Teranga Gold Reports High-Grade Gold from Phase 2 Drilling at Golden Hill’s C-Zone Prospect

C-Zone results include 21.86 g/t gold of over seven metres and 6.03 g/t gold over 10 metres

Teranga Gold Corporation has announced that its phase 2 diamond drill programme at the C-Zone prospect on the Golden Hill property in Burkina Faso, West Africa has returned near surface and deeper high-grade gold intersections.

Teranga has an earn-in agreement on Golden Hill with Boss Resources Limited pursuant to which Teranga, as operator, can earn an 80 percent interest in the joint venture upon delivery of a feasibility study and the payment of AUD2.5 million.

C-Zone Prospect – Phase 2 Highlight Results

•         7m @ 21.86 g/t gold, including 1m @ 136.01 g/t gold (GHDD-290) uncut grade from 26m downhole depth (DHD)

•         10m@ 6.03 g/t gold, including 1m @ 23.85 g/t gold (GHDD-247) from 91m DHD

•         12m@ 3.91 g/t gold, including 5m @ 6.66 g/t gold (GHDD-245) from 84m DHD

•         8m @ 3.64 g/t gold (GHDD-272) from 35m DHD

“The phase 2 drill results elevate C-Zone to the category of advanced exploration prospect from a drill target. Significantly, these results substantiate the continuity of gold mineralisation in all dimensions with room to expand mineralisation laterally and to depth,” said Richard Young, President & CEO. “This second phase of results from C-Zone strengthens our confidence that Golden Hill will play a key role in helping us achieve our vision of becoming the next multi-asset, mid-tier gold producer in West Africa.”

C-Zone is just one of a series of advanced exploration prospects at Golden Hill all located within six kilometres of a central point. To-date, the Company has drill tested C-Zone with diamond core drilling over a minimum strike extent of approximately 600 metres. Gold mineralisation is localised within a discrete, mafic volcanic-hosted, northwest-southeast striking shear zone system that displays alteration, veining and breccia characteristics similar to those observed at Golden Hill’s nearby high-grade Ma and Ma North prospects.

Work at Golden Hill is advancing rapidly. Teranga is investing $8 million in Golden Hill drill programmes in 2018 and plans to release an initial resource for the project’s most advanced prospects by year end. Preliminary metallurgical test work programmes are underway and base line environmental studies are planned for later this year. Teranga has secured $25 million for future advancement of its Golden Hill project to feasibility study.

C-Zone Prospect: ~600-Metre Strike Extent

The C-Zone prospect is located just south of Peksou, another of the Company’s advanced prospects at Golden Hill, and now has a defined strike length of approximately 600 metres. Historical drilling at C-Zone was at shallow depths, below which the Company has targeted down-dip extensions of previously intersected gold mineralisation.

The Company’s phase 1 drilling at C-Zone confirmed that the gold mineralised zones continue to depth and include previously released drill results (from 1 February, 2018) of:

•         6m @ 4.64 g/t Au (GHDD-188) from 52m DHD

•         11m @ 4.87 g/t Au (GHDD-189) from 52m DHD

•         14m @ 1.76 g/t Au (GHDD-190) from 67m DHD

•         8m @ 3.76 g/t Au (GHDD191) from 61m DHD

•         10m @ 1.91 g/t Au (GHDD-192) from 45m DHD

“Our drilling programme at Golden Hill continues to provide excellent gold intersections at multiple prospects,” said David Mallo, Vice President, Exploration. “Through C-Zone’s recently completed phase 2 drill programme, we have identified both lateral and to depth extensions of favourable gold mineralisation beyond the limited historical drilling. We are also encouraged to observe a nearly identical host scenario to that identified at our most advanced set of Ma prospects.”

Golden Hill Property

The Golden Hill property is comprised of three adjacent exploration permits covering 470 square kilometres located in southwest Burkina Faso in the central part of the Houndé Greenstone Belt. This belt hosts a number of high-grade gold discoveries, including the Siou, Yaramoko and Houndé deposits, the latter being contiguous with Golden Hill. To the south of Golden Hill is another large land position where active exploration programmes are well underway.