Teranga Gold’s Wahgnion gold operation should be in production next year

Posted by Daniel Gleeson on 1st November 2018

Teranga Gold Corp has filed an updated NI 43-101 – Standards of Disclosure for Mineral Projects Technical Report for its Wahgnion gold operations in Burkina Faso. The report was prepared by Teranga and supports the mineral reserve estimates and mine plan previously announced on September 24, 2018.

“Since our acquisition of Wahgnion just over two years ago, we have increased reserves and resources, improved mine plan economics, and secured financing,” stated Richard Young, President & Chief Executive Officer. “We are now advancing through construction and expect to achieve first gold pour by the end of 2019. Looking forward, we are focused on further optimizing the mine plan and extending the mine life beyond 13 years through continued conversion of resources and targeted exploration of more than a dozen prospects already identified within close proximity to mill.”

Teranga is a multi-jurisdictional West African gold company focused on production and development as well as the exploration of more than 6,400 km2 of land located on prospective gold belts.  Since its initial public offering in 2010, Teranga has produced more than 1.5 Moz of gold at its Sabodala operation in Senegal (pictured). Focused on diversification and growth, the company is advancing construction of its second producing gold mine, Wahgnion, which is located in Burkina Faso, as well as carrying out extensive exploration programs in three West African countries:  Burkina Faso, Côte d’Ivoire and Senegal.  It had more than 4.0 Moz of gold reserves as of June 30, 2018.  Teranga applies a rigorous capital allocation framework for its investment decisions to execute on its growth strategy relying on a combination of cash on the balance sheet, free cash flow from operations and debt.

Wahgnion is expected to increase Teranga’s consolidated production by some 50% on an annualized basis. Previously known as Banfora, it was acquired in October 2016 as part of Teranga’s acquisition of ASX-listed Gryphon Minerals. The fully permitted, high-grade, open pit project is located in the southwest of Burkina Faso in a major gold producing district host to several worldclass gold deposits.

Teranga owns 90% of the project and the Burkina Faso government owns the remaining 10%. The Wahgnion project includes both a permitted mine license with an area of 89km2 and five surrounding exploration permits totalling approximately 1,000km2. The group of properties are encapsulated in the Loumana Birimian greenstone belt within Burkina Faso.

  • Construction is on track for first pour by the end of 2019
  • Plant design is complete and detailed engineering, processing facility constructions, and development of site-wide infrastructure is on schedule
  • An updated mineral resource estimate was released in June 2018. The update increased combined measured and indicated resources to 2.4 Moz contained gold (50.5 Mt at a grade of 1.51 g/t Au) representing a 33% increase from the previous 2017 feasibility study
  • An updated mineral reserve estimate was released September 2018 which increased reserves by 450,000 oz to 1.61 Moz  of proven and probable reserves (31.07 Mt grading 1.61 g/t) representing an increase of almost 40% from the previous 2017 feasibility study.