First Mining Drc-Zambia Sep/Oct 2017 FMDRC-Zambia Sep Oct | Page 29

Projects Banfora FS demonstrates “solid project economics” Canada's Teranga Gold Corporation, listed on 000 ounces,” stated Richard Young, President production blast hole sampling as part of the the TSX and ASX, has produced a positive and CEO of Teranga. grade control strategy. e mine operations will Feasibility Study (FS) on its permitted Banfora As detailed in the FS, the mine will have an emulate Sabodala, with multiple near-surface gold project in Burkina Faso, which it acquired average annual production of 131 koz over a pits feeding the process plant. last year as part of its acquisition of Australia's nine-year mine life at an average all-in Gryphon Minerals. Based on initial gold sustaining cost (AISC) of US$843/oz. e process plant design is based on a reserves of 1,2 Moz, the FS's base case Teranga expects an improvement in the conventional CIL gold process demonstrates solid project economics with a 15 project's economics following completion of an consisting of primary crushing, SAG and ball owsheet % internal rate of return at US$1 250 per ounce in ll drill programme aimed at converting milling, with a pebble crusher, CIL tanks, gold for a 2,4 Mt/a CIL processing facility inferred resources to reserves to be completed elution, electro-winning and gold smelting to modelled aer the plant located at Teranga's later this year, with a reserve update expected in produce doré onsite. roughput is expected to Sabodala gold operation in Senegal. the rst half of 2018. range between 2,2 and 2,5 Mt/a, depending on e project, located in the south-west corner of e initial gold reserves are derived from four predicted plant recovery is 92 %, with so Burkina Faso, comprises a mine licence of 89 deposits (Nogbele, Fourkoura, Samavogo, and material recoveries from some zones reaching km2, and a regional exploration land package of Stinger) within the Banfora mine licence and as high as 95 %. nearly 1 000 km2. are anticipated to increase in the near term the blend of so and hard ore. e average e project is 90 % owned by Teranga with the based on signi cant potential within existing A construction readiness programme is Government of Burkina Faso holding a 10 % resource shells. under way for initial engineering, site free carried interest. It is easily accessible by Mining will be by way of conventional open-pit infrastructure and preparation of large vendor road and is in close proximity to the regional mining techniques using drill and blast with packages. e engineering, procurement and town of Banfora and the major city of Bobo- material movement by hydraulic excavators construction management (EPCM) scope is Dioulasso. and trucks. e project scale suits 110- to 140- currently in a tender process amongst several “Development of the Banfora project is an t o n n e c l a s s e x c av at o r s i n a b a c k h o e EPCM service providers with construction important step towards attaining our goal of con guration matched to 50-tonne class experience in West Africa and Burkina Faso. An becoming the next multi-asset, mid-tier gold mining haul trucks operating at 5 m bench award decision is expected shortly. Plant producer in West Africa. It will diversify our heights. construction is expected to commence in Q2 production base and add signi cant scale by Following operating procedures similar to 2018, with the rst gold pour following within increasing our consolidated annual gold Sabodala, an extensive reverse circulation (RC) approximately 18 months of the construction production by 50 % to between 300 000 and 350 drill programme is planned to supplement the start date. FMDZ | Sep - Oct 2017 | Page29