AMN - BURKINA FASO: Gold production starts at Wahgnion

Teranga Gold Corporation's second mine, Wahgnion Gold Operations in southwest Burkina Faso, began processing ore during August ahead of schedule. Wahgnion is expected to produce 30,000 to 40,000 ounces of gold in 2019.

During the commissioning in August, there were 117,712 tonnes of low-grade ore processed at an average grade of 1.04 g/t of gold and at an average recovery rate of 94.7%.

This resulted in the production of 3,720 ounces with 1,743 ounces poured.

The first gold pour was achieved two months ahead of the original schedule and construction costs are expected to be under budget.

Teranga's chief operating officer Paul Chawrun said, "During August, we successfully commissioned the Wahgnion plant and are pleased to report that all aspects of the plant are now operational. Fine-tuning will continue during September with throughput and grade expected to ramp-up during the fourth quarter, in line with our guidance.

"Typical with commissioning, low-grade ore was used to ensure the extraction process is working well before putting higher grade material into the circuit.

"We were able to start production ahead of schedule due to the dedication of our owner's team led by Metifex, as well as our EPCM partner Lycopodium."

Mr Chawrun added, "With safety front and centre, the commissioning phase was completed without a single lost-time injury, encompassing over 5.3 million hours worked. This accomplishment reflects the hard work and dedication of all of our employees and contractors, and is aligned with our commitment to responsible mining."

Wahgnion has a 13-year mine life with proven and probable mineral reserves of 1.61 million ounces of gold.

For the first five years of operation from 2020-2024 average annual gold production will be 132,000 ounces, the average mill grade will be 1.83 g/t and average all-in sustaining costs are estimated at $761 per ounce.

Consolidated annual gold production is expected to increase by 50% to 300,000-350,000 ounces in 2020.

The company's president and chief executive officer Richard Young said, "We are very excited to report that construction is complete and that we have achieved first gold pour at Wahgnion, two months ahead of schedule.

"This moves us a step closer to reaching our goal of becoming a mid-tier gold producer in West Africa.

"We want to thank the government of Burkina Faso for their support since we purchased Wahgnion in October 2016 and to commend our entire team for taking this project from exploration to production in less than three years, ahead of the original schedule and expected to be under budget."

During construction, Teranga recruited and trained more than 650 skilled workers to work at Wahgnion. Recently, the company transitioned 70 of these employees from construction into operational roles.

In addition to a smooth ramp-up to commercial production, Teranga is focusing on its local social responsibility efforts, such as building new housing and providing livelihood restoration programs to some near-mine communities, including the development of irrigated agriculture, increased crop production, animal husbandry, training and support to launch small businesses, and sustainable income-generating activities for local women.

Commencing in 2020-2021, the company plans to embark on a multi-year exploration and drilling program, which will focus on highly prospective exploration targets within trucking distance of the plant, to further optimise the mine plan and extend Wahgnion's mine life.

www.terangagold.com