Teranga Gold Corp reported that it expects a lower output of gold at its Senegal mine. The Sabodala Gold mine in Senegal in West Africa is facing drilling and loading issues as it struggles to get access to the higher grade zones.
The Toronto based company expects the yearly production to be 130,000 to 135,000 ounces of gold, down from the 140,000 ounces that it had previously estimated from the West African gold mine. Teranga Gold Corp had initially expected a quarterly gold production of 45,000 ounces.
The cost of production is also going to be higher than previously estimated by the Canadian company. They had initially put a production cost in the range of $850 to $875 per ounce, but now expected it to be higher at $875 to $925 per ounce.
Teranga Gold also said that the drill availability issue had been suitably resolved. They had scheduled two drill rigs to go onsite in December and another one is planned for the next quarter. The Sabodala gold mine has been operational since 2009. It is located 650 kilometres east of the capital Dakar within the West African Birimian geological belt in Senegal.