------------------------------
All-In Sustaining
Cash Costs(2) USDM 191 190 163 85 98 101 94 50
----------------------------------------------------------------------------
All-In Sustaining
Cash Costs(2) USD/oz 1,103 843 621 812 897 748 671 788
----------------------------------------------------------------------------
Franco Nevada Stream USDM 10 13 15 6 6 8 8 4
Franco Nevada Stream USD/oz 58 58 58 58 58 58 58 58
----------------------------------------------------------------------------
All-In Sustaining
Cash Costs(2) plus
stream USDM 201 203 178 91 104 109 102 53
----------------------------------------------------------------------------
All-In Sustaining
Cash Costs(2 ) plus
stream USD/oz 1,161 900 678 870 955 806 729 846
----------------------------------------------------------------------------
Notes:
(1) Royalties include Government of Senegal royalties on total production
and the NSR royalty due to Axmin on Gora production.
(2 ) Refer to endnote (4) on page 2 of this press release concerning the
definition of total cash costs and all-in sustaining costs.
This production guidance is based on existing proven and probable reserves
only from both the Sabodala mining license as disclosed in the Reserves and
Resources section of this Report.
Key assumptions: Gold spot price/ounce - US$1,200, Light fuel oil -
US$0.72/litre, Heavy fuel oil - US$0.43/litre, US/Euro exchange rate -
$1.10
----------------------------------------------------------------------------
Contacts:
Teranga Gold Corporation
Richard Young
President & CEO
+1 416-594-0000
ryoung@terangagold.com
Teranga Gold Corporation
Trish Moran
Head of Investor Relations
+1 416-607-4507
tmoran@terangagold.com
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