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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.

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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.

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2017 Highlights

Early-stage drilling continues to yield high-grade, near-surface and deeper gold mineralization at Golden Hill. The most recent diamond drill results were comprised of the remaining phase two and initial phase three drill results at the Ma prospect, one of two new discoveries reported by Teranga in April, 2017. All of the Golden Hill prospects drilled by the Company to-date are located approximately 5 kilometres from a central point as illustrated here.

Ma Prospect: Phase Two and Three Diamond Drilling

At the Ma prospect, 30 diamond drill holes, GHDD-28 to 58, were completed during the phase one and two drill evaluations, testing the primary northwest trending Ma structure, a secondary parallel, northwest trending structure and north-south trending cross-structures. Gold mineralization at the Ma prospect is hosted in an extensive, favourably altered, pyritic, silicified and brecciated shear system within a sequence of mafic volcanics intruded by at least two distinct phases of granitic intrusive bodies.

The phase three drill program began at the Ma prospect in early August, 2017 and is ongoing. This drill program is a continuation of the previous drill phases, and is designed to further evaluate the currently outlined strike extent on regularly spaced sections, extend drilling further along trend and continue testing down dip depth extensions below the favourable gold mineralised intervals previously announced from drill phases one and two. The area of recent drilling focus, the westernmost portion of the Ma prospect, suggests that mineralization is strengthening here, having returned some of our strongest grade-width intersections to-date, and remains open to further expansion. To date, a minimum 1,420-metre extent along strike of the primary Ma structure has been intersected successfully by diamond drilling within the overall + 2,000-metre drilled extent that includes both our diamond and reverse circulation drilling (click here for drill plan).

Representative sections from the Ma prospect are included in the Appendix of the press release dated September 13, 2017. These representative sections demonstrate the correlation and continuity observed for the mineralized structural zones from surface to drilled depths approaching 60-70 metres, and remains open. A complete listing of the latest drilling results from the 11 holes comprising the last portion of the phase two drill results and initial 7 holes of the phase three drill program is included in table one of the September 13, 2017 press release, as well as a complete listing of assays from all Ma prospect diamond drill holes completed to date.

Ma / Ma East Prospects: RC Drilling

Immediately to the east of the Ma phase one, two and three diamond drill program, recent drill testing by a series of reverse circulation profiles and scout reverse circulation drill holes at the Ma East prospect, as well as between the Ma and Ma East prospects was undertaken. This drilling is designed to fill in a gap between our easternmost Ma prospect diamond drill program and the Ma East prospect. As well, it is used to evaluate the prospective surface results of the Ma East prospect, including re-orientation of drilling direction to fully assess all structural zones. Results from this evaluation program will assist in follow-up diamond drilling throughout the eastern portion of the Ma prospect.

Results for this reverse circulation scout-drill program, designed to evaluate the potential linking of the Ma and Ma East prospects, are outlined in Table 2 of the September 13, 2017 press release, including the following highlight results:

  • 20 m @ 2.50 g/t Au including 8 m @ 4.65 g/t Au (GHRC-057)
  • 7 m @ 2.53 g/t Au including 2 m @ 4.29 g/t Au (GHRC-055)
  • 4 m @ 2.35 g/t Au (GHRC-054)

Jackhammer Hill, Nihiri and Peksou Prospects

Diamond drilling (minimum 1,500 metres) is also underway at the Jackhammer Hill prospect. Prior to this current drilling, the Company has drilled only two scout holes here which included a previously reported diamond drill interval of 1.26 g/t Au over 5.2 metres in GHDD-001. The current drilling program is outlined on the Jackhammer Hill drill plan, found here.

In addition to the ongoing drilling at Ma and Jackhammer Hill, drilling is also planned for both the Nihiri and Peksou prospects in the fourth quarter, following-up on favourable results from drilling evaluation programs earlier in the year. Geologic modeling and initial resource estimation for the most advanced prospects is also being planned for mid-year 2018.

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.

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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.