Golden Hill

Golden Hill Exploration Project

Numerous high-grade, near-surface gold discoveries.
Early-stage initial mineral resource estimate released February 2019.

The Golden Hill property is comprised of three adjacent exploration permits covering 468 km2 in southwest Burkina Faso, approximately 250 km northeast of Wahgnion. Golden Hill is considered particularly prospective as it is centrally located within the highly mineralized Houndé Greenstone Belt, which is host to several high-grade gold discoveries. Teranga's property straddles the same stratigraphy and structures that host the Houndé, Siou and Yaramoko deposits.

Early-stage Initial Resource (as at November 30, 2018):

  • Indicated mineral resources of 6.40Mt averaging 2.02 g/t gold for 415,000 ounces
  • Inferred mineral resources of 11.95Mt averaging 1.68 g/t gold for 644,000 ounces
  • Excellent along trend and to-depth continuity of gold mineralization at all prospects

 

Ongoing Drill Program Targets New Zones and Prospects

A 27,000-metre exploration program was completed at Golden Hill in Q1 2020. The principal objective of this program was to facilitate an update to the initial resource estimation and support a technical update in 2020 through the drilling of mineralization extensions at a number of deposits and prospects with the current resources, as well as initial drilling at a number of new targets. More than a dozen separate drill targets were identified for inclusion in this drilling evaluation program, including five that have not been previously drilled.

In January 2020, Teranga announced that the first 20,000 metres drilled as part of the current 27,000-metre program returned high-grade gold intercepts from near surface to depth at several existing targets and encouraging gold grades in numerous step-out holes. The campaign has also uncovered a new discovery: the Ma Jonction prospect, located between Ma Main and Ma North.

Preliminary Economic Assessment Work Continues

The Company has commenced initial studies and test work in support of a forthcoming preliminary economic analysis (“PEA”) at Golden Hill. Metallurgical test work has been underway at ALS (Perth) using a number of composites from the Ma suite, as well as separate composites for the Jackhammer, A, B and C-Zones and Peksou deposits.

Upon completion of this test work to determine the basis for an optimized flowsheet for all of these deposits, PEA level engineering in concert with ESIA baseline work will commence to determine an estimate of capital and operating costs that support an initial mine plan concept.  This work will provide the basis for the initial technical and economic assessment of the project.

Golden Hill also has a funding commitment in place. Subject to satisfaction of conditions precedent relating to the project’s initial technical and economic assessment, Teranga has secured $25 million in debt financing to advance the Golden Hill project through to feasibility stage development, which will include the next steps for drilling mentioned above, as well as feasibility stage engineering work.

The Ma Main deposit currently hosts the largest resource estimate and is also the most extensively drilled of those being evaluated currently at Golden Hill. Ma Main has a current strike length of approximately 1.5 kilometres. The lesser drilled Ma East prospect ties on directly to Ma Main and adds a further 1.2 kilometres of strike extent to this continuous mineralized system. Gold mineralization at Ma is hosted by strike-extensive, favorably altered, pyritic, silicified and brecciated shear systems within a sequence of mafic volcanics intruded by at least two distinct phases of granitic intrusive bodies. The primary gold mineralization at Ma is hosted within two extensive brecciated fault zones (BZ-1 and BZ-2) that demonstrate excellent continuity throughout the areas drilled to date. Of further note is the favorable geometry of both BZ-1 and BZ-2 which are spatially proximal, generally parallel and have moderate dip orientations which are advantageous for a future mining scenario. As drilling has progressed, additional mineralized zones have been intersected, predominantly in the hanging wall of BZ-1, which further enhances the upside potential at this advanced prospect. In addition, within this developing structural complex we recognize other prospective areas displaying similar favorable structural orientation and geochemical anomalism to the south.

At Ma North, diamond drill results continue to confirm that a third well-mineralized breccia zone (BZ-3) exists within the Ma structural complex where previous drilling had identified BZ-1 and BZ-2. Drilling at Ma North is still at an early-stage and predominantly at shallow depths when compared to more advanced areas of the Ma Structural Complex. Early-stage hole-to-hole correlation is demonstrating excellent continuity of mineralization. Additional drilling is planned to further evaluate Ma North both along trend and to depth where the breccia-hosted mineralization remains open to expansion.

Recent drilling has identified a new prospect within the Ma Structural Complex referred to as the Ma Jonction prospect. Ma Jonction is defined by a series of predominantly NE trending mineralized structures which are located midway between the generally NW-SE trending Ma Main and Ma North deposits. Initial trenching and drilling results have been positive and further evaluation will be directed here towards expanding the mineralization observed both along trend and further to depth.

In addition, more recent drilling has identified and partially outlined, by trenching and drilling, another very interesting structural zone within the Ma Structural Complex referred to as Ma South which is comprised of at least seven distinct and inter-related structures displaying favorable-looking shearing, alteration, veining and brecciation.

Ma Structural Complex Deposits and Prospects

To-date, the Company has drill tested the E-W trending C-Zone deposit over a strike length of approximately 850 metres. C-Zone remains open to depth and appears to intersect with the southeastern portion of the Peksou deposit, which may enhance its strike extent to the east.

Gold mineralization is localized in a discrete, mafic volcanic hosted shear zone system that displays alteration, veining and brecciation characteristics similar to those observed at the nearby Ma Main deposit. The correlation of gold mineralized zones between drill holes has been excellent along the drilled strike extent.

Recent drilling evaluation at C-zone has identified an N-S trending set of cross-structures that display favorable alteration, veining and brecciation as well as localized occurrences of visible gold. Drilling evaluation continues at this newly recognized mineralized structural orientation within the C-zone deposit.

A-Zone and B-Zone Prospects

C-Zone Deposit

Diamond drilling at the Peksou prospect now covers a 600-metre strike extent and locally to vertical depths approaching 100 metres. Gold mineralization at Peksou is hosted within both mafic volcanic and granodiorite intrusive units where two distinct styles of alteration have been noted – one hematite dominant and the second sericite dominant. With multiple favourable results from the latest drill phase, confidence in the interpretation has improved considerably and correlation of mineralized zones, both hole-to-hole and section-to-section, is greatly enhanced.

Peksou Deposit

Nahiri Prospect

At Jackhammer Hill, the gold mineralized zones identified so far include a series of southeast dipping horizons hosted within an altered and sheared diorite intrusive unit. Drilling has been directed along an approximate 1,350-metre strike extent, predominantly to vertical depths of 50 to 75 metres and locally to vertical depths of approximately 125 metres. A 200-metre long central portion of the mineralization includes a number of previously announced high-grade intervals hosting visible gold in the drill core.

Next, drilling will focus on increasing both lateral and depth extensions of the mineralized zones including the high-grade central portion of the prospect.

Jackhammer Hill Deposit

Other Zones