Senegal

Sabodala-Massawa

Ongoing multi-drill resource expansion and metallurgical drill programs underway on
the recently-acquired Massawa mine license.

Historic Exploration Results

Overview

The Sabodala Mine License covers 291 km2 and the Massawa Mine License covers 320 km2 in eastern Senegal. In addition, a number of Exploration Permits covering an additional 915 km2 of prospective ground provide a great combined potential for both near-term resource/reserve and production growth opportunities. All current reserves on existing deposits are within close truck-able proximity to the central processing facility at the Sabodala property.

Overview

The Sabodala Mine License covers 291 km2 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 central processing facility.

An updated mineral resource 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.

On the mine license, exploration continues to focus on a multi-year drilling program intended to further define near surface resources and reserves at both the highly prospective Niakafiri deposit and Goumbati West deposit over the next several years.

Teranga’s 2020 exploration budget for the Sabodala-Massawa gold complex in Senegal is approximately $10 million.

Mine License

An updated mineral resource and reserve summary in the NI 43-101 Technical Report dated August 21, 2020 disclosed proven and probable reserves increased to 75.79 million tonnes at a grade of 1.98 g/t totaling 4.82 million ounces of gold for the combined entity.

The field exploration program undertaken during 2020 at the Massawa Mine License included the competition of metallurgical drilling programs at Massawa Central Zone and Massawa North Zone as well as the completion of Phase 1 resource expansion drilling programs at Sofia (Main and North), Central Zone and North Zone deposits. Infrastructure sterilization drilling was completed in the third quarter at Sofia deposit (Main and North) and a Phase 1 resource delineation drilling campaign began at the Samina prospect. Fourth quarter drilling focused on completion of the Samina prospect and initiation of drilling at the Tina prospect and further resource expansion drilling evaluation at the northern extent of the Sofia deposit. The result, Teranga has drilled more than 36,000 metres since project start-up in March 2020 at the Sabodala-Massawa Project.

Teranga’s 2020 exploration budget for the Sabodala-Massawa gold complex in Senegal is approximately $10 million.

Next Steps

  • Continue various drilling programs at the three principle deposits, Sofia (Main and North), Central Zone and North Zone to include resource delineation and expansion campaigns as well as infrastructure sterilization evaluations.
  • In addition to the compelling resource expansion targets within or immediately along trend of the three primary deposits, considerable opportunity exists to explore and add refractory and non-refractory resources elsewhere within the Massawa Project area. There are several satellite deposits and prospects which have only been subject to shallow drilling, all of which show potential for additional mineralization at depth that can be added into the overall project resources. These satellite deposits that will be aggressively explored in preparation of the Definitive Feasibility study include Tina, Delya and Samina.
  • A number of prospects will be pursued along a structural corridor that exists between two major regional structures. These include the Bakkan Corridor and Bambaraya prospects where a comprehensive exploration program across the entirety of this broad area holds significant potential for the long-term addition of resources for the project.

The main goal is to expand the base resource of the Massawa Mine License towards matching mines ounces with replacement resources.

Geology & Mineralization

The Sabodala-Massawa Project is located in the West African Craton, within the 2,213 Ma to 2,198 Ma age Kedougou-Kenieba inlier. The Sabodala and Massawa Mining Concessions and exploration permits straddle two major divisions of the Inlier; the volcanic-dominated Mako Supergroup to the west, and the sedimentdominated Diale-Dalema Supergroup to the east.

The Sabodala-Massawa Project district occurs in the West African (Birimian) Paleoproterozoic metallogenic province, which extends from Senegal and Mali through north-eastern Guinea, Ivory Coast, Ghana, Burkina Faso, and as far east as Niger.

The region includes several world-class gold deposits such as Loulo and Sadiola in Mali, and Ashanti (Obuasi) in Ghana and the Sabodala-Massawa Complex in Senegal.

The properties comprising the Sabodala-Massawa Project can be subdivided into three project areas:

  • The Sabodala Mining Concession (also referred to herein as the Sabodala Mining License (ML)) comprising the original Sabodala mining concession, the additional Gora ML Expansion area and the former SOMIGOL Mining Concession.
  • The Massawa exploitation permit (referred to herein as the Massawa Mining License).
  • The Sabodala-Massawa Project regional exploration permits comprising Sounkounkou, Bransan (Lots A, B and C) and Kanoumba.

Gold deposits in the West African metallogenic district, including those on the mining concessions comprising the Sabodala-Massawa Project and the adjacent exploration permits, show many characteristics consistent with their classification as orogenic (mesothermal) gold deposits and prospects. Orogenic gold systems are structurally controlled deposits formed during regional deformation (orogenic) events.

Orogenic deposits are typically localized adjacent to major faults (shear zones) in second and third order shear zones within volcano-sedimentary (greenstone and sedimentary) belts between granitic domains (commonly for Precambrian deposits such as the West African Birimian, Abitibi Greenstone Belt of Canada, and Yilgarn region of Western Australia) or in slate belt turbidite sequences (many Phanerozoic deposits). Fluid source for these systems remains controversial: they generally involve a dominant metamorphic fluid component, consistent with their setting and relative timing, however, in many districts, there is evidence for a contributing magmatic fluid inducing early oxide-rich alteration assemblages, as is seen at Sabodala-Massawa Project.

For further information on the geology and mineralization of the Sabodala-Massawa Mine License, please refer to the Sabodala-Massawa Project Pre-feasibility Study NI 43-101 Technical Report dated August 21, 2020 and found on the company website at www.terangagold.com or on SEDAR at www.sedar.com.