Modern Mining September 2019

MINING News

Wahgnion pours its first gold ahead of schedule

ahead of schedule due to the dedication of our owner’s team led by Metifex, as well as our EPCM partner Lycopodium. “With safety front and centre, the com- missioning phase was completed without a single lost time injury, encompassing over 5,3 million hours worked. This accomplish- ment reflects the hard work and dedication of all of our employees and contractors, and is aligned with our commitment to responsible mining.” Wahgnion has proven and probable reserves of 1,61 Moz of gold. During the first five years of operation (2020-2024), an average annual gold production of 132 000 ounces is expected at an average mill grade of 1,83 g/t and an AISC of US$761/oz. The mine has a 13-year life on current reserves. “We are very excited to report that con- struction is complete and that we have achieved first gold pour at Wahgnion, two months ahead of schedule. This moves us a step closer to reaching our goal of becom- ing a mid-tier gold producer in West Africa,” said Richard Young, Teranga’s President and CEO. Teranga also owns and operates the Sabodala gold mine in Senegal. “We want to thank the Government of Burkina Faso for their support since we purchased Wahgnion in October 2016, and to commend our entire team for taking this project from exploration to production in less than three years, ahead of the original schedule and expected to be under budget.” During construction, Teranga recruited and trained more than 650 skilled workers to work at Wahgnion. Recently, the com- pany transitioned 70 of these employees from construction into operational roles. In addition to a smooth ramp up to commercial production, Teranga is focus- ing on its local social responsibility efforts, such as building new housing and provid- ing livelihood restoration programmes to some near-mine communities, including the development of irrigated agriculture, increased crop production, animal hus- bandry, training and support to launch small businesses, and sustainable income-gener- ating activities for local women. Commencing in 2020-2021, Teranga plans to embark on a multi-year exploration and drilling programme, which will focus on highly prospective exploration targets within trucking distance of the plant, to further optimise the mine plan and extend Wahgnion’s mine life. The current reserve estimate and mine plan include only the four initial deposits on the mine licence. 

The Wahgnion plant during construction (photo: Teranga Gold).

Canada’s Teranga Gold Corporation, listed on the TSX, has announced that its second mine, Wahgnion Gold Operations (Wahg­ nion), began processing ore during August. The first gold pour was achieved two months ahead of schedule and construc- tion costs are expected to be under budget. Located in the south-west portion of Burkina Faso, Wahgnion is expected to produce 30 000 to 40 000 ounces of gold in 2019. During commissioning, 117 712 tonnes of low-grade ore were processed at an aver- age grade of 1,04 grams of gold per tonne. The average recovery rate was 94,7 %. Gold

production amounted to 3 720 ounces and gold poured to 1 743 ounces. “During August, we successfully com- missioned the Wahgnion plant and are pleased to report that all aspects of the plant are now operational. Fine tuning will continue during September with through- put and grade expected to ramp up during the fourth quarter, in line with our guid- ance. Typical with commissioning, low grade ore was used to ensure the extrac- tion process is working well before putting higher grade material into the circuit,” said Paul Chawrun, Teranga’s Chief Operating Officer. “We were able to start production Martin Eales, who has been CEO since 2014 and under whose oversight the com- pany was transformed from an early-stage exploration play to Africa’s only producing rare earth mine, fully listed on the LSE, is stepping down. Rainbow’s Chairman, Adonis Pouroulis, stated, “We are delighted to bring some- one of George’s calibre on board. George has considerable experience in developing assets, particularly in the natural resources and energy space, and has a track record of success. We think he will be instrumental in helping Rainbow reach the next stage of its development. At the same time, I would like to thank Martin for his support during the early stages of Rainbow’s development, IPO, and initial production.” 

New Chief Executive Officer takes over at Rainbow Rainbow, the rare earth element mining com- pany which operates the Gakara project in Burundi, has appointed George Bennett to the Board as Chief Executive Officer, with immediate effect.

With over 25 years’ experience in mining, finance and management, Bennett has led a number of mining and energy companies, including Shanta Gold, which he successfully listed on the London Stock Exchange (LSE) in 2005. In 2006 he established MDM Engi­ neering, which listed on the LSE in 2008. MDM is a mining engineering company building mineral process plants and mining infrastructure throughout Africa. In 2014, Bennett was instrumental in selling the busi- ness to Foster Wheeler for US$120 million.

8  MODERN MINING  September 2019