World News: 11:00 GMT Thursday 12th July 2018. [Teranga Gold Corporation via Globe Newswire via SPi World News]
TORONTO, July 12, 2018 (GLOBE NEWSWIRE) -- Teranga Gold Corporation ("Teranga" or the "Company") (TSX:TGZ) (OTCQX:TGCDF) is pleased to announce that its most recent diamond drill program on the Golden Hill property in Burkina Faso, West Africa has returned near surface and deeper gold intersections that will enhance resources at a number of advanced prospects. In addition, the recent drilling evaluation program identified a new near-surface discovery at Peksou North, one of 9 prospects drilled at Golden Hill over the past 18 months.
Teranga has an earn-in agreement on Golden Hill with Boss Resources Limited (ASX:BOE) pursuant to which Teranga, as operator, can earn an 80% interest in the joint venture upon delivery of a feasibility study and the payment of AUD2.5 million.
“Golden Hill continues to provide new discoveries and strong intervals of very good grade, near-surface gold from a variety of prospects in the run-up to our end-of-year initial resource estimation announcement,” said Richard Young, CEO. “Results from Jackhammer Hill, in particular, build upon prior drill results and continue to grow an already exciting high-grade gold domain along trend and to depth. Drilling across the entire Golden Hill property supports increasing confidence that this project could represent Teranga’s third gold mine in West Africa, moving Teranga into mid-tier producer status.”
“Our advanced-stage exploration drilling program at Golden Hill continues to provide a high rate of drilling success. This phase of the program further demonstrated excellent continuity from a series of very good grade gold intersections at multiple proximal prospects while prospects such as Peksou North demonstrate that opportunity remains for new discoveries,” said David Mallo, Vice President, Exploration. “Drilling through the remainder of 2018 is designed to enhance our understanding of the controlling influences on the gold mineralizing systems at our various prospect areas and to continue expanding the resource base prior to our initial estimation.”
Work at Golden Hill is moving rapidly. Teranga is investing $8 million in project drill programs in 2018. The Company plans to announce an initial resource estimate for the most advanced prospects by year-end. Preliminary metallurgical test work programs are underway with base line environmental studies to follow later this year. Upon satisfaction of certain conditions precedent relating to the project’s initial preliminary economic assessment, Teranga has secured $25 million in debt financing to advance the Golden Hill project through to feasibility.
The Golden Hill property is comprised of three adjacent exploration permits covering 470 km in southwest Burkina Faso in the central part of the Houndé Greenstone Belt. This belt hosts a number of high-grade gold discoveries, including the Siou, Yaramoko and Houndé deposits, the latter being contiguous with Golden Hill.
This news release provides an update on exploration drilling results from a number of prospects recently evaluated as part of our ongoing advanced exploration program at Golden Hill. All advanced stage exploration prospects at Golden Hill are located within six kilometres of a central point (Figure 1 in Appendix 2).
Drilling was undertaken recently at Jackhammer Hill, C-Zone, Peksou North, Ma North, A-Zone, B-Zone and Nahiri. Please refer to Appendix 1 for significant results (Tables 1 – 6) and Appendix 2 for plan maps and representative sections related to this drill program. Cumulative results from all Golden Hill drilling are available on the Company’s website under Exploration.
Over the remainder of the year, significant drilling will be undertaken on all the advanced prospects listed above, as well as at Peksou and Ma.
Recent drilling at the Jackhammer Hill prospect has been limited while exploration drilling was focused elsewhere. More extensive drilling has been earmarked for the upcoming quarter at Jackhammer Hill as Teranga has the flexibility to drill this prospect during the rainy season. In the coming months, drilling will focus on increasing both lateral and depth extensions of the high-grade mineralization.
Significant results from our most recent drill program are shown in Table 1 in Appendix 1. The gold mineralized zones identified thus far at Jackhammer Hill comprise a series of southeast dipping horizons hosted within an altered and sheared diorite intrusive unit. Drilling has been initiated along an approximate 1,350-metre strike extent, predominantly to vertical depths of 50 to 75 metres and locally to vertical depths of approximately 125 metres.
The Jackhammer Hill drilling program completed to date is outlined on Figure 2 in Appendix 2. Additionally, a representative section demonstrating excellent continuity of high-grade gold mineralization from our most recent drill phase is also included (Figure 3 in Appendix 2).
A central core portion of the Jackhammer Hill prospect includes a number of intersections of high-grade visible gold in the drill core over a current strike extent of 200 metres (Section 0+40 SW to Section 2+40 SW in Figure 2 in Appendix 2).
To-date, the Company has drill tested C-Zone with diamond drilling over a strike extent of approximately 850 metres (Figure 4 in Appendix 2) and additional recent strong results confirm that C-Zone remains open to depth and intersects with the southeastern portion of our Peksou prospect.
Gold mineralization is localized in a discrete, mafic volcanic hosted shear zone system that displays alteration, veining and brecciation characteristics similar to those observed at Golden Hill’s nearby Ma prospect. The correlation of gold mineralized zones between drill holes at C-Zone has been excellent, as demonstrated by representative sections of some recent drill results (Figures 5 and 6 in Appendix 2).
Available results from a series of scout holes targeting soil and auger geochem anomalies within the Peksou Intrusive Complex (Figure 1 in Appendix 2) have provided favorable early-stage results at two separate locations within the Peksou North target area (Figure 7 in Appendix 2). Similar to the intrusive-hosted portion of mineralization at our Peksou prospect, granodiorite intrusive-hosted gold mineralization at Peksou North displays two distinct styles of alteration: (i) hematite dominant; and (ii) sericite dominant.
As outlined in a representative section (Figure 8 in Appendix 2), the sericite alteration zone in GHDD-346 appears to be the more important at that location, whereas the hematite alteration zone in scissor-hole GHDD-345 appears to be a proximal, footwall feature.
A number of our initial Peksou North diamond drill results are pending (Table 3 in Appendix 1). However, we are very encouraged by the near-surface gold results from the few holes analyzed to date, and plan further drilling to follow-up on these initial positive results.
Our most recent Ma North diamond drill results continue to confirm that a third well-mineralized breccia zone (BZ-3) exists within the Ma structural complex where previous drilling had identified BZ-1 and BZ-2 (Figure 9 in Appendix 2). Drilling at Ma North is still at an early-stage and predominantly at shallow depths when compared to more advanced areas of the Ma structural complex. However, early-stage hole-to-hole correlation is demonstrating excellent continuity of mineralization. Additional drilling is planned to further evaluate Ma North both along trend and to depth where the breccia hosted mineralization remains open to expansion.
Recent diamond drill results at Ma North are outlined in Table 4 in Appendix 1. All 12 holes being reported intersected near surface intervals of gold mineralization that correlates well with previous drilling.
Initial diamond drilling evaluation was completed during the second quarter at the A and B Zones (Figure 10 in Appendix 2) where previous operators had utilized reverse circulation drilling. Although the earlier drilling had intersected a number of very positive results, correlation and interpretation was very difficult without the benefit of diamond drilling. As indicated in Table 5 in Appendix 1, the results from our preliminary stage of drilling evaluation have been encouraging and the overall interpretation of both the A and B Zone mineralization has improved considerably warranting a follow-up drill program that may begin in the fourth quarter.
As a component of the recent drilling program at Golden Hill, a few holes were drilled at both the Nahiri prospect and the Nahiri Plateau area where previous drilling had intersected very broad intervals of highly anomalous gold mineralization, much of which is oxide preserved under a lateritic cap. Two lateral step-out drill holes from previously drilled GHDD-178 (a minimum of 123 m @ 0.48 g/t Au) both encountered similar broadly anomalous mineralization: GHDD-309 (a minimum of 153 m @ 0.30 g/t Au) and GHDD-333 (a minimum of 67 m @ 0.64 g/t Au). Complete results for these and other recent Nahiri and Nahiri Plateau holes are shown in Table 6 of Appendix 1 and a plan map of all Nahiri area drilling is outlined in Figure 11 of Appendix 2.
Further drilling is planned for the Nahiri Plateau area to more thoroughly assess these very broadly mineralized intersections and explore for a potential feeder system/structure that may host higher grades.
Teranga's exploration programs in Burkina Faso 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 – Standards of Disclosure for Mineral Projects (“NI 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 "Qualified Person" under NI 43-101. The technical information contained in this news release relating to 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 and diamond core samples are assayed at the BIGGS Laboratory in Ouagadougou, Burkina Faso. 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.
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 and business prospects (including the timing and development of new deposits and the success of exploration activities) and opportunities. Wherever possible, words such as “objective to”, “likely”, “intend to”, “potential”, “belief”, “believe”, “expects”, “estimates”, “plans”, “anticipated”, “ability” and similar expressions or statements that certain actions, events or results “should”, 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 sampling, analytical and test data underlying the exploration results included herein, gold price, exchange rates, fuel and energy costs, future economic conditions, and anticipated future estimates of free cash flow. 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 29, 2018, and in other filings of Teranga with securities and regulatory authorities which are available at . Teranga does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Nothing in this document should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities. All references to Teranga include its subsidiaries unless the context requires otherwise.
Teranga is a multi-jurisdictional West African gold company focused on production and development as well as the exploration of more than 6,400 km of land located on prospective gold belts. Since its initial public offering in 2010, Teranga has produced more than 1.4 million ounces of gold from its operations in Senegal, which as of June 30, 2017 had a reserve base of 2.7 million ounces of gold. Focused on diversification and growth, the Company is building Wahgnion, its second gold mine, and is conducting extensive exploration programs in three countries: Burkina Faso, Senegal and Côte d’Ivoire. Teranga has a strong balance sheet and the financial flexibility to execute on its growth strategy. The Company has nearly 4.0 million ounces of gold reserves from its combined Sabodala Gold operations and Wahgnion Gold Project.
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 responsibility report is available at and is prepared in accordance with its commitments under the United Nations Global Compact and in alignment with the Global Reporting Initiative guidelines.
Globe Newswire: 11:00 GMT Thursday 12th July 2018
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