Oct 22 2015
True Gold Mining Inc. ("True Gold" or the "Company") is pleased to report that mining has commenced at the Goulagou II (GGII) deposit at the Karma Gold Mine ("Karma" or the "Project") in Burkina Faso. The GGII deposit is the first of six deposits that will be mined over an 11.5 year period. The Company remains on track for gold production at the end of Q1, 2016.
The GGII deposit has reserves of 273,000 leachable ounces of gold (contained in 7.6 million tonnes at 1.12 g/t gold)1, and will be mined during the first two years of production.
"As we transition into gold production over the next few months, our team is increasingly focused on operational readiness," stated Christian Milau, President & CEO of True Gold. "Karma will produce approximately 120,000 ounces of gold per year during our first five years at the lowest quartile of cash costs, laying the foundation for True Gold to become a mid-tier producer1."
Mine construction update
Karma mine construction is rapidly progressing with nearly 1,000 staff and contractors active on site. Overall, the project is approximately 73% complete and is funded through construction to production. The Company has $19 million in cash and up to $48 million available under our finance facility as of September 30, 2015.
To view the latest photos and video of construction efforts at Karma please click here: http://truegoldmining.com/our-projects/karma-project#field-project-tab-tab-7
Mine development
Open pit mining and grade control drilling have begun at GGII. The mine fleet has been deployed to GGII after completing significant excavation of bulk earthworks at the mine's processing and storage ponds. Operators of the mining equipment are experienced from the excavation of the processing and storage ponds, and are now trained and ready for production work.
Excavation of Cells 1, 2 and 3 of the heap leach pad is substantially complete. At Cell 2, herring bone underdrains are complete and installation of lining has commenced.
Earthworks and civils
Civil construction is 72% complete and ahead of schedule. The raw water and pregnant leach ponds are complete, and the previously completed 4 kilometre pipeline from the barrage to the site is now being used to pump water to these ponds, ensuring the processing plant start-up requirements are met. Excavation of the storm water, intermediate and barren ponds stand at approximately 85%, 100% and 90% complete, respectively.
At the plant site, construction of the cyanide mixing area is complete with all civils and tanks in place. The agglomeration foundation is nearing completion while gold room foundation is 100% complete with structural steel installation ongoing. The hard rock crusher has been commissioned and is producing aggregate for the drainage layer of the heap leach pads. The ADR building structural steel is 100% complete. Installation of siding and roofing is progressing quickly, as well as piping and electrical.
Logistics
Deliveries to site stand at 92%, and procurement is complete.
Launch of Stability Forum
During September the Company inaugurated a national Stability Forum led by True Gold's strategic advisor Maître Halidou Ouedraogo, a respected Magistrate and Human Rights advocate in Burkina Faso. The forum was organized by True Gold to foster dialogue and discussion and promote national peace and stability with delegates from a wide range of business, community and political backgrounds, including the leading parties in the upcoming elections. Me. Halidou was also recently appointed President of Codel, an independent group appointed to monitor the upcoming elections.
Approval of Mining Convention
The Burkina Faso Council of Ministers ratified the Mining Convention that sets out the fiscal and legal terms with respect to the operation of the Karma Mine. The Convention is valid for 20 years, and may be renewed for subsequent periods of five years.
1 See Technical Report on an Updated Feasibility Study (GGi, GGII, Kao, Rambo, Nami Deposits) and a Preliminary Economic Assessment (North Kao deposit) for the Karma Gold Project, Burkina Faso, West Africa by P&E Mining Consultants Inc., dated December 5, 2014 effective August 10, 2014, available on the Company's SEDAR profile at www.sedar.com.
David Laing, MIMMM Chief Operating Officer of True Gold is the designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects and has reviewed and verified that the technical information contained in this release is accurate and approves of the written disclosure of same.