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Posts tagged ‘Teranga Gold Corp (TGZ)’

Teranga VP Kathy Sipos on Senegal gold assays of 3 g/t over 85m

February 29th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningTeranga Gold Corporation TSX:TGZ announced results from the Mine License area of the Sabodala Gold Mine in Senegal, West Africa. Assays include

3 g/t gold over 85 metres (including 6.5 g/t over 19 metres)
2.4 g/t over 10 metres
7.2 g/t over 11 metres
1.8 g/t over 15 metres
1.3 g/t over 99 metres
4.2 g/t over 11 metres
1.4 g/t over 29 metres
14.7 g/t over 6 metres
1.8 g/t over 43 metres (including 5.3 g/t over 6 metres)
2.5 g/t over 19 metres (including 6.1 g/t over 4 metres)

VP Investor Relations Kathy Sipos tells ResourceClips.com, “We have two distinct exploration programs, one being on our Regional Land Package—which is just over 1,500 square kilometres—the other on our Mine License, which is the 33-square-kilometre package around our mill. We’re spending $20 million on each program. All of those are permitted ounces on the Mine License, so it’s obviously advantageous to us when we do have good holes there because it’s all truckable to the mill; there’s no permitting required, etc. We’ve done a lot of drilling to the north of the current Sabodala pit, and we’re getting very good results that make it quite likely that we will be extending the current pit both to the north and to depth. We see adding potentially 250,000 to 500,000 ounces in this area as well as below this area.

We are very much looking forward to a good year ahead with both an increase in production and a significant reduction in our cash cost [per ounce gold] to $600 to $650 this year—Kathy Sipos

“We’re very excited that we’re getting a lot of great results which are outside of the current pit. Really this program is meant to find both new ounces altogether as well as take the ounces we have in the inferred category and get them into the measured and indicated and, ultimately, into the reserve category.”

Regarding the production schedule at Sabodala, Sipos says, “Through the course of last year we’ve worked on doubling our mill capacity from 2 million tonnes per annum to 4 million tonnes per annum. That [expansion] should be completed at the end of this quarter. They’ve just finished doing all the tie-ins—where they have to do the big shutdown in order to get everything hooked up—so everything’s online and on schedule, and the mill should be fully operational by the end of 1Q. That will allow us to have a base going through that mill of 200,000 ounces [gold] per year. We expect to produce between 210,000 and 225,000 ounces this calendar year, which is about a 60% increase from last year.”

Sipos updates the status of the hedge book which it inherited from Mineral Deposits TSX:MDM in 2010: “We had 174,000 ounces at the end of 2011. We have a specific delivery schedule, and we have announced that we will defer 1Q deliveries into the second half of the year, strictly as a cash-management tool. We do plan on delivering all the anticipated ounces that are in the schedule for this year, and I believe that means we’ll have about 66,000 ounces left at the end of 2012. We will have the program completely extinguished by August 2013, unless we speed up deliveries within this calendar year—which we very well could. We are very conscious of getting rid of the book as quickly and prudently as possible.

“We are very much looking forward to a good year ahead with both an increase in production and a significant reduction in our cash cost [per ounce] to $600 to $650 this year,” Sipos concludes. “We will see significant margin expansion this year, with cash costs coming down. When the hedge book has been eliminated next year we could get another doubling of our margins. With good drill results coming through, it’s certainly setting itself up to be a good year for us.”

View Company Profile

Read more about Teranga Gold

Contact:
Kathy Sipos
VP Investor Relations
416.594.0000

by Ted Niles

Teranga reports Senegal Gold Assays up to 3 g/t over 85m

February 28th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningTeranga Gold Corporation TSX:TGZ announced results from the Mine License area of the Sabodala Gold Mine in Senegal, West Africa. Assays include

3 g/t gold over 85 metres (including 6.5 g/t over 19 metres)
2.4 g/t over 10 metres
7.2 g/t over 11 metres
1.8 g/t over 15 metres
1.3 g/t over 99 metres
4.2 g/t over 11 metres
1.4 g/t over 29 metres
14.7 g/t over 6 metres
1.8 g/t over 43 metres (including 5.3 g/t over 6 metres)
2.5 g/t over 19 metres (including 6.1 g/t over 4 metres)

VP Investor Relations Kathy Sipos tells ResourceClips.com, “We have two distinct exploration programs, one being on our Regional Land Package—which is just over 1,500 square kilometres—the other on our Mine License, which is the 33-square-kilometre package around our mill. We’re spending $20 million on each program. All of those are permitted ounces on the Mine License, so it’s obviously advantageous to us when we do have good holes there because it’s all truckable to the mill; there’s no permitting required, etc. We’ve done a lot of drilling to the north of the current Sabodala pit, and we’re getting very good results that make it quite likely that we will be extending the current pit both to the north and to depth. We see adding potentially 250,000 to 500,000 ounces in this area as well as below this area.

We are very much looking forward to a good year ahead with both an increase in production and a significant reduction in our cash cost [per ounce gold] to $600 to $650 this year—Kathy Sipos

“We’re very excited that we’re getting a lot of great results which are outside of the current pit. Really this program is meant to find both new ounces altogether as well as take the ounces we have in the inferred category and get them into the measured and indicated and, ultimately, into the reserve category.”

Regarding the production schedule at Sabodala, Sipos says, “Through the course of last year we’ve worked on doubling our mill capacity from 2 million tonnes per annum to 4 million tonnes per annum. That [expansion] should be completed at the end of this quarter. They’ve just finished doing all the tie-ins—where they have to do the big shutdown in order to get everything hooked up—so everything’s online and on schedule, and the mill should be fully operational by the end of 1Q. That will allow us to have a base going through that mill of 200,000 ounces [gold] per year. We expect to produce between 210,000 and 225,000 ounces this calendar year, which is about a 60% increase from last year.”

Sipos updates the status of the hedge book which it inherited from Mineral Deposits TSX:MDM in 2010: “We had 174,000 ounces at the end of 2011. We have a specific delivery schedule, and we have announced that we will defer 1Q deliveries into the second half of the year, strictly as a cash-management tool. We do plan on delivering all the anticipated ounces that are in the schedule for this year, and I believe that means we’ll have about 66,000 ounces left at the end of 2012. We will have the program completely extinguished by August 2013, unless we speed up deliveries within this calendar year—which we very well could. We are very conscious of getting rid of the book as quickly and prudently as possible.

“We are very much looking forward to a good year ahead with both an increase in production and a significant reduction in our cash cost [per ounce] to $600 to $650 this year,” Sipos concludes. “We will see significant margin expansion this year, with cash costs coming down. When the hedge book has been eliminated next year we could get another doubling of our margins. With good drill results coming through, it’s certainly setting itself up to be a good year for us.”

View Company Profile

Read more about Teranga Gold

Contact:
Kathy Sipos
VP Investor Relations
416.594.0000

by Ted Niles

Teranga reports Senegal Gold Assays up to 9.8 g/t over 46m

January 17th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningTeranga Gold Corporation TSX:TGZ announced drill results from the Mine License area of its Sabodala gold mine in Senegal, West Africa. Highlights include

3 g/t gold over 70 metres
4.5 g/t over 53 metres
6.3 g/t over 34 metres
3.6 g/t over 27 metres
9.8 g/t over 46 metres

Chairman/CEO Alan R. Hill commented, “We continue to be encouraged by both the high grades and significant widths of mineralization seen in our recent drill results on the Mine License. These results provide further encouragement that our exploration program may produce promising results in 2012.”

View Company Profile

Read More about Teranga Gold

Contact:
Kathy Sipos
VP Investor Relations
416.594.0000

by Ted Niles

Self-Funding In Senegal

December 12th, 2011

Teranga Seeks 500K Gold Oz Annually

By Ted Niles

It is a testament to the Sabodala Gold Mine that when Mineral Deposits TSX:MDM decided in 2010 to spin off the project into its own company—Teranga Gold Corp TSX:TGZ—it drew the attention of so seasoned a management team. Most notable amongst them is Chairman and CEO Alan Hill, the former Executive VP of Development for Barrick Gold TSX:ABX. From 1983 to 2003, Hill oversaw the evaluation, acquisition and development of many of that company’s mines. “What we initially knew about Sabodala,” says Teranga’s VP of Investor Relations Kathy Sipos—also a Barrick alumnus—”was that it was an operating mine that had a very short reserve life but had a fabulous operation built to a Barrick standard.”

Located on the prolific Birimian Greenstone Belt—well known for its Mali, Ghana and Burkina Faso gold deposits—Sabodala is Senegal’s first large-scale gold mine. Sipos explains that Senegal is virgin territory. “The mining code came in 2003, and it’s only been since 2005 that people have been going in and exploring. They’ve already found 10 million ounces of gold on the Senegal side. Across the border, Mali has been open for mining for closer to 20 years and has found 40 million ounces. So it’s a very prolific new area. And the President and the CEO say that Senegal has one of the best mining codes they’ve ever seen.”

Teranga Seeks 500K Gold Oz Annually

Sabodala consists of 1,488 square kilometres in two parts: the Mine License and the Regional Land Package. The project has NI 43-101 proven and probable reserves of 1.51 million ounces gold and resources of 2.25 million ounces in the measured and indicated categories, all in the Mine License area, which makes up only 33 square kilometres of the project. While Sipos admits that it is the 1,455 square kilometres of the Regional Land Package that most interests the company, exploration drilling at the smaller part is yielding promising results. She says, “Generally the excitement we’re seeing right now is on the Mine License. Which is fantastic because these ounces are already permitted; they’re around the mill and therefore can go straight into the mill.”

November 23 Mine License assays included

  • 1.2 grams per tonne gold over 130 metres
  • 1.6 g/t over 45 metres
  • 1.1 g/t over 160 metres
  • 1.2 g/t over 67 metres
  • 1.3 g/t over 80 metres
  • 1.6 g/t over 36 metres

November 2 results included

  • 7.28 g/t over 21 metres
  • 3.69 g/t over 34 metres
  • 2.03 g/t over 53 metres
  • 3.32 g/t over 27 metres
  • 5.63 g/t over 15 metres
  • 3.48 g/t over 24 metres

Sipos comments, “What the drilling is showing is that the pit we have is going to get much bigger. We’re seeing similar grades to our reserve grade, and the pit looks like it’s going to pull 50 to 100 metres below where we originally thought. It’s also going to pull to the north. We are now very confident that we can double our reserves on the Mine License alone from the current 1.5 million ounces to 3 million ounces over the next 12 to 18 months.”

Teranga is targeting about 60,000 metres of drilling on the Mine License this year with seven rigs and another 90,000 metres on the Regional Land Package with 11 rigs. Due to a backlog of assays, results from the latter still haven’t been released. “Mineral Deposits Ltd did virtually no exploration, so we have a lot of opportunity,” Sipos reports. “We’ve got about 28 targets on the regional program of which we’ve drilled nine. We thought we’d get through all 28 this year, and I guess the good news is we haven’t thrown any of them out. Instead of dropping targets, we’ve added targets.”

As for mining operations, the Sabodala mill has a maximum capacity of two million tonnes of ore per year and is being expanded to accommodate a maximum of four million tonnes. The expansion is expected to be complete by 1Q 2012. Teranga anticipates that production will increase next year from its 2011 target of 140,000 ounces gold to 220,000 ounces at a cash cost of between $625 to $675 per ounce. However, due to “delayed access to high-grade zones,” Teranga announced December 7 that it would fall short of its 2011 target of 140,000 ounces by 5,000 to 10,000 ounces—and that its costs per ounce will increase from between $850 and $875 to between $875 and $925. The company expects to gain access to the zones later this month and has ordered three new rigs.

We are now very confident that we can double our reserves on the Mine License alone from the current 1.5 million ounces to 3 million ounces over the next 12 to 18 months —Kathy Sipos

As a producer, Teranga is in the enviable position of being able to fund its own exploration—this year estimated at approximately $35 million and expected to be in the same range next year. Its stock, however, remains depressed. Sipos attributes this in part to the backlog of assays that resulted in delayed news flow, but also to the hedge book the company inherited from Mineral Deposits. This hedge entails the delivery of a total of 399,000 ounces gold at quarterly intervals at a flat forward price of $846 per ounce. Because of this, Sipos says, “If you are a short-sighted investor and more skittish, as I think is quite prevalent right now, you are not going to be able to see the value that we see in the company.” Teranga continues to deliver into the hedge book at the scheduled rate and expects its hedge position to be at 174,500 ounces by yearend.

Sipos concludes, “We have a tremendous asset, and we’re fortunate to be in a country that is a welcoming host to mining. We have a tremendous amount of upside and, fortunately, the financial capability to be able to realize that value. We see ourselves being able to double our reserve, at a minimum, over the next 12 to 18 months. Hopefully, over the next several years we’ll get up to a 350,000-ounce producer. At which point, if we find more reserves, we’ll contemplate an expansion and go to the 500,000 level. But our first order of business is to find those reserves, increase our mine life to at least 10 million ounces, and go from there.”

At press time, Teranga Gold had 245.6 million shares trading at $2.26 for a market cap of $555.1 million.

Teranga VP Kathy Sipos on Senegal gold assays of 1.2 g/t over 130m

November 28th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningTeranga Gold Corporation TSX:TGZ announced assays from its Sabodala gold mine in Senegal, West Africa. Results include

1.2 g/t gold over 130 metres (including 7.2 g/t over 4 metres)
5.7 g/t over 3 metres
8.4 g/t over 2 metres
1.6 g/t over 45 metres (including 6.8 g/t over 3 metres)
3.1 g/t over 9 metres
1.1 g/t over 160 metres
1.2 g/t over 67 metres
1.3 g/t over 80 metres
1.6 g/t over 36 metres

VP Investor Relations Kathy Sipos tells ResourceClips.com, “In December 2010 we did an IPO and got listed on the TSX. We’re a spin out from Mineral Deposits Ltd TSX:MDM, which is an Australian company that had two significant assets, one being minerals sands and the other being a gold asset. They were more focused on the mineral sands, so they spun the gold asset out and brought in a new management team and formed a new company, Teranga. Our management team has worked together for a long time, some of us close to 20 years. Alan Hill, our Chairman and CEO, Richard Young, our President and CFO, myself and Yani Roditis, our VP Operations—we all worked at Barrick Gold Corporation TSX:ABX together. Alan was responsible for all the acquisitions that Barrick did, as well as the reserves and development of virtually all their projects from 1983 through to 2003. He more or less built seven mines on four continents. Together, we went to another company called Gabriel Resources Ltd TSX:GBU and were there for several years together and then were presented with this opportunity at Sabodala.

There are certainly some advantages to being the first company in a prolific area like this with a government that wants you to find more—Kathy Sipos

“What we initially knew about Sabodala was that it was an operating mine that had a very short reserve life, but had a fabulous operation built to a Barrick standard. When we really looked into it before we joined the company, it wasn’t the 33 square kilometres of the Mine License, but the 1,488-square-kilometre land package surrounding the mine that was of significant interest to us.

“Mineral Deposits Ltd built a $330-million plant on the property, and it’s the only mill in Senegal,” Sipos continues. “Senegal’s really only been open for mining for the last few years. The mining code came in 2003, and it’s only been since 2005 that people have been going in and exploring. And they’ve already found 10 million ounces of gold on the Senegal side. Across the border, Mali has been open for mining for closer to 20 years and has found 40 million ounces. So it’s a very prolific new area. The President and the CEO say that Senegal has one of the best mining codes they’ve ever seen. Very mining friendly, and it’s a great host country. There are certainly some advantages to being the first company in a prolific area like this with a government that wants you to find more.

“We have a large exploration program going on this year, about $35 million. As we’ve had success, we’ve put more money into it. We have two distinct exploration programs. One is on the Mine License, which we’re spending $10 million on—which is the 33 square kilometres around the mill. Then we have another program, which is the regional exploration program, where we’re spending $25 million on the land package around the mill.

“Mineral Deposits Ltd did virtually no exploration, so we have a lot of opportunity. On the Mine License alone—where we plan to drill about 60,000 metres this year—we have seven drill rigs. We plan to drill about 90,000 metres on the regional exploration package, and we have 11 drill rigs there. Throughout the year, we’ve had a tremendous amount of drilling going on—and unfortunately a tremendous backlog of assays. So we haven’t been able to have the news flow that we expected. November 2 was the first significant update, then we put one out November 23.

“Generally the excitement we’re seeing right now is on the Mine License. Which is fantastic because these ounces are already permitted; they’re around the mill and therefore can go straight into the mill. We are focused on a couple of areas specifically. One of them is just north of the pit—it’s called the Main Flat extension—and the last two press releases were primarily an update of that area. What the drilling is showing is that the pit we have is going to get much bigger. We’re seeing similar grades to our reserve grade, and the pit looks like it’s going to pull 50 to 100 metres below where we originally thought. It’s also going to pull to the north.

“We’re also having very good results on something called Ayoub’s Thrust, which goes up on a northerly trend from the pit. Ayoub’s is the westerly structure of the actual pit we have now, and that structure continues. As you go deeper in the pit, you need to lie back further out, and because that area is mineralized as well, we’ll be able to lower the cost of deepening the pit, and obviously it becomes far more economical. We are now very confident that we can double our reserves on the Mine License alone from the current 1.5 million ounces to 3 million ounces over the next 12 to 18 months.”

Sipos concludes, “We have a tremendous asset, and we’re fortunate to be in a country that is a welcoming host to mining. I think we have a tremendous amount of upside and, fortunately, the financial capability to be able to realize that value.”

View Company Profile

Contact:
Kathy Sipos
VP Investor Relations
416.594.0000

by Ted Niles

Teranga reports Senegal Gold Assays including 1.1 g/t over 160m

November 24th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningTeranga Gold Corporation TSX:TGZ announced assays from its Sabodala gold mine in Senegal, West Africa. Results include

1.2 g/t gold over 130 metres (including 7.2 g/t over 4 metres)
5.7 g/t over 3 metres
8.4 g/t over 2 metres
1.6 g/t over 45 metres (including 6.8 g/t over 3 metres)
3.1 g/t over 9 metres
1.1 g/t over 160 metres
1.2 g/t over 67 metres
1.3 g/t over 80 metres
1.6 g/t over 36 metres

VP Investor Relations Kathy Sipos tells ResourceClips.com, “In December 2010 we did an IPO and got listed on the TSX. We’re a spin out from Mineral Deposits Ltd TSX:MDM, which is an Australian company that had two significant assets, one being minerals sands and the other being a gold asset. They were more focused on the mineral sands, so they spun the gold asset out and brought in a new management team and formed a new company, Teranga. Our management team has worked together for a long time, some of us close to 20 years. Alan Hill, our Chairman and CEO, Richard Young, our President and CFO, myself and Yani Roditis, our VP Operations—we all worked at Barrick Gold Corporation TSX:ABX together. Alan was responsible for all the acquisitions that Barrick did, as well as the reserves and development of virtually all their projects from 1983 through to 2003. He more or less built seven mines on four continents. Together, we went to another company called Gabriel Resources Ltd TSX:GBU and were there for several years together and then were presented with this opportunity at Sabodala.

There are certainly some advantages to being the first company in a prolific area like this with a government that wants you to find more—Kathy Sipos

“What we initially knew about Sabodala was that it was an operating mine that had a very short reserve life, but had a fabulous operation built to a Barrick standard. When we really looked into it before we joined the company, it wasn’t the 33 square kilometres of the Mine License, but the 1,488-square-kilometre land package surrounding the mine that was of significant interest to us.

“Mineral Deposits Ltd built a $330-million plant on the property, and it’s the only mill in Senegal,” Sipos continues. “Senegal’s really only been open for mining for the last few years. The mining code came in 2003, and it’s only been since 2005 that people have been going in and exploring. And they’ve already found 10 million ounces of gold on the Senegal side. Across the border, Mali has been open for mining for closer to 20 years and has found 40 million ounces. So it’s a very prolific new area. The President and the CEO say that Senegal has one of the best mining codes they’ve ever seen. Very mining friendly, and it’s a great host country. There are certainly some advantages to being the first company in a prolific area like this with a government that wants you to find more.

“We have a large exploration program going on this year, about $35 million. As we’ve had success, we’ve put more money into it. We have two distinct exploration programs. One is on the Mine License, which we’re spending $10 million on—which is the 33 square kilometres around the mill. Then we have another program, which is the regional exploration program, where we’re spending $25 million on the land package around the mill.

“Mineral Deposits Ltd did virtually no exploration, so we have a lot of opportunity. On the Mine License alone—where we plan to drill about 60,000 metres this year—we have seven drill rigs. We plan to drill about 90,000 metres on the regional exploration package, and we have 11 drill rigs there. Throughout the year, we’ve had a tremendous amount of drilling going on—and unfortunately a tremendous backlog of assays. So we haven’t been able to have the news flow that we expected. November 2 was the first significant update, then we put one out November 23.

“Generally the excitement we’re seeing right now is on the Mine License. Which is fantastic because these ounces are already permitted; they’re around the mill and therefore can go straight into the mill. We are focused on a couple of areas specifically. One of them is just north of the pit—it’s called the Main Flat extension—and the last two press releases were primarily an update of that area. What the drilling is showing is that the pit we have is going to get much bigger. We’re seeing similar grades to our reserve grade, and the pit looks like it’s going to pull 50 to 100 metres below where we originally thought. It’s also going to pull to the north.

“We’re also having very good results on something called Ayoub’s Thrust, which goes up on a northerly trend from the pit. Ayoub’s is the westerly structure of the actual pit we have now, and that structure continues. As you go deeper in the pit, you need to lie back further out, and because that area is mineralized as well, we’ll be able to lower the cost of deepening the pit, and obviously it becomes far more economical. We are now very confident that we can double our reserves on the Mine License alone from the current 1.5 million ounces to 3 million ounces over the next 12 to 18 months.”

Sipos concludes, “We have a tremendous asset, and we’re fortunate to be in a country that is a welcoming host to mining. I think we have a tremendous amount of upside and, fortunately, the financial capability to be able to realize that value.”

View Company Profile

Contact:
Kathy Sipos
VP Investor Relations
416.594.0000

by Ted Niles

Teranga reports Senegal Gold Assays including 7.28 g/t over 21m

November 2nd, 2011

Resource Clips - essential news on junior gold mining and junior silver miningTeranga Gold Corp TSX:TGZ announced results from the Main Flat Extension of its Sabodala Mining Licence in Senegal. Assays include

7.28 g/t gold over 21 metres
3.69 g/t over 34 metres
2.03 g/t over 53 metres
3.32 g/t over 27 metres
5.63 g/t over 15 metres
3.48 g/t over 24 metres
4.63 g/t over 13 metres
1.86 g/t over 25 metres

Chairman/CEO Alan Hill stated, “We are very encouraged by both the high grades and significant widths of mineralization seen in our recent drill results on the Mine Licence. These results make us very confident that we will be able to double our reserves on the Mine Licence in 2012. Our regional exploration program is also returning very encouraging results, which we hope will set us up for a discovery over the next 12 months.”

View Company Profile

Contact:
Kathy Sipos
VP of Investor Relations
416.594.0000

by Greg Klein