The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Marketwire

Teranga Gold Corporation: Continued High-Grade Intersections at Gora Project-5m @ 33.7 gpt gold

Promising early stage results at new target Encouraging progress made on largest exploration targets

Monday, June 13, 2011

Teranga Gold Corporation: Continued High-Grade Intersections at Gora Project-5m @ 33.7 gpt gold06:00 EDT Monday, June 13, 2011TORONTO, ONTARIO--(Marketwire - June 13, 2011) - Teranga Gold Corporation ("Teranga" or "the Company") (TSX:TGZ)(ASX:TGZ) is pleased to provide a mid quarter update of its Regional Exploration program. Highlights:Regional Exploration program achieved significant ramp-up in activity with a total of nine drill rigs currently dedicated to exploration on the Regional Land Package. Encouraging early stage results prompted ordering additional rigs, which are expected within the next few weeks. Drilling at Gora continues to return high-grade gold intersections – remaining open in all directions. High-grade Gora Project moving toward development. Promising target has been identified at Toumboumba located just west of the Sabodala Mine License returning significant widths of ore grade RAB and RC results requiring follow up drilling. Systematic programs at the Company's two largest exploration targets, Tourokhoto and the Donut, produced encouraging RAB and RC intersections. "We are encountering tremendous gold grades at Gora as we move north of the current resource. A lot more work needs to be done at Gora to fully delineate this deposit. Gora's high-grade is expected to have a significant impact on production, earnings and cash flow as it comes into production as early as late next year," said Alan R. Hill, Chairman and Chief Executive Officer. Gora Project (located 22 km from Sabodala Mill)While the Company is advancing the Gora Project towards production as early as late 2012, high-grade drill intersections continue to expand the potential footprint of the deposit. The Company is running a number of processes in parallel to develop Gora as quickly as possible. The key processes currently running in parallel are the on-going exploration program, permitting, equipment selection and a pre-feasibility level economic analysis. The exploration drilling program is continuing to deliver excellent results. With an expanded budget the program is expected to test for the limits of the Gora vein system along strike and at depth and include sufficient close spaced drilling to understand the short range variability of the gold grades within the deposit. Program completion is scheduled for late summer 2011.Drilling on the Gora deposit, where the Company had already identified an inferred resource of 100,000+ ounces of gold at 6 grams per tonne ("gpt"), continues to return very high grades, selected latest results include:5m @ 33.7 gpt from 111m (Vein 1) from SKRCDD0031 2m @ 61.3 gpt from 126m (Vein 1) from SKRCDD00273m @ 26.7 gpt from 154m (Vein 1) from SKRCDD0023 and 3m @ 47.7 gpt from 164 m (Vein 5) in the same hole1m @ 33.0 gpt from 156m (Vein 4) from SKRCDD00324m @ 10.7 gpt from 145m (Vein 2) from SKRCDD00191m @ 51.8 gpt from 112m (Vein 2) from SKRCDD00449m @ 3.2 gpt from 87m (Vein 1) from SKRCDD0038 Drilling of the Gora Project began in early February with the following amounts of drilling completed this year:In total 94 reverse circulation ("RC") and diamond drill ("DD") holes for a total of 14,500 metres. Assays are pending for 20 holes. Based on the positive drill results, the drill program has been expanded by an additional 4,500 metres. As a result, 6,000 metres of RC and 4,000 metres of DD remain to be drilled to complete the current phase of this program. The current drill program is designed to evaluate the size of the deposit to a vertical depth of 120 to 130 metres and along strike, where it is currently open in all directions. Step out exploration drilling, beyond the program described above, to test key structural intersections, down dip where the structures are expected to intersect a major intrusive body, has commenced with a minimum 2,400 metre DD drill program. This step out drilling will be carried out by a fourth diamond drill rig that was recently mobilized to Gora.Fire assay drill results from the recent drilling are contained in Table 1. Due to the large volume of drilling underway on both the Mine License and on the Regional Land Package the Company is continuing to encounter a back log of assays from its on-site laboratory, as well as, fire assay results from a third party laboratory. A large number of samples are currently at the laboratories awaiting assay.Significant quantities of visible gold have now been observed at Gora in four holes (SKRCDD0035, 0031, 0046, 0047) three of which are from adjacent sections in the northern portion of the deposit, indicating the presence of a high-grade shoot. Screen fire assay results from hole SKRCDD0035 returned 2m @ 89.5 gpt gold compared to 3m @ 10.5 gpt gold for the fire assay data set. This is indicative of the coarse nugget nature of the gold in this part of the deposit.A 60-line km induced polarization ("IP") survey has commenced over the Gora deposit. The survey will cover approximately 4,000 x 6,000 metres with the deposit located in the centre. This will ensure significant coverage along the projected strike extent of the structure to the north and south and also allow searching for parallel structures to the east and west of the deposit.Toumboumba (located 10 km northwest of Sabodala Mill)Toumboumba is the newest target drilled and is producing promising results from the early stage program. The target, located on the Sabodala South West permit, is largely covered by a laterite plateau with little to no outcrop. Historic data indicated scattered gold anomalism from surface sampling over a 2,000 x 600 metre area. Mineralization is related to a structure with quartz veining and silica-hematite-carbonate alteration hosted mostly in granite. During April and May a total of 574 rotary air blast ("RAB") holes for 26,000 metres were completed on a 100 x 50 metre grid. Significant widths of ore grade mineralization were encountered in an area on the western portion of the anomaly. RAB holes grading >0.5 gpt are contained in Table 2. The drilling to date has identified a zone of oxide mineralization of up to 50 metres in depth. If this material is heap leachable it could be fast tracked into production without displacing any material from the Sabodala mill. Early RC drilling following up on the promising RAB drill results began in May with eight holes drilled for a total of 1,100 metres. Aqua Regia gold results have been received for four holes listed in Table 3. "If the promising drilling continues at Toumboumba, at a minimum we may have a heap leach operation that could further augment our existing production at Sabodala," added Mr. Hill.Tourokhoto (located 33 km northwest of Sabodala Mill) RAB drilling on the Tourokhoto target has been completed with a total of 998 holes for 23,000 metres. This includes additional drilling not previously planned over a subtle termite mound gold anomaly coincident over a magnetic lineament located to the east of the main structure. Approximately 75% of the assays have been received. To date, a total of 30 holes returned intersections at greater than 0.5 gpt gold, see Table 4. A further 239 holes returned anomalous intervals in the 0.1 to 0.5 gpt gold range. The results from the RAB drilling will allow the geologists to identify the most promising structures buried beneath soil, laterite and colluvium for deeper and more detailed RC and DD drill testing. An IP survey is planned to be completed over parts of this prospect. The results of this will help to understand the geometry of the sub-surface geology and further assist in planning of follow-up RC and DD drilling. "Tourokhoto is a large gold anomaly at 5 km and these results are encouraging as the exploration team seeks to identify the source of the gold mineralization and a potential large deposit," added Mr. Hill. Diegoun ("the Donut")50 RC holes have been completed for 8,800 metres on the Jam and Honey portions of the Diegoun auriferous complex. At Jam, a wide gold-bearing zone with extensive carbonate-silica-pyrite-hematite alteration in granodiorite has been identified along a major north east trending structure. Aqua Regia gold results have been received for 80% of the 50 holes contained in Table 5. The results to date indicate wide-spread gold mineralization along a north east trending structure cutting through the granodiorite intrusions at Jam with intersections of up to 2m @ 18.9 gpt gold. The structure continues for a further 3km to the north where it runs through the eastern portion of the Cinnamon anomalies. The planned 19,000 metre RAB program at Cinnamon has been completed with just under 700 holes totalling about 11,000 metres. The lower amount of metres drilled is due to the average depth to fresh bedrock being less than expected. Samples have been shipped to an independent laboratory for fire assay. All assays are pending. The remaining meterage maybe utilised to extend the RAB coverage along the structural corridor linking the Jam and Cinnamon zones. This is a significant gold bearing trend which will require further evaluation and drill testing. An IP survey totalling 35-line km is planned on the Jam portion of this trend. This will help to map the sub-surface geometry and extents of the gold-bearing alteration system so that it can be further drill tested in a more systematic follow up program. "This is a massively large geochemical anomaly of 7 km by 4 km. The first pass drilling is very encouraging, bearing in mind that the anomaly has been drilled on very wide spacing of 400 metre lines," added Mr. Hill.To view Table 1 please visit the following link: view Table 2 please visit the following link: view Table 3 please visit the following link: view Table 4 please visit the following link: view Table 5 please visit the following link: TERANGATeranga Gold Corporation is a Canadian-based gold company listed on the Toronto Stock Exchange (TSX:TGZ) and Australian Securities Exchange (ASX:TGZ). Teranga is principally engaged in the production and sale of gold, as well as related activities such as exploration and mine development. Teranga was created to acquire the Sabodala gold mine and a large regional exploration land package, located in Senegal, West Africa, from Mineral Deposits Limited. Management believes the mine operation, together with the Company's prospective 1,488 km2 land package, provides the basis for growth in reserves, production, earnings and cash flow as new discoveries are made and processed through the Company's existing mill. The Sabodala Gold Operation, which came into operation in 2009, is located 650 kilometres east of the capital Dakar within the West African Birimian geological belt in Senegal, and about 90 kilometres from major gold mines and discoveries in Mali. The Company's mission is to create value for all of its stakeholders through responsible mining. Its vision is to explore, discover and develop gold mines in West Africa, in accordance with the highest international standards, and to be a catalyst for sustainable economic, environmental and community development. All of its actions from exploration, through development, operations and closure will be based on the best available techniques.Forward Looking StatementsCertain information contained in this report, including any information on Teranga's plans or anticipated future results, future financial or operating performance and other statements that express management's expectations or estimates of future performance constitute forward-looking statements. Such statements are based on a number of estimates and assumptions that, while considered reasonable by management at the time, are subject to significant business, economic and competitive uncertainties. Teranga cautions that such statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Teranga to be materially different from the company's estimated future results, performance or achievements expressed or implied by those forward-looking statements. These factors include the inherent risks involved in exploration, development and operations of mineral properties, changes in economic conditions, changes in the worldwide price of gold, silver fuel, electricity and other key inputs, changes in mine plans and other factors, such as project execution delays, many of which are beyond the control of Teranga.Nothing in this report should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities.Competent Persons StatementThe scientific and technical information contained in this release relating to the regional exploration is based on information compiled by Mr. Martin Pawlitschek, who is qualified as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and a Qualified Person as defined in NI43-101. Mr. Pawlitschek has consented to the inclusion of this information in the form and context in which it appears in this release. Mr. Pawlitschek is a full-time employee of Teranga and not independent of Teranga within the meaning of NI 43-101.Mr. Pawlitschek has reviewed and verified the data contained in this press release, including sampling, analytical and test data underlying the estimates provided. Verification of the data included numerous site visits, database validation of historical drill results and review of sampling and assaying protocols. Mr. Pawlitschek confirms that the tables include all of the results received up to the date of this release.FOR FURTHER INFORMATION PLEASE CONTACT: Kathy SiposTeranga Gold CorporationVice-President, Investor Relations+1