Teranga Gold Announces Results from Ongoing Drill Program at Golden Hill

Teranga Gold Corporation has reported positive outcomes from its drilling program underway at Golden Hill, situated inside the central part of the Houndé Greenstone Belt. This area is a highly mineralized gold region with three gold mines functional in southwest Burkina Faso, West Africa.

Golden Hill is an advanced-stage exploration project wholly owned by Teranga. In the past two years, it has delivered several high-grade gold discoveries.

Of the ongoing 27,000-m program, 20,000 m have been drilled, returning high-grade gold intercepts from near-surface to depth at various current targets and encouraging gold grades in a number of step-out holes. As part of the project, a new discovery has also been made: The Ma Jonction prospect, situated between Ma North and Ma Main.

Following are the highlights of the Ma Jonction prospect:

• 3 m at 44.11 g/t uncut gold from 33 m down hole depth (DHD) (GHDD-572)
• 8 m at 6.40 g/t gold, which includes 1 m at 15.49 g/t and 3 m at 10.09 g/t gold from 10 m DHD (GHDD-574)

We are excited about the results we are seeing from the current drill program, which is intended to increase resources as we move the project through a preliminary economic assessment and into feasibility.

Paul Chawrun, Chief Operating Officer, Teranga Gold Corporation

Chawrun continued, “In addition to another high-grade, near-surface discovery, the drill results reported today demonstrate positive continuity, grade, width and extended mineralization in several zones. Based on these results, we remain on track to update the initial resource estimate we published in February 2019(1) and apply for a mine license in the third quarter of this year.”

Golden Hill Drilling Highlights

Ma Main Prospect

• 4 m at 16.15 g/t uncut gold from 24 m DHD (GHRC-148)
• 7 m at 17.75 g/t gold, which includes 3 m at 40.12 g/t uncut gold from 164 m DHD (GHRC-153)
• 11 m at 6.38 g/t gold, which includes 4 m at 11.58 g/t gold from 168 m DHD (GHDD-602)
• 21 m at 3.70 g/t gold, which includes 5 m at 7.77 g/t gold from 137 m DHD (GHDD-600)

Ma North Prospect

• 7 m at 2.67 g/t gold from 10 m DHD, and 4 m at 2.97 g/t gold from 81 m DHD (GHDD-137)
• 5 m at 3.09 g/t gold from 11 m DHD, and 5 m at 4.64 g/t gold from 19 m DHD (GHRC-133)
• 4 m at 46.05 g/t gold, which includes 1 m at 180.5 g/t uncut gold from 37 m DHD (GHDD-501)

C-Zone Prospect

• 6 m at 4.87 g/t gold, which includes 1 m at 27.10 g/t gold from 100 m DHD (GHDD-563)
• 7 m at 32.67 g/t gold, which includes 1 m at 196.6 g/t uncut gold from 46 m DHD (GHDD-517)
• 11 m at 2.60 g/t gold, which includes 5 m at 5.03 g/t gold from 22 m DHD (GHDD-558)

A-Zone Prospect

• 5 m at 12.13 g/t uncut gold from 33 m DHD and 3 m at 9.67 g/t gold from 63 m DHD (GHDD-547)
• 15 m at 2.03 g/t gold, which includes 4 m at 3.96 g/t gold from 1 m DHD (GHDD-552)
• 38 m at 1.58 g/t gold, which includes 7 m at 2.43 g/t gold from 0 m DHD and 1 m at 30.83 g/t uncut gold from 51 m DHD (GHDD-546)

Ongoing Drill Program Targets New Zones and Prospects

The ongoing drill program began in the second half of 2019 and has assessed nine separate targets partially, including four portions of the Ma Structural Complex (Main, North, East, and Jonction), A-Zone, C-Zone, Peksou Basin, Gogoba West, and Copper.

Teranga intends to continue drilling at a majority of these targets in the first half of 2020, and expects to target at least five more zones, which include Ma South, Gogoba North, Nahiri, Pourey, and Peksou North.

The main aim of this in-depth drilling project is to enable an update to the Golden Hill initial resource estimation reported in February 2019. The focus of the drilling is to extend, along trend and at depth, components of the preliminary resource estimation, and to start assessing several additional target areas.

Results from drilling performed until now have shown positive continuity and mineralization extensions at A-Zone, C-Zone, and various components at the Ma structural complex. Moreover, early-stage scout drilling programs warrant a follow-up drilling stage at Gogoba West, Peksou Basin, and Copper.

Currently, one reverse circulation drill and two diamond core drills are functional at Golden Hill. The budget for the ongoing exploration and drilling program, slated to be completed by the end of February 2020, is $5.0 million, which is being sponsored by the Golden Hill tranche of the Taurus debt facility.

Teranga is developing our strong organic growth pipeline through this and other drill programs planned for 2020 at Golden Hill and across our sites in Burkina Faso, Senegal and Côte d’Ivoire. With our second mine in production at Wahgnion, we have proven our ability to identify, finance and build projects from early-stage exploration to commercial production in just a few short years.

Richard Young, President and CEO, Teranga Gold Corporation

Future Steps for Golden Hill

• Completion of the ongoing 27,000-m drill program.
• Starting a new $8.5 million exploration and drilling program to continue the assessment of deposits and prospects identified so far and to expand drilling outward to new regions of interest.
• Proceed with metallurgical test work, early-stage engineering studies, social and environmental evaluation while moving toward a preliminary economic assessment “PEA.”
• Present to the Burkina Faso government a request for converting the Golden Hill exploration license to a mining license in 2020, on the basis of a PEA-level technical study.