TSX-listed Teranga Gold Corporation has released an increased mineral resource estimate for its Golden Hill gold project in Burkina Faso.
Burkina Faso – Golden Hill is 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.
• Indicated mineral resource of 12.62Mt averaging 1.85 g/t gold for 750 000 oz.
• Inferred mineral resource of 11.48Mt averaging 1.81 g/t gold for 670 000 oz.
• Excellent along trend and to-depth continuity of gold mineralization at all deposits drilled.
Licence application imminent
“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 Teranga president and CEO, Richard Young. “We expect to spend approximately $15 million on our resource expansion programme at Golden Hill through the end of 2021 in order to reach our goal of outlining a resource of between 2 and 3 Moz 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 m that evaluated nine separate targets. The exploration programme is on track to recommence mid-October, as the rainy season ends.
Exploration is advancing rapidly. In just three years, Golden Hill has produced a series of excellent grade, near surface and deeper drill results at a variety of prospects. Based on encouraging drill results to date, confidence continues to increase that Golden Hill could be Teranga’s third gold mine.