- Teranga Gold (TGZ) has published an updated mineral resource estimate for its wholly owned Golden Hill Project in southwest Burkina Faso
- The project now hosts an indicated resource of 12.62 million tonnes averaging 1.85 grams per tonne of gold, representing a total of 750,000 ounces of gold
- This estimate is based on the results of more than 900 drill holes totalling in excess of 100,000 metres, which focused on five deposits and a number of other prospects
- The company now intends to expand exploration work to new areas of interest and apply for the conversion of exploration permits to a mine license
- Teranga Gold (TGZ) is currently up 1.47 per cent and is trading at C$14.52 per share
Teranga Gold (TGZ) has published an updated mineral resource estimate for its wholly owned Golden Hill Project in southwest Burkina Faso.
Located within the central part of the Houndé Greenstone Belt, a highly mineralised gold region which currently hosts three active mines, the project is considered to be a key component of Teranga’s growth pipeline, and has so far delivered several high-grade, near-surface oxide gold discoveries.
According to today’s release, the Golden Hill Project is now thought to host an indicated mineral resource of 12.62 million tonnes at an average grade of 1.85 grams per tonne of gold, representing a total of 750,000 ounces of gold.
The estimate also outlines an inferred resource of 11.48 million tonnes at 1.81 grams per tonne of gold for a total of 670,000 ounces, as well as significant along-trend and to-depth continuity of gold mineralisation.
These estimates are based on more than 900 reverse circulation and core drill holes totalling in excess of 100,000 metres, which targeted five key deposits and a number of other prospects.
Richard Young, President and CEO of Teranga Gold, said the drilling and preliminary engineering work to date confirms the potential for a high-grade open pit gold mine at the Golden Hill Project.
“We expect to spend approximately $15 million on our resource expansion program at Golden Hill through the end of 2021 in order to reach our goal of outlining a resource of between 2 and 3 million ounces of gold.
“Despite today’s higher gold prices, our hurdle rate for new projects remains at achieving an internal rate of return of 15 per cent at $1,300 gold, and Golden Hill’s development will be conditional on meeting or exceeding that threshold,” he added.
Going forward, Teranga has said it now plans to submit a request to the government of Burkina Faso for the conversion of its current Golden Hill exploration permits to a mine license.
Teranga Gold (TGZ) is currently up 1.47 per cent to C$14.52 per share at 1:44pm EDT.