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Posts tagged ‘True Gold Mining Inc (TGM)’

Gwen Preston looks back on PDAC and an exciting week

March 15th, 2016

by Gwen Preston | | March 15, 2016

What a week it was! Another PDAC is in the books. And a good one. It was undoubtedly small—fewer booths, attendance of just 22,000 compared to an average of 29,000 over the last five years—but the buzz was inarguably better than last year.

Gwen Preston looks back on PDAC and an exciting week

Mining deals flowed with PDAC buzzing in the background.

I comment on my PDAC impressions after going through the mining news events of the week. As usual, news flow ramped up during the world’s biggest mining conference so there was lots to talk about, and all I got to were the four biggest stories.

Others also deserve comment. Canamex Resources (TSXV:CSQ), for example, published a PEA showing how they could turn their Bruner gold project into a 46,500-ounce-per-year producer for a capital cost of just US$33.4 million. If built, the mine should be able to generate a 39% after-tax internal rate of return and operate for six years. It would be a simple oxide heap leach operating on patented land, which eases permitting considerably.

Those are pretty good numbers. The asset and company are small for my tastes but Canamex deserves credit: it not only survived the bear market but advanced its asset to the point where it supports an economic PEA. If the team can now establish a path to production, starting with accessing the cash needed to take the next step, its share price may well respond. This is, after all, a simple gold project in Nevada, one of the most desirable mining jurisdictions in the world.

That’s one example of interesting news. There was no shortage: companies arrived at PDAC armed with new drill results, property deals, exploration plans, financings and resource estimates.

Deal flow was the most exciting part. I go through three new deals below (Silver Standard buying Claude, Endeavour buying True Gold and Lundin moving on Timok), but financings were also hot. Pretium raised US$130 million, Franco pulled in an oversubscribed US$920 million and Kinross raised US$250 million. I like to see money moving. This sector seizes up otherwise.

No wonder PDAC-ers were pumped. Or cautiously optimistic, in the very least…. Continue reading this article on

Sub-Saharan substance

March 6th, 2013

True Gold and Roxgold go for gold in Burkina Faso

by Greg Klein

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Formerly trading as Riverstone Resources TSXV:RVS, True Gold Mining TSXV:TGM continues to push its Karma project in Burkina Faso towards a scheduled year-end feasibility. On March 6 the company released yet another set of assays, this time from large-diameter metallurgical core.

True intercept widths on two deposits were estimated between 50% and 90%. Highlights for the Goulagou I deposit include:

True Gold and Roxgold go for gold in Burkina Faso

Extensive drilling continues to probe Burkina’s promising geology.

  • 2.22 grams per tonne gold over 22 metres
  • 0.99 g/t over 24 metres
  • 1.18 g/t over 16 metres
  • 1.49 g/t over 12 metres
  • 0.89 g/t over 14 metres
  • 1.06 g/t over 10 metres.

The top-most interval began at a down-hole depth of 16 metres while the deepest stopped at 110 metres.

Highlights for the Goulagou II deposit include:

  • 3.75 g/t over 56 metres
  • 4.43 g/t over 24 metres
  • 2.53 g/t over 22 metres
  • 2.65 g/t over 14 metres
  • 1.99 g/t over 14 metres
  • 0.96 g/t over 28 metres
  • 1.61 g/t over 16 metres.

The top-most intercept started at 28 metres, with the deepest stopping at 132 metres down hole.

Apart from the assays, the 16-hole, 1,370-metre program will provide metallurgical samples to support Karma’s feasibility study. In an August preliminary economic assessment, True Gold considered the prospects for an open pit operation with heap leach processing. Using a 5% discount rate, the study projected a pre-tax net present value of $271 million and a 47% internal rate of return. After taxes, the NPV came to $192 million with a 37% IRR. Initial capital costs were estimated at $125 million with payback in two years, but contract mining might shrink the capex to $96 million. Production was forecast at 70,000 to 90,000 gold ounces a year over a 10-year lifespan.

A resource update followed in October. Totals for Karma’s five deposits showed:

  • an indicated category of 68.75 million tonnes averaging 1.02 g/t gold for 2.25 million gold ounces
  • an inferred category of 40.4 million tonnes averaging 0.86 g/t for 1.11 million ounces.

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B.C. to Burkina & beyond

October 1st, 2012

Bralorne, Avala, Riverstone and Oromin go for gold

by Greg Klein

Among the gold exploration news reported October 1, we look at a small producer in British Columbia, a 250-square-kilometre project in Serbia, an expanding Burkina Faso deposit and a Senegal resource update.

Bralorne Gold Mines TSXV:BPM reported short intervals but high grades from its project near Gold Bridge, B.C., 240 kilometres north of Vancouver. The 2,490-hectare Bralorne property of today includes the historic King, Bralorne and Pioneer mines, which produced 4.1 million gold ounces up to 1972. Current production began in April 2011, reaching about 7,642 ounces so far.

The October 1 assays come from the BK gap area between the former Bralorne and King mines. Some highlights include

  • 385.57 grams per tonne gold over 1.2 metres
  • 114 g/t over 0.3 metres
  • 63.6 g/t over 0.2 metres
  • 4.1 g/t over 1.3 metres
  • 6.88 g/t over 1 metre
  • 12.6 g/t over 0.4 metres

Intercepts are true widths. No topcut was applied to grades. The underground drilling reached depths extending to 166 metres.

Bralorne, Avala, Riverstone and Oromin go for gold

Oromin Explorations drills its joint venture gold project in eastern Senegal.

The first result given above comes from a quartz vein just west of underground development underway on the project’s BK-3 Zone. Last June the company reported 67 sample traverses over 160 metres taken from a drift at the zone’s 1,159-metre elevation. The assays showed an average grade of 68.7 g/t gold (uncut) over 0.8 metres (true thickness). With a topcut applied, the average grade came to 27.1 g/t over 0.8 metres.

The company’s share price opened September 28 at $0.70 before climbing to $0.79. On October 1 it closed a penny lower, at $0.78. Bralorne’s 52-week high and low were $1.19 and $0.68.

Bralorne IR Manager Johnathon Smith tells ResourceClips, “We have a new preliminary economic assessment coming out in about a week or a week and a half. Right now we’re producing about 100 tonnes a day and this new economic study is going to look at upgrading the operations to 250 tonnes per day. Being a micro-producer, we have quite a bit of blue sky ahead of us.”

From eastern Serbia, Avala Resources TSXV:AVZ announced drill results for the Kraku Pester area, part of the company’s Timok Gold Project. Assays include

  • 3.07 grams per tonne gold over 76 metres
  • 1.63 g/t over 137 metres
  • 1.8 g/t over 93 metres
  • 1.16 g/t over 128 metres
  • 1.41 g/t over 104 metres
  • 1.35 g/t over 105 metres
  • 1.46 g/t over 81 metres

Depths extend to 178 metres. True widths were not provided.

Along with the Kraku Pester target, the 250-square-kilometre Timok Project comprises the Bigar Hill and Korkan areas. Bigar Hill has a July 2012 inferred resource estimate of 38 million tonnes grading 1.3 g/t gold for 1.5 million ounces, using a 0.4 g/t cutoff. Resource drilling for Korkan and Kraku Pester has been completed and their initial resource calculations are underway.

Last February Avala President/CEO Jim Crombie told ResourceClips, “The infrastructure is terrific. We’re 25 kilometres outside of Bor, which is a major copper mining and smelting town. Power lines run adjacent to all of these properties, and there’s a road that runs alongside them. This is as good as it gets.”

The company states it has over eight years’ experience working in Serbia.

Avala held steady at $0.55 on September 28, opened October 1 at $0.56, then slipped back to $0.55. The share’s 52-week high and low were $1.25 and $0.52.

Riverstone Resources TSXV:RVS (Update: on February 25, 2013, Riverstone Resources Inc began trading as True Gold Mining Inc TSXV:TGM) announced more news from Burkina Faso on October 1, stating it found a new mineralized zone on the Kao Deposit of its Karma Gold Project. Some highlights from 71 reverse circulation holes include

  • 16 grams per tonne gold over 2 metres
  • 1.2 g/t over 26 metres
  • 0.5 g/t over 34 metres
  • 1.58 g/t over 10 metres
  • 1.15 g/t over 10 metres
  • 2.56 g/t over 4 metres

True widths were estimated between 90% and 100%. Depths extend to 206 metres.

Recent drilling has expanded the Kao Deposit by about 100 metres, the company stated. The deposit now extends over 1,500 metres in a northeast-southwest direction, at least 900 metres down-dip to the east and remains open in all directions.

Right now we’re producing about 100 tonnes a day and this new economic study is going to look at upgrading the operations to 250 tonnes per day. Being a micro-producer, we have quite a bit of blue sky ahead of us.—Johnathon Smith,
Bralorne IR Manager

In a statement issued with the results, Riverstone President/CEO Dwayne L. Melrose said, “There is very good potential to expand the mineralization to the north, as the gold-in-soil anomaly extends four kilometres further to the north. We expect to have these results reflected in the upcoming resource update, slated to be available for release this quarter.”

Riverstone’s share price opened September 28 at $0.64, rising to a $0.70 close that day. It opened and closed October 1 at $0.71. The share’s 52-week high hit $0.77 while the 52-week low fell to $0.30.

Among the resource estimates announced October 1, Oromin Explorations TSX:OLE reported a 49% increase in the indicated category for the Oromin Joint Venture Group Gold Project in eastern Senegal. The indicated total for all deposits comes to 75.21 million tonnes grading 1.56 g/t gold for 3.78 million gold ounces, while the inferred total shows 17.33 million tonnes grading 1.73 g/t for 963,000 ounces.

The company categorizes the deposits in three groups: Golouma, consisting of three large, high-grade deposits; Masato, the largest single deposit; and 10 widely distributed heap leach deposits. The Golouma and Masato deposits will form the basis of a carbon-in-leach feasibility study update while the heap leach deposits will form the basis for a heap leach PEA update. Both reports are scheduled for completion in Q4 2012.

Oromin holds a 43.5% interest in the JV and acts as project operator. Bendon International and Badr Investment and Finance hold 43.5% and 13% respectively. Oromin’s shares began and ended September 28 at $0.70 and $0.69, with an October 1 start and finish at $0.69 and $0.71. The company’s 52-week high and low were $1.20 and $0.435.

Burkina bulletins

September 18th, 2012

A steady stream of gold news flows from west Africa

By Greg Klein

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A poor country rich in gold. That contradiction might someday correct itself if mining can improve life for the people of Burkina Faso. Over the last six years several Canadian companies have explored its potential, among them Riverstone Resources TSXV:RVS. (Update: On February 25, 2013, Riverstone Resources Inc began trading as True Gold Mining Inc TSXV:TGM.) In what’s almost a weekly event, the company announced drill results September 17 from its Karma Gold Project.

Assay highlights from the Kao Deposit include

  • 9.5 grams per tonne gold over 12 metres
  • (including 33.6 g/t over 2 metres)
  • 2.02 g/t over 30 metres
  • (including 2.54 g/t over 18 metres)
  • 2.97 g/t over 14 metres
  • 13.45 g/t over 2 metres
  • 1.73 g/t over 12 metres
  • 3.21 g/t over 6 metres
  • 3.19 g/t over 4 metres
A steady stream of gold news flows from west Africa

Adversity notwithstanding, wide-ranging gold exploration
continues in Burkina Faso.

True widths are estimated between 90% and 100%. Depths extend to 260 metres, but most were less than 54 metres. The company states that its resource update, scheduled for release later this month, is expected to show an increase in more easily recoverable oxide resources.

Karma’s current estimate, issued last January, shows an indicated resource of 54.1 million tonnes grading 1.02 g/t gold for 1.77 million gold ounces and an inferred resource of 37.4 million tonnes grading 0.8 g/t for 959,000 ounces. Over 80% of the resource falls within five Whittle open pit shells. Over 85,000 metres of additional drilling will be incorporated into this month’s update.

On September 17 the company also filed the technical report for Karma’s PEA, which was announced last month. The study projects an initial capex of $125 million, which might be cut to $96 million through contract mining. The study also shows a pre-tax net present value of $271 million and a 47% internal rate of return, or an after-tax NPV of $192 million and a 37% IRR. Payback is estimated at two years.

The study examined three processing options, favouring a heap leach operation that would process three million tonnes of oxide and transition mineralization annually to produce 70,000 to 90,000 gold ounces a year over a 10-year life. Cash costs would come to $525 an ounce. Calculations are based on a gold price of $1,350 an ounce.

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Riverstone reports Burkina Faso Gold Results up to 31.8 g/t over 2m

September 10th, 2012

Resource Clips - essential news on junior gold mining and junior silver mining(Update: On February 25, 2013, Riverstone Resources Inc began trading as True Gold Mining Inc TSXV:TGM.)

Riverstone Resources Inc TSXV:RVS announced drill results from the Kao Deposit of its Karma Gold Project in Burkina Faso. Highlights include

31.8 grams per tonne gold over 2 metres
2.39 g/t over 24 metres
2.22 g/t over 16 metres
(including 3.28 g/t over 8 metres)
0.85 g/t over 42 metres
(including 1.48 g/t over 6 metres)
2.1 g/t over 12 metres
2.02 g/t over 12 metres
1.84 g/t over 14 metres
1.68 g/t over 12 metres
2.42 g/t over 6 metres

Depths extend to 314 metres. True thicknesses are interpreted between 90% and 100%. Mineralization at Kao extends over 1,400 metres in a northeast-southwest direction and at least 900 metres down-dip to the east. The company states that these results confirm the continuation of higher-grade material along strike to the northwest and at depth, with the deposit remaining open to the north, south and down-dip to the east.

President/CEO Dwayne L. Melrose commented, “The extension drilling at Kao continues to return higher grades than the modelled average grade of the deposit. This is expected to have a positive effect on the upcoming resource estimate, which is on track for completion in late September. The updated resource model has the potential to increase the mine life or annual gold production that was identified in the recently released PEA results.”

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Dwayne L. Melrose

or Don Mosher
Corporate Development

or Raju Wani
Investor Relations

or Ron Cooper
Investor Relations

by Greg Klein