{"id":1198091,"date":"2020-07-27T06:48:00","date_gmt":"2020-07-27T11:48:00","guid":{"rendered":"https:\/\/www.mining.com\/?p=1030909"},"modified":"2020-07-27T06:48:00","modified_gmt":"2020-07-27T11:48:00","slug":"teranga-golds-senegal-mine-a-top-tier-asset-study-confirms","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1198091","title":{"rendered":"Teranga Gold\u2019s Senegal mine a \u2018top tier\u2019 asset, study confirms"},"content":{"rendered":"

Canada\u2019s Teranga Gold (TSX:TGZ) has released results from a prefeasibility study (PFS)<\/a> for its Sabodala-Massawa <\/strong>complex in Senegal, which it would confirm the asset is \u201ctop tier mine\u201d material, the company says.<\/p>\n

The Toronto-based miner bought Massawa from Barrick Gold (TSX:ABX) (NYSE:GOLD) in December last year<\/a>. After completing the $380 million-acquisition earlier this year, Teranga began integrating the asset with its flagship Sabodala gold mine, located only 20 km away.<\/p>\n

Consolidating Massawa, one of the highest-grade undeveloped open-pit gold reserves in West Africa, with the Sabodala mine into one complex, has left the company with a solid asset.<\/p>\n

Tier 1 deposits are \u201ccompany making\u201d mines. They are large, long life and low cost. Gold ones, in particular, have an expected mine-life of at least 10 years, with annual production of a minimum 500,000 ounces. <\/p>\n

Gold and total cash costs per ounce over a Tier 1 mine life should be in the lower half of the industry cost curve.<\/p>\n

Based on the PFS, Sabodala-Massawa meets all those requirements. Its reserve base increased 120% to 4.8 million ounces of gold, at a $1,250 per ounce price. All-in-sustaining costs (AISC) are pegged at $749 per ounce, with net cash flows of over $2.2 billion at $1,600\/oz gold over a 16.5- year mine life.<\/p>\n

Sabodala-Massawa’s average annual production from 2021 to 2025 is estimated at 384,000 ounces, at all-in sustaining costs of $671 per ounce.<\/p>\n

\u201cThe integration of Sabodala and Massawa is perhaps the best example in mining of the \u2018greater than the sum of its parts’ concept,\u201d president and chief executive, Richard Young, said in the statement.<\/p>\n

Mining under way<\/strong><\/h2>\n

Teranga has begun digging up at Sofia, the first of the Massawa deposits to be mined. Processing of free-milling, high-grade ore through the Sabodala plant is \u201cscheduled to begin shortly,\u201d it said.<\/p>\n

The miner has also kicked off a $10-million exploration and drill program at Massawa.<\/p>\n

\u201cWe believe in the great potential of this project and are conducting an aggressive drilling campaign for both refractory and free-milling ore, with a goal to sustain Sabodala-Massawa’s gold production between 350,000-400,000 ounces per year beyond 2026,\u201d chief operating officer, Paul Chawrun, noted.<\/p>\n

The company also said it planned to issue a revised life of mine production schedule this quarter for its new Wahgnion gold mine in Burkina Faso, where “the plant is exceeding initial performance expectations” following a strong first full quarter in March.<\/p>\n","protected":false},"excerpt":{"rendered":"

Results from PFS show its Sabodala-Massawa complex is a large, long life and low cost mine.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2849,949,369],"tags":[43],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1198091"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1198091"}],"version-history":[{"count":4,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1198091\/revisions"}],"predecessor-version":[{"id":1198165,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1198091\/revisions\/1198165"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1198091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1198091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1198091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}