Teranga Gold Increases Mineral Resource Estimate for Golden Hill

Figure 1

Golden Hill Property – Prospect Location Plan Map

Mine license application expected to be submitted by year–end; 
$15 million earmarked through 2021 for drilling

(All amounts are in U.S. dollars unless otherwise stated)

TORONTO, Oct. 05, 2020 (GLOBE NEWSWIRE) — Teranga Gold Corporation (“Teranga” or the “Company”) (TSX: TGZ, OTCQX:TGCDF) is pleased to update the mineral resource estimate for Golden Hill, an advanced-stage exploration project located in southwest Burkina Faso within the central part of the Houndé Greenstone Belt, a highly mineralized gold region that hosts three operating gold mines.

Wholly-owned by Teranga, Golden Hill is a key component of the Company’s growth pipeline and has delivered multiple near-surface, high-grade, oxide gold discoveries transitioning into fresh hosted structurally controlled mineralization extending to considerable depths well below the oxide component of these mineralized bodies.

Golden Hill Updated Mineral Resource Highlights

• Indicated mineral resource of 12.62Mt averaging 1.85 g/t gold for 750,000 ounces

• Inferred mineral resource of 11.48Mt averaging 1.81 g/t gold for 670,000 ounces

• Excellent along trend and to-depth continuity of gold mineralization at all deposits drilled

This mineral resource estimate includes the following deposits: Ma, Jackhammer Hill, Peksou/C-Zone, Nahiri and A and B-Zone (Figure 1 in Appendix). All existing mineral resources remain open to further expansion along strike and to depth, particularly at observed structurally-controlled plunging shoots where both grade and widths improve.

Golden Hill Mineral Resource Estimate  

Notes for Mineral Resource Estimate

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1. CIM (2014) definitions were followed for mineral resources.

2. Mineral resources are reported at cut-off grades ranging from 0.49 g/t Au to 0.55 g/t Au.

3. The effective date for all deposits is April 27, 2020.

4. High grade assays were capped at grades ranging from 2 g/t Au to 30 g/t Au.

5. Mineral resources are estimated using a long-term gold price of US$1,800 per ounce.

6. A minimum thickness of two metres was applied.

7. Mineral resources are constrained by preliminary pit shells.

8. Totals may not add due to rounding.

The current Golden Hill mineral resource estimate is based on the results from more than 900 reverse circulation and core drill holes totalling over 100,000 metres at five deposits and a number of prospects.   Based on the most recent 27,000 metre drill program, the Company has increased resources at the Ma Structural Complex (Ma Deposit) to 521,000 ounces classified as Indicated and 410,000 ounces classified as Inferred, and converted resources previously classified as Inferred to the Indicated category at Peksou/C-Zone and at A and B-Zone since Golden Hill’s initial resource estimate was released in 2019.

“Drilling and preliminary engineering work to date confirms the potential for a high-grade open pit gold mine at Golden Hill. As a result, we expect to submit a mine license application in the fourth quarter,” said Richard Young, President and CEO. “We expect to spend approximately $15 million on our resource expansion program at Golden Hill through the end of 2021 in order to reach our goal of outlining a resource of between 2 and 3 million ounces of gold. Despite today’s higher gold prices, our hurdle rate for new projects remains at achieving an internal rate of return of 15% at $1,300 gold, and Golden Hill’s development will be conditional on meeting or exceeding that threshold.”

The most recent drill campaign, started in the second half of 2019, consisted of 27,000 metres that evaluated nine separate targets including four portions of the Ma Structural Complex (Main, North, East and Jonction), C-Zone, A-Zone, Peksou Basin, Copper and Gogoba West (refer to Figure 1 in Appendix). The Company continued to drill until March 2020, when the COVID-19 pandemic and associated travel restrictions required work to pause at the site. The exploration program is on track to recommence mid-October, as the rainy season ends, and is anticipated to target at least five additional zones including Gogoba North, Sebe, Nahiri, Peksou North and…