-?First 5-year average annual production of 384,000 ounces at all-in sustaining costs of $671/oz(1)(2)
-?First 5-year average net cash flow of $215 million per year at $1,600/oz gold*
-?First 5-year total net cash flow of $1.1 billion at $1,600/oz gold*
-?Proven and probable reserves increase 120% to 4.8 million ounces at $1,250/oz gold
-?Mining activities at Massawa now underway
-?$10-million exploration and drill program is ongoing at Massawa
-?Proven and probable reserves increase by 70% to 6.4 million ounces of gold
Average annual gold production expected to increase by 40% to ~500,000 ounces(3)
(All amounts are in U.S. dollars unless otherwise stated)
Toronto: July 26, 2020 – Teranga Gold Corporation ("Teranga" or the "Company") (TSX: TGZ) (OTCQX: TGCDF) is pleased to announce the results of its preliminary feasibility study (the “PFS”) for the Sabodala-Massawa Gold Complex (“Sabodala-Massawa”), located in Senegal, West Africa.
Earlier this year, Teranga completed the acquisition of the Massawa gold project (the “Massawa Project”), one of Africa’s highest grade undeveloped open-pit gold projects, from Barrick Gold Corporation (“Barrick”). The PFS focuses on an initial concept to mine the Massawa Project’s deposits leveraging the existing plant at Teranga’s flagship Sabodala Gold Operations (“Sabodala”).
The PFS demonstrates that Sabodala-Massawa is a top-tier mine with a large proven and probable reserve (“2P Reserves”) base of 4.8 million ounces (75.79 Mt at 1.98 g/t Au at $1,250 gold), with low all-in-sustaining costs (“AISC”)(1)(2) of $749 per ounce, and net cash flows of over $2.2 billion* at $1,600/oz gold over a 16.5-year mine life. In addition, the PFS outlines the strong potential for growth through further exploration and discovery.
Sabodala-Massawa: Base Case Highlights at $1,600/oz Gold (Includes refractory ore treatment plant in 2023) First 5-years (2021-2025) First 10-years (2021-2030) Life of Mine (2020-2036)
Annual average gold production(4) 384,000 oz 315,000 oz 260,000 oz
Average mill grade 2.71 g/t 2.26 g/t 1.98 g/t
Average AISC per ounce(1)(2) $671 $715 $749
Average annual plant throughput 5.0Mtpa 4.9Mtpa 4.6Mtpa
Average annual net cash flow(2)* $215 million $166 million $134 million Total net cash flow* $1.07 billion $1.66 billion $2.21 billion
*Net cash flow after minority interest
“The PFS announced today confirms that the Massawa acquisition is truly transformational for Teranga and repositions the Company as a leading mid-tier gold producer with one of the lowest all-in sustaining cost profiles in the industry,” stated Richard Young, President and CEO.
Mr. Young continued, “The integration of Sabodala and Massawa is perhaps the best example in mining of the ‘greater than the sum of its parts’ concept. The sum of Massawa, one of the highest grade open-pit deposits in Africa, and our flagship Sabodala mine is more than simply adding one large gold reserve to another. Integrating Sabodala and Massawa yields significant synergies, with the combined entity expected to generate net cash flows of $1.1 billion(2)* over the first five years and deliver a net present value of $1.6 billion(2) compared to less than a billion dollars for the two assets on a standalone basis.”
Project Return Sensitivity Analysis(2)
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