Modern Mining May 2018

MINING News

The Sabodala gold mine in Senegal (photo: Teranga). Teranga records strong first quarter operating results

TSX-listed Teranga Gold Corporation has reported a gold production of 64 031 ounces in the March quarter (Q1) of 2018, a 13 % increase on the figure for the equiv- alent period in 2017. The total cash cost was US$659/oz compared to US$722/oz in Q1 2017. Since its initial public offering in 2010, Teranga has produced more than 1,4 mil- lion ounces of gold from its Sabodala gold mine in Senegal, which – as of June 30, 2017 – had a reserve base of 2,7 million ounces of gold. Sabodala produced a record 233 267 ounces of gold in 2017. Sabodala is Teranga’s only producing asset but the company is advancing its Wahgnion gold project (formerly referred to as the Banfora project) in Burkina Faso,

the bottom of Gora and Golouma South pits, which required the use of smaller equipment, mine operations experienced reduced shovel productivity. In the prior year period, total tonnes mined were a company record, mainly due to higher than planned equipment availability, improved utilisation of the mining fleet and a significantly higher quantity of free- digging oxide waste. Ore tonnes mined and ore grades were 26 % and 41 % higher, respectively, com- pared to the prior year period mainly due to increased tonnes and grade from the Gora deposit and the final benches of Golouma South being primarily ore. Gora will complete mining activities during the second quarter followed by closure and rehabilitation activities. Ore tonnes milled for the first quarter were similar to the prior year period and benefitted from slightly higher operating hours resulting from the timing of mainte- nance work in the milling circuit. At Wahgnion , all critical long-lead equipment and key contracts have been awarded and bulk earthworks are well underway putting Teranga on track to begin concrete installation for the mill foundation later this month (May). Wahgnion 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 south-west of Burkina Faso. According to the Feasibility Study

which will rank as its second producing gold mine. The first gold pour atWahgnion is expected by the end of 2019. The com- pany’s project pipeline also includes the Golden Hill project in Burkina Faso. Mining activities at Sabodala in the first quarter were focused on Kerekounda and the last production benches of Golouma South, as well as the narrow lower benches of Golouma West and Gora Phase 3. In the prior year period, mining was focused on Golouma South, the upper oxide zone at Kerekounda, as well as the lower benches of Gora Phase 2 and 3. Total tonnes mined for the first quarter were in line with plan and were 14 % lower compared to the prior year period. Due to mining in narrower benches at or near

The Wahgnion site in Burkina Faso. Wahgnion will be Teranga’s next producing mine (photo: Teranga).

4  MODERN MINING  May 2018