Mar 5 2014
True Gold Mining Inc. ("True Gold" or the "Company") is pleased to announce that drill results from two new target areas have returned encouraging high-grade gold mineralization. The Yabonsgo and Rounga targets are located within easy trucking distance of the proposed Karma Gold Project (the "Karma Project") mining centre and represent excellent examples of the widespread potential for resource growth throughout the 856 square kilometre property.
Gold mineralization at these target areas starts at surface, is oxidized to approximately 75 metres depth and remains open in all directions.
Yabonsgo: Highlights from the five-hole, 869.4-metre drill program at Yabonsgo include:
- 12.61 g/t Au over 5.60 metres in GLG13DD-157, including
- 30.60 g/t Au over 1.50 metres, and
- 17.50 g/t Au over 1.40 metres
- 10.82 g/t Au over 4.50 metres in GLG13DD-155, including
- 31.70 g/t Au over 1.50 metres
- 2.51 g/t Au over 9.00 metres in GLG13DD-158, including
- 5.89 g/t Au over 3.00 metres
- 1.21 g/t Au over 9.50 metres in GLG13DD-154 and 4.13 g/t Au over 4.00 metres, including
- 11.60 g/t Au over 1.00 metre
Rounga: Highlights from the four-hole, 608.3-metre drill program at the Rounga target include:
"The discovery of high-grade, near-surface oxide material to add to our current open pit mineral reserves is a key part of our business strategy. The simple and flexible mine plan at Karma, as laid out in our Feasibility Study(1), is specifically designed to enable us to capture incremental opportunities such as these, as new potential mining centres(2) emerge across the Karma Project through ongoing exploration," stated Dwayne Melrose, President and CEO, True Gold. "As our development advances, we remain committed to increasing the size of the leachable gold resources at Karma, integrating that growth into our mine plan and evaluating a phased approach to production expansion."
One of the standout attributes of the Karma Project is its pipeline of exploration targets and the Company's demonstrated ability to rapidly advance targets from drill-ready, through discovery to mineral resource definition. North Kao, for example, was a blind discovery in late 2013 and will have a mineral resource estimate completed within the next month. Over the past year the Company has tested five new targets and has had a 100% success rate, establishing five new areas that have the potential to meaningfully add to our current resource base. They include North Kao, Watinoma, Yabonsgo, Rounga, and Rambo West. There are currently another 35 drill-ready targets within three major gold trends with an aggregate strike length in excess of 100 kilometres on the Karma Project.
The new Yabonsgo and Rounga areas clearly demonstrate the potential for domains of high-grade gold mineralization within trucking distance of the proposed processing site. At Yabonsgo, True Gold drilled three of five holes in areas of historic workings and stepped out 200 and 300 metres along strike with holes GLG13DD-157 and GLG13DD-158. The two step-out holes hit high-grade gold and all five drill holes intersected significant oxide gold mineralization. At Rounga, True Gold hit oxide gold mineralization in all four holes drilled. Gold mineralization at both targets is associated with multiple phases of quartz veining within a variably sheared sequence of metavolcanic, volcaniclastic and intrusive rocks.
Yabonsgo and Rounga are located in the Rounga Domain, one of three major gold trends on the Karma Project. It is significant to note that the Rounga Domain, which hosts dozens of areas of outcropping high grade gold mineralization, covers multiple splays of the Ouahigouya Shear Zone (OSZ). These SW-NE trending structures transect the Karma property and link into the Houndé Belt in southwestern Burkina Faso.
The Karma Project Feasibility Study confirms that the Karma Project is scalable. While the Feasibility Study is based on slightly less than one million ounces of probable mineral reserves, True Gold's 2013 exploration success is clearly demonstrating the potential to add open-pit leachable material at the Karma Project for potential mine life extensions or incremental throughput ramp-up.
Scott Heffernan, M.Sc., P.Geo., is the Company's Vice President Exploration and designated Qualified Person for this news release within the meaning of NI 43-101. He has reviewed and verified that the technical information contained in this release is accurate and approves of the written disclosure of same. Holes were drilled at an azimuth of 310 degrees and with dips ranging from -45 to -50 at Yabonsgo and at an azimuth of 270 degrees and with dips ranging from -50 to -60 at Rounga. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be 30 to 100 percent of the reported lengths. Samples were submitted to ALS Chemex in Ouagadougou, Burkina Faso for geochemical analysis for gold by fire assay of a 30-gram charge with an Atomic Absorption finish (AA). Samples with AA assays over 5.0 g/t were re-assayed by Fire Assay with gravimetric finish. Control samples (accredited standards, blanks and duplicate samples at the field and preparation stages) were inserted on a regular basis. Results were monitored on receipt of assays.
(1) See Technical Report, Updated Resource Estimate and Feasibility Study on the Karma Gold Project prepared by P&E Mining Consultants Inc. dated effective December 17, 2013, a copy of which is available under the Company's profile on SEDAR at www.sedar.com.
(2) The mining centre expansions are conceptual in nature, and the Company has not undertaken any economic analysis of these expansion concepts to date. No resource estimate has been established based on these drill results and there is no assurance that this mineralization will add to the reserves on the Company's Karma Project.