Wahgnion

Wahgnion Mine License

Significant upside potential beyond four main deposits.
Located in a major gold district

The Wahgnion gold project includes both a permitted mine license with an area of 89 km2 and five surrounding exploration permits totaling approximately 920 km2. The group of properties are located in the south-west of Burkina Faso encapsulated in the Loumana Birimian greenstone belt. Teranga has a 90% interest in the mine license with the Burkina Faso government owning the remaining 10%, while all five exploration permits are 100% held by Teranga.

Mine License

A multi-year exploration program is underway on the four main deposits located on the Wahgnion mine license: Nogbele, Fourkoura, Samavogo, and Stinger. Diamond and RC drilling exploration activity began in mid-2020 at the Fourkoura deposit. Drilling is focused on filling in gaps from previous drilling and evaluating the opportunity to expand the Fourkoura mineralization to the south. RC drilling was related to infrastructure sterilization drilling and occurred at both Fourkoura and the Nogbele deposits.

Exploration activities are expected to continue through 2020 and into 2021 at a variety of prospects throughout the mine license and regional properties. The exploration will focus on resource identification and delineation with the goal of extending mine life. 

Teranga budgeted $15 million for exploration activities in Burkina Faso during 2020, including both Wahgnion and Golden Hill.

Highlights:
  • A 73,000-metre infill drill program was completed in 2017 on the Nogbele, Fourkoura, Stinger and Samavogo deposits with the objective to increase drill hole density and update the existing Inferred Resources located adjacent to the reserve pits.
  • Based on drill results, measured and indicated resources increased to 2.4 million ounces of gold at a grade of 1.51 g/t, inclusive of 1.61 million ounces of proven and probable reserves grading 1.61 g/t.
  • Updated NI 43-101 Technical Report filed in October 2018
  • Technical Report was amended and refiled on July 31, 2019
  • Phase 1 grade control drill program completed at Nangolo starter pit within the Nogbele deposit. The drilling program consisted of 168 reverse circulation holes totalling 4,021 metres. Phase 2 is planned during Q4 2018.
  • During mid 2020 37 diamond drill holes (4,360 m) and 92 RC holes (3,525 m) were completed on the mine license.

Regional Exploration

Beyond the four main deposits included in the feasibility study (Nogbele, Stinger, Fourkoura and Samavogo), an ongoing regional drilling program in underway to pursue 12-15 highly prospective targets over both the ML and the five Exploration Permits surrounding the ML, all with the potential to become resources. 

The objective of this is to extend and optimize the life of mine by identifying additional deposits, with viable resources, within trucking distance of the centrally located plant to replace mined reserves.

Highlights:
  • Konatvogo: 2,000-metre NW-trending anomaly between Fourkoura and Nogbele deposits. Up to 21.6 g/t Au from altered shear-hosted quartz vein outcrops.
  • Bassongoro: 1,500-metre NNE-trending soil and auger anomaly (up to 15g/t Au). Intersection of regional Nianka and Fourkoura structures undrilled.
  • Dagano: minimum 2,000-metre NE-trending soil anomaly with limited scout drilling demonstrating some success.  Excavator trenching and combined RC / DD drilling programs in late 2020/early 2021 will be utilized to evaluate Dagano.
  • Kafina West: 1,000-metre mineralized zone successfully drilled on a wide-spaced grid program – will be drilled at an indicated resource level drill spacing in early 2021. 
  • Korindougou: 2,500 metre long gold-in-soil anomaly demonstrating some positive auger drill and trenching results.  Combined RC/DD drilling is planned for early 2021.
  • Bazago: gold-in-soil anomaly adjacent to (and potentially trending beneath) shallow lateritic cover proximal to intersecting structures and a late, altered felsic intrusive body.

Geology and Mineralization

The Property is located in the southwest corner of Burkina Faso within the Paleoproterozoic Birimian Senoufo Belt. The Senoufo Belt trends north‐northeast and comprises mainly basaltic and andesitic volcanic rocks, lesser sedimentary rocks, and numerous gabbroic to granitic sub‐ volcanic plutons.  

Early Proterozoic rocks within the Property area are interpreted to be tholeiitic to calc‐ alkaline basalts, andesites, and volcaniclastic sediments. These units include pillow basalts, bomb agglomerates, and associated extrusive volcanic and occasional basaltic flows. These rocks probably correlate with the basal sequences in the adjacent Banfora, Houndé and Boromo greenstone belts. Predominantly mafic, volcano‐sedimentary packages dominate the younger parts of the local stratigraphy. 

Voluminous plutonic activity contributed significantly to the growth of the continental crust during the Eburnean Orogeny and numerous phases of intrusives are present within the Property area. There is a strong spatial link between intrusives and gold mineralization. 

Belt architecture within the Property area is interpreted to be dominated by thrust faulting, with a major thrust in the east of the Property area juxtaposing the earlier granitoids with the greenstone rocks. This thrust has been subsequently intruded by multiple small-scale diorite intrusions. Additional major thrusts can be seen traversing the Property area in an east-southeast orientation, and appear to truncate the belt rocks and superimpose them on the granitoid units. Some of this thrust faulting is likely to have occurred during the time of emplacement of the belt granitoids. 

Mineralization at the Property is structurally controlled and is widely associated with hematite, iron carbonate, sericite, pyrite and, locally, with albitic alteration. Higher gold grades are commonly associated with stylolitic laminated quartz veins or pyrite veinlets. Coarse grained gold is found in fractures within pyrite veins or in quartz‐carbonate vein selvages. Mineralization is predominantly of a lode‐style gold type, associated with discrete structures. The mineralization is interpreted to have formed from the same mineralizing system, with variations in style reflecting the difference in local lithological and structural settings. 

Mineralized quartz veins are located along narrow discontinuous planar zones that, throughout the Property area, can occur in almost any orientation, but most commonly strike northwest and dip moderately to steeply. Gold is typically hosted by either single, relatively large quartz ± pyrite ± molybdenite veins up to six-metre-thick, or in stockwork zones of centimetre‐thick quartz ± carbonate ± pyrite ± molybdenite veinlets up to approximately 50 cm wide. Narrow, variably altered faults a few centimetres to decimetres wide, control the location of the mineralized veins at Nogbele and Nangolo. The extent and grade of mineralization along these faults varies considerably over distances which exceed 50 m. High grade shoots may be separated by fault segments with grades less than 0.1 g/t Au. The faults can, however, be traced as narrow zones of incipiently mineralized and sheared rock. Most of these mineralized faults have no discernible offset where they cut the margins of granitoid plutons, indicating probable net‐slips of greater than 50 m. Gold mineralization occurs in the laterite, saprolite, saprock (transition), and primary weathering horizons.

For further information on the historical exploration activities and the geology and mineralization of the Wahgnion Mine License, please refer to the amended Wahgnion Technical Report dated July 31, 2019 and found on the company website at www.terangagold.com or on SEDAR at www.sedar.com.