[Burkina Fao] Teranga Gold increases ounces
Teranga Gold Corporation has provided updated mineral resource estimate for its Wahgnion gold development project in Burkina Faso, West Africa.
Based on drill results from a 73,000-metre infill drill program completed in 2017, the updated combined measured and indicated mineral resource is now 50.5 million tonnes at a grade of 1.51 g/t for 2.4 million contained ounces of gold.
This represents a 33% increase from 1.8 million contained ounces of gold previously announced in the feasibility study released on September 7, 2017.
Teranga expects to release an updated mineral reserve estimate and related NI 43-101 technical report for Wahgnion in the third quarter of 2018.
“Based on these excellent results, we are targeting a conversion rate of more than 50% of these additional 600,000 ounces of mineral resources into reserves, exceeding our guidance range of between 175,000 and 350,000 ounces of gold,” said Richard Young, President and Chief Executive Officer.
Added Mr. Young, “With financing in place and major construction advancing, we are on our way to building a mid-tier gold producer in West Africa.”
Wahgnion, which will be the Company’s second mine, is expected to increase company-wide annualized production by 50% to between 300,000 and 350,000 ounces. First gold pour is expected by the end of 2019.
“The 2017 drill program and subsequent resource modeling has identified areas within the reserve deposits for a future follow-up drill program, providing an opportunity to further increase reserves. In addition, we will continue to focus on a number of highly prospective exploration targets within trucking distance of the plant in order to further extend Wahgnion’s mine life. Ultimately, we think Wahgnion has the potential to have a mine life in the 15 to 20 year range as we continue to develop these targets,” said Paul Chawrun, Chief Operating Officer.
Construction at Wahgnion is on track. The plant design is complete and detailed engineering is on schedule to support site construction. Major construction of the processing facility is underway, with structural concrete of the leach circuit and mill foundations having commenced in May.
The development of site infrastructure is also moving forward on schedule: the water harvest dam is complete, permanent camp facilities are near completion and preparation of the mine services area, site access roads and tailings management facility are progressing well.