Modern Mining January 2020

MINING News

Teranga Gold beats guidance at West African mines

TSX-listed Teranga Gold Corporation has reported record consolidated gold produc- tion of 288 768 ounces for 2019, exceeding the top end of its full-year production guid- ance at both Sabodala in Senegal and at Wahgnion in Burkina Faso. Annual produc- tion increased by 18 % over the 245 230 ounces of gold produced in 2018. “Wahgnion achieved commercial pro- duction effective November 1, 2019 and surpassed the high end of its production guidance of 30 000-40 000 ounces with a total of 47 492 ounces of gold. Sabodala topped its 2019 anticipated production guidance of 215 000-230 000 ounces with a total of 241 276 ounces of gold produced,” said Paul Chawrun, Teranga’s

Chief Operating Officer. “2019 represents the fourth consecutive year in which we have exceeded our production guidance and reported record results, a testament to the quality of our operating teams.” Added Richard Young, President and CEO: “Our recently announced acquisition of the high-grade Massawa gold project will allow us to transform the Sabodala- Massawa complex into a top-tier gold producer. We anticipate the Sabodala- Massawa complex, together with our new mine, Wahgnion, will significantly increase our consolidated annual production and support Teranga’s transformation into a low-cost, mid-tier gold producer.” Prior to announcing its acquisition of the

Massawa gold project from Barrick Gold, which is expected to close in the first quar- ter of 2020, Teranga was targeting 2020 gold production of between 300 000 and 350 000 ounces based on the latest techni- cal reports filed for each of its Sabodala and Wahgnion goldmines. However, with produc- tion of Massawa’s free-milling ore expected to commence at Sabodala’s existing carbon- in-leach plant in the second half of this year, 2020 production is expected to increase beyond the previously anticipated range. Within six months of closing the Mas­ sawa acquisition, Teranga plans to complete a pre-feasibility study highlighting updated production and costs for the integrated Sabodala-Massawa gold complex. 

A panoramic view of the Sabodala mine in Senegal (photo: Teranga).

KCC to acquire land package from Gécamines

The land includes multiple blocks over the preferred location for con- struction of a new long-term tailings facility, and multiple other blocks that will enhance KCC’s ability to more effi- ciently operate its mines, facilities and other key infrastructure requirements. If this agreement is implemented then the risks for KCC’s operations resulting from land constraints, which are described in the company’s 43-101 Technical Report issued on November 7, 2019, would be mitigated. KCC will pay up to US$250 million to acquire the land, the total amount payable being dependent on delivery of title to the various different land areas. KCC expects to satisfy the consider- ation payments from existing liquidity. The agreement anticipates the title transfers to be effected during the course of 2020. 

joint venture partner in KCC, to acquire from Gécamines a comprehensive land package covering areas adjacent to KCC’s existing mining concessions.

Katanga Mining, listed on the TSX, has announced that its 75 % subsidiary, Kamoto Copper Company (KCC), has entered into an agreement with Gécamines, its 25 %

Environmental permits for gold project in place ASX-listed Azumah Resources has announced that it has received all of the environmental permits from the Ghanaian Environmental Protection Agency required to allow it to commence construction and operation of its Wa-Lawra gold project. The permits provide authorisation for construction and operation of both the Kunche-Bepkong mine and processing plant; and the satellite pit at Julie. Along with the appointment of new direc-

tors and Peder Olsen as ConstructionManager, this is a major milestone in the development of a new mine at Wa-Lawra. As previously announced, Azumah is working towards con- cluding funding arrangements in early 2020 prior to commencement of construction. Olsen was formerly Senior Vice President (project, mining and technical services) for Endeavour Mining, having most recently led the construction of the US$425 million CIL project at Ity in Côte d’Ivoire. 

12  MODERN MINING  January 2020