May 21 2014
True Gold Mining Inc. ("True Gold" or the "Company") is pleased to announce that it has signed a letter of intent to purchase its primary mining fleet for the development of the Karma Project in Burkina Faso, West Africa. The supplier selected is Equipment & Services BIA, a licenced dealer of Komatsu heavy equipment, with operations in 14 African nations.
"The purchase of the mining fleet brings the Karma Project one step closer to production, and we believe that our choice of equipment, supplier and dealer is well matched to our project needs," stated Peter Carter, Chief Operating Officer and Vice President, Engineering of True Gold. "Our owner-operated approach results in greater value to our shareholders as compared to contract mining and also provides us with increased flexibility to take full advantage of future exploration success."
Equipment & Services BIA was chosen based on price competitiveness, purchase terms and conditions, and its dealer presence in Burkina Faso. Locally-based dealer support will provide spare parts, technical expertise, and training not otherwise available from an offshore supplier. Equipment & Services BIA is a company of the group BIA, a Belgian-based company with over 50 years of experience serving the construction and mining industries on the African continent.
The primary mining fleet for pre-production and initial production needs is composed of:
- One 15 m3 hydraulic excavator
- One 10 m3 front-end loader
- Six 90t rigid-frame haul trucks
- Four 50t bulldozers
- Two 300 HP graders
The delivery of the fleet is scheduled for December, 2014, with bulk earthworks for pond and leach pad construction beginning the following month in January, 2015. Additional auxiliary equipment will be purchased to support the primary mining fleet, assist in project construction, and ultimately aid in the operation of the mine. Pre-production mining will account for 8 Mt of material moved during the construction period to permit the start of heap leach operations in the last quarter of 2015.
Once production has started, the fleet will be augmented with a second primary excavator and eight additional trucks to achieve an average mining rate of approximately 14 Mtpa over the life of mine, as outlined in the Feasibility Study1 mine plan.
(1) See Technical Report, entitled "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: https://www.sedar.com/homepage_fr.htm
About True Gold
True Gold Mining Inc. is where gold comes to life. We are committed to growing a successful gold exploration, development and production company, by focusing on projects with low costs, low technical risks and solid economics. The Company's board, management and technical teams have proven track records in gold exploration, development, operations and production worldwide.
Additional information about the Company and its activities may be found on the Company's website at www.truegoldmining.com and under the Company's profile at: https://www.sedar.com/homepage_fr.htm
ON BEHALF OF THE BOARD
Dwayne Melrose, President & CEO