Teranga Gold Reports Positive Feasibility Study for Banfora Project

The Company expects an improvement in the Banfora Project economics following completion of an infill drill program aimed at converting inferred resources to reserves to be completed later this year, with a reserve update expected in the first half of 2018.  The infill drill program is targeting inferred resources located adjacent to the current reserve pits. Overall, the Company anticipates achieving a conversion rate of between 25% and 50% of the inferred resources.

As at June 30, 2017, Teranga had cash and cash equivalents of $80 million². As outlined in the updated technical report for Sabodala filed on August 30, 2017, the Company anticipates cash flows from Sabodala of more than $80 million³ over the next two years and a total of $230 million³ over the next five years. With cash and cash equivalents, anticipated cash flow and indicative term sheets for a project debt facility of up to $150 million, the Company is in a solid financial position to develop and fund construction of the $232 million⁴ Banfora Project (see Table 5). 

Mr. Young continued: "Our strategy is to grow the Company responsibly by being prudent and disciplined in our capital allocation. The initial Feasibility Study economics of the Banfora Project are solid. They are expected to improve in the first half of next year following a reserves update, which may lead to a larger or lower-cost project debt facility. As a result, we are deferring plant construction by approximately a quarter to allow us to develop an optimal financing plan for the Banfora Project as well as our other growth initiatives. Construction readiness activities will continue to move forward and the scope of work will expand in the lead up to plant construction."

Banfora Project Feasibility Study – Base Case Highlights (at $1,250 gold⁵)

Upside Potential with Anticipated H1 2018 Resource and Reserve Update

• Initial gold reserves base of approximately 1.2 Moz is derived from four deposits (Nogbele, Fourkoura, Samavogo, and Stinger) within the Banfora mine license, and is anticipated to increase in the near-term based on significant potential within existing resource shells
• A large portion of the initial resources estimate that was not converted to reserves is located in near proximity to the feasibility study design pits based on the initial reserves base, both along strike and at depth
• An extensive 65,000 metre infill drilling program, already 50% complete, is increasing drill hole density in the in-pit areas currently classified as inferred resources
• Given the demonstrated continuity of the mineralization adjacent to the zones of inferred resources, the Company anticipates between 25% and 50% of the inferred resources will be upgraded to the indicated category and converted to reserves, extending the mine life beyond the current 9 years
• Beyond the initial four deposits included in the Feasibility Study, Teranga has initiated a multi-year exploration program on over a dozen other priority targets on its regional exploration land package, all within trucking distance of the proposed mill site

"The Banfora Project is off to a solid start with an initial after-tax rate of return of 15% and economics that are anticipated to further improve once the current infill drill program is complete and reserves are updated in the first half of 2018," said Paul Chawrun, Chief Operating Officer of Teranga. "Additionally, we are undertaking a multi-year exploration program covering more than a dozen regional targets. The objective of the regional program is to identify additional deposits beyond the initial four included in the Feasibility Study to feed the central mill at Banfora."

Project Overview

As part of its acquisition of Gryphon Minerals in 2016, Teranga acquired the Banfora Project, located in the southwest corner of Burkina Faso. It is less than 10 kilometres from the border of Côte d'Ivoire and within the north-northeast trending Paleoproterozoic Birimian Senoufo Belt, which also hosts Randgold Resources' Tongon deposit in Côte d'Ivoire.

The Banfora Project is 90% owned by Teranga with the Government of Burkina Faso holding a 10% free carried interest. It includes exploration licenses covering more than 1,000 km² and a permitted mining license that covers 89 km².  As well, the property is easily accessible by road in close proximity to the regional town of Banfora and the major city of Bobo-Dioulasso. Under its Mining Convention with the Government of Burkina Faso, the Banfora Project benefits from fiscal stability guarantees that stabilize certain tax rates such as corporate income and customs duties in effect prior to the adoption of the 2015 Mining Code.

Over the last 12 months, the Company has completed follow up drilling across the defined deposits at the Banfora Project to augment and validate historical drilling and, in turn, support the resource estimate conducted independently by Roscoe Postle Associates Inc. Additionally, an independent metallurgical testwork optimization program was conducted to determine the processing plant design criteria and gold recovery values for the mine design and project economics.

Open Pit Mineral Resources and Reserves Summaries

Teranga completed a resources and reserves confirmatory drilling program at the four initially identified Banfora Project deposits in 2016:  Nogbele, Stinger, Samavogo and Fourkoura.  Based on this additional drilling and geologic modeling undertaken as part of the Feasibility Study, the open pit measured and indicated resources estimate is 1.8 Moz gold, with an additional 0.7 Moz of inferred resources, pit constrained at $1,450 per ounce gold (see Table 1).

The total open pit Proven and Probable Mineral Reserves estimate, based on a gold price of $1,200 per ounce, is 1.2 Moz (see Table 2). 

Table 1:  Open Pit Mineral Resources Summary

	Measured Resources			Indicated Resources			Measured + Indicated Resources			Inferred Resources
Deposit	Mtonnes	Grade  (Au g/t)	Moz	MTonnes	Grade (Au g/t)	Moz	MTonnes	Grade (Au g/t)	Moz	MTonnes	Grade (Au g/t)	Moz
Nogbele	1.17	1.47	0.06	17.92	1.43	0.82	19.08	1.43	0.88	9.11	1.18	0.34
Fourkoura	0.36	1.57	0.02	3.02	1.60	0.16	3.38	1.60	0.17	0.98	1.33	0.04 Werbung Mehr Nachrichten zur Teranga Gold Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 02:00 - PR Newswire International Business Machines Corp - Doc re: Form 8-K 02:00 - PR Newswire Carnival PLC - Carnival Announces Closing of €500 Million 5.75% Senior Unsecured Notes Offering; Repricing of Senior Secured First Lien Term Loan B Facilities as Part of Ongoing Debt and Interest Expense Reduction 25.04.24 - PR Newswire Finsbury Growth & Income Trust Plc - Transaction in Own Shares Sehen Sie sich dieses Unternehmen an:    Foto: andreas160578 - Pixabay Rasanter Aufstieg, Branchenrevolution und Jahresumsatz von 50 Mio. $ weiterlesen» Anzeige wo-site-teaser-box-16764_site-teaser-box_2024-04-26_09%253A00%253A00_2024-04-27_09%253A00%253A59