Teranga Gold Announces Two New Gold Discoveries at Golden Hill Property in Burkina Faso
TORONTO, ONTARIO--(Marketwired - Apr 25, 2017) - Teranga Gold Corp. ("Teranga" or the "Company") (TSX:TGZ)(ASX:TGZ) is pleased to announce two new gold discoveries from its exploration program at Golden Hill, its joint venture with Boss Resources Limited (ASX:BOE) ("Boss"), in Burkina Faso, West Africa.
The Company's new discoveries are located within the Ma and Nahiri prospects, representing the first two of the ten drill ready targets that have been identified to date at Golden Hill. All ten targets are within close proximity to each other.
"The assay results for Ma and Nahiri are very encouraging for an early stage exploration program," said David Mallo, Teranga's Vice President, Exploration. "They display good grades, widths, continuity and strike length in each prospect, and the mineralized zones occur from surface with good oxide depth developed."
Additionally, the next two targets - Jackhammer Hill and Pourey-Peksou - were also drilled during the first quarter. The Company can report that, while these assay results are pending, drilling intersected the expected alteration and structures at each of these targets.
Mr. Mallo added, "Overall, we are excited by these positive results, especially given their close proximity to one another. Based on the success of this first phase, a multi-drill second phase program on these targets has begun."
The Golden Hill property is located within the highly mineralized Houndé Greenstone Belt in Burkina Faso. This belt hosts a number of high-grade gold discoveries, including the recently discovered Sious, Yaramoko and Houndé deposits, the latter property being contiguous with Golden Hill. To the south of Golden Hill is another large land position where active exploration programs are well underway.
HIGHLIGHTS
Initial assays from the Company's initial drilling evaluation at the Ma prospect intersected favorable results over the minimum 1,300-metre strike extent drilled to date. Highlight results include:
- 6.5 m @ 2.67 g/t Au and 3 m @ 8.86 g/t Au in GHDD-010
- 9.8 m @ 1.92 g/t Au including 5.3 m @ 2.62 g/t Au in GHDD-011
- 7.9 m @ 2.71 g/t Au in GHDD-015
- 5.2 m @ 5.15 g/t Au in GHDD-017
- 4.9 m @ 3.64 g/t Au in GHDD-020
The initial drilling evaluation at the Nahiri prospect intersected broad, highly anomalous intersections within which highlight intervals include:
- 14 m @ 2.85 g/t Au including 5 m @ 6.56 g/t Au and 18 m of 1.46 g/t Au including 4 m @ 2.38 g/t Au in GHRC-011
- 13 m @ 1.56 g/t Au including 6 m @ 2.23 g/t Au in GHRC-010
- 12 m @ 1.25 g/t Au including 3 m @ 2.28 g/t Au in GHRC-001
- 12 m @ 1.06 g/t Au and 1 m @ 11.00 g/t Au in GHRC-015
Ma Prospect
At the Ma prospect, 13 diamond drill (DD) holes were completed to test the primary NW-trending Ma structure, a secondary, parallel, NW-trending structure and N-S trending cross-structures. To date, a 1,300-metre strike extent of the primary Ma structure has been successfully intersected in all eight of these holes over varying spacing, (refer to Figure 1 in Appendix 1). A complete listing of the results from the first 13 drill holes is included in Table 1.
A follow-up drill program is scheduled to begin in early May to further evaluate the strike extent on regularly spaced sections, extend drilling further along trend and test depth extensions below the initial drill holes.
Nahiri Prospect
At the maiden Nahiri prospect, 17 reverse circulation (RC) drill holes were completed in four drill profiles designed to test a 500-metre strike extent of a combined soil and auger geochemical anomaly. Three of the northernmost drill profiles, comprising a minimum 350-metre strike extent, returned the most favorable results, within a broadly anomalous gold zone. Significant results from these drill sections are outlined in Table 2.
About the Golden Hill Property Joint Venture
The Golden Hill property is comprised of three adjacent exploration permits covering 468km2 located in southwest Burkina Faso in the central part of the Houndé Greenstone Belt. Teranga, through the acquisition of Gryphon Minerals Ltd., has an earn-in agreement with Boss pursuant to which Teranga, as the operator, can earn an 80 percent interest in the joint venture upon delivery of a feasibility study and the payment of AUD2.5 million.
Table 1: Ma Prospect Drilling Highlights
| Hole # | Northing * | Easting * | Elevation | Azimuth | Dip | EOH (m) | Interval (m) * | Core length (m) * | Grade (g/t Au) |
| Ma Primary Structure | |||||||||
| GHDD - 010 | 1237505 | 452175 | 399 | 39 | -45 | 122.0 | 39.5 - 46.0 | 6.5 | 2.67 |
| incl. | 40.0 - 42.0 | 2.0 | 5.03 | ||||||
| 52.0 - 55.0 | 3.0 | 8.86 | |||||||
| 81.0 - 87.0 | 6.0 | 1.39 | |||||||
| 100.0 - 103.0 | 3.0 | 0.97 | |||||||
| 116.0 - 117.0 | 1.0 | 1.52 | |||||||
| GHDD - 011 ** | 1237408 | 452333 | 434 | 24 | -45 | 62.1 | 29.2 - 40.0** | 9.8 | 1.92 |
| incl. | 29.2 - 34.5 | 5.3 | 2.62 | ||||||
| incl. | 32.8 - 34.5 | 1.7 | 6.06 | ||||||
| GHDD - 012 | 1237377 | 452363 | 440 | 20 | -45 | 92.0 | 30.0 - 31.0 | 1.0 | 3.93 |
| 34.0 - 41.0 | 7.0 | 1.81 | |||||||
| incl. | 34.0 - 37.0 | 3.0 | 2.94 | ||||||
| GHDD - 013 | 1237342 | 452435 | 437 | 24 | -45 | 88.0 | 23.0 - 26.0 | 3.0 | 1.22 |
| 79.0 - 80.0 | 1.0 | 1.51 | |||||||
| GHDD - 014 | 1237297 | 452457 | 428 | 24 | -45 | 63.1 | 45.0 - 54.0 | 9.0 | 1.55 |
| incl. | 53.0 - 54.0 | 1.0 | 9.20 | ||||||
| GHDD - 015 | 1237231 | 452621 | 412 | 20 | -45 | 66.5 | 20.9 - 28.8 | 7.9 | 2.71 |
| incl. | 26.2 - 28.8 | 3.6 | 5.24 | ||||||
| 56.0 - 58.0 | 2.0 | 1.77 | |||||||
| GHDD - 016 | 1236966 | 452873 | 375 | 40 | -45 | 59.0 | 11.0 - 15.0 | 4.0 | 1.27 |
| 26.0 - 28.0 | 2.0 | 2.73 | |||||||
| GHDD - 017 | 1237758 | 451855 | 382 | 39 | -45 | 111.0 | 32.0 - 37.2 | 5.2 | 5.16 |
| incl. | 34.0 - 37.2 | 3.2 | 7.38 | ||||||
| Ma Secondary Structure | |||||||||
| GHDD - 008 | 1237670 | 452122 | 408 | 55 | -45 | 65.0 | 23.0 - 24.0 | 1.0 | 1.16 |
| GHDD - 009 | 1237602 | 452159 | 398 | 55 | -45 | 80.0 | 31.0 - 32.0 | 1.0 | 2.05 |
| 58.0 - 61.0 | 3.0 | 1.60 | |||||||
| GHDD - 018 | 1237607 | 452249 | 406 | 20 | -45 | 80.0 | 25.0 - 26.0 | 1.0 | 1.99 |
| GHDD - 019 | 1237675 | 452205 | 412 | 279 | -45 | 80.0 | NSR | ||
| GHDD - 020 | 1237687 | 452084 | 408 | 24 | -45 | 80.8 | 23.6 - 28.5 | 4.9 | 3.64 |
| incl. | 25.9 - 27.9 | 2.0 | 7.60 |
| * Intervals calculated with a 0.4 g/t Au cut-off and 2 metres maximum internal dilution. Sampling used lithologic contacts for the initial drill program, standard metre-metre sampling will be utilized in future. True widths are unknown. UTM's are WGS84-30N |
| ** Interval includes 2 metres of no recovery (34.5-36.5) where hole intersected an artisanal opening |
Table 2: Nahiri Prospect Drilling Highlights
| Hole # | Northing * | Easting * | Elevation | Azimuth | Dip | EOH (m) | Interval (m) * | Core length (m) * | Grade (g/t Au) |
| GHRC-001 | 1233804 | 450710 | 359 | 65 | -60 | 37 | 19 - 31 | 12 | 1.26 |
| incl. | 25 - 28 | 3 | 2.28 | ||||||
| GHRC-002 | 1233957 | 450463 | 368 | 65 | -60 | 84 | 12 - 14 | 2 | 1.36 |
| GHRC-010 | 1233900 | 450533 | 367 | 65 | -60 | 85 | 35 - 50 | 15 | 1.43 |
| incl. | 40 - 46 | 6 | 2.23 | ||||||
| GHRC-011 | 1233917 | 450567 | 365 | 65 | -60 | 80 | 7 -21 | 14 | 2.85 |
| incl. | 7 - 12 | 5 | 6.56 | ||||||
| 25 - 27 | 2 | 2.22 | |||||||
| 48 - 61 | 18 | 1.46 | |||||||
| incl. | 52 - 56 | 4 | 2.38 | ||||||
| and | 61 - 63 | 2 | 3.63 | ||||||
| 70 - 73 | 3 | 1.10 | |||||||
| GHRC-015 | 1233790 | 450673 | 359 | 65 | -60 | 82 | 13 - 25 | 12 | 1.06 |
| 29 - 30 | 1 | 11.00 | |||||||
| GHRC-017 | 1234007 | 450570 | 361 | 65 | -60 | 88 | 6 - 21 | 15 | 0.56 |
| * Intervals calculated with a 0.4 g/t Au cut-off and 2 metres maximum internal dilution. Sampling used lithologic contacts for the initial drill program, standard metre-metre sampling will be utilized in future. True widths are unknown. UTM's are WGS84-30N |
Competent Persons Statements
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 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.
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 5,000km2 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: Ma - Primary and Secondary Structures, please visit the following link: http://media3.marketwire.com/docs/MaProspectPrimaryandSecondaryStructures.jpg
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 techniques | • Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where 'industry standard' work has been done this would be relatively 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. | • A total of 13 Diamond Core holes (DD) for 1049.42 m and 17 Reverse Circulation (RC) holes for 1315m were completed during the current drill program. Sampling is of drill chips produced by RC drilling and half NQ2 core from the DD drilling • Drill core was sawn in half over defined sampling intervals, then one half sampled and assayed for gold. Oriented core markings were used as guides for sawing. RC chips were riffled and split following standard operating procedures. Occasionally quarter core and duplicate chip samples were submitted for check assays. • RC chips were sampled along the entire hole to determine the nature of mineralization and relationship to logged lithology, alteration and structure. Diamond core was sampled selectively based on visual identification of mineralisation. | ||
| Drilling techniques | • Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.). | • RC and diamond drilling programs were conducted. Diamond drill holes were drilled using standard HQ or NQ sized rods. RC drilling was conducted using a standard 41/2 inch sized hammer. | ||
| Drill sample recovery | • Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. | • Diamond core recoveries were measured and recorded for each sample. Core was sampled to select changes in lithology and mineralisation to a nominal sample with of 1m and minimum sample with of 0.5m. RC chip samples were collected on 1 m intervals. Chip recoveries were based on qualitative visual estimates (poor, medium or good). BGP collected and weighed the total chip samples. Chip sample recoveries were not calculated but estimated based on the weight of the total samples. • RC drill contractors have been requested to allow for sufficient air and appropriate technique to ensure dry samples are delivered >95% of the time. In instances where water ingress is unavoidable, damp or wet samples are dried prior to being split. There has not been a significant issue with core recovery in both oxide and fresh rock. • There is no evidence to suggest a relationship between sample recovery and grade as there is no significant loss of material. Sample recoveries are of good quality. | ||
| Logging | • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. • The total length and percentage of the relevant intersections logged. | • Core samples were geologically and geotechnically logged following established standard operating procedures and includes sufficient and appropriate detail to support Mineral Resource estimation, mining and metallurgical studies. RC chip samples were geologically logged following established standard operating procedures and considered to be appropriate for use in Mineral Resource estimation. • Logging is qualitative in nature. All core was photographed. • All recovered core and RC cuttings (100%) were logged. | ||
| Sub-sampling techniques and sample preparation | • If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled. | • Drill core sampling intervals were defined then cut in half with a diamond saw along the core length following orientation lines. Half core was sampled over approximate one meter lengths or based on lithology intervals. • RC sampled by riffle splitting dry samples using a tiered splitter to 3kg sample and submitted for analysis • RC samples are split to 3 kg sample in the field by tiered splitter for dispatch to assay lab. At time of field splitting a second duplicate sample is collected for every interval and stored on site. The primary sample is pulverized in entirety at BIGGs in Laboratory in Ouagadougou by LM2 and split to a 200 g sub sample using riffle splitting. A 50 g subsample from this pulp is then selected for analysis. Sampling and subsampling methods are industry standard and are appropriate for the type of drilling. The use of the riffle tiered splitter is a demonstrated method of accurately splitting the primary sample and the field method has been validated with the field duplicate data over the life of the BGP. • For RC chips field duplicate sample collected every 20 samples and submitted to the laboratory to assess precision of the riffle splitting. Field duplicate data is routinely reviewed and show acceptable precision and variability. • Field duplicate data indicates acceptable variability indicating coarse gold is not a significant issue in the sampling. | ||
| Quality of assay data and laboratory tests | • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, 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 procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. | • Gold assays for RC drilling were obtained by using a 50g charge for a lead collection fire assay with an AAS finish. This is considered to be total gold estimate. Assaying was conducted in Ouagadougou by BIGGS Laboratories. • Not applicable • Certified reference materials, blanks and duplicates are regularly inserted into the sample preparation and analysis process with approximately 10% of all samples being related to quality control. • Data is reviewed before being accepted into the database. Any batches failing QAQC analysis resubmitted for check assays. Dataset QAQC contains acceptable levels of precision and accuracy. | ||
| Verification of sampling and assaying | • The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data. | • Significant intersections have been reviewed by staff geologists to check the geological context. • No twin holes have been undertaken in this programme. • All sample and recovery data is recorded to paper forms at the time of drilling. Data is then keypunched into controlled excel templates with validation. Geological logging is directly logged into template log sheets by Toughbook computer. The templates are then provided to an internal database manager for loading in Datashed database management software. Referential integrity is checked as part of the data loading process into Datashed. | ||
| Location of data points | • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control. | • Drillhole collar locations were surveyed by trained site based technicians using real time differential GPS (DGPS) to a sub decimetre accuracy in horizontal and vertical position. Signal correction completed using the Omnistar network. Vertical precision was supplemented using a Digital Surface Model created from WorldView-2 stereo imagery incorporating DGPS ground control points. Down hole drill hole surveys were undertaken by the drill contractor utilizing a Reflex EZ-Shot downhole survey instrument and by single shot Eastman Cameras. Survey intervals of 30m and end of hole were routinely collected. No strongly magnetic rock is present units are present within the deposit which may upset magnetic based readings. • Topographic control is based on World View 2 stereoscopic processed image, providing additional <1m RL precision. | ||
| Data spacing and distribution | • Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied. | • RC drilling at Nahiri was drilled as nominal 40m spaced traverses on 80m to 160m spaced drill lines. Diamond drilling at Ma was irregularly spaced but nominally divisible by 20m to ensure first pass drilling intercepted key targets. • Drilling is of an initial investigative nature and not sufficient to define mineral resources. • RC chips were sampled on nominal 1 meter intervals down the hole and core was litho-control sampled, and both RC and core were assayed. Sample compositing was not applied. | ||
| Orientation of data in relation to geological structure | • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. | • Drill hole azimuths and dips have been oriented perpendicular to the interpreted mineralized zones in order to intersect the true widths of the zones as closely as possible. Occasionally, drilling was planned at oblique angles when the mineralization 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 mineralization is unbiased. • While at an early stage drilling orientation is not considered to introduce significant bias. | ||
| Sample security | • The measures taken to ensure sample security. | • Samples are removed from the field immediately upon drilling and stored in a secure compound for sub sampling and preparation for lab dispatch. Samples are collected directly from site by the laboratory. 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 reviews | • The results of any audits or reviews of sampling techniques and data. | • All QA/QC data is reviewed in an ongoing basis and reported in monthly summaries. All QAQC data up until December 2012 has been reviewed and documented by CSA Global of Perth. Data subsequent to this period has been reviewed by the CP for this release. |
Contact
Teranga Gold Corp.
Richard Young
President & CEO
+1 416-594-0000
ryoung@terangagold.com
Teranga Gold Corp.
Trish Moran
Head of Investor Relations
+1 416-564-4290
tmoran@terangagold.com
www.terangagold.com
