Mr. Richard Young reports
TERANGA GOLD FILES UPDATED TECHNICAL REPORT FOR SABODALA
Teranga Gold Corp. has filed a technical report pursuant to National Instrument for its Sabodala gold mine in Senegal, West Africa. The Sabodala technical report, which was prepared by Teranga and Roscoe Postle Associates Inc., conforms to National Instrument 43-101 and supports the updated mineral reserves estimate and life-of-mine plan released on July 19, 2017. A copy of the Sabodala technical report has been filed on SEDAR and posted on the company's website.
As previously announced, the company's proven and probable reserves at Sabodala increased to 2.7 million ounces of gold representing an increase of more than 400,000 ounces over the previous mineral reserves estimate. The majority of the new reserves come from the Niakafiri deposit, which is located less than five kilometres from the Sabodala process plant. The Sabodala mine plan has accordingly been resequenced to bring forward the development of the Niakafiri open-pit deposits and defer underground development, improving Teranga's five-year production and cash flow profile.
"We're pleased with the update to Sabodala's life-of-mine plan," stated Richard Young, president and chief executive officer of Teranga. "We have extended our mine life to 14 years and improved our five-year profile. Between 2018 and 2022, Sabodala's gold production is expected to increase by 20 per cent to more than one million ounces and generate a total of $230-million in free cash flow, approximately two times the amount anticipated in the previous plan filed 18 months ago.
"We will continue with our multiyear drilling program intended to further define near-surface resources and reserves on the prospective Niakafiri trend."
Highlights of the Sabodala technical report
- Proven and probable mineral reserves: 61.6 million tonnes (Mt) at 1.37 grams per tonne containing 2.7 million ounces gold;
- Measured and indicated resources: 86.6 Mt at 1.59 g/t containing 4.4 million ounces Au;
- Inferred mineral resources: 17.2 Mt at 1.81 g/t containing 1.0 million ounces Au;
- First five years (2018 to 2022);
- Average annual production: 213,000 ounces;
- Average mill grade: 1.64 g/t;
- Average all-in sustaining costs: $885 per ounce;
- Free cash flow: $230-million;
- 14-year mine life;
- Average annual production: 176,000 ounces;
- Average all-in sustaining costs: $893 per ounce.
Competent and qualified persons statement
The information contained in this document that relates to mineral resources estimates and mineral reserves estimates has been extracted from the announcement dated July 19, 2017. The announcement is available to be viewed on the company's website. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of mineral resources and mineral reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the competent persons findings are presented have not been materially modified from the original market announcement.
The technical information contained in the original market announcement and this document relating to the open-pit mineral reserve estimates is based on, and fairly represents, information compiled by Stephen Ling, PEng, who is a member of the Professional Engineers Ontario, which is currently included as a recognized overseas professional organization in a list promulgated by the Australian Securities Exchange from time to time. Mr. Ling is a full-time employee of Teranga and is not independent within the meaning of National Instrument 43-101. However, he is a qualified person as defined in NI 43-101. Mr. Ling has sufficient experience which is relevant to the style of mineralization, type of deposit under consideration and to the activity which he is undertaking to qualify as a competent person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Ling is a qualified person under National Instrument 43-101. Mr. Ling has consented to the inclusion in this document of the matters based on his compiled information in the form and context in which they appear in this document.
The technical information contained in the original market announcement and this document relating to mineral resource estimates is based on, and fairly represents, information compiled by Patti Nakai-Lajoie, PGeo. Ms. Nakai-Lajoie is a member of the Association of Professional Geoscientists of Ontario, which is currently included as a recognized overseas professional organization in a list promulgated by the ASX from time to time. Ms. Nakai-Lajoie is a full-time employee of Teranga and is not independent within the meaning of National Instrument 43-101. Ms. Nakai-Lajoie has sufficient experience which is relevant to the style of mineralization, type of deposit under consideration and to the activity which she is undertaking to qualify as a competent person as defined in the 2012 edition of the JORC code. Ms. Nakai-Lajoie is a qualified person under National Instrument 43-101. Ms. Nakai-Lajoie has consented to the inclusion in this document of the matters based on her compiled information in the form and context in which they appear in this document.
The technical information contained in the original market announcement and this document relating to mineral processing, metallurgical testing and recovery methods is based on, and fairly represents, information compiled by Dr. Kathleen Ann Altman, PhD, PE. Dr. Altman is a licensed professional engineer in the state of Colorado and a qualified professional member of the Mining and Metallurgical Society of America, which are currently included as recognized overseas professional organizations in a list promulgated by the ASX from time to time. Ms. Altman is independent of Teranga and is a qualified person as defined in National Instrument 43-101 and a competent person as defined in the 2012 edition of the JORC code. Ms. Altman has sufficient experience relevant to the mineralization, type of process under consideration and to the activity he is undertaking to qualify as a competent person as defined in the 2012 edition of the JORC code. Ms. Altman has consented to the inclusion in this document of the matters based on his compiled information in the form and context in which they appear in this document.
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 which is relevant to the style of mineralization, type of deposit under consideration and to the activity which he is undertaking to qualify as a competent person as defined in the 2012 edition of the JORC code. Mr. Mann is a qualified person under National Instrument 43-101. 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 core and RC samples are prepared and assayed by atomic absorption analysis at the SGS laboratory located at the Sabodala site. A portion of samples is submitted for check fire assay analysis at the ALS Chemex laboratory in Johannesburg, South Africa. Quality assurance and quality control procedures include the systematic insertion of blanks, standards and duplicates into the sample stream. 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 they appear herein.
The technical information contained in the original market announcement and this document relating to mineral processing, metallurgical testing and recovery methods is based on, and fairly represents, information compiled by Dr. Altman. Dr. Altman is a licensed professional engineer in the state of Colorado and a qualified professional member of the Mining and Metallurgical Society of America, which is currently included as a recognized overseas professional organization in a list promulgated by the ASX from time to time. Dr. Altman is independent of Teranga and is a qualified person as defined in National Instrument 43-101 and a competent person as defined in the 2012 edition of the JORC code. Dr. Altman has sufficient experience relevant to the mineralization, type of process under consideration and to the activity he is undertaking to qualify as a competent person as defined in the 2012 edition of the JORC code. Dr. Altman has consented to the inclusion in this document of the matters based on his compiled information in the form and context in which they appear in this document.
Teranga's disclosure of mineral reserve and mineral resource information is governed by NI 43-101 under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum standards on mineral resources and mineral reserves, adopted by the CIM Council, as may be amended from time to time by the CIM. CIM definitions of the terms mineral reserve, proven mineral reserve, probable mineral reserve, mineral resource, measured mineral resource, indicated mineral resource and inferred mineral resource are substantially similar to the JORC code corresponding definitions of the terms ore reserve, proved ore reserve, probable ore reserve, mineral resource, measured mineral resource, indicated mineral resource and inferred mineral resource, respectively. Estimates of mineral resources and mineral reserves prepared in accordance with the JORC code would not be materially different if prepared in accordance with the CIM definitions applicable under NI 43-101. There can be no assurance that those portions of mineral resources that are not mineral reserves will ultimately be converted into mineral reserves.
About Teranga
Gold Corp.
Teranga is a multijurisdictional West African gold company focused on production and development as well as the exploration of more than 5,000 square kilometres of land located on prospective gold belts. Since its initial public offering in 2010, Teranga has produced more than 1.2 million ounces of gold from its operations in Senegal, which as of June 30, 2017, had a reserve base of 2.7 million ounces of gold. Focused on diversification and growth, the company is advancing its Banfora development project and conducting extensive exploration programs in three countries: Burkina Faso, Senegal and Ivory Coast. Teranga has a strong balance sheet and the financial flexibility to grow its business.
OPEN-PIT AND UNDERGROUND MINERAL RESOURCES SUMMARY
Deposit Domain Measured Indicated
Tonnes Grade Au Tonnes Grade Au
(000) (g/t Au) (000) (000) (g/t Au) (000)
Sabodala Open pit 11,725 1.17 442 6,488 1.59 332
Underground 1,631 3.65 191
Combined 11,725 1.17 442 8,119 2.01 524
Masato Open pit 4,163 0.68 92 22,212 1.16 829
Underground 1,163 2.75 103
Combined 4,163 0.68 92 23,375 1.24 932
Gora Open pit 439 2.47 35 471 8.67 131
Underground 315 5.14 52
Combined 439 2.47 35 786 7.26 183
Golouma Open pit 40 1.38 2 5,857 2.85 536
Underground 2,134 4.09 280
Combined 40 1.38 2 7,991 3.18 816
Kerekounda Open pit 30 3.30 3 1,153 4.45 165
Underground 499 4.88 78
Combined 30 3.30 3 1,653 4.58 243
Niakafiri East Open pit 4,776 1.37 210 14,140 1.14 516
Underground 224 2.72 20
Combined 4,776 1.37 210 14,364 1.16 536
Niakafiri West Open pit 3,061 1.02 100
Underground 74 2.67 6
Combined 3,135 1.06 107
Maki Medina Open pit 2,112 1.22 83
Underground 109 2.71 10
Combined 2,221 1.30 93
Goumbati West
-- Kobokoto Open pit 2,678 1.35 116
Underground 131 3.25 14
Combined 2,809 1.44 130
Golouma North Open pit 170 1.32 7
Underground 14 2.64 1
Combined 184 1.42 8
Diadiako Open pit
Underground
Combined
Kinemba Open pit 24 1.06 1
Underground
Combined 24 1.06 1
Koulouqwinde Open pit
Underground
Combined
Kourouloulou Open pit 96 11.51 36
Underground 59 9.15 18
Combined 156 10.61 53
Kouroundi Open pit 67 0.93 2
Underground
Combined 67 0.93 2
Koutouniokolla Open pit
Underground
Combined
Mamasato Open pit 560 1.45 26
Underground
Combined 560 1.45 26
Marougou Open pit
Underground
Combined
Sekoto Open pit
Underground
Combined
Soukhoto Open pit
Underground
Combined
Total Open pit 21,174 1.15 783 59,091 1.52 2,882
Underground 6,354 3.78 773
Combined 21,174 1.15 783 65,444 1.74 3,655
Deposit Domain Measured and indicated Inferred
Tonnes Grade Au Tonnes Grade Au
(000) (g/t Au) (000) (000) (g/t Au) (000)
Sabodala Open pit 18,213 1.32 774 2,525 1.23 100
Underground 1,631 3.65 191 460 3.60 53
Combined 19,844 1.51 965 2,985 1.60 153
Masato Open pit 26,375 1.09 921
Underground 1,163 2.75 103 1,984 2.85 182
Combined 27,537 1.16 1,024 1,984 2.85 182
Gora Open pit 911 5.68 166 35 5.60 6
Underground 315 5.14 52 59 4.83 9
Combined 1,226 5.54 218 95 5.12 16
Golouma Open pit 5,897 2.84 538 84 2.49 7
Underground 2,134 4.09 280 854 3.66 100
Combined 8,031 3.17 818 939 3.55 107
Kerekounda Open pit 1,184 4.42 168 5 1.12 0
Underground 499 4.88 78 235 5.70 43
Combined 1,683 4.56 247 239 5.61 43
Niakafiri East Open pit 18,916 1.19 726 4,515 0.93 135
Underground 224 2.72 20 514 2.70 45
Combined 19,140 1.21 746 5,030 1.11 180
Niakafiri West Open pit 3,061 1.02 100 673 0.86 19
Underground 74 2.67 6 71 2.84 6
Combined 3,135 1.06 107 744 1.05 25
Maki Medina Open pit 2,112 1.22 83 114 0.81 3
Underground 109 2.71 10 85 2.54 7
Combined 2,221 1.30 93 199 1.55 10
Goumbati West
-- Kobokoto Open pit 2,678 1.35 116 498 0.81 13
Underground 131 3.25 14 79 2.90 7
Combined 2,809 1.44 130 577 1.09 20
Golouma North Open pit 170 1.32 7 295 1.42 14
Underground 14 2.64 1 19 2.93 2
Combined 184 1.42 8 314 1.51 15
Diadiako Open pit 178 1.27 7
Underground 663 2.89 61
Combined 841 2.54 69
Kinemba Open pit 24 1.06 1 91 0.95 3
Underground 56 2.52 5
Combined 24 1.06 1 147 1.55 7
Koulouqwinde Open pit 230 1.42 11
Underground 60 2.67 5
Combined 290 1.68 16
Kourouloulou Open pit 96 11.51 36 22 6.71 5
Underground 59 9.15 18 86 13.58 38
Combined 156 10.61 53 108 12.18 42
Kouroundi Open pit 67 0.93 2 42 0.74 1
Underground
Combined 67 0.93 2 42 0.74 1
Koutouniokolla Open pit 85 1.58 4
Underground 22 2.54 2
Combined 108 1.78 6
Mamasato Open pit 560 1.45 26 305 1.25 12
Underground 42 2.32 3
Combined 560 1.45 26 347 1.38 15
Marougou Open pit 1,198 1.41 54
Underground
Combined 1,198 1.41 54
Sekoto Open pit 485 0.89 14
Underground 25 2.11 2
Combined 510 0.95 16
Soukhoto Open pit 550 1.46 26
Underground
Combined 550 1.46 26
Total Open pit 80,264 1.42 3,665 11,933 1.13 434
Underground 6,354 3.78 773 5,315 3.34 570
Combined 86,618 1.59 4,438 17,247 1.81 1,004
1. CIM definitions were followed for mineral resources.
2. Open-pit oxide mineral resources are estimated at a cut-off grade of 0.35 g/t Au, except for Gora
and Marougou at 0.48 g/t Au.
3. Open-pit transition and fresh rock mineral resources are estimated at a cut-off grade of 0.40 g/t
Au, except for Gora and Marougou at 0.55 g/t Au.
4. Underground mineral resources are estimated at a cut-off grade of 2.00 g/t Au.
5. Measured resources at Sabodala include stockpiles which total 7.2 Mt at 0.75 g/t Au for 174,000
ounces.
6. Measured resources at Masato include stockpiles which total 4.2 Mt at 0.68 g/t Au for 92,000
ounces.
7. Measured resources at Gora include stockpiles which total 400,000 t at 1.28 g/t Au for 15,000
ounces.
8. Measured resources at Golouma include stockpiles which total 40,000 t at 1.38 g/t Au for 2,000
ounces.
9. Measured resources at Kerekounda include stockpiles which total 30,000 t at 3.30 g/t Au for 3,000
ounces.
10. High-grade assays were capped at grades ranging from 1.5 g/t Au to 110 g/t Au.
11. Mineral resources are inclusive of mineral reserves.
12. Open-pit shells were used to constrain open-pit resources.
13. Mineral resources are estimated using a gold price of $1,450 (U.S.) per ounce.
14. Sum of individual amounts may not equal due to rounding.
OPEN-PIT AND UNDERGROUND MINERAL RESERVES SUMMARY
Deposits Proven Probable
Tonnes (Mt) Grade (g/t) Au (Moz) Tonnes (Mt) Grade (g/t) Au (Moz)
Masato 18.62 1.10 0.66
Niakafiri East 4.61 1.32 0.20 9.92 1.10 0.35
Golouma West 4.11 1.91 0.25
Sabodala 2.04 1.56 0.10 3.18 1.33 0.14
Gora 0.82 5.25 0.14
Kerekounda 0.53 4.71 0.08
Goumbati West and Kobokoto 1.42 1.31 0.06
Maki Medina 0.98 1.12 0.04
Niakafiri West 1.20 1.06 0.04
Golouma South 0.24 3.23 0.02
Subtotal open pit 6.65 1.39 0.30 41.02 1.35 1.78
Stockpiles 11.80 0.75 0.28
Total open pit with Stockpiles (OP) 18.45 0.98 0.58 41.02 1.35 1.78
Golouma West 1 0.62 6.07 0.12
Kerekounda 0.61 4.95 0.10
Golouma West 2 0.45 4.39 0.06
Golouma South 0.47 4.28 0.06
Subtotal underground (UG) 2.15 5.01 0.35
Total open pit and underground 18.45 0.98 0.58 43.17 1.53 2.12
Deposits Proven and probable
Tonnes (Mt) Grade (g/t) Au (Moz)
Masato 18.62 1.10 0.66
Niakafiri East 14.53 1.17 0.55
Golouma West 4.11 1.91 0.25
Sabodala 5.22 1.42 0.24
Gora 0.82 5.25 0.14
Kerekounda 0.53 4.71 0.08
Goumbati West and Kobokoto 1.42 1.31 0.06
Maki Medina 0.98 1.12 0.04
Niakafiri West 1.20 1.06 0.04
Golouma South 0.24 3.23 0.02
Subtotal open pit 47.66 1.35 2.07
Stockpiles 11.80 0.75 0.28
Total open pit with stockpiles (OP) 59.47 1.23 2.36
Golouma West 1 0.62 6.07 0.12
Kerekounda 0.61 4.95 0.10
Golouma West 2 0.45 4.39 0.06
Golouma South 0.47 4.28 0.06
Subtotal underground (UG) 2.15 5.01 0.35
Total open pit and underground 61.62 1.37 2.70
1. CIM definitions were followed for mineral reserves.
2. Mineral reserve cut-off grades range from 0.38 g/t to 0.57 g/t Au for oxide
and 0.44 g/t to 0.63 g/t Au for fresh rock based on a $1,200/ounce gold price.
3. Underground mineral reserve cut-off grades range from 2.3 g/t to 2.6 g/t Au
based on a $1,200/ounce gold price.
4. Mineral reserves account for mining dilution and mining ore loss.
5. Proven mineral reserves are based on measured mineral resources only.
6. Probable mineral reserves are based on indicated mineral resources only.
7. Sum of individual amounts may not equal due to rounding.
8. The Niakafiri East and West deposits are adjacent to the Sabodala Village
and relocation of at least some portion of the village will be required which
will necessitate a negotiated resettlement program with the affected community
members.
LIFE-OF-MINE PLAN (JULY 1, 2017 TO H1 2031)
LOM 2018-2022 avg. H2 2017 2018 2019 2020 2021 2022 2023
Sabodala Ore mined Mt 5.2 0.1 0.5 0.9 2.7 1.0
Ore grade g/t 1.42 0.82 1.06 1.29 1.45 1.70
Contained oz Moz 0.24 0.00 0.02 0.04 0.12 0.06
Waste Mt 55.3 9.4 15.4 15.3 12.8 2.4
Masato Ore mined Mt 18.6 0.4 1.0
Ore grade g/t 1.10 0.76 0.87
Contained oz Moz 0.66 0.01 0.03
Waste Mt 113.2 0.7 10.0 23.6
Gora Ore mined Mt 0.8 0.6 0.3
Ore grade g/t 5.25 4.94 5.92
Contained oz Moz 0.14 0.09 0.05
Waste Mt 7.2 6.4 0.8
Kerekounda Ore mined Mt 0.5 0.1 0.4
Ore grade g/t 4.71 3.91 4.91
Contained oz Moz 0.08 0.01 0.07
Waste Mt 12.8 4.9 8.0
Golouma Ore mined Mt 4.4 0.4 1.0 1.3 1.6
Ore grade g/t 1.99 2.45 1.87 1.94 1.98
Contained oz Moz 0.28 0.03 0.06 0.08 0.10
Waste Mt 42.8 7.6 18.6 12.5 4.2
Niakafiri Ore mined Mt 15.7 1.5 4.6 1.6 6.2 1.4
Ore grade g/t 1.16 1.26 1.22 0.82 1.23 1.00
Contained oz Moz 0.59 0.06 0.18 0.04 0.24 0.04
Waste Mt 59.1 4.3 8.4 21.2 17.0 7.4
Maki Medina Ore mined Mt 1.0 1.0
Ore grade g/t 1.12 1.12
Contained oz Moz 0.04 0.04
Waste Mt 2.8 2.8
Goumbati West --
Kobokoto Ore mined Mt 1.4 0.4 0.1
Ore grade g/t 1.31 1.68 1.48
Contained oz Moz 0.06 0.02 0.01
Waste Mt 11.7 3.7 0.4
Underground Ore mined Mt 2.1 0.1
Ore grade g/t 5.01 5.00
Contained oz Moz 0.35 0.02
Summary Ore mined Mt 49.8 5.1 1.1 1.8 4.4 7.5 4.4 7.7 2.5
Ore grade g/t 1.51 1.45 3.89 3.14 1.41 1.41 1.22 1.27 1.10
Contained oz Moz 2.42 0.24 0.13 0.18 0.20 0.34 0.17 0.31 0.09
Waste Mt 305.03 33.6 18.9 36.8 35.0 31.6 35.2 29.4 31.1
Movement Mt 354.84 38.7 19.9 38.5 39.4 39.1 39.5 37.1 33.6
Stockpile ore balance Mt 10.7 8.2 8.2 11.5 11.5 14.9 13.0
Stockpile grade g/t 0.87 0.93 0.81 0.89 0.74 0.75 0.69
Contained oz Moz 0.30 0.24 0.21 0.33 0.27 0.36 0.29
Ore milled Mt 61.6 4.4 2.2 4.3 4.5 4.5 4.4 4.4 4.4
Head grade g/t 1.37 1.64 1.72 1.71 1.62 1.62 1.62 1.62 1.11
Oxide % 23 35 28 30 50 37 31 29 23
Produced oz Moz 2.464 0.213 0.111 0.213 0.215 0.213 0.211 0.211 0.143
2024 2025 2026 2027 2028 2029 2030 2031
Sabodala Ore mined Mt
Ore grade g/t
Contained oz Moz
Waste Mt
Masato Ore mined Mt 3.1 3.1 5.3 5.7
Ore grade g/t 1.04 1.06 1.03 1.28
Contained oz Moz 0.10 0.11 0.17 0.23
Waste Mt 24.1 24.3 20.1 10.3
Gora Ore mined Mt
Ore grade g/t
Contained oz Moz
Waste Mt
Kerekounda Ore mined Mt
Ore grade g/t
Contained oz Moz
Waste Mt
Golouma Ore mined Mt
Ore grade g/t
Contained oz Moz
Waste Mt
Niakafiri Ore mined Mt 0.4
Ore grade g/t 1.04
Contained oz Moz 0.01
Waste Mt 0.7
Maki Medina Ore mined Mt
Ore grade g/t
Contained oz Moz
Waste Mt
Goumbati West --
Kobokoto Ore mined Mt 0.5 0.4
Ore grade g/t 1.13 1.16
Contained oz Moz 0.02 0.02
Waste Mt 3.9 3.7
Underground Ore mined Mt 0.3 0.3 0.3 0.1 0.2 0.4 0.4 0.2
Ore grade g/t 4.95 4.63 4.33 4.39 5.55 5.36 5.52 4.76
Contained oz Moz 0.05 0.05 0.04 0.01 0.03 0.06 0.07 0.02
Summary Ore mined Mt 4.3 3.9 5.5 5.8 0.2 0.4 0.4 0.2
Ore grade g/t 1.31 1.39 1.18 1.33 5.55 5.36 5.52 4.76
Contained oz Moz 0.18 0.17 0.21 0.25 0.03 0.06 0.07 0.02
Waste Mt 28.7 28.0 20.1 10.3
Movement Mt 32.9 31.9 25.6 16.1 0.2 0.4 0.4 0.2
Stockpile ore
Balance Mt 12.7 12.1 13.1 14.4 10.1 6.1 2.1
Stockpile grade g/t 0.69 0.69 0.70 0.81 0.69 0.69 0.69
Contained oz Moz 0.28 0.27 0.29 0.37 0.23 0.13 0.05
Ore milled Mt 4.4 4.4 4.4 4.4 4.4 4.4 4.4 2.2
Head grade g/t 1.29 1.30 1.27 1.15 1.25 1.09 1.11 0.97
Oxide % 33 30 23 4 4 6 6 6
Produced oz Moz 0.168 0.168 0.164 0.146 0.159 0.139 0.141 0.062
1. Sum of individual amounts may not equal due to rounding.
2. This production guidance is based on existing proven and probable ore reserves from the
Sabodala mining licence as at June 30, 2017.
3. Stockpile balances at June 30, 2017, included 11.8 Mt at 0.75 g/t for 280,000 contained
ounces.
LIFE-OF-MINE CAPITAL EXPENDITURES
Sustaining capex Unit LOM 2018-2022 avg. H2 2017 2018 2019 2020 2021 2022 2023
Open-pit mining US$M $61.1 $8.6 $4.7 $8.0 $11.8 $10.1 $6.9 $6.3 $7.2
Processing US$M 32.1 2.2 1.2 2.2 2.2 2.3 2.3 2.3 2.3
Admin and other sustaining US$M 11.1 0.8 0.9 0.7 0.8 0.8 0.8 0.8 0.8
Community relations US$M 26.6 5.2 0.6 - 15.0 11.0 - - -
Total sustaining capex US$M 130.8 16.8 7.4 10.9 29.8 24.1 10.0 9.3 10.2
Capital projects and development
Underground equipment and development US$M 102.1 4.9 - - - - - 24.4 23.4
Other projects and development US$M 4.0 0.8 - - - 2.0 2.0 - -
Total projects and development US$M 106.1 5.7 - - - 2.0 2.0 24.4 23.4
Combined total (US$M) US$M 236.9 22.5 7.4 10.9 29.8 26.1 12.0 33.8 33.6
Sustaining capex Unit 2024 2025 2026 2027 2028 2029 2030 2031
Open-pit mining US$M $4.6 $0.5 $0.4 $0.3 $0.3 $- $- $-
Processing US$M 2.3 2.3 2.3 2.3 2.3 2.3 2.3 1.2
Admin and other sustaining US$M 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.4
Community relations US$M - - - - - - - -
Total sustaining capex US$M 7.6 3.5 3.5 3.4 3.4 3.1 3.1 1.5
Capital projects and development
Underground equipment and development US$M 8.9 2.4 0.8 8.5 18.2 10.4 4.1 0.9
Other projects and development US$M - - - - - - - -
Total projects and development US$M 8.9 2.4 0.8 8.5 18.2 10.4 4.1 0.9
Combined Total (US$M) US$M 16.5 5.9 4.3 12.0 21.6 13.5 7.2 2.4
LIFE-OF-MINE OPERATING COSTS
Operating costs Unit LOM 2018-2022 avg. H2 2017 2018 2019 2020 2021 2022
Open-pit mining US$/t mined $2.38 $2.34 $2.45 $2.29 $2.33 $2.39 $2.33 $2.37
Underground mining US$/t mined 72.23 - - - - - - -
Processing US$/t milled 10.40 10.33 11.35 11.32 9.91 10.10 10.18 10.21
General and admin. US$/t milled 2.55 3.26 4.13 3.43 3.26 3.16 3.18 3.29
Mining US$M 845 92 49 89 93 95 93 88
Underground mining US$M 155 - - - - - - -
Processing US$M 647 46 25 49 45 45 46 46
General and admin. US$M 151 14 9 14 14 14 14 14
Refining and freight US$M 12 1 1 1 1 1 1 1
Byproduct credits US$M (4) (0) - (0) (0) (0) (0) (0)
Total operating costs US$M 1,806 152 83 152 153 155 153 149
Deferred stripping adjustment US$M (15) - (15) - - - - -
Royalties US$M 155 13 7 14 13 13 13 13
Total cash costs US$M 1,947 166 76 167 166 168 166 162
Total cash costs US$/oz 790 779 684 780 772 788 788 768
Capex US$M 237 23 7 11 30 26 12 34
Capitalized deferred stripping US$M 15 - 15 - - - - -
Capitalized reserve development US$M 3 - 3 - - - - -
All-in sustaining costs US$M 2,201 188 101 177 196 194 178 196
All-in sustaining costs US$/oz 893 885 908 832 911 910 845 928
Franco Nevada stream US$M 172 17 11 23 23 13 13 13
Franco Nevada stream US$/oz 70 78 101 105 105 60 60 60
All-in sustaining costs plus stream US$M 2,373 205 112 200 218 207 191 208
All-in sustaining costs plus stream US$/oz 963 963 1,009 937 1,015 970 905 988
Operating costs Unit 2023 2024 2025 2026 2027 2028 2029 2030 2031
Open-pit mining US$/t mined $2.28 $2.43 $2.40 $2.54 $2.62 $- $- $- $-
Underground mining US$/t mined 76.30 74.94 73.32 77.25 79.72 76.46 66.49 64.35 78.11
Processing US$/t milled 10.28 10.14 10.19 10.29 10.54 10.55 10.53 10.53 10.52
General and admin. US$/t milled 2.80 2.80 2.81 2.59 2.38 1.02 1.01 1.01 1.75
Mining US$M 76 79 76 64 42 - - - -
Underground mining US$M 7 22 26 20 7 13 24 25 12
Processing US$M 46 46 46 46 46 47 46 46 23
General and admin. US$M 12 12 12 11 10 4 4 4 4
Refining and freight US$M 1 1 1 1 1 1 1 1 -
Byproduct credits US$M (0) (0) (0) (0) (0) (0) (0) (0) (0)
Total operating costs US$M 142 159 159 141 106 64 75 76 39
Deferred stripping adjustment US$M - - - - - - - - -
Royalties US$M 9 10 11 10 9 10 9 9 4
Total cash costs US$M 151 170 170 152 115 74 84 84 43
Total cash costs US$/oz 1,055 1,011 1,008 925 789 464 605 599 697
Capex US$M 34 17 6 4 12 22 13 7 2
Capitalized deferred stripping US$M - - - - - - - - -
Capitalized reserve development US$M - - - - - - - - -
All-in sustaining costs US$M 184 186 176 156 127 96 97 92 46
All-in sustaining costs US$/oz 1,290 1,110 1,044 951 871 599 702 651 736
Franco Nevada stream US$M 9 10 10 10 9 10 8 8 4
Franco Nevada stream US$/oz 60 60 60 60 60 60 60 60 60
All-in sustaining costs plus stream US$M 193 196 186 166 136 105 106 100 49
All-in sustaining costs plus stream US$/oz 1,350 1,170 1,104 1,011 931 659 762 711 796
1. Excludes any deferred stripping adjustments beyond 2017.
2. Royalties include government of Senegal royalties on total production and the net smelter return royalty due to
Axmin on Gora production.
3. Total cash costs per ounce and all-in sustaining costs per ounce are non-international financial reporting
standards financial measures and do not have a standard meaning under IFRS. Total cash costs per ounce and all-in
sustaining costs per ounce are before cash/non-cash inventory movements and amortized advanced royalty costs, and
exclude allocation of corporate overheads.
4. This production guidance is based on existing proven and probable reserves only from the Sabodala mining
licence as disclosed in the reserves and resources section of the NI 43-101 Sabodala project technical report
filed on SEDAR on Aug. 30, 2017.
5. Key assumptions: gold spot price/ounce -- $1,250 (U.S.); Light fuel oil -- 81 U.S. cents/litre; heavy fuel oil
-- 46 U.S. cents/litre; and U.S./euro exchange rate -- $1.10.
LIFE-OF-MINE CASH FLOWS*
Unit LOM 2018-2022 avg. H2 2017 2018 2019 2020 2021 2022 2023
Production Moz 2.46 0.21 0.11 0.21 0.22 0.21 0.21 0.21 0.14
Gold price $/oz $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 1,250
Revenue US$M 3,080 266 139 267 269 267 264 263 179
Total cash costs US$M 1,947 166 76 167 166 168 166 162 151
Capex US$M 254 23 25 11 30 26 12 34 34
All-in sustaining costs US$M 2,201 188 101 177 196 194 178 196 184
Franco Nevada US$M 172 17 11 23 23 13 13 13 9
Cash flow before taxes,
interest and other US$M 707 61 27 67 51 60 73 55 (14)
Taxes, interest and other US$M 152 15 6 20 8 15 20 12 16
Free cash flow US$M 556 46 21 46 42 45 53 43 (30)
Unit 2024 2025 2026 2027 2028 2029 2030 2031
Production Moz 0.17 0.17 0.16 0.15 0.16 0.14 0.14 0.06
Gold price $/oz $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Revenue US$M 210 210 205 182 199 174 176 77
Total cash costs US$M 170 170 152 115 74 84 84 43
Capex US$M 17 6 4 12 22 13 7 2
All-in sustaining costs US$M 186 176 156 127 96 97 92 46
Franco Nevada US$M 10 10 10 9 10 8 8 4
Cash flow before taxes,
interest and other US$M 13 25 39 46 94 68 76 28
Taxes, interest and other US$M 5 4 5 5 1 1 (2) 35
Free cash flow US$M 9 20 34 42 93 67 78 (6)
* Excludes any allocation of corporate overheads.
1. Other items include working capital, advanced royalty costs, government social fund,
value-added tax refunds, closure costs, plant residual value, regional office costs, CSR
costs and regional exploration costs.
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