Teranga Gold Corporation has announced the results of an updated mineral reserve estimate and feasibility study for the Wahgnion development project in Burkina Faso, West Africa.
The update adds 450,000 ounces to reserves, increasing proven and probable mineral reserves at Wahgnion by almost 40 percent to 1.61 million ounces, up from the previous 1.16 million ounces.
“The 40 percent increase in Wahgnion reserves announced today exceeded our initial guidance and expectations and, most importantly, led to an improved five and 10-year production and cash flow profile relative to last year’s initial feasibility study,” stated Richard Young, President and Chief Executive Officer.
“With average annual gold production of 132,000 ounces through to 2024, Wahgnion is expected to increase company-wide annual production by 50 percent to between 300,000 and 350,000 ounces. This will generate free cash flow to fund our growth plans, and move us closer towards our goal of becoming a multi-asset, mid-tier gold producer in West Africa.”
Highlights of the Wahgnion 2018 mineral reserve update include:
- Open-pit reserves increased by 450,000 ounces of gold, following a 33 percent increase in mineral resources announced on June 7, 2018.
- Extended initial mine life from 9 to 13 years as part of our ongoing goal to increase mine life and improve the mine plan.
- Initiating a follow-up development drill program within the existing deposits to further increase reserves and lower strip ratios.
- Beyond the four initial deposits, a multi-year exploration drilling program will focus on a number of highly prospective exploration targets within trucking distance of the plant to further extend Wahgnion’s mine life and optimise the mine plan.