Modern Mining August 2018

MINING News

The gold plant at Sabodala in Senegal (photo: Teranga).

Teranga Gold enjoying “positive momentum”

“We are on the road to achieving our vision of becoming a multi-asset, mid- tier gold producer in West Africa,” added Richard Young, Teranga’s President and CEO. “By the end of 2019, we expect to increase our annualised gold production by about 50 % to between 300 000 and 350 000 ounces, diversifying our produc- tion base and adding significant scale with a second long-life mine – Wahgnion. Additionally, we are prioritising Golden Hill within our exploration portfolio given it has the potential to be our third mine and move us into the mid-tier producer category.”  DBCM says that upon engagement with the DMR through the office of the Director General on 30 July 2018, the issue of job losses in the mining sector andmines being placed on care and maintenance was raised. The Director General requested that DBCM runs its closure process in parallel with a separate process through which the DMR will seek to identify and propose an operator capable of purchasing Voorspoed (‘Proposed Operator’). DBCM confirms that it is in principle not opposed to the DMR’s request of embark- ing on a process to identify a Proposed Operator within a 30-day period com- mencing on 1 August 2018 and ending on 31 August 2018. It says it will engage further with the DMR in relation to the pro- posal in order to understand and finalise the basis upon which it will be under- taken.  Time Injuries between 1 October 2014 and 14 June 2018 and no Medical Treatment Cases since 16 June 2015.”

TSX-listed Teranga Gold Corporation, which owns the Sabodala gold mine in Senegal, is developing the Wahgnion gold mine in Burkina Faso and has the advanced Golden Hill project, also in Burkina Faso, has reported strong results for the three and six months ended June 30, 2018. Gold produced at Sabodala for the quar- ter amounted to 65 381 ounces (up 14 % on the equivalent figure for 2017) at an AISC of US$847/oz (compared to US$933/ oz in the equivalent quarter in 2017). For the six-month period, gold production was 129 412 ounces at an AISC of US$867/ oz, with the respective figures for 2017

being 114 460 ounces and US$934/oz. “There is a lot of positive momentum across our operating mine, development and exploration properties,” said Paul Chawrun, Teranga’s Chief Operating Office. “In Senegal, we achieved record sec- ond quarter and half year production at Sabodala and increased our full year 2018 production guidance to at least 230 000 ounces of gold. In Burkina Faso, construc- tion of our second mine at Wahgnion is on track for first pour before the end of next year and we continue to see positive exploration results at Golden Hill, our most advanced exploration property.” potential future operator would not only have the required technical and financial capability, but also values that are aligned with those of DBCM. Unfortunately, we have not been able to identify a bidder that met the necessary criteria and so we have reluctantly taken the decision to close the operation, in a responsible manner, as it is no longer economically viable for DBCM to operate the mine. We do not underestimate the impact this will have on Voorspoed mine’s employees and we have put in place appropriate support structures. “When we opened the mine on 4 November 2008, the expected operat- ing Life of Mine was approximately 10 years. With a young workforce, the mine has been managed and operated in an exemplary manner, of significance being the safety achievements in 2017 for the ‘Best Safety Performance in Class’ and ‘Best Improved Safety Performance’ for no Lost

De Beers to close its Voorspoed diamond mine De Beers Group has announced that the De Beers Consolidated Mines Proprietary Limited (DBCM) board has taken the deci- sion to proceed with the responsible closure and rehabilitation of Voorspoed mine in Free State Province. This deci- sion follows an extensive, transparent and comprehensive disposal process, which involved a rigorous due diligence exercise on the bidders to acquire the mine. 

The disposal process was unsuccessful in identifying a suitable operator that met the specified criteria and therefore the respon- sible closure process will now be initiated in accordance with the company’s values and with due consideration of employees and host communities. Phillip Barton, DBCM’s CEO, said: “Our priority throughout the disposal process has always been the safety and wellbeing of our employees at Voorspoed mine and we were committed to ensuring that any

August 2018  MODERN MINING  5