VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 20, 2015) - True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Company") is pleased to report that mining has commenced at the Goulagou II (GGII) deposit at the Karma Gold Mine ("Karma" or the "Project") in Burkina Faso. The GGII deposit is the first of six deposits that will be mined over an 11.5 year period. The Company remains on track for gold production at the end of Q1, 2016.
The GGII deposit has reserves of 273,000 leachable ounces of gold (contained in 7.6 million tonnes at 1.12 g/t gold)1, and will be mined during the first two years of production.
"As we transition into gold production over the next few months, our team is increasingly focused on operational readiness," stated Christian Milau, President & CEO of True Gold. "Karma will produce approximately 120,000 ounces of gold per year during our first five years at the lowest quartile of cash costs, laying the foundation for True Gold to become a mid-tier producer1."
Mine construction update
Karma mine construction is rapidly progressing with nearly 1,000 staff and contractors active on site. Overall, the project is approximately 73% complete and is funded through construction to production. The Company has $19 million in cash and up to $48 million available under our finance facility as of September 30, 2015.
To view the latest photos and video of construction efforts at Karma please click here: http://truegoldmining.com/our-projects/karma-project#field-project-tab-tab-7
Open pit mining and grade control drilling have begun at GGII. The mine fleet has been deployed to GGII after completing significant excavation of bulk earthworks at the mine's processing and storage ponds. Operators of the mining equipment are experienced from the excavation of the processing and storage ponds, and are now trained and ready for production work.
Excavation of Cells 1, 2 and 3 of the heap leach pad is substantially complete. At Cell 2, herring bone underdrains are complete and installation of lining has commenced.
Earthworks and civils
Civil construction is 72% complete and ahead of schedule. The raw water and pregnant leach ponds are complete, and the previously completed 4 kilometre pipeline from the barrage to the site is now being used to pump water to these ponds, ensuring the processing plant start-up requirements are met. Excavation of the storm water, intermediate and barren ponds stand at approximately 85%, 100% and 90% complete, respectively.
At the plant site, construction of the cyanide mixing area is complete with all civils and tanks in place. The agglomeration foundation is nearing completion while gold room foundation is 100% complete with structural steel installation ongoing. The hard rock crusher has been commissioned and is producing aggregate for the drainage layer of the heap leach pads. The ADR building structural steel is 100% complete. Installation of siding and roofing is progressing quickly, as well as piping and electrical.
Deliveries to site stand at 92%, and procurement is complete.
Launch of Stability Forum
During September the Company inaugurated a national Stability Forum led by True Gold's strategic advisor Maître Halidou Ouedraogo, a respected Magistrate and Human Rights advocate in Burkina Faso. The forum was organized by True Gold to foster dialogue and discussion and promote national peace and stability with delegates from a wide range of business, community and political backgrounds, including the leading parties in the upcoming elections. Me. Halidou was also recently appointed President of Codel, an independent group appointed to monitor the upcoming elections.
Approval of Mining Convention
The Burkina Faso Council of Ministers ratified the Mining Convention that sets out the fiscal and legal terms with respect to the operation of the Karma Mine. The Convention is valid for 20 years, and may be renewed for subsequent periods of five years.
1 See Technical Report on an Updated Feasibility Study (GGi, GGII, Kao, Rambo, Nami Deposits) and a Preliminary Economic Assessment (North Kao deposit) for the Karma Gold Project, Burkina Faso, West Africa by P&E Mining Consultants Inc., dated December 5, 2014 effective August 10, 2014, available on the Company's SEDAR profile at www.sedar.com.
David Laing, MIMMM Chief Operating Officer of True Gold is the designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects and has reviewed and verified that the technical information contained in this release is accurate and approves of the written disclosure of same.
About True Gold
True Gold Mining Inc. is where gold comes to life. We are committed to growing a successful gold production company, by focusing on projects with low costs, low technical risks and solid economics. The Company's board, management and technical teams have proven track records in gold exploration, development, and production worldwide.
ON BEHALF OF THE BOARD
Christian Milau, President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to True Gold within the meaning of applicable securities laws, including statements with respect to the potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes, the Company's ability to efficiently recommence operations at the Karma Project, that the Company will receive additional drawdowns under the financing agreement with Franco-Nevada and Sandstorm and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of True Gold and there is no assurance they will prove to be correct.
Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Karma Project, reliance on technical information provided by third parties as related to the Karma Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; satisfaction of Burkina Faso requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration, uncertainties relating to the interpretation of drill results and the estimation of mineral resources, the geology, grade and continuity of mineral deposits, accidents, equipment breakdowns, risk of undiscovered, title defects and surface access, the potential for delays in exploration and permitting activities, uncertainties related to the Company's relationship with communities that surround its properties in Burkina Faso, risks related to the financing agreement with Franco-Nevada and Sandstorm, including the Company's ability to meet its scheduled delivery obligations, the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, political risk as well as those factors discussed in the Annual Information Form of the Company dated April 27, 2015 in the section entitled "Risk Factors", under True Gold's SEDAR profile at www.sedar.com.
Although True Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. True Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.