Teranga Gold Corporation has announced the results of its PFS for the Sabodala-Massawa Gold Complex located in Senegal, West Africa.
Earlier this year, Teranga completed the acquisition of the Massawa gold project, one of Africa’s highest grade undeveloped open-pit gold projects, from Barrick Gold Corporation.
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.
The PFS demonstrates that Sabodala-Massawa is a top-tier mine with a large proven and probable reserve base of 4.8 Moz (75.79 Mt at 1.98 g/t Au at $1,250 gold), with low AISC 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.
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In addition, the PFS outlines the strong potential for growth through further exploration and discovery.
“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,” states Richard Young, President and CEO.
“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 over the first five years and deliver a net present value of $1.6 billion compared to less than a billion dollars for the two assets on a standalone basis.”
“Bringing the Massawa and Sabodala projects together builds on and amplifies the strengths of the two assets – infrastructure is largely in place, labour and contractors are trained and available, and exploration and mine investments can be better leveraged over a longer period of time,” states Paul Chawrun, COO.
“Building a separate processing stream for the refractory ores will add higher than anticipated capital costs but offers many advantages throughout the life of mine. Early processing of highgrade refractory ore enhances project economics, increases production, reduces processing risks and improves operating flexibility.
“Furthermore, we believe in the great potential of this project and are conducting an aggressive drilling campaign for both refractory and free-milling ore, with a goal to sustain Sabodala-Massawa’s production between 350,000-400,000 ounces per year beyond 2026.”
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