Teranga Gold Corporation: Exploration on the Mine License Continues to Confirm Potential for Expanding Resource Scenario for 2012
TORONTO, ONTARIO -- (Marketwire) -- 05/30/12 -- Teranga Gold Corporation ("Teranga" or "the Company") (TSX: TGZ)(ASX: TGZ) is pleased to report the continuation of encouraging drill results from the Sabodala pit, which continues to confirm the potential expansion of Sabodala mineralization to the north as well as recent drill results confirm potential to extend the pit laterally to the south-west. In addition, exploration results on the Regional Land Package at Tourokhoto are showing encouraging results.
Highlights:
Mine License - Sabodala
Exploration on the Sabodala Mining License (ML) continues to confirm the potential for an expanded Sabodala pit to depth and to the north and now to the south-west, along the Main Flat Extension ("MFE"). As a result, we have increased the drill program from a budget of 10,000 metres last fall to 30,000 metres in spring 2012 to a current budget of at least 50,000 metres. Recent drilling shows a lateral extension of the MFE to the south-west, beyond the current target pit. Drill results intersected significant widths of mineralization, including 7 metres at 3.8 grams of gold per tonne ("gpt") from 262 metres, 8 metres at 3.6 gpt from 162 metres, 15 metres at 3.2 gpt from 161 metres, and 10 metres at 3.6 gpt from 164 metres - the zone remains open down dip. These intersections extend and in-fill the Main Flat down dip approximately 125 metres to the west of both the current resource and the Sabodala Target Pit (See Figure 1). These high grade intercepts extend consistently over 120 metres along strike from 20010N to 20130N and may enhance the resource grade in this area relative to the current resource model as well as potentially increase the resource.
To the north on the MFE, drilling continues to define mineralization which could potentially extend the pit to depth and to the north, including 14 metres of 3.4 gpt from 141 metres, 17 metres of 3.0 gpt from 544 metres and 39 metres at 2.5 gpt from 123 metres. In addition, the infill drill program (from within the pit) to follow up on the high grade intercepts previously released are expected to be drilled over the next three to six months.
About 30,000 metres of the 50,000 metre drill program remain to be completed in the Sabodala pit through 2012. See Figure 1.
Regional Exploration - Tourokhoto
First pass reverse circulation ("RC") drill testing of a more than 2km gold trend defined by previous rotary air blast drilling and surface geochemistry, returned encouraging intersections including 12 metres at 13.18 gpt gold (including 1m @ 134 gpt gold from 11m) and 14 metres at 3.2 gpt gold. The RC holes were drilled on three lines spaced 400 to 600 metres apart. Significant mineralization was encountered on each line, indicating a minimum strike potential of 1km with the trend open in both directions. To follow-up on these results, a 2,000 to 3,000 metre drill program is currently being planned.
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MAIN FLAT DOWN-DIP EXTENSION (South-West): RC & DIAMOND DRILLING, AQUA REGIA
RESULTS
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Intercept with cut-off 0.2gpt Au and max 2m internal dilution
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HOLE ID(1) FROM (m) INTERSECTION(2)
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SBDH210DD 197 15m @ 1.7 gpt
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228 5m @ 0.8 gpt
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SBDH211D 205 4m @ 0.5 gpt
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262 7m @ 3.8 gpt
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SBDH214 162 8m @ 1.0 gpt
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179 6m @ 1.9 gpt
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SBDH245 116 12m @ 2.3 gpt
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162 8m @ 3.6 gpt
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173 10m @ 1.2 gpt
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SBDH246 221 6m @ 2.0 gpt
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298 1m @ 7.9 gpt
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SBDH247 239 5m @ 0.8 gpt
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289 7m @ 0.5 gpt
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SBDH248 161 15m @ 3.2gpt
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183 4m @ 1.7gpt
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SBDH250 2 8m @ 0.4 gpt
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164 10m @ 3.6 gpt
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(1) Drill hole results are disclosed as they are received and due to
location and depth of holes, not all results are available at the same
time nor are they processed sequentially.
(2) True widths to be determined.
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MAIN FLAT EXTENSION (North): RC & DIAMOND DRILLING, AQUA REGIA RESULTS
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Intercept with cut-off 0.2gpt Au and max 2m internal dilution
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HOLE ID(1) FROM (m) INTERSECTION(2)
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SBDH159D 120 3m @ 2.3 gpt
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141 14m @ 3.4 gpt
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264 4m @ 0.7 gpt
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304 8m @ 0.9 gpt
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315 2m @ 3.0 gpt
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351 1m @ 4.4 gpt
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403 2m @ 3.5 gpt
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408 1m @ 4.7 gpt
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411 8m @ 1.0 gpt
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SBDH173 241 5m @ 1.0 gpt
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248 10m @ 1.1 gpt
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SBDH198D 541 4m @ 1.5 gpt
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589 29m @ 1.1 gpt
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SBDH219DD 426 9m @ 0.4 gpt
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441 8m @ 0.9 gpt
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464 5m @ 0.7 gpt
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471 16m @ 1.0 gpt
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493 6m @ 0.2 gpt
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544 17m @ 3.0 gpt
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565 4m @ 1.0 gpt
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587 6m @ 0.2 gpt
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611 11m @ 0.8 gpt
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SBDH220D 314 4m @ 1.3 gpt
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352 11m @ 0.7 gpt
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507 2m @ 1.6 gpt
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511 12m @ 0.5 gpt
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537 4m @ 2.4 gpt
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543 5m @ 1.7 gpt
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550 27m @ 1.8 gpt
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SBDH222D 311 5m @ 0.6 gpt
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331 8m @ 0.5 gpt
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384 25m @ 1.9 gpt
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457 10m @ 3.1 gpt
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469 5m @ 1.5 gpt
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SBDH240 99 3m @ 1.8 gpt
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116 27m @ 1.1 gpt
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SBDH241 0 9m @ 0.5 gpt
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101 7m @ 0.7 gpt
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110 6m @ 1.6 gpt
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119 2m @ 2.9 gpt
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123 39m @ 2.5 gpt
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172 17m @ 1.8 gpt
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193 3m @ 1.0 gpt
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SBDH242 7 7m @ 0.4 gpt
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17 9m @ 0.3 gpt
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31 5m @ 0.4 gpt
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131 6m @ 0.3 gpt
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141 27m @ 0.9 gpt
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SBDH243 72 30m @ 1.0 gpt
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200 5m @ 0.4 gpt
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207 9m @ 1.5 gpt
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237 16m @ 0.8 gpt
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(1) Drill hole results are disclosed as they are received and due to
location and depth of holes, not all results are available at the same
time nor are they processed sequentially.
(2) True widths to be determined.
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TOUROKHOTO: RC DRILLING, FAA515
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RC Intersections, greater than 0.5g/t Au with max 2m internal dilution/no
internal dilution. Gold determined by FAA515
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HOLE ID(1) FROM (m) INTERSECTION(2)
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DBRC0137 9 1m @ 1.50 g/t
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22 1m @ 0.51 g/t
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82 1m @ 0.63 g/t
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85 2m @ 0.64 g/t
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90 1m @ 2.04 g/t
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100 1m @ 0.52 g/t
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135 2m @ 0.73 g/t
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142 1m @ 0.54 g/t
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188 2m @ 0.60 g/t
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DBRC0138 6 12m @ 13.18 g/t
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11 Incl. 1m @ 134 g/t
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27 1m @ 0.69 g/t
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71 1m @ 0.74 g/t
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DBRC0139 Results pending
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DBRC0140 Results pending
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DBRC0141 5 1m @ 1.15 g/t
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123 1m @ 1.09 g/t
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185 7m @1.33 g/t
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DBRC0142 97 4m @ 1.21 g/t
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DBRC0143 45 5m @ 1.16 g/t
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73 1m @ 0.77 g/t
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144 8m @ 3.59 g/t
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DBRC0144 13 1m @ 0.53 g/t
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37 1m @ 0.82 g/t
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87 1m @ 0.56 g/t
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99 2m @ 0.93 g/t
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194 6m @ 2.03 g/t
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DBRC0145 113 1m @ 0.78 g/t
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153 1m @ 1.00 g/t
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DBRC0146 No significant
intersection
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DBRC0147 No significant
intersection
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DBRC0148 3 3m @ 1.16 g/t
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11 1m @ 0.55 g/t
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16 4m @ 1.01 g/t
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44 1m @ 0.86 g/t
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73 1m @ 0.54 g/t
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DBRC0149 31 14m @ 3.25 g/t
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53 3m @ 0.74 g/t
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141 1m @ 0.57 g/t
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DBRC0150 85 3m @ 0.90 g/t
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160 2m @ 0.99 g/t
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DBRC0151 123 1m @ 1.86 g/t
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127 1m @ 0.98 g/t
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137 2m @ 1.10 g/t
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DBRC0152 No significant
intersection
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DBRC0153 No significant
intersection
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DBRC0154 184 3m @ 0.73 g/t
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DBRC0155 56 1m @ 1.13 g/t
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(1) Drill hole results are disclosed as they are received and due to
location and depth of holes, not all results are available at the same
time nor are they processed sequentially.
(2) True widths to be determined.
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/tgz0530fig1.pdf.
FORWARD LOOKING STATEMENTS
Certain information included in this press release, including any information as to the Company's strategy, projects, exploration programs, joint venture ownership positions, plans, future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements". The words "believe", "expect", "will", "intend", "anticipate", "project", "plan", "estimate", "on track" and similar expressions identify forward looking statements. Such forward-looking statements are necessarily based upon a number of estimates, assumptions, opinions and analysis made by management in light of its experience that, while considered reasonable, may turn out to be incorrect and involve known and unknown risks, uncertainties and other factors, in each case that may cause the actual financial results, performance or achievements of the Company to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements. Such forward-looking statements are not guarantees of future performance.
These assumptions, risks, uncertainties and other factors include, but are not limited to: assumptions regarding general business and economic conditions; conditions in financial markets and the future financial performance of the company; the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; the supply and demand for, deliveries of, and the level and volatility of the worldwide price of gold or certain other commodities (such as silver, fuel and electricity); fluctuations in currency markets, including changes in U.S. dollar and CFA Franc interest rates; risks arising from holding derivative instruments; adverse changes in our credit rating; level of indebtedness and liquidity; ability to successfully complete announced transactions and integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; employee relations; availability and costs associated with mining inputs and labor; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves; changes in costs and estimates associated with our projects; the accuracy of our reserve estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based; contests over title to properties, particularly title to undeveloped properties; the risks involved in the exploration, development and mining business, as well as other risks and uncertainties which are more fully described in the Company's A.I.F. and in other Company filings with securities and regulatory authorities which are available at www.sedar.com. Accordingly, readers should not place undue reliance on such forward looking statements. Teranga expressly disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
COMPETENT PERSONS STATEMENT
The technical information in this press release that relates to mineral resource estimates within the Mining License is based on information compiled by Mr. Bruce Van Brunt, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Van Brunt is a full time employee of Teranga and not independent. Mr. Van Brunt has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a "Competent Person" as defined in the 2004 Edition of the "Australasian Code of Reporting of exploration Results, Mineral Resources and Ore Reserves". Mr. Van Brunt is a "Qualified Person" in accordance with National Instrument 43-101 and he consents to the inclusion of this information in the form and context in which it appears in this announcement.
The technical information in this press release that relates to the exploration results and targets within the regional exploration program are based on information compiled by Mr. Martin Pawlitschek, who is a member of the Australian Institute of Geoscientists. Mr. Pawlitschek is our full time employee and is not "independent" within the meaning of National Instrument 43-101. Mr. Pawlitschek 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 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Pawlitschek is a "Qualified Person" in accordance with NI 43-101 and he consents to the inclusion of this information in the form and context in which it appears in this announcement.
About TERANGA
Teranga Gold Corporation is a Canadian-based gold company listed on the Toronto Stock Exchange (TSX: TGZ) and Australian Securities Exchange (ASX: TGZ). Teranga is principally engaged in the production and sale of gold, as well as related activities such as exploration and mine development.
Teranga was created to acquire the Sabodala gold mine and a large regional exploration land package, located in Senegal, West Africa, from Mineral Deposits Limited. Management believes the mine operation, together with the Company's prospective 1,465 km2 land package, provides the basis for growth in reserves, production, earnings and cash flow as new discoveries are made and processed through the Company's existing mill.
The Sabodala Gold Operation, which came into operation in 2009, is located 650 kilometres east of the capital Dakar within the West African Birimian geological belt in Senegal, and about 90 kilometres from major gold mines and discoveries in Mali.
The Company's mission is to create value for all of its stakeholders through responsible mining. Its vision is to explore, discover and develop gold mines in West Africa, in accordance with the highest international standards, and to be a catalyst for sustainable economic, environmental and community development. All of its actions from exploration, through development, operations and closure will be based on the best available techniques.
Contacts:
Teranga Gold Corporation
Kathy Sipos
Vice-President, Investor & Stakeholder Relations
+1 416-594-0000
+1 416-594-0088 (FAX)
ksipos@terangagold.com
www.terangagold.com