TSX : TGZ $ 2.98 +0.11 +3.83% Volume: 377,874 August 18, 2017
GOLD $ 1,285.25 -3.51 -0.27% Volume: August 18, 2017

Pricing delayed 20 minutes

Exploration in Burkina Faso

Mining-friendly Jurisdiction in French West Africa with Modern Mining Code

Acquired in October 2016 as part of Teranga’s acquisition of Gryphon Minerals,  the Company currently holds the fully permitted Banfora gold project and two regional exploration joint venture properties: Golden Hill and Gourma. Burkina Faso is host to a number of producing gold mines which is anticipated to increase given current levels of mineral exploration and government support for the mining country’s industry.

In 2016, the Company completed the first phase of a substantial exploration program to support its growth objectives for the newly acquired assets, which was to confirm and increase the resource base of the Banfora gold project, commence exploration programs at both Golden Hill and Gourma, and complete an updated feasibility study for the Banfora gold project mid-2017.

Banfora Mine License

Mine License Reserve Development

The Banfora gold project includes both a mine license with an area of 89km2 and exploration licenses surrounding the mine license comprised of five exploration permits totaling approximately 1,000km2. The group of properties are located in the south-west of Burkina Faso encapsulated in the Loumana Birimian greenstone belt.

A multi-year exploration program is underway on the Banfora mine license. In 2016, Teranga completed the first phase of a substantial exploration program to confirm and increase the reserve base on the four main deposits located on the property: Nogbele, Fourkoura, Samavogo and Stinger. The Company believes there is potential to add reserves at depth and along strike in each of these deposits, as well as through a number of additional priority targets located on the prospective land package, each of which is within trucking distance of the proposed mill.

Work is currently being finalized on an updated National Instrument 43-101 Technical Report for the gold project, which is expected to be released in August 2017. Depending on the results of the feasibility study and an investment decision by the Board of Directors, the project may move into major construction and development by the end of 2017.

The mine license is 90% owned through Teranga’s 100% owned subsidiary Société Minière Gryphon SA, with the Burkina Faso government owning the remaining 10% interest.

Click to Enlarge

Golden Hill Regional Exploration Property

Uniquely  Positioned at Golden Hill

Teranga’s Golden Hill property consists of three adjacent exploration permits covering 468km2 located in the southwest Burkina Faso, approximately 200km northeast of the Banfora gold project. Golden Hill is considered particularly prospective as it is located within the central part of the highly mineralized Houndé Greenstone Belt. This belt hosts a number of high-grade gold discoveries, including the Siou, Yaramoko and Houndé deposits, the latter property being contiguous with Golden Hill. To the south of Golden Hill is another large land position where active exploration programs are well underway. Golden Hill straddles the same stratigraphy and structures that host these deposits.

Through its acquisition of Gryphon Minerals Ltd., Teranga has an earn-in agreement on the Golden Hill property with Boss Resources Limited (ASX:BOE) pursuant to which Teranga, as the operator, can earn an 80 percent interest in the joint venture upon delivery of a feasibility study and the payment of AUD2.5 million.

Click to Enlarge

2017 Highlights

Recent results at Golden Hill comprise of Phase 2 drill results at the Ma and Nahiri prospects, two new discoveries initially reported in April 2017, as well as initial drilling results from two new targets, Peksou and Jackhammer Hill.  The four priority prospects are located approximately 5km within a central point. Early stage drilling has yielded excellent grades and widths displaying good continuity along trend and mineralization remains open along strike. 

Ma Prospect

Gold mineralization at the Ma prospect is hosted in an extensive, favourable altered silicified and brecciated shear system within a sequence of mafic volcanics intruded by at least two distinct phases of granitic intrusive bodies.

During the initial stage of the Phase 2 drill evaluation in Q2 2017, 30 core drill holes were completed, testing the primary northwest trending Ma structure, a secondary parallel, northwest trending structure and north-south trending cross-structures. As of July 2017, a minimum 1,300-metre extent along strike of the primary Ma structure has been successfully intersected by core drilling.  An additional 500-metres along strike, immediately to the east of the Ma core drilling, has been drill tested by a series of reverse circulation profiles for which results are pending. 

Click to Enlarge

 Highlight results from Phase 2 include:
9 m @ 4.04 g/t Au including 3 m @ 9.44 g/t Au (GHDD-040)  
8 m @ 2.04 g/t Au including 3 m @ 4.02 g/t Au (GHDD-052)
11 m @ 1.80 g/t Au including 3 m @ 2.79 g/t Au (GHDD-033) 
13 m @ 1.30 g/t Au including 7 m @ 1.95 g/t Au (GHDD-031) 
4 m @ 3.38 g/t Au (GHDD-038)

A complete table of Phase 2 drill results and cross-section maps from Ma are available in the press release dated July 24, 2017.

The Phase 2 drill program (minimum 7,500 metres) is scheduled to re-start at Ma in early August to further evaluate the strike extent on regularly spaced sections, extend drilling further along trend and continue testing down dip depth extensions below the favourable gold mineralised intervals for holes completed.      

Nahiri Prospect

Nahiri is also contained in a mafic volcanic host intruded by a set of sub-vertical porphyritic mafic intrusives, seven core holes were completed during Phase 2 drilling to both confirm earlier reverse circulation drill results and provide better geological and structural orientation information at this new discovery.  Both infill and step-out drilling were utilized to further evaluate the minimum 350-metre strike extent for the Nahiri mineralisation. Confirmed and refined earlier reverse circulation drill results at Nahiri with favourable core intersections include:

Click to Enlarge

  • 34 m @ 6.08 g/t Au including 14 m @ 12.38 g/t Au (GHDD-026)
  • 10 m @ 1.89 g/t Au including 2 m @ 5.18 g/t Au (GHDD-021)
  • 8 m @ 2.09 g/t Au including 1 m @ 12.14 g/t Au (GHDD-025)

A complete table of Phase 2 drill results from Nahiri is available the press release dated July 24, 2017. The Phase 2 drill evaluation program (2,000 metres) will re-start at the Nahiri prospect in the fourth quarter to test the strike extent and further assess the interpreted geometry of the mineralised zones comprising the Nahiri prospect.

Peksou Prospect

Peksou consists of a broadly altered structural zone that crosses both mafic volcanics and granitic intrusives displaying favourable grades and widths in both host units.  Generally, the widths of the mineralized system increases within the more brittle granitic host and higher-grades tend to be more concentrated within the more ductile mafic volcanic host and at the geologic contact.   Five core holes were drilled at Peksou during the initial drill phase to further evaluate the minimum 600-metre strike extent for the mineralisation.  These holes were designed to validate a series of historical reverse circulation holes that were analyzed without proper quality assurance / quality control protocols which appeared to have some down-hole assay smearing/contamination and for which no reverse circulation chips remained for inspection. Three of the holes were twins of these reverse circulation holes and two holes were drilled in part down the interpreted trend of mineralisation to obtain an overall sense of the appropriate mineralised grade. Although one of these holes, GHDD-004, drilled down the trend of mineralisation, it did enhance the geologic model and has extended known mineralisation to greater depth beyond historical drill holes.

 A core drilling evaluation (minimum 2,500 metres) will resume in Q4 2017 towards defining the along trend extensions of this high-grade mineralised system and to further test the geologic model at greater depths. Favourable drill intersections from the initial validation drill program at include:

  • 36 m @ 2.32 g/t Au including 12 m @ 3.70 g/t Au (GHDD-003)
  • 8 m @ 5.97 g/t Au including 3 m @ 13.46 g/t Au (GHDD-005)
  • 6 m @ 20.33 g/t Au including 2 m @ 56.16 g/t Au (GHDD-006)

A complete list drill results and cross-sections maps from Peksou are available in the press release dated July 24, 2017.

Jackhammer Hill Prospect

Drill evaluation is at an early stage for the Jackhammer Hill prospect, a never before drilled, robust gold-in-soil and auger geochemical anomaly measuring in excess of 2km of strike extent. Although an area of artisanal activity along the entire known extent of the Jackhammer Hill anomaly exists, the geology and hosting mineralization here is not well understood. It appears to be a complex of altered shear structures within a mixed sequence of volcanic and intrusive units similar to that observed at Peksou. Two core holes were drilled to obtain structural orientation and geological information to guide future drill campaigns. Drill results included 5.2 metres @ 1.26 g/t Au (GHDD-001) and 1 metre @ 1.48 g/t Au (GHDD-002). Additional drilling (minimum 1,500 metres) is planned to begin in August 2017.

Gourma Regional Exploration Property

Early Stage Exploration

The Gourma property consists of six contiguous exploration permits (Diabatou, Tyara, Foutouri, Boutouanou, Tyabo and Kankandi) covering a total area of approximately 1,300km2 in eastern Burkina Faso. Gourma is located within the Fada N’Gourma Greenstone Belt, 250km east of Ouagadougou and only 80km south-southwest of Niger’s largest gold deposit, the Samira Hill gold mine. The property includes approximately 60km of a gold-bearing crustal shear that has received very little modern exploration.

Through its acquisition of Gryphon Minerals Ltd., the Gourma tenements are subject to a shareholder and earn-in agreement between Boss Resources Limited and Askia Gold Pty Ltd.

Click to Enlarge

2017 Highlights

An initial field program consisting of geological mapping, prospecting and auger sampling commenced in Q2 2017 where ten prospects have been prioritized for more advanced work in 2017. Based on positive auger results, an initial core drilling evaluation began late in Q2 2017 resulting in five holes at three prospects thus far. A follow-up evaluation is planned for Q4 2017 once the rainy season has concluded.