Oct 11 2013
Teranga Gold Corporation ("Teranga") today announced that the Company has filed a National Instrument 43-101 compliant Sabodala Technical Report on Sedar (www.sedar.com). Teranga previously outlined a revised mine plan for Sabodala on September 19, 2013 and this Technical Report provides the basis for this plan.
The new mine plan is expected to deliver between 210,000 and 240,000 ounces(1) of annual gold production over the period 2014 to 2016 at all in sustaining cash cost estimated at between $800 and $1,000 per ounce. As a result, at $1,350 per ounce gold, the Company expects to generate between $150 and $200 million in free cash flow after $80 million in capital expenditures and $85 million in debt repayments over the period.
Richard Young, President and Chief Executive Officer, stated that, "On a standalone basis this plan allows us to generate significant free cash flows over the coming three years. We are looking to augment this plan once an agreement is reached with our partners in the Oromin Joint Venture (OJVG). The OJVG satellite deposits are located adjacent to Sabodala and have an estimated 1.45 Moz in open pittable reserves. While a mine plan combining the OJVG material will be transformational on all financial and operating metrics, the revised standalone mine plan demonstrates the strength of our current operations and provides the basis for further growth."
The new optimized mine plan has been designed to provide earlier access to higher grade material within the Sabodala pit and reduce overall waste material moved, freeing up mobile equipment for the development of the OJVG satellite deposits.
"With the completion of the Oromin acquisition, we are now focused on working together with our joint venture partners to come to an agreement to process the OJVG ore through our mill. We see tremendous opportunity in this prolific, mining-friendly region and feel very fortunate to have a state of the art process facility, the only one in the country", said Alan R. Hill, Executive Chairman of the Company.
Key milestones expected through the fourth quarter 2013 as announced recently by the Company:
- Filing the Mine Plan on a standalone basis (43-101 Technical Report);
- Completion of the 100% acquisition of Oromin Explorations Ltd.;
- Reiterated original guidance:
- Production is expected to be at the higher end of the guidance range of 190,000 to 210,000 ounces while total cash costs are expected to be at the lower end of the guidance range of $650 to $700 per ounce;
- Continuing to work with our joint venture partners to agree on development of the OJVG deposits;
- Continuing to work with the Senegalese Government on the integration process of the OJVG Golouma project with Sabodala; and
- Completion of the consolidated mine plan integrating the OJVG Golouma project, as well as a combined reserve update which the Company expects to release with its year-end 2013 results.
(1) This production target is based on existing proven and probable reserves only.
Source: http://www.terangagold.com/