True Gold Mining Inc. ("True Gold" or the "Company") (all dollar figures in US dollars) is pleased to provide an update for the Karma Gold Mine, including the stacking of ore on the leach pad.
"With construction nearing completion and commissioning underway, our team is now focusing on ramping up to commercial production," stated Christian Milau, President & CEO of True Gold. "Our mining team has been in full operation for the past four months, starting with pre-stripping waste and now stockpiling ore. Our processing team has successfully commissioned the ore crushing to stacking circuit, and we are in the final stretch of process plant completion in preparation for plant commissioning. It's incredibly exciting to be on the eve of a major company milestone."
To view the latest construction photos, click here: http://truegoldmining.com/our-projects/karma#field-project-tab-tab-7
Construction at Karma is approximately 94% complete with commissioning being the major activity on site today. Over 500,000 tonnes of stockpiled ore will provide the initial feed to the fully commissioned soft rock crusher, agglomeration and stacking circuit.
Soft Rock Crushing, Agglomeration, and Ore Stacking Circuit:
Ore has been introduced into the crushing and agglomerating circuits, and agglomerated ore is being stacked on the leach pad.
Piping and solution collection systems for leach pad cells 1 to 3 have been completed with the installation of the last of the HDPE lining for the pad to pond interface. Cell 1 is receiving agglomerated ore, while Cells 2 and 3 will be completed in the coming weeks, with final placement of the drainage layer underway. Cells 4 through 9 are levelled and are ready for HDPE lining installation.
Construction of the three process solution ponds (pregnant, intermediate, and barren) is complete. They are full of water, with pontoon pumps installed.
ADR Plant and Gold Room:
The ADR plant is nearing completion with the final installation of piping, electrical and instrumentation remaining. The main construction focus is now on completion of the gold room where are all the equipment is in the building ready to be placed in position once the second floor brickwork and plastering is completed. The gold vault has been completed and is ready to receive doré.
Site structural steel work is complete, and the remaining civil works are limited to the gold room and minor infrastructure items.
Phase I of the grade control drilling program for the Goulagou II pit has been successfully completed and the results are consistent with the anticipated tonnage and grade for the volume drilled. Phase II of this ongoing program will start in mid-February.
As at December 31, 2015, management forecasts remaining project spend to completion of $23.5 million, which excludes corporate costs. Remaining project costs will be funded by (1) True Gold's December 31, 2015 cash position of $5.1 million; (2) $15.4 million remaining on the US $100 million Franco-Nevada/Sandstorm Gold facility (all $15.4 million drawn in January 2016); and (3) $20 million Increase Option, $5 million of which was drawn in January 2016. To help offset further drawing on the Increase Option, the Company has drawn $6 million of the $10 million equipment re-finance facility.
David Laing, MIMMM Chief Operating Officer of True Gold is the designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects and has reviewed and verified that the technical information contained in this release is accurate and approves of the written disclosure of same.
About True Gold
True Gold Mining Inc. is where gold comes to life. We are committed to growing a successful gold 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, and production worldwide.
ON BEHALF OF THE BOARD
Christian Milau, President & CEO