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exploration

Exploration in Senegal

Significant Potential on Large Land Package

Teranga’s exploration program is focused on growth through: (i) the conversion of resources to reserves; (ii) extensions of existing deposits and targets along strike on the Sabodala Mine License and Regional Land Package; as well as (iii) a systematic regional exploration program designed to identify high-grade satellite and standalone deposits.  Senegal remains an underexplored jurisdiction and Teranga has significant advantages as the “first mover” in the region.

Sabodala Mine License

The Sabodala Mine License covers 291km2 and provides great potential for both near-term reserve and production growth opportunities by increasing millable reserves on existing deposits that are within close proximity to the mill. The 2017 exploration budget for the Mine License is approximately $4 million. With encouraging results to-date, the 2017 exploration program continues to focus on further evaluation of the existing deposits in addition to drilling new target areas. An updated mineral resources and reserve summary was released July 2017,where proven and probable reserves increased to 2.7 million ounces of gold representing an increase of more than 400,000 ounces over the previous mineral reserves estimate.

To view the company-wide Mineral Reserves and Resources summary as at June 30, 2017, click here.

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2017 Highlights

Niakafiri Deposit

The Niakafiri deposit area is located within 5km of the Sabodala mill.
Considered the most prospective target on the mine license, a two-phase advanced drilling program commenced at the Niakafiri deposit in Q4 2016, where phase 2 has continued throughout the first half of 2017. The objectives of the drill program are to confirm model interpretations, upgrade the resource classifications, fill-in gaps between current pit outlines and test mineralization extents both along trend and to depth.

Results from the first half of 2017 have been reported for the initial 60 of the planned 115 drill holes and contain some of the widest mineralised intervals encountered within the Niakafiri deposit to date. Further, they confirm that there is considerable opportunity to extend the mineralisation both along strike and to depth. An updated mineral resource estimate incorporating these results was released in July 2017.

Due to these encouraging results at Niakafiri, Teranga is reviewing mine sequencing with a view of bringing forward the development of the Niakafiri deposit, which would be expected to increase near-term production and cash flows and would allow the deferral of underground development at the mine.

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Goumbati West Deposit

The Goumbati West deposit includes a north-northeast trending gold in quartz vein system comprised of several Zones (A, B, C and D) located approximately 10km from the Sabodala Plant. Drilling evaluation remains at an early stage and continues to target shallow, near-surface oxide mineralization along strike and to depths where mineralization is transitioning into fresher material. The Goumbati West quartz vein system displays very good hole to-hole and section-to-section continuity and remains open to further expansion to depth as well as along its current drill defined strike extent of 1,500-metres both north and south.

The recent drilling success of Zone D validates a direct linkage between the Goumbati West deposit with the Kobokoto South deposit. 

Other Mine Lease Prospects

Elsewhere on Sabodala’s mine lease, additional scheduled drilling programs are taking place at the Kobokoto South deposit and as follow-up on successful initial drilling at the Maleko prospect. In addition, a trenching program is planned for the Khayrosita Prospect area (formerly referred to as Torosita).

Regional Exploration

Teranga currently has nine exploration permits encompassing approximately 1,000km² of land surrounding its Mine License along a highly prolific gold belt.

The regional exploration program is focused on identifying flat-lying, near-surface multi-million standalone deposits, as well as smaller high-grade satellite deposits that are within trucking distance of the centrally located Sabodala mill.  With the initiation of a regional exploration program on this significant land package over the past four years, a tremendous amount of exploration data has been systematically collected and interpreted to prudently implement follow-up programs. 

Regional targets are in various stages of advancement and eventually prioritized for follow-up work and drilling. Early geophysical and geochemical analysis of these areas has led to the demarcation of at least 50 anomalies, targets and prospects.

Teranga has identified some key targets that, though early stage, display significant potential. Due to the sheer size of the land position, the process of advancing an anomaly through to a mineable deposit takes time with a systematic approach to maximize potential for success.

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2017 Highlights

Several regional exploration targets continue to return favourable trenching and drilling results, as described below. 

Marougou Main Deposit

The Marougou Main deposit is located approximately 25km north of the Sabodala Plant. Q1 2017 exploration at Marougou Main focused on the A1 Zone where four trenches were excavated to confirm and extend the gold mineralization intersected in late 2016 drilling. Favourable results from this trenching activity, combined with historic and more recent drilling results defines a continuous zone of gold mineralization over a minimum 700 metre strike extent. Additional step-out trenching is scheduled for Q2 2017, with further drilling anticipated, based on continued favourable results. 

Other Regional Prospects

On the Sounkounkou Permit, systematic exploration of the various targets continued with new trenching completed at both the Honey and KB prospects. Additional trenching is scheduled for the Honey prospect area, where a series of gold-in-soil geochemical anomalies have been partially outlined by prior trenching and drilling along a strike extent of approximately 1,200 metres. Recent exploration trenching of numerous geochemical gold-in-soil anomalies at the KB prospect have identified two broad mineralized zones warranting follow-up drilling evaluation in Q2 2017.

Elsewhere, Marougou Main is proximal to several other prospects, Tourokhoto, Marougou North, Marougou South and Dembala Hill, where trenching and drilling exploration programs are planned for the first half of 2017. 

 

Other Mine Lease Prospects

On the Sounkounkou Permit, systematic exploration of the various targets continued with new trenching completed at both the Honey and KB prospects. Additional trenching is scheduled for the Honey prospect area, where a series of gold-in-soil geochemical anomalies have been partially outlined by prior trenching and drilling along a strike extent of approximately 1,200 metres. Recent exploration trenching of numerous geochemical gold-in-soil anomalies at the KB prospect have identified two broad mineralized zones warranting follow-up drilling evaluation in  Q2 2017. Elsewhere, Marougou Main is proximal to several other prospects, Tourokhoto, Marougou North, Marougou South and Dembala Hill, where trenching and drilling exploration programs are planned for the first half of 2017. 

Exploration Results

A more detailed geologic summary of exploration results is available below. 

 

2016 Exploration Program:

Q4 2016 Exploration Update (January 29, 2017)
Q3 2016 Exploration Update - Senegal (October 28, 2016)
Q2 2016 Exploration Update (July 28, 2016)
Q1 2016 Exploration Update (April 28, 2016)

Technical Report (released March 23, 2016):

  NI 43-101 Technical Report Prepared by RPA Inc.     Appendix 1 Tables and Figures

2015 Exploration Program - Drill Tables and Figures (released January 28, 2016):

Mine License and Regional Land Package

2014 Exploration Program - Drill Tables and Figures

Released February 23, 2015:

Masato NE
Golouma NW
Kerekounda
Soreto

Released October 30, 2014:

Soreto Diamond Drill Hole (DDH) Intercepts

Released September 15, 2014:

Masato Reverse Circulation (RC) Intercepts
Masato Diamond Drill Hole (DDH) Intercepts
Masato Exploration and Infill Drill Program (Map)

Downloads

Reserve & Resource Summary

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Sabodala Technical Report

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