The Banfora Gold Project was acquired in October 2016 as part of Teranga’s acquisition of ASX-listed Gryphon Minerals. The fully permitted, high-grade, open pit project is located in the south-west of Burkina Faso, West Africa in a major gold producing district host to several world class gold deposits. Teranga owns 90% of the Project and the Burkina Faso government owns the remaining 10%. The Banfora Project area contains exploration licenses covering approximately 1,000 Km2 and is encapsulated in the Loumana Birimian greenstone belt within Burkina Faso.
The Project is easily accessible by sealed road in close proximity, and is located close to the major regional town of Banfora. A 100 kilometre major road connects Banfora town to the city of Bobo-Dioulasso and a further 350 kilometres to Burkina Faso's capital city of Ouagadougou. An existing power line routing form Cote d'Ivoire is located approximately 30 kilometres from the eastern boundary of the Project.
The Banfora Gold Project has a JORC compliant resource base derived from the four main prospect areas, the Nogbele, Fourkoura, Samavogo and Stinger gold deposits. There is potential to add reserves at depth and along strike in each of these deposits, and through a number of exploration targets located on the highly prospective land package, each of which is within trucking distance of the proposed mill.
Gryphon had intended to develop Banfora utilising a 2Mt heap leach processing facility. Despite the most recent Gryphon Reserve estimate for the Banfora Gold Project of 826,000 ounces (17.4 Mt at 1.5 g/t) based on the heap leach option, Teranga’s preferred development path will be based on an optimized CIL flowsheet (as stated in the Company’s press release dated June 19, 2016 and in the Scheme Booklet announced on the ASX on August 17, 2016). The Proven and Probable Mineral Reserve estimate of 1 million ounces is based on Gryphon’s CIL feasibility study Mineral Reserve estimate of 1.05 million ounces (16.7 Mt at 1.95 g/t) issued in January 2013.
Benefiting from an optimization study to be completed by Teranga, the Company anticipates updating the feasibility study and the resource and reserve estimates in the first half of 2017.