Mineral Resource Estimate For Golden Hill
TORONTO - Teranga Gold Corporation reported an update the mineral resource estimate for Golden Hill, an advanced-stage exploration project located in southwest Burkina Faso within the central part of the Hounde Greenstone Belt, a highly mineralized gold region that hosts three operating gold mines. Wholly-owned by Teranga, Golden Hill is a key component of the Company’s growth pipeline and has delivered multiple near-surface, high-grade, oxide gold discoveries transitioning into fresh hosted structurally controlled mineralization extending to considerable depths well below the oxide component of these mineralized bodies.
Golden Hill Updated Mineral Resource Highlights: Indicated mineral resource of 12.62Mt averaging 1.85 g/t gold for 750,000 ounces; Inferred mineral resource of 11.48Mt averaging 1.81 g/t gold for 670,000 ounces; and Excellent along trend and to-depth continuity of gold mineralization at all deposits drilled.
The current Golden Hill mineral resource estimate is based on the results from more than 900 reverse circulation and core drill holes totaling over 100,000 meters at five deposits and a number of prospects. Based on the most recent 27,000 meter drill program, the Company has increased resources at the Ma Structural Complex (Ma Deposit) to 521,000 ounces classified as Indicated and 410,000 ounces classified as Inferred, and converted resources previously classified as Inferred to the Indicated category at Peksou/C-Zone and at A and B-Zone since Golden Hill’s initial resource estimate was released in 2019.
“Drilling and preliminary engineering work to date confirms the potential for a high-grade open pit gold mine at Golden Hill. As a result, we expect to submit a mine license application in the fourth quarter,” said Richard Young, President and CEO. “We expect to spend approximately $15 million on our resource expansion program at Golden Hill through the end of 2021 in order to reach our goal of outlining a resource of between 2 and 3 million ounces of gold. Despite today’s higher gold prices, our hurdle rate for new projects remains at achieving an internal rate of return of 15% at $1,300 gold, and Golden Hill’s development will be conditional on meeting or exceeding that threshold.”
The most recent drill campaign, started in the second half of 2019, consisted of 27,000 meters that evaluated nine separate targets including four portions of the Ma Structural Complex (Main, North, East and Junction), C-Zone, A-Zone, Peksou Basin, Copper and Gogoba West (refer to Figure 1 in Appendix). The Company continued to drill until March 2020, when the COVID-19 pandemic and associated travel restrictions required work to pause at the site. The exploration program is on track to recommence mid-October, as the rainy season ends, and is anticipated to target at least five additional zones including Gogoba North, Sebe, Nahiri, Peksou North and Pourey. Drilling is expected to focus along trend and at depth to extend components of this resource estimate and to initiate evaluation of numerous additional target areas. In addition, a further five undrilled exploration targets defined by favorable stratigraphy, structure, geochemical and geophysical signatures will be included in the broader exploration program.
Metallurgical testing is ongoing at ALS Metallurgy Laboratories in Perth, Western Australia. Samples from Jackhammer Hill, Peksou and Ma were investigated during the first phase of testing. Based on the test results to date, a flowsheet featuring flotation and leaching of the flotation products has been adopted, with gold recoveries ranging from 83% to 93%. The next phase of testing is expected to investigate other deposit areas and options to optimize the current flowsheet.