Wahgnion

Wahgnion Gold Operations

Mine construction completed ahead of schedule and below budget.
Achieved commercial production effective November 1, 2019.
Updated production schedule expected August 2020 to accommodate
better-than-expected plant performance.

1.55Moz
Proven & Probable
Gold Reserves(1)

2.37Moz
Measured & Indicated
Gold Resources(1)

10-Year
Mine Life


Quick Facts: Wahgnion Operation

Location
Located in southwest Burkina Faso 510 km southwest of Ouagadougou (capital city)

Land Area
89 km2 mine license and
1,388 km2 exploration land package

Geology
Paleoproterozoic Birimian Senoufo Belt

Ownership
90% Teranga/10% Government of
Burkina Faso free carried interest

Number of Employees
1,027 (2019)

 

Plant
2.9 Mtpa - 3.0 Mtpa carbon-in-leach

Proposed Mining Method
Similar to Sabodala, Wahgnion has multiple deposits feeding into a central mill and owner-operated conventional truck and shovel open-pit mining

Commercial Production 
November 1, 2019

Mining License
Expires in 2026 and is renewable for successive 5-year terms

Wahgnion: Teranga's Newest Producing Gold Mine

2020

1H Key Highlights
Delivered strong first full quarter of commercial production with mill throughput above design capacity and production above plan.

Gold Reserves
1.6 Moz

Gold Resources
2.4 Moz

Production Guidance
150,000-165,000 oz

2019

Key Highlights
Completed construction ahead of original schedule, approximately $15M below budget, and without a LTI.
Commercial production was declared effective November 1, 2019.

Sustainability
First two resettlement sites complete with ongoing livelihood restoration programs.

Gold Reserves
1.6 Moz

Gold Resources
2.4 Moz

Production
47,492 oz

2018

Key Highlights
Secured $165M debt financing and commenced major plant construction.
Updated technical report filed in September 2018 reflects successful infill drill program, increasing mineral resource estimate by 33% and mineral reserve estimate by ~40%.

Sustainability
Launched community development initiatives.

Gold Reserves
1.6 Moz

Gold Resources
2.4 Moz

2017

Key Highlights
Following completion of reserve and resource confirmation program, feasibility study for initial four deposits filed in October 2017.
Commenced early works construction.

Sustainability
Commenced multi-year phased resettlement.

Gold Reserves
1.2 Moz

Gold Resources
1.8 Moz

2016

Key Highlights
Acquired Wahgnion Development Project as part of Teranga’s all-share purchase of Gryphon Minerals in October 2016.
Launched program to validate historical drilling and optimize previous feasibility study.

Sustainability
Initiated consultation for resettlement action plan on Wahgnion land package

Mining and Processing

The Wahgnion Gold Mine declared commercial production effective November 1, 2019.

The mine plan for Wahgnion focuses on open-pit mining of four initial gold deposits within the mine lease. The Nogbele, Fourkoura and Stinger deposits fall into the Nogbele land tenement while the Samavogo deposit is in the Dierisso tenement.

The Wahgnion processing plant is adjacent to the Nogbele deposit, which contains approximately 50% of total mineral reserves. The Fourkoura, Stinger, and Samavogo deposits are located within 25 kilometres of the plant.

Plant design is based on a conventional carbon-in-leach (CIL) gold process flowsheet consisting of primary crushing, semiautogenous grinding and ball milling, with a pebble crusher, CIL gold extraction, elution, electrowinning, and gold smelting to produce doré on site.

Throughput is designed to range between 3.0 and 3.2Mtpa, depending on the blend of soft and hard ore. The average predicted plant gold recovery is 92%, with soft (oxide) material recoveries from some zones reaching as high as 95%.

For further information on Wahgnion, please view the latest NI 43-101 technical report for Wahgnion filed in July 2019.

Updated Mine Plan

Since commercial production, the processing plant has performed approximately 25% above nameplate capacity for throughput and gold recovery, resulting in higher than planned production. As such, Teranga has updated the mine plan to accommodate the higher plant throughput capability, increasing Wahgnion’s average annual production by 25% and reducing the mine life to 10 years.

With a goal of extending the mine life to 15 years, a multi-year drilling and exploration campaign is underway around three of the existing deposit areas and at more than a dozen promising targets. 

For further information on the updated mine plan, please refer to the press release dated August 6, 2020. 

5-Year Life of Mine Profile(2)(3)

2021 to 2025

149koz

Average Annual
Gold Production

$920/oz

Average Annual
All-in Sustaining Costs(4)

$418M

Total
Net Cash Flow(5)

Life of Mine Profile(2)(3)

2020 to 2030

138koz

Average Annual
Gold Production

$1,007/oz

Average Annual
All-in Sustaining Costs(4)

$662M

Total
Net Cash Flow(5)

(1) Wahgnion’s Mineral Reserve and Mineral Resource estimates as at December 31, 2019. For more information regarding Wahgnion’s Mineral Reserves and Resources and related notes, please refer to the amended NI 43-101 compliant technical report for the Wahgnion Gold Operations dated July 31, 2019 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com.

(2) This production target is based on proven and probable ore reserves only for Teranga’s Wahgnion Gold Operation as at December  31, 2019. For more information regarding the Wahgnion’s Mineral Reserves and Resources and related notes, please refer to the amended NI 43-101 compliant technical report for the Wahgnion Gold Operations dated July 31, 2019 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com.

(3) Wahgnion Gold Operations Life of Mine assumptions include: Gold Price $1,600 per ounce; Heavy Fuel Oil (HFO): $0.72 per litre;
Light Fuel Oil (LFO): $1.04 per litre; Euro to USD Exchange Rate: 1.10:1

(4) 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.

(5) Total net cash flow is after minority interest and is an estimate that is based on the updated life of mine plan for the Wahgnion Gold Operation as set out in the press release titled, "Teranga Gold Update to Wahgnion Gold Operation Mine Plan Increases Average Annual Production by 25%" dated August 6, 2020 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com. See in particular Table A - Life of Mine Cash Flows in the press release.