Modern Mining October 2018

MINING News

Panoramic view of the Wahgnion site (photo: Teranga Gold). Teranga increases gold reserves at Wahgnion

Teranga Gold Corporation has announced the results of an updated Mineral Reserve Estimate (MRE) and feasibility study for the Wahgnion development project in Burkina Faso, West Africa. Teranga, which also owns the Sabodala goldmine in Senegal, is listed on the TSX. The update adds 450 000 ounces to open-pit reserves, increasing proven and probable mineral reserves at Wahgnion by almost 40 % to 1,61 million ounces (31,07 million ore tonnes grading 1,61 g/t). The initial proven and probable min- eral reserves in the 2017 feasibility study totalled 1,16 million ounces (21,40 million ore tonnes grading 1,69 g/t). The new min- eral resource andmineral reserve estimates,

based on the initial four deposits (Nogbele, Fourkoura, Samavogo and Stinger), include drill results from a 73 000-m infill drill pro- gramme completed in 2017. “The 40% increase inWahgnion reserves announced today (24 Sept) exceeded our initial guidance and expectations and, most importantly, led to an improved five- and 10-year production and cash flow profile relative to last year’s initial feasibility study,” comments Richard Young, Teranga’s President and CEO. “With average annual gold production of 132 000 ounces through to 2024, Wahgnion is expected to increase company-wide annual production by 50 % to between 300 000 and 350 000 ounces. This will generate free cash flow to fund our said most of the holes returned intercepts greater than 4 m at 10 % Total Graphitic Carbon (TGC) or better. “With the drilling now completed across both the Buffalo and Elephant deposits the team have delivered some spectacular results and confirmed additional mineralisation outside the cur- rent reserve estimate and we look forward to updating the mineral resource estimate for Buffalo using this data. We continue to see additional near mine exploration tar- gets available to define more tonnes in due course. “When you add this improved confidence to what is already a high-grade, low-cost project with constructionwell advanced and supported by offtake agreements, a granted

growth plans, and move us closer towards our goal of becoming a multi-asset, mid- tier gold producer inWest Africa.” Construction at the fully funded Wahgnion development project remains on track. Front-end engineering and detailed design is essentially complete, and the steel fabrication and equipment manufacture in preparation for delivery to site are on schedule. Despite a heavy rainy season, the concrete pour schedule for plant construction remains on track for the mill foundations, primary crusher, leach tanks and reclaim areas in preparation for the next phase of construction, mechani- cal and structural steel erection. Mining activities have commenced to Battery Minerals intends to commence graphite flake concentrate production at Montepuez within 14 months of com- pleting project finance at export rates of 50 000 t/a at an average flake concentrate grade greater than 96 % TGC. In December 2017 and January 2018, Battery Minerals signed four binding offtake agreements for up to 41 000 t/a of graphite concentrate, representing over 80 % of Montepuez’s forecast annual production. As Battery Minerals executes subse- quent expansions, it expects production from Montepuez to grow to over 100 000 tonnes per annum of graphite flake con- centrate by 2020.  mining licence and a port access allocation, it is clear that we are very well positioned to deliver an outstanding project.”

Battery Minerals reports high-grade drilling results ASX-listed Battery Minerals has announced exceptionally high-grade drilling results which will help underpin an update to a mineral resource and reserve estimate at its Montepuez graphite project in Mozambique scheduled for release in the December 2018 quarter.

According to the company, the results, which come from the weathered, close to or at surface zone of the Buffalo deposit, highlight the quality of the project’s min- eralisation and its ability to be a low-cost producer. The drilling targeted both infill zones and strike extensions to existing high- grade oxide mineralisation. Battery Minerals’ MD, David Flanagan,

4  MODERN MINING  October 2018