Sabodala-Massawa

Sabodala-Massawa

The largest producing gold mine in Senegal, West Africa.
Currently integrating the high-grade Massawa gold project which transforms Sabodala
into a top-tier gold asset with low costs, long-life reserves, and strong cash flows.
Base case pre-feasibility study highlights for the combined mine plan released July 2020;
technical report to be filed August 2020.

4.82Moz
Proven & Probable
Gold Reserves(1)

6.89Moz
Measured & Indicated
Gold Resources(1)

16.5-Year
Mine Life

Quick Facts: Sabodala-Massawa

Location
Located in southeast Senegal near Mali border 650 km east of Dakar (capital city)

Land Area
611 km2 combined mine license(2)  
915 km2 combined exploration land package(2)

Geology
West African Birimian Greenstone Belt

First Gold Pour
2009

Gold Produced Since IPO
~2Moz Au

Number of Employees
1,452 (2019)

Ownership
90% Teranga/
10% Government of
Senegal free carried interest

Mining License
Sabodala expires January 2025 (renewable for successive 5-year terms). Massawa expires 2040.  

Mining Method
Multiple deposits feeding into central mill; owner-operated conventional truck and shovel open-pit mining

Plant
+4.0 Mtpa carbon-in-leach
(1.2 Mtpa BIOX® extension planned)

Recovery
~90%

Power
36 megawatt low speed heavy fuel generators

Government Royalty
5%

Proven Track Record

2020

1H Key Highlight
Acquired the neighbouring high-grade Massawa gold project from Barrick Gold

Gold Reserves
4.8Moz

Gold Resources
6.9Moz

Production Guidance
225,000 - 235,000 oz

2019

Key Highlight
Exceeded the high end of production guidance for the fourth consecutive year

Sustainability
Successfully implemented the Resettlement Action Plan for the GKK satellite deposit

Gold Reserves
2.4Moz

Gold Resources
4.1Moz

Production
241,276 oz

2018

Key Highlight
Commenced construction of resettlement village for Niakafiri deposit

Sustainability
Successfully implemented the Resettlement Action Plan for Niakafiri deposit

Gold Reserves
2.7Moz

Gold Resources
4.4Moz

Production
245,230 oz

2017

Key Highlight
Received approvals required to commence drilling at Niakafiri deposit

Sustainability
Honoured with several awards including PDAC Environmental & Social Responsibility Award, UN Global Compact Award & Corporate Knights Future 40

Gold Reserves
2.7Moz

Gold Resources
4.4Moz

Production
233,267 oz

2016

Key Highlight
Completed second mill expansion, increasing capacity to 4.3-4.5Mt

Sustainability
Started the Gora community investment fund to mitigate the loss of illegal artisanal mining with long-term solutions

Gold Reserves
2.6Moz

Gold Resources
3.7Moz

Production
216,735 oz

2015

Key Highlight
Initiated mill expansion project to add secondary crusher

Sustainability
Submitted the first Senegalese Extractive Industries Transparency Initiative report to improve in-country transparency of industry revenues

Gold Reserves
2.6Moz

Gold Resources
4.4Moz

Production
182,282 oz

2014

Key Highlight
Acquired remaining stake in Oromin Joint Venture Group

Sustainability
Launched regional development strategy setting out long-term priorities and areas of development

Gold Reserves
2.6Moz

Gold Resources
6.1Moz

Production
211,823 oz

2013

Key Highlight
Acquired 43.5% of Oromin Joint Venture Group

Sustainability
Established long-term fiscal and investment agreement with Government of Senegal

Gold Reserves
2.8Moz

Gold Resources
6.2Moz

Production
207,204 oz

2012

Key Highlight
Completed mill expansion

Sustainability
Began reporting according to Global Reporting Initiative standards & implemented ISO 14001 compliant environmental management system

Gold Reserves
1.6Moz

Gold Resources
2.9Moz

Production 214,310 oz

2011

Key Highlight

Commenced mill expansion to double milling capacity

Sustainability

Launched corporate social responsibility program

Gold Reserves
1.7Moz

Gold Resources
2.1Moz

Production
131,641 oz

2010

Key Highlight
Teranga acquired Sabodala gold mine and completed IPO

Sustainability
Established vision to set the benchmark for responsible mining in the Senegal

Gold Reserves
1.46Moz

Gold Resources
2.3Moz

Production
16,267 oz

Integrating the Adjacent Massawa Gold Project

In March 2020, Teranga completed the acquisition of the Massawa gold project – one of the highest-grade undeveloped open pit gold projects in Africa, located within 30 kilometres of Sabodala’s mill. Results from a NI 43-101 compliant preliminary feasibility study incorporating a base case combined mine plan demonstrate that combining the two assets creates a top-tier mine with a long-life reserve base, low-costs, and strong cash flows. A preliminary feasibility study is expected to be filed on or before August 31, 2020. 

Technical work, trade-off studies, and exploration drilling will continue to further de-risk and improve project economics in support of a definitive feasibility study and mineral resource and reserves update anticipated in 2021. Mining operations have commenced and the processing of Massawa free-milling high-grade ore through Sabodala’s existing plant is expected in Q4 2020.

Mining and Processing

Sabodala operates a multiple open pit central mill operation carried out by owner-operated conventional truck and shovel. The existing mine operating fleet currently used at Sabodala will also be used for the combined Sabodala-Massawa deposits, applying an integrated mine sequencing plan to optimize the combined reserves base.

The Sabodala mill is Senegal's first industrial gold processing facility and, to this day, it remains the largest gold operation in the country. It includes an efficient carbon-in-leach (CIL) processing plant using a conventional flowsheet. With a mill capacity of up to 4.5 Mtpa, the plant operates at nearly double its initial capacity following two expansions in 2012 and 2016. Plant modifications are currently in progress, with a target completion in 2021, to further increase production capability and efficiencies for processing Massawa’s high-grade oxide ore.

Based on the results of the Sabodala-Massawa preliminary feasibility study, a separate refractory ore treatment (ROT) plant using bacterial oxidation (or BIOX technology) is expected to be installed parallel to the existing plant to create a second processing stream. The ROT design would increase capacity by 1.2 Mtpa and allow for the processing of Massawa's refractory ore, which expected to begin in 2023.

For further information on Sabodala's current mining and mineral processing activities, please refer the NI 43-101 technical report for Sabodala filed in August 2019.  For further information on the anticipated plant modifications and the processing of Massawa ore, please refer to the Sabodala-Massawa preliminary feasibility study press release dated July 26, 2020. 

First 5-Year Life of Mine Profile(4)

2021 to 2025

384koz

Average Annual
Gold Production(3)

$671/oz

Average Annual
All-in Sustaining Costs(6)

$1.07B

Total Net
Cash Flow(5)

Life of Mine Profile(4)

2020 to 2036

260koz

Average Annual
Gold Production(3)

$749/oz

Average Annual
All-in Sustaining Costs(6)

$2.21B

Total Net  
Cash Flow(5)

Annual Gold Production (oz Au)

Proven and Probable Reserves(1) (Moz)

Graph includes years for which there was a reserve update.

(1) Sabodala-Massawa's Mineral Reserve and Mineral Resource estimates as at December 31, 2019. For more information regarding Sabodala’s Mineral Reserves and Resources and related notes, please refer to the press release titled, "Teranga Gold Announces Positive Pre-Feasibility Study Results for Top-Tier Sabodala-Massawa Gold Complex" dated July 26, 2020 and accessible on the Company’s website and on SEDAR at www.sedar.comA NI 43-101 compliant technical report for the Sabodala-Massawa Project will be filed on the Company’s website and on SEDAR on or before August 31, 2020. 

(2) The combined mine license includes both the Sabodala mine license of 291 km2 and the Massawa mine license of 320 km2​, both of which are subject to separate terms. The combined exploration permit includes both the Sabodala exploration land package of 629 km2 and the Massawa exploration land package of 286 km2, both of which are subject to separate terms.

(3) This production target is based on proven and probable reserves only from the Sabodala-Massawa Project as of December 31, 2019. The estimated reserves underpinning this production target have been prepared by a competent and qualified person or persons as defined under NI 43-101. For more information regarding Sabodala-Massawa's Mineral Reserves and Resources and related notes, please refer to the press release titled, "Teranga Gold Announces Positive Pre-Feasibility Study Results for Top-Tier Sabodala-Massawa Gold Complex" dated July 26, 2020 and accessible on the Company’s website and on SEDAR at www.sedar.com.

(4) Sabodala-Massawa Life of Mine assumptions include: Gold Price $1,600 per ounce; Heavy Fuel Oil (HFO): $0.35 per litre; Light Fuel Oil (LFO): $0.65 per litre; Euro to USD Exchange Rate: 1.10:1

(5) Total net cash flow is after minority interest and is an estimate that is based on the updated life of mine plan and reserve estimate for the Sabodala-Massawa project as a results of the preliminary feasibility study, as set out in the press release titled, "Teranga Gold Announces Positive Pre-Feasibility Study Results for Top-Tier Sabodala-Massawa Gold Complex" dated July 26, 2020. See in particular Table F - Life of Mine Cash Flows in the press release. A NI 43-101 compliant technical report for the Sabodala-Massawa Project will be filed on the Company’s website and on SEDAR at www.sedar.com on or before August 31, 2020.  

(6) This is a non-IFRS financial measure and does not have a standard meaning under IFRS. Please refer to the section regarding Non-IFRS Performance Measures within the website’s Legal Disclaimer by clicking here.