Production Shortfall Deferred to 2016
Replaces Reserves and Significantly Improves Life of Mine Cash Flows
TORONTO, ONTARIO--(Marketwired - Jan. 28, 2016) -
(All amounts are in U.S. dollars unless otherwise stated)
Teranga Gold Corporation ("Teranga" or the "Company") (TSX:TGZ)(ASX:TGZ) is pleased to report its fourth quarter and year-end 2015 operating results for ASX purposes.
"Underlying the achievement of record low unit costs in 2015 is our ongoing business improvement program, which we plan to continue in 2016 and beyond," stated Richard Young, President & Chief Executive Officer of Teranga. "Additional artisanal activity at Gora and unforeseen factors at Masato underlie our shortfall in 2015 production, although the majority of this production will be carried over into 2016."
Mr. Young also stated, "We enter 2016 with a significantly improved life of mine plan that reflects the replacement of reserves and improved free cash flow. Together with the strength of our balance sheet, we are well positioned for the future and to maximize long-term sustainable free cash flows."
2015 Highlights
2016 Outlook
OPERATIONAL OVERVIEW
Sabodala Gold Operation
Fourth Quarter 2015
Mining
Processing
Costs
Full Year 2015
To view Graph on 2015 Reconciliation of 46,000 Ounce Production Shortfall, please click on the following link: http://media3.marketwire.com/docs/TGZ0128.pdf
Mining
Processing
Costs
PRODUCTION STATISTICS
Three months ended December 31, | Twelve months ended December 31, | |||||||
Operating Results | 2015 | 2014 | Change | 2015 | 2014 | Change | ||
Ore mined | ('000t) | 1,859 | 2,666 | (30%) | 7,748 | 6,174 | 25% | |
Waste mined - operating | ('000t) | 4,612 | 5,594 | (18%) | 18,382 | 21,179 | (13%) | |
Waste mined - capitalized | ('000t) | 726 | 490 | 48% | 5,501 | 1,969 | 179% | |
Total mined | ('000t) | 7,197 | 8,750 | (18%) | 31,631 | 29,321 | 8% | |
Grade mined | (g/t) | 1.37 | 1.47 | (7%) | 1.22 | 1.54 | (21%) | |
Ounces mined | (oz) | 82,057 | 126,334 | (35%) | 303,023 | 305,192 | (1%) | |
Strip ratio | waste/ore | 2.9 | 2.3 | 26% | 3.1 | 3.7 | (16%) | |
Ore milled | ('000t) | 919 | 1,009 | (9%) | 3,421 | 3,622 | (6%) | |
Head grade | (g/t) | 1.86 | 2.44 | (24%) | 1.79 | 2.03 | (12%) | |
Recovery rate | % | 93.4 | 90.1 | 4% | 92.3 | 89.7 | 3% | |
Gold produced1 | (oz) | 51,292 | 71,278 | (28%) | 182,282 | 211,823 | (14%) | |
Gold sold | (oz) | 52,939 | 63,711 | (17%) | 193,218 | 206,336 | (6%) | |
Average realized price | $/oz | 1,099 | 1,199 | (8%) | 1,161 | 1,259 | (8%) | |
Total cash costs (incl. royalties)2 | $/oz sold | 668 | 598 | 12% | 642 | 710 | (10%) | |
All-in sustaining costs2 | $/oz sold | 969 | 711 | 36% | 965 | 865 | 12% | |
Mining | ($/t mined) | 2.83 | 2.58 | 10% | 2.42 | 2.83 | (14%) | |
Mining long haul | ($/t hauled) | 5.33 | - | NA | 5.35 | - | NA | |
Milling | ($/t milled) | 13.27 | 13.91 | (5%) | 14.01 | 17.15 | (18%) | |
General & Administrative | ($/t milled) | 4.99 | 4.27 | 17% | 4.82 | 4.61 | 5% |
1 Gold produced represents change in gold in circuit inventory plus gold recovered during the period. |
2 Total cash costs per ounce and all-in sustaining costs per ounce are non-IFRS financial measures that do not have a standard meaning under IFRS. Please refer to Non-IFRS Financial Performance Measures at the end of this report. |
OUTLOOK 2016
The following table outlines the Company's estimated 2016 summary production and cost guidance:
Year Ended December 31 | ||||
2015 | 2016 | |||
Actual | Guidance | |||
Operating Results | ||||
Ore mined | ('000t) | 7,748 | 2,000 - 2,500 | |
Waste mined | ('000t) | 23,883 | 34,500 - 36,000 | |
Total mined | ('000t) | 31,631 | 36,500 - 38,500 | |
Grade mined | (g/t) | 1.22 | 2.75 - 3.25 | |
Strip ratio | waste/ore | 3.10 | 13.00 - 15.00 | |
Ore milled | ('000t) | 3,421 | 3,700 - 3,900 | |
Head grade | (g/t) | 1.79 | 1.80 - 2.00 | |
Recovery rate | % | 92.3 | 90 - 91 | |
Gold produced 1 | (oz) | 182,282 | 200,000 - 215,000 | |
All-in sustaining cash cost 2 | $/oz sold | 965 | 900 - 975 | |
Mining | ($/t mined) | 2.42 | 2.20 - 2.40 | |
Mining long haul | ($/t hauled) | 5.35 | 4.00 - 4.50 | |
Milling | ($/t milled) | 14.01 | 11.00 - 12.00 | |
G&A | ($/t milled) | 4.82 | 4.25 - 4.50 | |
Mine Production Costs | $ millions | 142.1 | 145 - 155 | |
Capital Expenditures | ||||
Mine site sustaining | $ millions | 4.4 | 8 - 10 | |
Capitalized reserve development | $ millions | 4.8 | 5 | |
Total Project Development Costs | $ millions | 23.9 | 17 - 20 | |
Total Capital Expenditures 3 | $ millions | 33.1 | 30 - 35 | |
Exploration (Expensed) | $ millions | 2.5 | 3 | |
Administration & CSR Expense | $ millions | 16.0 | 15 - 16 | |
Notes: | ||||
1 22,500 ounces of production are to be sold to Franco Nevada at 20% of the spot gold price. | ||||
2 All-in sustaining costs per ounce is a non-IFRS financial measure and does not have standard meanings under IFRS. All-in sustaining costs per ounce sold include total cash costs per ounce, administration expenses (excluding Corporate depreciation expense and social community costs not related to current operations), capitalized deferred stripping, capitalized reserve development and mine site & development capital expenditures as defined by the World Gold Council. | ||||
3 Excludes capitalized deferred stripping costs, included in in mine production costs. | ||||
This forecast financial information is based on the following material assumptions for 2016: gold price: $1,100 per ounce; Brent oil:$40/barrel; Euro:USD exchange rate of 1.1:1 | ||||
Other important assumptions include: any political events are not expected to impact operations, including movement of people, supplies and gold shipments; grades and recoveries will remain consistent with the life-of-mine plan to achieve the forecast gold production; and no unplanned delays in or interruption of scheduled production. |
2016 Guidance Analysis
The Company's mine plans are designed to maximize sustainable free cash flow. Mining activity in 2016 will focus on completing phase 1 of Masato through the first quarter of the year, and then the mobile equipment will move to Golouma, where development has just been completed and production has commenced. Development of Kerekounda is expected to commence in the third quarter with waste stripping continuing for the remainder of the year, while mining at Gora will continue throughout the year. Total tonnes mined are expected to increase from the 31.6 million tonnes mined in 2015 to between 36.5 and 38.5 million tonnes in 2016. Ore tonnes mined is expected to decrease from 7.7 million tonnes to between 2.0 and 2.5 million tonnes. While ore tonnage is lower in 2016, both grade and strip ratio are higher, reflecting the concentration of mining at the higher grade Gora and Golouma pits.
Mill throughput and grade are expected to increase in 2016. Since the end of the 2015 rainy season, mill throughput is back to name plate capacity of one million tonnes and with the anticipated completion of the mill optimization in the fourth quarter 2016, mill throughput rates are expected to rise to the 3.7 to 3.9 million tonne range for the year. In 2016, the majority of ore expected to be processed during the rainy season is more competent as compared to 2015, when the majority of the material processed was softer, which created material handling issues during the wet season.
The Company expects to produce between 200,000 and 215,000 ounces of gold in 2016. The quarterly production profile in 2016 is expected to be more consistent than previous years, with the exception of lower production during the third quarter due to the rainy season. The 2016 production plan also reflects a build-up of higher grade stockpiles of approximately 40,000 contained ounces, which is expected to provide a buffer against any future operating shortfall.
Total mine production costs for 2016 are expected to be in the range of $145 to $155 million, slightly higher than 2015 due to the increase in tonnes mined and processed. While total mine production costs are expected to increase, costs on a unit basis are expected to be better than 2015, as the company benefits from a further improvement in fuel prices and its ongoing business improvement programs.
Administrative and corporate social responsibility ("CSR") costs relate to the corporate office, the Dakar and regional offices and the Company's corporate social responsibility initiatives, and exclude corporate depreciation and other costs. For 2016, these costs are estimated to be between $15 and $16 million, including approximately $3 million for CSR activities, similar to 2015.
Sustaining capital expenditures for the mine site are expected to be between $8 and $10 million, excluding capitalized deferred stripping costs, and reserve development expenditures are expected to be $5 million. Project development expenditures for growth initiatives, including the cost to develop the Golouma and Kerekounda deposits and costs to complete the mill optimization project, are expected to be between$17 and $20 million. The mill optimization project is expected to be commissioned in the fourth quarter.
All-in sustaining costs are expected to be between $900 and $975 per ounce, in line with 2015.
In 2016, the majority of the capital to be spent on the Company's exploration program will be focused on organic growth through (i) the conversion of resources to reserves; (ii) extensions of existing deposits along strike on the Sabodala and OJVG mine licenses; and (iii) a systematic regional exploration program designed to identify high grade satellite and standalone deposits.
The Company identified a number of risk factors to which it is subject in its revised Annual Information Form filed for the year ended December 31, 2014. These various financial and operational risks and uncertainties continue to be relevant to an understanding of our business, and could have a significant impact on profitability and levels of operating cash flow. Refer to Risks and Uncertainties at the end of this report for additional risks.
CORPORATE
The Company's sources of liquidity at December 31, 2015 include the Company's cash balance of $44.4 million, cash flow provided by operations and a Revolver Credit Facility of $30 million, of which $15 million was drawn at December 31, 2015. Including the VAT receivable from the Republic of Senegal, the Company's pro forma cash balance at December 31, 2015 was $57.6 million.
The Company is in the process of conducting its annual carrying value review of goodwill and long-lived assets. Our preliminary analysis indicates a potential non-cash write-down of goodwill and long-lived assets, mainly due to a change in our long-term gold price assumption as a result of a continued decline in the market price of gold. The results of this analysis will be released in February with the filing of the Company's Audited Consolidated Financial Statements and Management's Discussion and Analysis.
MANAGEMENT CHANGES
After nine years, Mark English moved from Vice President, Sabodala Operations into a new role as Vice President, Special Projects focused on the long-term development and growth of the Company. With Mark's change in role, Nico Uys was promoted to Operations Manager, Sabodala with overall responsibility for the Sabodala operation.
As well, in addition to his current responsibilities as Vice President, Technical Services, Paul Chawrun has assumed responsibility for the Sabodala operations as the Company officer. As a result of Mr. Chawrun's increased responsibilities, the Company is adding senior technical and exploration expertise to the Technical Services team to provide additional oversight of operations while continuing to focus on the Company's growth initiatives.
BUSINESS AND PROJECT DEVELOPMENT
Gora Development
Mining at the satellite Gora pit commenced in July 2015. All required infrastructure, including a 26 kilometre access road, was completed within the scheduled timeframe and came in $3.5 million under the estimated budget of $19.0 million(3).
The impact of the artisanal mining activities at Gora was greater than anticipated, with artisanal activities extending to depths of 45 metres from surface. As a result, an incremental 8,600 ounces were removed on top of the 12,000 ounces that had already been estimated and removed from phase 1 of the reserve model. In total, artisanal miners removed 60 percent of the ounces to a depth of 45 metres. An additional 5,000 ounces had previously been removed from phase 2 and 3, however, based on phase 1 activities that amount was increased to 11,000 ounces.
To ensure the recovery of the high grade mineralization contained in narrow veins, the ore body is being mined in 2.5 metre flitches in the ore zones. Mining below the benches impacted by artisanal miners is showing tonnes and grade that closely match the reserve model.
To optimize the Gora pit for 2015 and 2016, changes in the pit design were made during the year. As a result, three benches scheduled to be mined in 2015, containing 100,000 tonnes averaging 6 grams per tonne, were deferred into 2016.
Mill Optimization
A mill optimization project was launched in mid-2015, which will add a second primary jaw crusher, screen and conveyor assembly to tie into our existing facility when it is completed in the fourth quarter of 2016.
Upon completion, the mill optimization is expected to increase throughput by more than 10 percent on an annualized basis based on existing ore hardness; however, there may be potential to increase throughput further based on simulations of the new design configurations. In addition to higher production, unit processing costs are expected to decrease by approximately 5 percent.
A number of key milestones were accomplished during the fourth quarter. The project entered into the construction phase and remains on schedule for completion in the third quarter with commissioning and full ramp up during the fourth quarter of 2016. All detailed engineering, procurement packages and steel fabrication was completed during fourth quarter. Most of the equipment and steel were delivered to site late in 2015. Civil construction commenced at site in November, with the structural and mechanical team mobilizing to site late in December for an early January start-up. To date, the project remains on budget.
Approximately $7.3 million of the $20 million budgeted was spent in 2015, with the remainder of costs expected to be incurred in 2016.
Heap Leach Project
In the fourth quarter, the Company completed the pre-feasibility study ("PFS"), which concluded that heap leaching is technically viable for processing its low-grade ore.
The PFS capital costs, which are currently being finalized, are based on the optimized Phase 2 trade off studies and subsequent design criteria. The basis for this capital estimate will incorporate vendor quotations and are using the ongoing mill optimization project for estimating detailed aspects of the construction costs. The estimated capital cost of the heap leach project is expected to be in the range of $50 million.
A decision to proceed will require the conversion of additional oxide resources to reserves and finalized project economics that exceed our 20 percent minimum hurdle rate. If a decision is made to go ahead with the heap leaching project, it is estimated that it will take approximately 24 months to permit and construct. Based on current assumptions, we estimate that heap leach could account for an incremental 10 to 20 percent of annual production once fully operational.
Reserves and Resources
Mineral Resources at December 31, 2015 are presented in Appendix 1. Total open pit and underground Proven and Probable Mineral Reserves(4) at December 31, 2015 are set forth in Appendix 2. The reported Mineral Resources are inclusive of the Mineral Reserves.
The Proven and Probable Mineral Reserves were based on the Measured and Indicated Resources that fall within the designed open pits and underground designs. The basis for the resources and reserves is consistent with the Canadian Securities Administrators National Instrument 43-101 Standards for Disclosure for Mineral Projects ("NI 43-101") regulations.
All of the open pit designs were updated based on a Lerchs-Grossman ("LG") pit shell using Whittle 4X software. The key input parameters were based on a gold price of $1,100 per ounce (with exception of Sabodala at $1,000 per ounce), extrapolated mine and plant operating costs from current operating data and wall angles based on rock mass classifications that use the existing database from observation coupled with analysis of diamond drill hole data. The net result is lower total ounces in open pit reserves from the previous designs but an improved cash flow over the life of mine plan with the removal of low margin areas of the open pit reserve pit shells at a gold price of $1,100 per ounce.
The Sabodala pit has been mined out through Phases 1-3, with the latter phase completed by mid-year in 2015. While the previous pit design was maintained using a $1,000 per ounce gold price, a re-evaluation of the final pit limits of Sabodala Phase 4 will be completed prior to mining and will use updated economic parameters at that time. Currently, the plan to mine Phase 4 in Sabodala is estimated to begin in 2017.
Mining of the initial phases of the Masato pit began in late 2014, with completion expected in first quarter 2016. The final phase of the Masato pit (Phase 3) remains largely unchanged from the original design and is expected to begin in 2018.
The previously named Niakafiri pit has been changed to Niakafiri Main. It has been redesigned and is based on an updated resource model that re-interpreted the previous drill hole data, updated economics for the pit shells using current economic parameters and pit wall angles consistent with similar rock types on the property.
Newly defined reserves have been added at Niakafiri SE, Niakafiri SW and Maki Medina orebodies as a result of drilling in 2015. Additional drilling is planned in 2016 to potentially further delineate additional open pit reserves on these orebodies.
Mining in the satellite Gora pit started in July 2015. The pit design remains largely unchanged from December 2012, however, it has been adjusted to show year end 2015 mining progress as well an additional 22.8 thousand tonnes at 8.19 grams per tonne (6,000 mined ounces) have been removed to estimate the impact of increased artisanal activity encountered during 2015.
The previously defined Golouma pit was renamed to reflect the two areas of the orebody: Golouma West and Golouma South.
Golouma South will be mined in 2016 and has begun early pre-stripping. Minor adjustments were made from the previous Golouma South to account for slightly shallower slope angles in the oxide zones, but steeper angles in the fresh zones. A small amount of artisanal activity was encountered near surface, accounting for the removal of 6.7 thousand tonnes at 2.96 grams per tonne (650 mined ounces) from the reserves.
Significant changes were made to the Golouma West pit design. A portion of the orebody was removed totaling 1.78 million tonnes of ore at 2.09 grams per tonne (119,900 ounces mined) but also removing 41.9 million tonnes of waste for an incremental strip ratio of 23.6. This smaller pit results in an improved cash flow at $1,100 per ounce gold. This pit is planned to be mined in 2021, and additional considerations will be made to the final pit design based on economic conditions at that time.
The Kerekounda pit design remains largely unchanged from the previous design, with minor modifications to the wall angles in the oxide zone and final pit boundaries based on the updated LG shell.
Underground Reserves
RPA Inc. (RPA) completed the underground mine design for the estimation of Mineral Reserves.
The mining method chosen for the reserves estimate is a modified cut and fill. Due to the irregular geometry of these deposits, this allows for maximum recovery of ore, good mining selectivity, and a minimal amount of mining equipment. The ventilation will be a push system, with air being directed down the ventilation raise and exhausting at the portal. Two types of backfill material are proposed, Cemented Rock Fill and Unconsolidated Rock Fill. Groundwater and mine water will be collected in sumps and pumped to surface discharging into the pits.
The deposits will be mined two at a time in order to meet the current mine life schedule. Kerekounda and Golouma South will be mined first starting in 2021. Once they are exhausted, the Golouma West deposits will be mined. The objective of scheduling the deposits to be mined in this sequence is to have eight years of continuous production from the underground with some lag in the schedule to allow infrastructure to be moved from the first set of deposits to the second set. Each deposit is scheduled on a 500 tonnes per day production target, providing 1,000 tonnes per day combined at peak production.
Capital and operating costs were estimated by first principles and using budgetary quotes from vendors and contractors. Refining, royalty, processing, and general and administrative costs were provided by Teranga.
Life of Mine Schedule
Appendix 3 represents a life of mine schedule developed from the proven and probable reserves listed in Appendix 2. The pit sequencing schedule is based on blending the material movement capability with the mine mobile fleet and the availability of high grade ore within the various ore bodies. This schedule represents one of a number of possibilities that can be adjusted as economic conditions change. Pit sequencing emphasized the best cash flow for the first five years of mining (2016 to 2020) due to the low gold price environment, with flexibility for potential design changes as economic conditions change. A lower annual material movement (not exceeding 40 million tonnes per annum) utilizing the existing fleet provided for an optimal cash flow in the current economic conditions.
Open pit mining methods similar to current operations at the Sabodala and Masato deposits were applied by providing the highest grade available for plant feed and stockpiling lower grade ore for processing at the end of mine life. A detailed mine dilution and ore recovery analysis was applied to determine mine operating parameters.
Underground mining was assumed to commence in 2021, while the Niakafiri Main pit was deferred to 2023. Additional drilling for the purpose of converting resources to reserves at Niakafiri is expected to commence in 2016. The life of mine plan will be re-evaluated once drilling is completed at Niakafiri with the potential to move development forward based on conversion of resources to reserves and a positive decision on heap leaching.
Detailed annual capital and operating costs summaries will be included with the Company's year-end results in February. While the timing rather than the cost of certain capital projects remains outstanding, operating costs have been finalized and, as a result, all-in sustaining costs are expected to be in the $900 per ounce range over the five-year period from 2016 to 2020, as well as over the 13.5 year mine life.
Sabodala Mine License Reserve Development
The Sabodala combined mine license covers 291km2. The objective of this multi-year development program is to add higher grade material earmarked for the mill and to add lower grade to potentially a heap leach pad.
Golouma NW Extension
Additional follow-up work on the "red" shear is being evaluated. Allowance has been made for possible infill drilling in 2016. Infill drilling in the northwest trending shear successfully confirmed geological and grade continuity. The resource model is planned to be updated later this year.
Maki Medina
The Maki Medina deposit is situated along the same steeply west dipping north-northeast trending structural zone that hosts two deposits to the north, Masato and Niakafiri, and two to the south, Kobokoto and Kinemba.
Previous drilling defined a northern zone and a smaller southern zone containing an estimated one million tonnes of oxide ore at just over 1 gram per tonne.
During the fourth quarter, 200 metres of a 1,000 metre trenching program investigating a 300-metre long soil anomaly to the south of the main mineralized zone was completed. Initial sampling results indicate that the gold mineralization extends to the south. It is envisaged that a diamond drilling program will be undertaken in the second quarter of 2016 to test the depth extension of this southern extension to the Maki Medina Main zone. An updated resource model was completed in the fourth quarter.
Maki Medina East Anomaly
Previous soil sampling identified a parallel trending gold anomaly located 200 metres to the east of the Maki Medina deposit extending 700 metres along strike and 200 metres in width (Maki Medina East).
During the fourth quarter, trenches totalling 2,500 metres were excavated on the prospect to follow up on drilling and trench results. The trenching program tested soil anomalies across a 640 metre north-south strike direction and successfully identified a number of drill targets. The updated results indicate mineralization is associated with narrow quartz veins and breccia zones. Seven diamond drill holes totalling 800 metres were drilled along 150 metres of the gold mineralized zone with all assay results returned. Review of the trenching and drill data for the Maki Medina East zone will continue with potential follow up work in the first quarter of 2016. Highlighted results are shown in Appendix 4.
Niakafiri Southwest
During the third quarter, a 14-hole diamond drilling program was completed. A total of 1,000 metres was drilled with all assay results returned.
Drilling did not intersect additional mineralization along strike, but infilled gaps between wide spaced drill holes to confirm geology and grade continuity. An updated resource model was completed in the fourth quarter.
Golouma South
The Golouma South deposit is located in a north-northeast trending ductile shear zone and consists of sub-parallel mineralized zones coinciding with higher strain zones, intense alteration and quartz veining within the shear. Mineralization has been defined approximately 640 metres along strike and 560 metres below surface, and remains open at depth.
During the third quarter, a 14-hole 1,000 metre diamond drilling program was completed to confirm the geological interpretation, test the extent of artisanal voids, infill gaps and confirm grades in oxide. Results confirm the geological interpretation and location of mineralization, an updated resource model was completed in the fourth quarter.
Rotary air blast condemnation drilling of ground proposed for mine infrastructure and future waste dump footprint has located several gold mineralized zones north of the deposit which may have economic potential. A trenching program to evaluate these zones commenced in the fourth quarter and will be followed by a limited diamond drilling program. Two diamond drill holes were drilled in the fourth quarter with significant intercepts being recorded as shown in Appendix 5. The trenching and drilling evaluation program is ongoing.
Soukhoto
Soukhoto mineralization is located in a regional northeast trending structural corridor, and situated 1.5 km south of the Sabodala deposit, 800 metres north of the Niakafiri West deposit and 800 metres west of the Dinkokono deposit.
Mineralization was previously intersected in variably spaced holes, 30 to 80 metres apart on three 40 metre spaced sections.
Eight infill diamond drill holes were completed in the third quarter to better define geological interpretation and local structural trends that were previously interpreted from reverse circulation ("RC") drilling. Results returned from seven holes indicate mineralization is associated with quartz veining located in oxide, and possibly associated with different local structural trends, perhaps subsidiary structures related to the Niakafiri shear zone to the east.
Further drilling will be evaluated pending follow-up data interpretation.
Goumbati West
The Goumbati West prospect is situated 1 kilometre southwest of the Kobokoto gold deposit. The gold mineralization at Goumbati West occurs within a 1.2 kilometre long NNE trending shear structure. It comprises a series of quartz veins occurring in a sheared sequence of epiclastics and minor basalt. It is highlighted by a 400 metre long gold soil anomaly with highs of 200-500 ppb gold and appears to be an extension of the Niakafiri SW shear.
Four diamond drill holes totalling 400 metres were drilled over a 150 metre strike length of the shear structure during the fourth quarter. Assay results from two of the four holes yielded encouraging gold assay results as shown in Appendix 6. Further follow-up trenching and drilling will be undertaken in the first quarter of 2016.
Goumbati East
Goumbati East is located 3 kilometres southwest of Golouma South in-between the Niakafiri and Golouma structural corridors. Mineralization is highlighted by a series of gold soil anomalies with highs of 200-500 ppb gold which are coincident with WNW and NE trending shear structures containing quartz veins within a sequence of volcanoclastics and basalts.
Four diamond drill holes totalling 400 metres were drilled to test the shear zones. Multiple shear zones, some 20 metres in width, with quartz-carbonate veining and sulphides were intersected in the holes. Favourable assay results were received during the quarter,listed in Appendix 7. Further trenching and diamond drilling is planned for the first quarter 2016.
Kouroundi
The Kouroundi mineralized zone is developed within a NW trending kink structure, situated between the Mamasato and Kerekounda deposits. A 6 hole 800 metre drilling program began in the fourth quarter. Two of the six holes drilled yielded favourable assay results as shown in Appendix 8. Further drilling and the re-interpretation of historical data is planned for the first quarter of 2016 to confirm the presence of strike extensions to the NW of the main ore body.
Regional Exploration
We currently have eight exploration permits encompassing approximately 1,000km² of land surrounding the Sabodala mine license.
During the fourth quarter, a settlement agreement was reached with a joint venture partner where by Teranga would receive cash consideration of $0.5 million for the relinquishment of its interest in the Garaboureya exploration permit.
For the fourth quarter 2015, we have been focused on six regional targets including Soreto, KD, KC, Nienienko Area targets, Marougou and the KA prospect.
Soreto
At Soreto diamond drill programs undertaken during the course of 2013, 2014 and 2015 intersected several continuous shear zones developed over a 600 metre strike length. The shear zones feature steep, north-westerly dipping altered shear zones often with associated felsic dyke, sheared and brecciated silicified metasediments containing quartz-carbonate veins with disseminated pyrite and visible gold in places. The shear zones coincide with the major NNE regional shear structure with an associated 6 km long geochemical soil anomaly and when projected to surface, align with the surface workings from artisanal mining. Gold mineralization also occurred in quartz veins filling conjugate brittle fracture sets in massive granite units in the NW portion of the prospect.
During 2015 trenching programs were undertaken along strike of the gold mineralization defined by the diamond drill programs and soil anomalies. To date a total of 1,800 metres of trenching has been completed. Initial trenching results have defined gold mineralized zones including 9 metres grading 2.16 grams per tonne gold and 4 metres grading 4.24 grams per tonne gold. Further drilling on the prospect will be determined by the trench sampling results.
KD Prospect
A reconnaissance trenching across a 600 metre long gold soil anomaly paralleling a regional NNE trending regional scale structure located a gold mineralized zone with grades of 7.3 grams per tonne gold over 2 metres and 15.8 grams per tonne over 2 metres. Follow up trenching of this zone is planned for the first quarter of 2016.
Nienienko Prospects
An extensive mapping and a trenching program, over 1,500 metres, was conducted during second and third quarter 2014 at the Nienienko prospect which lead to the outlining of a 500 metre-plus wide zone with gold mineralization occurring in flat lying, near surface (0-2 metres) quartz vein and felsic breccia units developed over a strike length of 1,500 metres.
An isopach plan of the mineralized quartz vein and felsic breccia systems is in progress, and will be used to develop a plan for diamond drilling and a possible RC drill program. Due to the limitation of surface trenching and mapping used to develop the flat lying mineralized zone at surface, additional trenching and mapping is being undertaken in prospective zones near to the area to expand on the currently defined zone and to further develop an understanding of the source of mineralization zones for potential drill targets at depth. A diamond drill program will be considered once this work has been completed and is likely to be scheduled for early 2016.
KA Prospect
The KA gold mineralization outlined by a regional soil geochemistry program, RAB drilling and trenching is currently being re-assessed. Trenching undertaken in the fourth quarter 2015 has identified a flat lying gold mineralized zone at the contact between a quarts-feldspar porphyry intrusive and siltstone-shale unit. The contact zone is often found to be brecciated with multiple variably orientated, quartz vein stringers and sulphide box works. Horizontal channel sampling across the zone yielded 0.8 grams per tonne over 28 metres containing a high of 9 metres grading 1.4 grams per tonne. Vertical channel sampling across the same zone yielded a high of 6.1 grams per tonne over 0.5 metres.
A 9-hole diamond drill program of approximately 500 metres commenced in the fourth quarter 2015 with four holes completed. The program will initially determine the thickness of the flat lying gold mineralized zone and test its continuity over a 100 metre strike length. Assay results received are given in Appendix 9 confirming the presence of gold mineralization along strike. The remaining holes will be drilled in the first quarter of 2016.
Marougou Prospect
The Marougou prospect soil anomaly previously investigated by a series of RAB and RC drilling is currently being reassessed by means of a limited diamond drill program which will provide structural information on the orientation of the mineralized zones which is open to interpretation. 9 drill holes totaling 1,000 metres were planned of which 3 were sited to twin 3 RC holes drilled in 2013. The three twin holes were drilled during the fourth quarter and assay results were received for two of the three holes. The best gold intercepts are listed in Appendix 10. The remaining holes will be drilled in the first quarter of 2016.
Niakafiri Resettlement
In August 2015, Teranga and the Government of Senegal launched resettlement discussions related to the nearby village of Sabodala, adjacent to the Niakafiri deposit. Teranga has retained global resettlement consultants rePlan Inc. to ensure the resettlement process will follow the highest international standards, as well as all Senegalese laws and regulations. The company expects formal negotiations with community and regional stakeholders to commence in due course following which a drill program is planned. The objective of the drill program is to convert some of the existing resources (438,000 ounces included within Measured and Indicated resources, and 102,000 ounces in Inferred resources) into reserves.
ENDNOTES |
(1) This production guidance is based on existing proven and probable reserves only from the Sabodala mining license as disclosed in Appendix 2of this Report. The estimated ore reserves underpinning this production guidance have been prepared by a competent person in accordance with the requirements of the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the "2012 JORC Code"). Please refer to the Competent Persons Statement section of this Report. |
(2) Total cash costs and all-in sustaining costs per ounce of gold sold are non-IFRS measures which do not have standard meanings under IFRS. Please refer to Non-IFRS Financial Performance Measures at the end of this Report. |
(3) Pending decision on dyke construction in 2016. |
(4) The term "Mineral Reserves" is being used with the same meaning A "Ore Reserves", defined in the 2012 JORC Code. |
APPENDICES
Appendix 1: Open Pit and Underground Mineral Resources Summary as at December 31, 2015
Deposit | Domain | Measured | Indicated | Measured and Indicated | Inferred | |||||||||
Tonnes | Grade | Au | Tonnes | Grade | Au | Tonnes | Grade | Au | Tonnes | Grade | Au | |||
('000s) | (g/t Au) | ('000s) | ('000s) | (g/t Au) | ('000s) | ('000s) | (g/t Au) | ('000s) | ('000s) | (g/t Au) | ('000s) | |||
Sabodala | Open Pit | 13,742 | 1.13 | 497 | 6,488 | 1.59 | 332 | 20,230 | 1.28 | 829 | 2,525 | 1.23 | 100 | |
Underground | 1,631 | 3.65 | 191 | 1,631 | 3.65 | 191 | 460 | 3.60 | 53 | |||||
Combined | 13,742 | 1.13 | 497 | 8,119 | 2.01 | 524 | 21,861 | 1.45 | 1,021 | 2,985 | 1.60 | 153 | ||
Gora | Open Pit | 466 | 4.55 | 68 | 1,083 | 6.11 | 213 | 1,549 | 5.64 | 281 | 53 | 4.95 | 8 | |
Underground | 315 | 5.14 | 52 | 315 | 5.14 | 52 | 59 | 4.83 | 9 | |||||
Combined | 466 | 4.55 | 68 | 1,398 | 5.89 | 265 | 1,864 | 5.56 | 333 | 113 | 4.88 | 18 | ||
Niakafiri Main | Open Pit | 4,909 | 1.33 | 210 | 7,222 | 0.98 | 228 | 12,131 | 1.12 | 438 | 2,472 | 1.09 | 87 | |
Underground | 184 | 2.51 | 15 | |||||||||||
Combined | 4,909 | 1.33 | 210 | 7,222 | 0.98 | 228 | 12,131 | 1.12 | 438 | 2,656 | 1.19 | 102 | ||
Niakafiri West | Open Pit | 2,566 | 1.29 | 107 | ||||||||||
Underground | 90 | 2.82 | 8 | |||||||||||
Combined | 2,656 | 1.34 | 115 | |||||||||||
Soukhoto | Open Pit | 550 | 1.46 | 26 | ||||||||||
Underground | ||||||||||||||
Combined | 550 | 1.46 | 26 | |||||||||||
Diadiako | Open Pit | 178 | 1.27 | 7 | ||||||||||
Underground | 663 | 2.89 | 61 | |||||||||||
Combined | 841 | 2.54 | 69 | |||||||||||
Subtotal Sabodala ML |
Open Pit | 19,117 | 1.26 | 776 | 14,793 | 1.62 | 773 | 33,910 | 1.42 | 1,548 | 8,344 | 1.25 | 335 | |
Underground | 1,947 | 3.89 | 243 | 1,947 | 3.89 | 243 | 1,456 | 3.14 | 147 | |||||
Combined | 19,117 | 1.26 | 776 | 16,740 | 1.89 | 1,016 | 35,857 | 1.55 | 1,792 | 9,800 | 1.53 | 482 | ||
Masato | Open Pit | 5,894 | 0.79 | 150 | 22,617 | 1.16 | 844 | 28,511 | 1.08 | 994 | ||||
Underground | 1,163 | 2.75 | 103 | 1,163 | 2.75 | 103 | 1,984 | 2.85 | 182 | |||||
Combined | 5,894 | 0.79 | 150 | 23,780 | 1.24 | 947 | 29,674 | 1.15 | 1,097 | 1,984 | 2.85 | 182 | ||
Golouma | Open Pit | 6,800 | 2.98 | 653 | 6,800 | 2.98 | 653 | 88 | 2.46 | 7 | ||||
Underground | 2,134 | 4.09 | 280 | 2,134 | 4.09 | 280 | 854 | 3.66 | 100 | |||||
Combined | 8,934 | 3.25 | 933 | 8,934 | 3.25 | 933 | 942 | 3.55 | 107 | |||||
Kerekounda | Open Pit | 1,255 | 4.28 | 173 | 1,255 | 4.28 | 173 | |||||||
Underground | 499 | 4.88 | 78 | 499 | 4.88 | 78 | 235 | 5.70 | 43 | |||||
Combined | 1,755 | 4.45 | 251 | 1,755 | 4.45 | 251 | 235 | 5.70 | 43 | |||||
Maki Medina | Open Pit | 2,112 | 1.22 | 83 | 2,112 | 1.22 | 83 | 114 | 0.81 | 3 | ||||
Underground | 109 | 2.71 | 10 | 109 | 2.71 | 10 | 85 | 2.54 | 7 | |||||
Combined | 2,221 | 1.30 | 93 | 2,221 | 1.30 | 93 | 199 | 1.55 | 10 | |||||
Niakafiri SW | Open Pit | 770 | 0.81 | 20 | 770 | 0.81 | 20 | 30 | 0.67 | 1 | ||||
Underground | ||||||||||||||
Combined | 770 | 0.81 | 20 | 770 | 0.81 | 20 | 30 | 0.67 | 1 | |||||
Niakafiri SE | Open Pit | 4,439 | 0.98 | 140 | 4,439 | 0.98 | 140 | 162 | 0.96 | 5 | ||||
Underground | 73 | 2.60 | 6 | 73 | 2.60 | 6 | 16 | 2.64 | 1 | |||||
Combined | 4,512 | 1.01 | 146 | 4,512 | 1.01 | 146 | 177 | 1.11 | 6 | |||||
Kinemba | Open Pit | 24 | 1.06 | 1 | 24 | 1.06 | 1 | 91 | 0.95 | 3 | ||||
Underground | 56 | 2.52 | 5 | |||||||||||
Combined | 24 | 1.06 | 1 | 24 | 1.06 | 1 | 147 | 1.55 | 7 | |||||
Kobokoto | Open Pit | 842 | 1.02 | 28 | 842 | 1.02 | 28 | 335 | 0.86 | 9 | ||||
Underground | ||||||||||||||
Combined | 842 | 1.02 | 28 | 842 | 1.02 | 28 | 335 | 0.86 | 9 | |||||
Koulouqwinde | Open Pit | 230 | 1.42 | 11 | ||||||||||
Underground | 60 | 2.67 | 5 | |||||||||||
Combined | 290 | 1.68 | 16 | |||||||||||
Kourouloulou | Open Pit | 96 | 11.51 | 36 | 96 | 11.51 | 36 | 22 | 6.71 | 5 | ||||
Underground | 59 | 9.15 | 18 | 59 | 9.15 | 18 | 86 | 13.58 | 38 | |||||
Combined | 156 | 10.61 | 53 | 156 | 10.61 | 53 | 108 | 12.18 | 42 | |||||
Kouroundi | Open Pit | 67 | 0.93 | 2 | 67 | 0.93 | 2 | 42 | 0.74 | 1 | ||||
Underground | ||||||||||||||
Combined | 67 | 0.93 | 2 | 67 | 0.93 | 2 | 42 | 0.74 | 1 | |||||
Koutouniokolla | Open Pit | 85 | 1.58 | 4 | ||||||||||
Underground | 22 | 2.54 | 2 | |||||||||||
Combined | 108 | 1.78 | 6 | |||||||||||
Mamasato | Open Pit | 560 | 1.45 | 26 | 560 | 1.45 | 26 | 305 | 1.25 | 12 | ||||
Underground | 42 | 2.32 | 3 | |||||||||||
Combined | 560 | 1.45 | 26 | 560 | 1.45 | 26 | 347 | 1.38 | 15 | |||||
Sekoto | Open Pit | 485 | 0.89 | 14 | ||||||||||
Underground | 25 | 2.11 | 2 | |||||||||||
Combined | 510 | 0.95 | 16 | |||||||||||
Subtotal Somigol ML | Open Pit | 5,894 | 0.79 | 150 | 39,584 | 1.58 | 2,005 | 45,478 | 1.47 | 2,155 | 1,989 | 1.16 | 74 | |
Underground | 4,038 | 3.81 | 495 | 4,038 | 3.81 | 495 | 3,465 | 3.48 | 387 | |||||
Combined | 5,894 | 0.79 | 150 | 43,622 | 1.78 | 2,500 | 49,516 | 1.66 | 2,650 | 5,454 | 2.63 | 462 | ||
Total Sabodala + Somigol | Open Pit | 25,011 | 1.15 | 926 | 54,377 | 1.59 | 2,777 | 79,388 | 1.45 | 3,703 | 10,333 | 1.23 | 409 | |
Underground | 5,985 | 3.84 | 738 | 5,985 | 3.84 | 738 | 4,921 | 3.38 | 534 | |||||
Combined | 25,011 | 1.15 | 926 | 60,362 | 1.81 | 3,516 | 85,373 | 1.62 | 4,441 | 15,254 | 1.92 | 944 |
Notes for Mineral Resources Summary:
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
Deposits | Proven | Probable | Proven and Probable | ||||||
Tonnes (Mt) |
Grade (g/t) |
Au (Moz) |
Tonnes (Mt) |
Grade (g/t) |
Au (Moz) |
Tonnes (Mt) |
Grade (g/t) |
Au (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 |
Subtotal ML | 5.95 | 1.52 | 0.29 | 6.88 | 1.71 | 0.38 | 12.83 | 1.62 | 0.67 |
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 |
Subtotal SOMIGOL | - | - | - | 29.08 | 1.32 | 1.23 | 29.08 | 1.32 | 1.23 |
Subtotal Open Pit | 5.95 | 1.52 | 0.29 | 35.96 | 1.39 | 1.61 | 41.92 | 1.41 | 1.90 |
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 |
Subtotal Underground | 0.00 | 0.00 | - | 2.15 | 5.01 | 0.35 | 2.15 | 5.01 | 0.35 |
Total | 5.95 | 1.52 | 0.29 | 38.11 | 1.60 | 1.96 | 44.07 | 1.59 | 2.25 |
Stockpiles | 15.27 | 0.79 | 0.39 | 0.00 | 0.00 | 0.00 | 15.27 | 0.79 | 0.39 |
Total Including Stockpile | 21.23 | 0.99 | 0.68 | 38.11 | 1.60 | 1.96 | 59.34 | 1.38 | 2.63 |
Notes for Mineral Reserves Summary:
Appendix 3: Life of Mine (2016 to 2029)
LOM | 2016-2020 AVG |
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||||||||
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 | 0.0 | 0.7 | 0.4 | 1.1 | 2.8 | 5.0 | 4.3 | 6.7 | ||||||||||||||||||||||
Ore Grade | g/t | 1.06 | 1.10 | 0.00 | 0.74 | 0.70 | 0.86 | 0.93 | 1.00 | 1.02 | 1.27 | |||||||||||||||||||||||
Contained Oz | Moz | 0.73 | 0.02 | 0.00 | 0.02 | 0.01 | 0.03 | 0.09 | 0.16 | 0.14 | 0.27 | |||||||||||||||||||||||
Waste | Mt | 110.2 | 0.2 | 0.0 | 16.2 | 5.8 | 19.4 | 27.2 | 21.5 | 11.6 | 8.2 | |||||||||||||||||||||||
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 | 4.0 | 3.5 | ||||||||||||||||||||||||||||
Ore Grade | g/t | 1.09 | 1.05 | 1.10 | 1.10 | |||||||||||||||||||||||||||||
Contained Oz | Moz | 0.31 | 0.05 | 0.14 | 0.12 | |||||||||||||||||||||||||||||
Waste | Mt | 26.6 | 6.2 | 12.5 | 7.9 | |||||||||||||||||||||||||||||
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 | 0.3 | 0.3 | 0.3 | 0.1 | 0.2 | 0.4 | 0.4 | 0.2 | ||||||||||||||||||||||
Ore Grade | g/t | 5.01 | 5.00 | 4.95 | 4.63 | 4.33 | 4.39 | 5.55 | 5.36 | 5.52 | 4.76 | |||||||||||||||||||||||
Contained Oz | Moz | 0.35 | 0.02 | 0.05 | 0.05 | 0.04 | 0.01 | 0.03 | 0.06 | 0.07 | 0.02 | |||||||||||||||||||||||
Summary | Ore Mined | Mt | 44.1 | 3.1 | 2.3 | 1.6 | 3.4 | 4.7 | 3.5 | 3.0 | 5.3 | 8.6 | 10.4 | 0.1 | 0.2 | 0.4 | 0.4 | 0.2 | ||||||||||||||||
Ore Grade | g/t | 1.59 | 1.94 | 2.91 | 3.74 | 1.51 | 1.42 | 1.63 | 1.09 | 1.22 | 1.20 | 1.29 | 4.39 | 5.55 | 5.36 | 5.52 | 4.76 | |||||||||||||||||
Contained Oz | Moz | 2.25 | 0.20 | 0.22 | 0.19 | 0.17 | 0.22 | 0.19 | 0.10 | 0.21 | 0.33 | 0.43 | 0.01 | 0.03 | 0.06 | 0.07 | 0.02 | |||||||||||||||||
Waste | Mt | 270.68 | 36.3 | 36.4 | 38.2 | 35.9 | 35.4 | 35.8 | 27.2 | 21.5 | 24.2 | 16.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||||
Movement | Mt | 314.74 | 39.5 | 38.7 | 39.8 | 39.3 | 40.1 | 39.4 | 30.2 | 26.8 | 32.8 | 26.5 | 0.1 | 0.2 | 0.4 | 0.4 | 0.2 | |||||||||||||||||
Stockpile Ore Balance | Mt | 0.0 | 13.7 | 11.1 | 9.5 | 9.9 | 8.9 | 7.4 | 8.2 | 12.4 | 18.4 | 14.0 | 9.8 | 5.7 | 1.6 | |||||||||||||||||||
Stockpile Grade | g/t | 0.00 | 0.82 | 0.84 | 0.72 | 0.71 | 0.70 | 0.68 | 0.67 | 0.66 | 0.68 | 0.66 | 0.66 | 0.66 | 0.66 | |||||||||||||||||||
Contained Oz | Moz | 0.00 | 0.36 | 0.30 | 0.22 | 0.23 | 0.20 | 0.16 | 0.18 | 0.26 | 0.40 | 0.30 | 0.21 | 0.12 | 0.03 | |||||||||||||||||||
Ore Milled | Mt | 59.3 | 4.3 | 3.9 | 4.2 | 4.5 | 4.5 | 4.5 | 4.5 | 4.4 | 4.5 | 4.4 | 4.4 | 4.4 | 4.4 | 4.4 | 2.3 | |||||||||||||||||
Head Grade | g/t | 1.38 | 1.66 | 1.93 | 1.85 | 1.56 | 1.54 | 1.46 | 0.99 | 1.35 | 1.73 | 2.06 | 0.82 | 0.85 | 1.06 | 1.08 | 0.94 | |||||||||||||||||
Oxide | % | 22 | % | 28 | % | 37 | % | 25 | % | 26 | % | 32 | % | 20 | % | 29 | % | 16 | % | 29 | % | 0 | % | 17 | % | 19 | % | 18 | % | 18 | % | 18 | % | |
Produced Oz | Moz | 2.375 | 0.207 | 0.215 | 0.229 | 0.202 | 0.200 | 0.190 | 0.128 | 0.173 | 0.225 | 0.263 | 0.104 | 0.109 | 0.135 | 0.139 | 0.063 |
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. This estimated ore reserves underpinning the production targets (as defined in the ASX Listing Rules), set out in Appendix 3 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 disclosed in Appendix 2 above.
Appendix 4: Maki Medina East Anomaly
Maki Madina East | |||||||||||||
Intersections, > 0,5g/t Au with max 2m internal dilution | |||||||||||||
HOLE ID | UTM28N East |
UTM28N North |
RL (m) |
Azi º | Dip º | Downhole Depth (m) |
Intercept Values (core length @ g/t Au) |
||||||
MMEDD0001 | 812,395 | 1,453,405 | 205 | 112 | -51 | 26 | 1m @ 2.74 g/t | ||||||
66 | 5m @ 1.38 g/t | ||||||||||||
including | 68 | 2m @ 2.63 g/t | |||||||||||
MMEDD0002 | 812,352 | 1,453,424 | 201 | 111 | -50 | 31 | 1 m @ 1.8 g/t | ||||||
MMEDD0003 | 812,307 | 1,453,443 | 199 | 112 | -50 | 24 | 1 m @ 1.93 g/t | ||||||
56 | 2 m @ 1.65 g/t | ||||||||||||
MMEDD0004 | 812,254 | 1,453,464 | 196 | 114 | -50 | 147 | 1 m @ 6.22 g/t | ||||||
MMEDD0005 | 812,362 | 1,453,559 | 204 | 110 | -50 | 49 | 1 m @ 2.64 g/t | ||||||
MMEDD0006 | 812,341 | 1,453,567 | 200 | 112 | -50 | 120 | 1 m @ 1.2 g/t | ||||||
MMEDD0007 | 812,327 | 1,453,505 | 199 | 116 | -50 | 35 | 2 m @ 1.19 g/t | ||||||
103 | 1 m @ 1.05g/t | ||||||||||||
111 | 1 m @ 2.05 g/t | ||||||||||||
1. True widths are unknown. | |||||||||||||
2. Intercept gold values are determined from uncapped assays. |
Appendix 5: Golouma South
Golouma South | |||||||||||||
Intersections, > 0,5g/t Au with max 2m internal dilution | |||||||||||||
HOLE ID | UTM28N East |
UTM28N North |
RL (m) |
Azi º | Dip º | Downhole Depth (m) |
Intercept Values (core length @ g/t Au) |
||||||
GONDD001 | 814,851 | 1,454,869 | 219 | 172 | -50 | 4 | 13m @ 1.65 g/t | ||||||
including | 5 | 3m @ 3.94 g/t | |||||||||||
20 | 1m @ 3.01 g/t | ||||||||||||
GONDD002 | 814,791 | 1,454,757 | 219 | 137 | -50 | 20 | 4m @ 1.39 g/t | ||||||
1. True widths are unknown. | |||||||||||||
2. Intercept gold values are determined from uncapped assays. |
Appendix 6: Goumbati West
Goumbati West | |||||||||||||
Intersections, > 0,5g/t Au with max 2m internal dilution | |||||||||||||
HOLE ID | UTM28N East |
UTM28N North |
RL (m) |
Azi º | Dip º | Downhole Depth (m) |
Intercept Values (core length @ g/t Au) |
||||||
GBWDD002 | 810,211 | 1,450,712 | 192 | 105 | 51 | 17 | 3m @ 2.44 g/t | ||||||
including | 17 | 1m @ 4.69 g/t | |||||||||||
GBWDD003 | 810,160 | 1,450,648 | 194 | 105 | -60 | 28 | 2m @ 11.46 g/t | ||||||
including | 28 | 1m @ 13.50 g/t | |||||||||||
1. True widths are unknown. | |||||||||||||
2. Intercept gold values are determined from uncapped assays. |
Appendix 7: Goumbati East
Goumbati East | |||||||||||||
Intersections, > 0,5g/t Au with max 2m internal dilution | |||||||||||||
HOLE ID | UTM28N East |
UTM28N North |
RL (m) |
Azi º | Dip º | Downhole Depth (m) |
Intercept Values (core length @ g/t Au) |
||||||
GBEDD003 | 813,201 | 1,451,268 | 234 | 110 | -50 | 11 | 4m @ 5.74 g/t | ||||||
including | 12 | 3m @ 7.46 g/t | |||||||||||
19 | 2m @ 2.13 g/t | ||||||||||||
GBEDD004 | 813,191 | 1,451,268 | 232 | 110 | -50 | 21 | 3m @ 0.99 g/t | ||||||
1. True widths are unknown. | |||||||||||||
2. Intercept gold values are determined from uncapped assays. |
Appendix 8: Kouroundi
Kouroundi | |||||||||||||
Intersections, > 0,5g/t Au with max 2m internal dilution | |||||||||||||
HOLE ID | UTM28N East |
UTM28N North |
RL (m) |
Azi º | Dip º | Downhole Depth (m) |
Intercept Values (core length @ g/t Au) |
||||||
KOUDD0004 | 815,369 | 1,456,414 | 324 | 67 | 60 | 83 | 4m @ 1.32 g/t | ||||||
including | 83 | 1m @ 3.50 g/t | |||||||||||
KOUDD005 | 815,385 | 1,456,370 | 312 | 67 | 61 | 13 | 9m @ 3.72 g/t | ||||||
including | 18 | 2m @ 9.66 g/t | |||||||||||
81 | 9m @ 0.62 g/t | ||||||||||||
86 | 1m @ 1.14 g/t | ||||||||||||
1. True widths are unknown. | |||||||||||||
2. Intercept gold values are determined from uncapped assays. |
Appendix 9: KA Prospect
KA Prospect | |||||||||||||
Intersections, > 0,5g/t Au with max 2m internal dilution | |||||||||||||
HOLE ID | UTM29N East |
UTM29N North |
RL (m) |
Azi º | Dip º | Downhole Depth (m) |
Intercept Values (core length @ g/t Au) |
||||||
SKADD001 | 185,842 | 1,483,811 | 85 | 0 | -50 | 14 | 3m @ 1.04 g/t | ||||||
SKADD002 | 185,842 | 1,483,853 | 83 | 0 | -50 | 1 | 4m @ 0.78 g/t | ||||||
SKADD003 | 185,955 | 1,483,835 | 85 | 0 | -50 | 0 | 1m @ 1.14 g/t | ||||||
SKADD004 | 185,955 | 1,483,815 | 84 | 0 | -50 | 1 | 3m @ 11.24 g/t | ||||||
including | 1 | 1m @ 17.10 g/t | |||||||||||
1. True widths are unknown. | |||||||||||||
2. Intercept gold values are determined from uncapped assays. |
Appendix 10: Marougou
Marougou | |||||||||||||
Intersections, > 0,5g/t Au with max 2m internal dilution | |||||||||||||
HOLE ID | UTM29N East |
UTM29N North |
RL (m) |
Azi º | Dip º | Downhole Depth (m) |
Intercept Values (core length @ g/t Au) |
||||||
MARDD0001 | 195513 | 1,468,099 | 80 | 120 | -55 | 37 | 7m @ 4.68 g/t | ||||||
including | 41 | 3m @ 7.73 g/t | |||||||||||
MARDD0002 | 195887 | 1,468,563 | 85 | 120 | -55 | 47 | 4m @ 2.24 g/t | ||||||
including | 47 | 2m @ 3.21 g/t | |||||||||||
1. True widths are unknown. | |||||||||||||
2. Intercept gold values are determined from uncapped assays. |
Non-IFRS Financial Performance Measures
The Company has included non-IFRS measures in this Report, including "total cash cost per ounce of gold sold" and "all-in sustaining costs per ounce". The Company believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.
The Company reports total cash costs on a sales basis. Total cash costs per gold ounce include production costs such as mining, processing, refining and site administration, net of silver sales, divided by gold ounces sold to arrive at total cash costs per gold ounce sold. Production costs are exclusive of depreciation and depletion. Other companies may calculate this measure differently.
All in sustaining costs per ounce sold include total cash costs per ounce, administration expenses (excluding corporate depreciation expense and social community costs not related to current operations), capitalized deferred stripping, capitalized reserve development and mine site sustaining capital expenditures (including project development costs) as defined by the World Gold Council. Other companies may calculate this measure differently.
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 labouratory 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 ore 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 this 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.
CORPORATE DIRECTORY | ||
Directors | ||
Alan Hill | Chairman | |
Richard Young | President and CEO | |
Jendayi Frazer | Non-Executive Director | |
Edward Goldenberg | Non-Executive Director | |
Christopher Lattanzi | Non-Executive Director | |
David Mimran | Non-Executive Director | |
Alan Thomas | Non-Executive Director | |
Frank Wheatley | Non-Executive Director | |
Senior Management | ||
Richard Young | President and CEO | |
Paul Chawrun | Vice President, Operations and Technical Services | |
Navin Dyal | Vice President and CFO | |
David Savarie | Vice President, General Counsel & Corporate Secretary | |
Sepanta Dorri | Vice President Corporate and Stakeholder Development | |
Mark English | Vice President, Special Projects | |
Aziz Sy | General Manager, SGO & Vice President, Development Senegal |
Registered Office |
121 King Street West, Suite 2600 |
Toronto, Ontario, Canada M5H 3T9 |
T: +1 416-594-0000 F: +1 416-594-0088 |
E: investor@terangagold.com |
http://www.terangagold.com/ |
Senegal Office |
2K Plaza |
Suite B4, 1er Etage |
sis la Route du Meridien President |
Dakar Almadies |
T: +221 338 642 525 |
F: +224 338 642 526 |
Auditor |
Ernst & Young LLP |
Share Registries |
Canada: Computershare Trust Company of Canada T: +1 800 564 6253 |
Australia: Computershare Investor Services Pty Ltd T: 1 300 850 505 |
Stock Exchange Listings |
Toronto Stock Exchange, TSX symbol: TGZ |
Australian Securities Exchange, ASX symbol: TGZ |
Issued Capital
As of December 31, 2015 | |
Issued shares | 392,001,091 |
Stock options | 15,539,165 |
Stock Options - Exercise Profile
Exercise Price (C$) | Options |
$3.00 | 11,684,165 |
$0.64 | 3,855,000 |
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 2015 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 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.
Contact Information: