AMN - BURKINA FASO: Extensive drilling for Golden Hill

Teranga Gold Corporation will carry out an extensive drilling and exploration program during the second half of 2019 at the Golden Hill Gold Project in Burkina Faso. The program of around 27,000 metres will be funded from the company's exploration budget of at least $5 million for the half.

Golden Hill is an advanced-stage exploration project that has delivered multiple near-surface and high-grade gold discoveries over the last two years.

The 27,000-metre program is designed as a combined reverse circulation and diamond core drilling program. Currently, 11 separate drill targets have been identified for inclusion in this drilling evaluation program, including five that have not been previously drilled.

In addition to the drilling component, about 15,000 metres of auger drilling and 10,000 metres of excavator trenching are also planned for this campaign.

Teranga owns 100% of Golden Hill, which is within the central part of the Hounde Greenstone Belt, a highly mineralised gold zone in southwest Burkina Faso that is home to three operating gold mines.

Golden Hill's budget for drilling and exploration will be financed by the Golden Hill tranche of the Taurus debt facility. This $25-million tranche is intended to advance the project through the feasibility stage of development.

Earlier this year, after only 18 months of drilling, Teranga announced an initial mineral resource estimate for Golden Hill that included indicated mineral resources of 6.4 million tonnes averaging 2.02 g/t for 415,000 ounces and inferred mineral resources of 11.95 million tonnes averaging 1.68 g/t for 644,000 ounces.

Teranga's chief operating officer Paul Chawrun said: “Our initial mineral resource estimate, announced in February 2019, provided a solid base from which to grow Golden Hill and reaffirmed our interpretations that most of the deposits comprising the resource estimation offer upside potential.

"This drill and exploration program, which includes up to three drill rigs and approximately 27,000 metres of drilling, is part of our plan to increase resources as we move the project through a preliminary economic assessment and into the feasibility stage of development.”

The project includes numerous deposits and prospects within a 7.5-kilometre radius. This configuration is conducive to a multi-pit operation feeding into a centralised processing facility, similar to the company’s Sabodala and Wahgnion gold operations.

The company's president and CEO Richard Young said: “Multiple high-grade, near-surface and deeper gold discoveries at Golden Hill indicate district-scale potential, and this announcement marks another key step towards our vision of developing our third gold mine and becoming a mid-tier gold producer in West Africa."

During the first half of 2019, a number of preparatory surveys were completed at Golden Hill to further enhance understanding of potential extensions to the mineralisation defined at the known prospects and deposits. The surveys also helped to identify new targets worthy of drilling evaluation. These activities included extensive soil sampling, excavator trenching and an airborne magnetic/radiometric survey.

Exploration vice president David Mallo said: “Due to the demonstrated importance of structural controls on the gold zones at all Golden Hill deposits, we have focused our ongoing exploration efforts on identifying additional favourable structural trends that could add resources through drilling evaluations.

"A recently completed airborne geophysical survey has been key to identifying favourable structural targets and outlining a number of new priority areas for early-stage evaluations, including Gogoba West, Ma South, Ma Far North and Copper.”

www.terangagold.com