Mr. Richard Young reports
TERANGA GOLD PROVIDES FIRST EXPLORATION UPDATE FOR 2015
Teranga Gold Corp. has provided an update on exploration activities conducted in the fourth quarter of 2014.
"We are pleased with the early exploration success we are having on the OJVG property we acquired last year," commented Richard Young, president and chief executive officer of Teranga. "While much work remains to be done, the geology and mineralization at Masato NE, our newest discovery area on the mine licence, is similar to and situated just one kilometre to the northeast of Masato, our largest deposit. We will continue to prudently explore this area, which is located only four kilometres from our mill."
Highlights of fourth-quarter 2014 exploration results
Mine licence:
- During the fourth quarter, Teranga began a multiyear reserve development
and exploration program on the mine licence to convert some of the 5.7
million ounces of measured and indicated resources, inclusive of 2.3
million ounces of proven and probable reserves (excluding Gora reserves of
280,000 ounces), and 2.35 million ounces of inferred resources to
reserves, as well as make new discoveries on the mine licence.
- High-grade mill feed and low-grade heap leach feed are being targeted on
the mine licence, which should allow the company to further increase
production toward its phase 1 organic growth target of 250,000 ounces of annual production to
350,000 ounces of annual production, an increase of about 50 per cent
from current production levels (1).
- Extension of the Masato-style bulk-tonnage gold trend showed potential
to be extended by over two kilometres with the discovery of Masato NE. Both the
Golouma and Kerekounda high-grade deposits were targeted to determine
the potential for conversion of high-grade resources to reserves.
- The Golouma and Masato NE results are very encouraging, and work is
continuing on these two prospective targets on the mine licence.
- While the focus during the fourth quarter of 2014 centred on two high-grade deposits scheduled to come into production over the next few years
and one large exploration target, there exists significant potential
over many prospects in various stages of exploration development.
Regional land package:
- Work continued through the fourth quarter on the regional land package
for high-grade satellite feed for the Sabodala mill and new stand-alone
discoveries as part of the company's phase 2 organic growth target of
400,000 ounces of annual gold production to 500,000 ounces of annual gold production (2).
- The focus today in the current gold price environment is on the mine
licence and the company's phase 1 vision, and, as a result, the company is methodically and
systematically evaluating its regional targets in a measured way to
conserve capital.
- Ultimately, the company believes that a number of discoveries on this emerging
gold belt will be made in the coming years, similar to the eastern
portion of this belt in Mali, where more than 40 million ounces have been
discovered, including several world-class deposits (over five million
ounces).
- Results from the two areas of focus in the fourth quarter continued to
improve the company's knowledge of these large and prospective areas.
New discovery area: Masato NE:
- A surface trenching program completed in the fourth quarter of 2014
revealed a two-kilometre continuous shear zone approximately one kilometre north of the
Masato deposit.
- Significant gold assay results from channel samples in these trenches
were concentrated along an 800-metre trend in the northern section of the
Masato NE shear (see the table).
- A 26-hole diamond drill program began in late December, 2014, to follow up
on the mineralization potential at depth in this area.
- Core assays are pending; however, core logging of these first 10 holes
reveals continuation of the shear zone at depth and in downhole widths
of up to 30 metres.
- The results for Masato NE are encouraging for the following reasons:
- Trenching identified a significant shear system in terms of both
length (two kilometres) and width (up to
60 metres).
- The type of mineralization is similar to Masato, located one kilometre away.
- The shear system identified at surface continues at depth with good
alteration widths of up to
30 metres.
Golouma NW Extension:
- A diamond drilling program began in the fourth quarter of 2014 to
determine the extent of mineralization of previously classified inferred
resources north of the existing pit limits of the high-grade Golouma
reserves.
- Results of the drill program revealed concentrated high-grade intercepts
along several northwest-trending shear zones (see the table).
- Detailed resource modelling and follow-up infill drilling are planned in
this area for 2015 to determine the extent of potential increases to
Golouma reserves.
- Additional drilling is currently continuing to determine the extent of gold
mineralization at the intersection of these northwest-trending shear zones and
a northeast-trending shear zone
as a follow-up to a significant intercept in hole 48 (see the table).
- The high-grade Golouma deposit is scheduled to come into production over
the 2016/2017 period; as a result this deposit, impacts near-term cash
flows, which makes this program a priority.
Kerekounda:
- Since Kerekounda is scheduled for mining in 2016, a small drilling
program to test the potential for mineralization to the south of the
existing reserves pit was conducted in the fourth quarter of 2014.
- Assay results will be interpreted and incorporated into the existing
resource model; however, the company does not expect a material increase in
reserves at this deposit.
MASATO NE TRENCH ASSAY HIGHLIGHTS
(trench intersections greater than 0.2 g/t Au,
with max. two m internal dilution/no external
dilution)
Trench ID Intercept values
SOMTR0019 7 m at 2.01 g/t
including 4 m at 3.19 g/t
SOMTR0026 6 m at 5.60 g/t
including 3 m at 10.71 g/t
3 m at 14.07 g/t
including 1 m at 39.30 g/t
4 m at 23.10 g/t
including 1 m at 91.40 g/t
SOMTR0035 3 m at 2.07 g/t
SOMTR0039 7 m at 3.79 g/t
including 2 m at 10.45 g/t
and including 1 m at 4.22 g/t
SOMTR0040 5 m at 5.22 g/t
including 2 m at 3.80 g/t
and including 1 m at 18.00 g/t
Notes:
Channel samples taken along horizontal
intervals at consistent height above trench
floors. True widths are unknown. Intercept
gold values are composited from one m length
uncapped assays. The table represents
highlights; a data set of full results is
provided on the Teranga Gold website.
Masato NE: interpretation
The Masato NE prospect is situated along a northeast-trending structural splay off the main Masato structural trend, approximately two kilometres at surface and located one kilometre northeast of the Masato deposit. The prospect coincides with soil anomalies along part of its strike length and high-grade samples taken from artisanal workings in the north end. An exploration trenching program commenced at Masato NE during the third quarter of 2014 and was completed in January, 2015.
Twenty-four trenches totalling 4,461 metres were completed across the prospect. Detailed trench mapping and sampling successfully confirmed the interpreted northeast trend and extents of the shear zone. These trenches intersected a 30 m to 60 m wide shear zone variably trending 20 degrees to 60 degrees azimuth across a two-kilometre strike length. The shear zone is composed of weakly to strongly sheared and altered oxidized volcanics, as well as unaltered and altered felsic and mafic intrusives with two-centimetre to 60-centimetre quartz veins. The quartz veins are locally folded and trend approximately parallel to the shear trend, with dip measurements at surface averaging minus-50 degrees to minus-85 degrees to the west-northwest.
Narrow quartz veins from two centimetres to 10 centimetres were intersected outside of the main shear zone in a parallel shear zone to the west. To the east of the main shear zone, six-centimetre to 25-centimetre quartz veins trending north-northeast and dipping minus-55 degrees to minus-70 degrees to the west-northwest were intersected in oxidized fractured volcanics. At the east margin of the shear zone, a 40-centimetre to 50-centimetre quartz vein trending east-west was intersected and coincides with a soil anomaly.
All trench assay results confirm the location and source of the soil anomalies. The anomalous gold grades are associated with quartz veining in strongly sheared and siliceous carbonate-altered volcanics inside the main northeast shear zone and in adjacent parallel shears, as well as in oxidized fractures in unaltered to weakly altered volcanics.
A 26-hole diamond drilling program commenced in December, 2014, and is continuing as of February, 2015. To date, a total of 2,013 m has been drilled in 10 holes to follow up on anomalous trench results intersected in the northern part of the shear zone. Core assay results are pending. However, core logging to date has identified sheared and altered volcanics with quartz-carbonate-tourmaline veins located within 60 m below surface, down dip to the west from oxidized shear zones intersected in surface trenches.
All assay results are expected by the start of the second quarter of 2015 and will be followed by additional work, including data interpretation and modelling to define areas for further trenching and drilling.
GOLOUMA NW DRILLING HIGHLIGHTS
(greater than 0.2 g/t Au,
with max. two m internal dilution/no external dilution)
Hole Downhole depth Intercept values (core Estimated true
ID (m) length at g/t Au) width (m)
SOMDD0026 10.00 12 m at 3.66 g/t 8.0
including 15.00 3 m at 8.44 g/t 2.0
and including 19.00 2 m at 5.49 g/t 1.4
SOMDD0035 106.00 5 m at 2.23 g/t 3.2
115.00 9 m at 1.57 g/t 5.5
including 115.00 1 m at 8.38 g/t 0.7
SOMDD0036 131.00 5 m at 20.81 g/t 3.5
including 131.00 2 m at 33.20 g/t 1.4
141.00 8 m at 7.31 g/t 5.5
including 146.00 3 m at 16.50 g/t 2.0
SOMDD0037 124.00 4 m at 4.15 g/t 2.7
including 125.00 1 m at 14.85 g/t 0.8
SOMDD0039 146.00 3 m at 4.80 g/t 2.3
SOMDD0048 61.00 13 m at 4.61 g/t 10.0
including 62.00 9 m at 6.36 g/t 7.0
Notes:
Reported widths are estimated true widths. Intercept gold values are
composited from one m length uncapped assays. The table represents
highlights; a data set of full results is provided on the Teranga Gold
website.
Golouma NW: interpretation
The Golouma NW zone is located 200 m to 500 m north of, and subparallel to, the Golouma West reserves. The area is dominantly covered by massive and pillowed mafic volcanics intersected by shear zones trending west-northwest and north-northeast.
Northwest-trending mineralized zones were previously delineated with limited drilling down dip and are currently classified as inferred resources. Gold mineralization is associated with two m to 10 m wide shear zones vertically or steeply dipping to the south, extending approximately 350 m along strike and 100 m down dip. Anomalous gold grades are associated with weak to strong shearing, carbonate-sericite-silica alteration and local quartz-carbonate-tourmaline veining with visible gold (see the table for a summary of key assay results).
A 15 m to 45 m wide shear structure trending 250 m north-northeast and dipping west is located to the west, and adjacent to, the northwest-trending mineralized zones. Anomalous gold values were previously intersected in surface trenches and are associated with strongly sheared and altered mafic volcanics with quartz veining.
A 26-hole diamond drilling program was completed in the fourth quarter of 2014. A total of 3,100 m was drilled to infill and confirm continuity of the northwest-trending mineralization, to follow up on north-northeast-trending shear zone mineralization, and to test the north extent of the Golouma West 18900 zone located immediately to the south. This phase of drilling has intersected the shear zone below surface with gold mineralization at the footwall contact. Additional limited surface trenching and drilling intersected a similar shear structure 250 m along strike to the north.
Eighteen of these holes were drilled to infill the northwest-trending zones. Drilling in the east portion successfully intersected the identified shear zones and returned anomalous gold values associated with strong shearing and alteration, quartz-carbonate-tourmaline veins, and visible gold. Holes drilled in the west portion and to the east of these zones intersected weak shearing with either low gold grades or no gold values. Data interpretation and remodelling are continuing to define targets for further infill drilling.
Drill hole 48 targeted the intersection with the north-northeast shear, while drill hole 49 targeted to test mineralization in the wide north-northeast shear. Mineralization was successfully intersected in sheared and altered mafic volcanics with quartz veining at the footwall contact of the shear zone. Data compiled to date indicates potential for extending mineralization, which remains open to the north, south and at depth. A second phase of drilling is currently continuing to further test the potential mineralization associated with this significant structure.
Seven of these holes were drilled to test the north extent of the Golouma West 18900 zone. Drilling intersected a weakly defined shear zone, which appears to be truncated at the north end by a northwest-trending structure identified in surface trenching. No further work is planned in this area.
KEREKOUNDA DRILLING HIGHLIGHTS
(greater than 0.2 g/t Au,
with max. two m internal dilution/no external dilution)
Hole Downhole depth Intercept values (core
ID (m) length at g/t Au)
SOMDD0055 82 3 m at 5.32 g/t
including 82 1 m at 14.55 g/t
SOMDD0056 94 3 m at 2.40 g/t
including 94 2 m at 3.45 g/t
SOMDD0057 119 3 m at 1.74 g/t
including 119 1 m at 2.54 g/t
and including 121 1 m at 2.57 g/t
SOMDD0059 38 3 m at 21.59 g/t
including 39 1 m at 62.20 g/t
Notes:
True widths are unknown at this time. Intercept gold values are
composited from one m length uncapped assays.
The table represents highlights. A data set of full results is
provided on the Teranga Gold website.
Kerekounda: interpretation
The Kerekounda deposit is located approximately 1.5 kilometres to the north of the Golouma South deposit, within the same east-northeast structural trend that hosts Golouma-area mineralization. The deposit is hosted by weakly to moderately deformed mafic volcanics, similar to the host rocks at Golouma.
Kerekounda mineralization is hosted in three shear zones located between two north-northeast-trending regional structures, interpreted as curvilinear splays from the larger Golouma-Kerekounda shear zone to the east. Mineralization zones trend northwest and dip 50 degrees to 70 degrees southwest. Previous drilling has defined mineralization over a 300-metre strike length and 400 metres below surface.
Mineralization is associated with one m to 10 m wide shear zones that include quartz-carbonate veins within carbonate-dominated alteration. The highest gold grades are associated with the larger veins or higher percentage of quartz veins, especially those containing tourmaline, strong shearing and alteration, and the presence of visible gold.
An 11-hole diamond drilling program was completed in the fourth quarter of 2014. A total of 1,200 m was drilled to test the extent of mineralization within 150 m along strike to the south and up dip in oxide where previous limited drilling returned anomalous results in fresh rock.
Drilling intersected narrow discontinuous mineralized intervals associated with sediment-volcanic contacts, minor quartz veins in sediments, and weakly altered and sheared volcanics. The oxide layer is thickening to the south, and mineralized shear zones show weaker alteration and shearing. Data compilation is continuing to determine the need for further drilling in this area.
Regional exploration
The company currently has nine exploration permits encompassing approximately 1,055 square kilometres of land surrounding the Sabodala and OJVG mine licences (246-square-kilometre exploitation permits). Over the past four years, with the initiation of a regional exploration program on this significant land package, a tremendous amount of exploration data have been systematically collected and interpreted to prudently implement follow-up programs. Targets are therefore in various stages of advancement and are then prioritized for follow-up work and drilling. Early geophysical and geochemical analysis of these areas has led to the demarcation of at least 50 anomalies, targets and prospects, and the company expects that several of these areas will ultimately be developed into minable deposits. This is based on gold soil anomalies overlaying regional-scale first-, second- and third-order shear structures, which play an important part in the localization of major gold deposits elsewhere in the Kedougou-Kenieba inlier. The company has identified some key targets that, though early stage, display significant potential. However, due to the sheer size of the land position, the process of advancing an anomaly through to a minable deposit takes time, with a systematic approach to maximize potential for success.
The exploration team uses a disciplined screening process to optimize the potential for success in exploring the myriad of high potential anomalies located within the regional land package.
During the fourth quarter two key targets were the primary areas of focus: detailed geochemical test work at the Nienienko prospect and continuation of diamond drilling at the Soreto prospect.
SORETO PROSPECT -- SUMMARY OF SIGNIFICANT GOLD INTERCEPTS
(significant intercepts greater than or equal to 0.5 g/t Au,
with max. two m internal dilution/no external dilution)
Interval Intercept values
Hole start (downhole length at g/t
ID (m) Au)
HKDD0002 30 3 m at 2.08 g/t
70 6.5 m at 1.38 g/t
128 1 m at 3.22 g/t
64 1 m at 1.61 g/t
83.5 0.5 m at 54.9 g/t
91 1 m at 12.25 g/t
HKDD0008 15 1 m at 7.64 g/t
77 1 m at 3.07 g/t
HKDD0009 75 2 m at 2.52 g/t
HKDD0010 96 3 m at 1.47 g/t
HKDD0011 57.5 2.5 m at 2.78 g/t
HKDD0015 106 4 m at 1.6 g/t
131 3 m at 1.63 g/t
HKDD0019 81.5 2.5 m at 6.41 g/t
121 2 m at 1.2 g/t
Notes:
Reported widths are estimated true widths. Intercept gold values are
composited from one m length uncapped assays. The table represents
highlights. A data set of full results is provided on the Teranga Gold
website.
Soreto: interpretation
The Soreto prospect is located in Mako Group volcano-sedimentary sequences composed of volcanoclastics, siltstones, greywacke and mudstones, which have been intruded by granite, quartz-feldspar porphyries, granodiorite, gabbro and quartz-monzodiorite to form plugs and dikes. Airborne magnetic data indicates that the units are isoclinally folded, with fold axes trending northeast and east-northeast. The sequences have also undergone upper greenschist-grade metamorphism.
The gold mineralization, which is often visible, is associated with quartz-carbonate veins occurring in shear and breccia zones developed in the sediments and felsic intrusives. These zones range in width from two m to 15 m and are characterized by intense K-feldspar-albite-sericite alteration and microfracturing; pyrite and trace amounts of chalcopyrite are present in both mineralized and unmineralized samples. The occurrence of the quartz veins and gold mineralization appears to be controlled by north- and north-northeast-trending structures, dipping both moderately and steeply to the southeast (50 degrees to 70 degrees). Conjugate northwest-southeast-trending structures with associated gold mineralization have also been observed. These structures are interpreted as being related to regional shear and thrust zones. Gold mineralization also appears to be closely associated with the presence of quartz-feldspar porphyry dikes.
During 2013, five diamond drill holes totalling 826 metres were drilled on a single fence line covering a large northeast-southwest-trending soil gold anomaly.
Following up on the 2013 drill campaign, a 16-hole DDH program totalling 3,200 m was completed during the third quarter of 2014. An additional 12 holes were planned in the fourth quarter and primarily completed in 2014, with the remainder being finalized during early 2015. Drill fence lines were placed approximately 200 m on either side of the 2013 DDH drill fence lines. Two holes were also drilled southwest of the 2013 fence line to confirm the orientation and continuity of the gold mineralization intersected in 2013 drilling campaign.
Several zones with the characteristic brecciation, alteration and quartz-carbonate veining associated with gold mineralization were intersected in the drill holes, with some of these zones containing visible gold. A summary of significant intercepts for the holes is provided.
The gold-in-soil anomalies suggest that the zones of gold mineralization intersected in the drill holes extend to the northeast and southwest over a total strike length in excess of four kilometres. All awaited assays are expected to be received by mid-March, 2015.
An extensive trenching program is planned in the first quarter of 2015 to test the structural and mineralization extension farther to the northeast based on the termite and soil anomaly, after which justification for an additional drilling campaign will be evaluated.
Nienienko: interpretation
The Nienienko prospect is located approximately 40 kilometres northeast of the Sabodala mine. The area is underlain by Mako Group volcano-sedimentary sequences composed of mafic volcanics and volcanoclastics, which have been intruded by granite, quartz-feldspar porphyries, granodiorites and diorite dikes. The prospect occurs within the same shear trend as Sabodala.
An extensive mapping and 1,500 m trenching program was undertaken during the second and third quarters of 2014. This work outlined a 500-metre-plus-wide zone, with gold mineralization occurring in flat-lying, near-surface (zero m to two m) quartz veins and felsic breccia units occurring over a strike length of 1,500 m (Nienienko Main). At Nienienko Main the mineralization is structurally controlled and associated with near-surface flat-lying quartz veins and brecciated felsic rocks, which coincide with north-northeast and northeast shear zones and thrusts.
Due to the extent of geochemical anomalies outlined to the west of Nienienko Main, it was determined that further work would be required over the span of the entire Nienienko prospect prior to embarking on a drill program in the Nienienko Main area. A detailed geochemical soil sampling program commenced in the fourth quarter of 2014 to follow up and test coincident gold-molybdenum-copper and potassium anomalies identified by an earlier regional termite mound sampling program to the west of the Nienienko Main. A total of 6,082 soil samples was collected and sent to ALS Johannesburg in South Africa for analysis.
The sampling program was completed in January, 2015, and to date approximately 70 per cent of the results have been received. Preliminary results have outlined anomalous gold-in-soil values coinciding with shear zones following the north-northeast regional-scale structural trend, which is host to other gold deposits in the region. Rock chip samples collected from several of the shear zones yielded elevated gold values. The shear zones are 10 m to 20 m in width and characterized by quartz veining and gossan development with quartz-carbonate alteration. These zones and other gold soil anomalies will be tested by trenching programs in March, 2015, with a possible follow-up DDH program later in 2015.
(1) This production target is based substantially on existing proven and probable reserves but also assumes that one-third or more of existing measured and indicated resources are processed in this scenario. The ore reserves and mineral resource estimates underpinning this production target have been prepared by a competent person or persons in accordance with the requirements of the 2004 and 2012 editions of the JORC code.
(2) This production target was previously reported by the company on Oct. 31, 2014, in its third-quarter 2014 management's discussion and analysis. All material assumptions underpinning the production target in the initial report continue to apply and have not materially changed. Given this production target is based upon an exploration target, it must be noted that the potential quantity and grade of an exploration target is conceptual in nature, there has been insufficient exploration to determine a mineral resource, and there is no certainty that further exploration work will result in the determination of mineral resources or that the production target itself will be realized.
Quality assurance/quality control
Teranga has established standard operating procedures for sampling, transportation, sample preparation, and analysis and security of RC, diamond drill core and trench samples that are appropriate for gold mineralization and follow industry standards.
All drill core samples were cut in half at the on-site exploration core facilities using a diamond saw, with half-core samples transported in securely sealed bags for preparation and analysis. Prospective mineralized core samples from Golouma NW and Soreto, and all Kerekounda core samples, were sent to the ALS facilities in Johannesburg, South Africa. ALS is accredited to the ISO/IEC 17025 standard by laboratory accreditation No. T0387. Core samples were analyzed for gold using fire assay with an atomic absorption finish on a 50-gram split (Au-AA24). Where initial results exceed one g/t gold, an additional assay was completed on another 50-gram split using fire assay with a gravimetric finish (Au-GRA22). Golouma NW and Soreto core samples that were visually determined to be non-mineralized were analyzed at the on-site laboratory operated by SGS. The mine site SGS laboratory is not certified to standard ISO/IEC accreditation. Core samples were analyzed for gold using an aqua regia digestion followed by an atomic absorption finish (ARE155).
Masato NE trench samples were bagged and processed at either the SGS on-site laboratory (ARE155); ALS in Johannesburg, South Africa (Au-AA24); or at the SGS laboratory in Bamako, Mali. The SGS Bamako laboratory is not certified to standard ISO/IEC accreditation. At SGS Bamako, samples were analyzed for gold using fire assay followed by an atomic absorption finish on a 50-gram split (FAA505).
Teranga has implemented quality assurance and quality control programs that include the regular insertion of blanks, certified reference materials and duplicate samples to prevent or detect contamination and allow assaying precision and accuracy to be quantified. One blank, one CRM and one duplicate sample were inserted into the trench and core sample stream at a rate of one in 40 samples. All samples returned results within acceptable limits. A small percentage of CRM failures were returned, but some can be attributed to the insertion of a different CRM.
Competent persons and qualified persons statement
Teranga's exploration programs are being managed by Peter Mann, FAusIMM. Mr. Mann is a full-time employee of Teranga and is not independent within the meaning of National Instrument 43-101. Mr. Mann has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration, and to the activity that he is undertaking, to qualify as a competent person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Mann is a qualified person under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. The technical information contained in this news release relating exploration results is based on, and fairly represents, information compiled by Mr. Mann. Mr. Mann has verified and approved the data disclosed in this release, including the sampling, analytical and test data underlying the information. The trench samples are prepared at site and assayed in the SGS laboratory located at the site. Analysis for diamond drilling is sent for fire assay analysis at ALS Johannesburg, South Africa. Mr. Mann has consented to the inclusion in this news release of the matters based on his compiled information in the form and context in which it appears herein.
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