Teranga Gold Reports New Discovery at Golden Hill and Widespread High-Grade, Near-Surface Gold

 

TORONTO, Jan. 22, 2020 (GLOBE NEWSWIRE) -- Teranga Gold Corporation ("Teranga" or the "Company") (TSX: TGZ, OTCQX:TGCDF) is pleased to announce strong results from its ongoing drilling program at Golden Hill, located within the central part of the Houndé Greenstone Belt, a highly mineralized gold region that hosts three operating gold mines in southwest Burkina Faso, West Africa. Golden Hill, which is 100% owned by Teranga, is an advanced-stage exploration project that has delivered multiple high-grade gold discoveries over the last two years.

The 20,000 metres drilled as part of the current 27,000-metre program have returned high-grade gold intercepts from near surface to depth at several existing targets and encouraging gold grades in numerous step-out holes. The campaign has also uncovered a new discovery: The Ma Jonction prospect, located between Ma Main and Ma North.

Ma Jonction’s highlights include:

• 8 m @ 6.40 g/t gold, including 1 m @ 15.49 and 3 m @ 10.09 g/t gold from10 m DHD (GHDD-574)
• 3 m @ 44.11 g/t gold (uncut) from 33 m DHD (GHDD-572) (see Table 1 in Appendix A for uncut and cut grade intervals for GHDD-572)

“We are excited about the results we are seeing from the current drill program, which is intended to increase resources as we move the project through a preliminary economic assessment and into feasibility,” stated Paul Chawrun, Chief Operating Officer. “In addition to another high-grade, near-surface discovery, the drill results reported today demonstrate positive continuity, grade, width and extended mineralization in several zones. Based on these results, we remain on track to update the initial resource estimate we published in February 2019⁽¹⁾ and apply for a mine license in the third quarter of this year.”

Golden Hill Drilling Highlights

Ma Main Prospect

• 7 m @ 17.75 g/t gold, including 3 m @ 40.12 g/t gold (uncut) from 164 m down hole depth (DHD) (GHRC-153) (see Table 1 in Appendix A for uncut and cut grade intervals for GHRC-153)                                                       
• 4 m @ 16.15 g/t gold (uncut) from 24 m DHD (GHRC-148) (see Table 1 in Appendix A for uncut and cut grade intervals for GHRC-148)
• 11 m @ 6.38 g/t gold, including 4 m @ 11.58 g/t gold from 168 m DHD (GHDD-602)
• 21 m @ 3.70 g/t gold, including 5 m @ 7.77 g/t gold from 137 m DHD (GHDD-600)

Ma North Prospect

• 4 m @ 46.05 g/t gold, including 1 m @ 180.5 g/t gold (uncut) from 37 m DHD (GHDD-501) (see Table 1 in Appendix A for uncut and cut grade intervals for GHDD-501)
• 5 m @ 3.09 g/t gold from 11 m DHD and 5 m @ 4.64 g/t gold from 19 m DHD (GHRC-133)
• 7 m @ 2.67 g/t gold from 10 m DHD and 4 m @ 2.97 g/t gold from 81 m DHD (GHDD-137)

C-Zone Prospect

• 7 m @ 32.67 g/t gold, including 1 m @ 196.6 g/t gold (uncut) from 46 m DHD (GHDD-517) (see Table 1 in Appendix A for uncut and cut grade intervals for GHDD-517)
• 11 m @ 2.60 g/t gold, including 5 m @ 5.03 g/t gold from 22 m DHD (GHDD-558)
• 6 m @ 4.87 g/t gold, including 1 m @ 27.10 g/t gold from 100 m DHD (GHDD-563)

A-Zone Prospect

• 38 m @ 1.58 g/t gold, including 7 m @ 2.43 g/t gold from 0 m DHD and 1 m @ 30.83 g/t gold (uncut) from 51 m DHD (GHDD-546) (see Table 1 in Appendix A for uncut and cut grade intervals for GHDD-546)
• 5 m @ 12.13 g/t gold (uncut) from 33 m DHD and 3 m @ 9.67 g/t gold from 63 m DHD (GHDD-547) (see Table 1 in Appendix A for uncut and cut grade intervals for GHDD-547)
• 15 m @ 2.03 g/t gold, including 4 m @ 3.96 g/t gold from 1 m DHD (GHDD-552)

Ongoing Drill Program Targets New Zones and Prospects

The drill program, started in the second half of 2019, has partially evaluated nine separate targets including four portions of the Ma Structural Complex (Main, North, East and Jonction), C-Zone, A-Zone, Peksou Basin, Copper and Gogoba West (refer to Figures 1, 2, 3 and 4 in Appendix B). The Company expects to continue drilling at most of these targets during the first half of 2020, and anticipates targeting at least five additional zones including Gogoba North, Ma South, Nahiri, Peksou North and Pourey. 

The primary goal of this detailed drilling campaign is to facilitate an update to the Golden Hill initial resource estimation published in February 2019. Drilling is focused along trend and at depth to extend components of the initial resource estimation, and to initiate evaluation of numerous additional target areas.

Drill results to date have demonstrated positive continuity and extensions of mineralization at A-Zone, C-Zone and many components at the Ma structural complex (refer to Table 1 in Appendix A). In addition, early-stage scout drilling programs justify a follow-up drilling phase at Copper, Peksou Basin and Gogoba West. Presently, two diamond core drills and one reverse circulation drill are working at Golden Hill. The current exploration and drilling program, scheduled for completion by the end of February 2020, has been budgeted at $5.0 million and is being financed by the Golden Hill tranche of the Taurus debt facility.

“Teranga is developing our strong organic growth pipeline through this and other drill programs planned for 2020 at Golden Hill and across our sites in Burkina Faso, Senegal and Côte d’Ivoire,” said Richard Young, President and CEO. “With our second mine in production at Wahgnion, we have proven our ability to identify, finance and build projects from early-stage exploration to commercial production in just a few short years.”

Cumulative drill results from all prospects within the Golden Hill project are included on the Company’s website www.terangagold.com under Exploration.

Next Steps for Golden Hill

• Complete current 27,000-metre drill program.
• Commence new $8.5 million exploration and drilling program to continue to evaluate the numerous prospects and deposits identified to date and expand drilling outward to new areas of interest.
• Continue with early-stage engineering studies, metallurgical test work, environmental and social assessments as we move toward a preliminary economic assessment “PEA.”
• Submit a request to the Burkina Faso government for the conversion of the Golden Hill exploration license to a mine license in 2020 based on a PEA level technical study.

Qualified Persons Statement

Teranga's Burkina Faso exploration programs, corresponding to the drill holes being reported herein, were managed by Peter Mann, FAusIMM. Mr. Mann was a full-time employee of Teranga who recently retired, and is not “independent" within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Mr. Mann has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a "Qualified Person" under NI 43-101. The technical information contained in this news release relating to exploration results is based on, and fairly represents, information compiled by Mr. Mann. Mr. Mann has verified and approved the technical information disclosed in this release, including the sampling, analytical and test data underlying such information in the form and context in which it appears herein. The reverse circulation and diamond core samples are assayed at the BIGS Global Laboratory in Ouagadougou, Burkina Faso.

Endnote

⁽¹⁾ Golden Hill Mineral Resource estimate as at November 30, 2018. For more information regarding the Golden Hill Mineral Resource and related notes, please refer to the press release dated February 21, 2019 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com.

Forward-Looking Statements

This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"), which reflects management's expectations regarding Teranga's future growth and business prospects and opportunities. Forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of operations, future economic conditions expectations and anticipated courses of action. Although the forward-looking statements contained in this press release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, such forward-looking statements are based upon assumptions, opinions and analysis that management believes to be reasonable and relevant but that may prove to be incorrect. Teranga cautions you not to place undue reliance upon any such forward-looking statements.

The risks and uncertainties that may affect forward-looking statements include, among others: the inherent risks involved in exploration and development of mineral properties, including government approvals and permitting, changes in economic conditions, changes in the worldwide price of gold and other key inputs, changes in mine plans and other factors, such as project execution delays, many of which are beyond the control of Teranga, as well as other risks and uncertainties which are more fully described in Teranga's amended and restated Annual Information Form dated July 31, 2019, and in other filings of Teranga with securities and regulatory authorities which are available on SEDAR at www.sedar.com. Teranga does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Nothing in this document should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities. All references to Teranga include its subsidiaries unless the context requires otherwise.

About Teranga

Teranga is a multi-jurisdictional West African gold company focused on production and development as well as the exploration of approximately 5,500 km² of land located on prospective gold belts. Since its initial public offering in 2010, Teranga has produced more than 2 million ounces of gold at its Sabodala operation in Senegal. Focused on diversification and growth towards its vision of becoming a mid-tier producer, the Company recently announced commercial production at its second gold mine, Wahgnion, which is located in Burkina Faso, and is carrying out exploration programs in three West African countries: Burkina Faso, Côte d’Ivoire and Senegal. Teranga applies a rigorous capital allocation framework for its investment decisions.

Steadfast in its commitment to set the benchmark for responsible mining, Teranga operates in accordance with international standards and aims to act as a catalyst for sustainable economic, environmental, and community development as it strives to create value for all of its stakeholders. Teranga is a participant of the United Nations Global Compact and a leading member of the multi-stakeholder group responsible for the submission of the first Senegalese Extractive Industries Transparency Initiative revenue report.

Contact Information

Richard Young President & CEO T: +1 416-594-0000 | E: ryoung@terangagold.com

Trish Moran VP, Investor Relations & Corporate Communications T: +1 416-607-4507 | E: tmoran@terangagold.com

Appendix A

 Table 1: Selected Drill Highlights (Minimum 3.0 m and 2.00 g/t Au intervals included)

Hole #	Northing	Easting	Elevation	Azimuth	Dip	EOH (m)	Interval  (m)	Core length (m)	Grade (g/t Au)
Ma Main
GHDD-504	1237654	451808	381	029	- 44	152	57-60	3	4.47
GHDD-506	1237635	451708	379	028	- 45	215	165-181	16	2.27
GHDD-507	1237191	452317	429	025	- 45	215	184-192	8	3.00
GHDD-508	1237376	452189	431	028	- 46	169	147-157	10	2.47
						Including	147-149	2	6.79
GHDD-591	1237552	451824	382	025	- 45	221	180-183	3	2.80
							188-195	7	2.39
						Including	189-192	3	4.40
GHDD-598	1237632	451648	378	021	- 45	242	104-105	1	10.37
							185-189	4	3.41
GHDD-599	1237582	451683	379	021	- 45	260	210-217	7	1.67
						Including	210-212	2	4.30
GHDD-600	1237485	451992	390	025	- 45	200	137-158	21	3.70
						Including	139-144	5	7.77
GHDD-601	1237433	451967	388	025	- 45	242	182-193	11	2.61
						Including	183-185	2	6.09
GHDD-602	1237428	452007	390	025	- 45	236	168-179	11	6.38
						Including	169-173	4	11.58
GHDD-604	1237360	452189	403	025	- 45	170	63-67	4	5.40
						Including	64-65	1	18.10
GHDD-621	1237232	452490	417	025	- 45	100	91-94	3	2.20
GHDD-623	1237187	452358	418	025	- 45	194	156-160	4	5.67
						Including	156-158	2	10.10
							167-175	8	2.26
						Including	171-174	3	5.03
GHRC-143	1237752	451883	359	025	- 45	60	18-22	4	1.97
							27-32	5	2.09
GHRC-144	1237715	451866	359	025	- 45	101	54-61	7	3.53
						Including	56-59	3	6.41
GHRC-145	1237679	451852	357	025	- 45	147	25-27	2	8.60
GHRC-146	1237557	452158	364	025	- 60	100	14-21	7	1.86
						Including	14-17	3	3.71
							80-89	9	1.98
GHRC-147	1237646	452118	377	025	- 45	60	33-38	5	6.42
GHRC-148	1237633	452191	390	025	- 45	50	24-28	4	16.15**
						Including	24-26	2	31.52**
							24-28	4	13.66*
						Including	24-26	2	26.54*
GHRC-149	1237583	452280	380	025	- 45	80	33-37	4	1.58
GHRC-152	1237551	452234	373	025	- 45	85	1-3	2	6.12
GHRC-153	1237674	451637	377	025	- 45	183	164-171	7	17.75**
						Including	164-167	3	40.12**
						Including	164-165	1	107.5**
							164-171	7	6.68
						Including	164-167	3	14.30
						Including	164-165	1	30.00
GHRC-155	1237477	452077	375	025	- 45	171	36-38	2	4.35
							111-132	21	3.20
						Including	111-114	3	4.65
						And	120-125	5	4.34
GHRC-156	1237363	452185	400	025	- 55	190	157-162	5	2.33
GHRC-157	1237129	452829	385	025	- 45	100	21-26	5	1.63
							29-38	9	1.09
GHRC-158	1237034	452750	383	025	- 45	150	58-67	9	1.02
						Including	60-62	2	2.25
							139-141	2	3.41
GHRC-159	1237034	452774	382	025	- 45	100	58-62	4	2.00
GHRC-162	1236924	452852	357	025	- 55	75	20-31	11	1.68
						Including	22-25	3	3.66
GHRC-163	1236834	452812	348	025	- 55	115	19-21	2	2.28
							112-115	3 +	1.90
GHRC-167	1236711	452956	350	025	- 55	110	71-78	7	1.76
GHRC-168	1236586	453002	344	025	- 65	120	80-85	5	1.35
GHRC-169	1236665	453093	342	025	- 55	50	16-22	6	1.52
GHRC-171	1236623	453098	342	025	- 55	85	25-32	7	2.49
						Including	26-29	3	4.67
GHRC-173	1237587	453082	348	025	- 55	90	21-24	3	1.56
							27-39	12	1.09
Ma North
GHDD-492	1237852	452356	421	011	- 49	119	50-60	10	1.98
						Including	55-57	2	6.17
							80-84	4	2.40
						Including	83-84	1	8.21
GHDD-493	1237832	452396	421	010	- 50	134	55-60	5	1.45
							65-68	3	1.77
							107-111	4	3.10
GHDD-495	1237877	452852	424	310	- 50	122	47-50	3	2.56
							70-78	8	2.08
GHDD-496	1237877	452905	422	306	- 50	140	32-35	3	1.85
GHDD-498	1237962	452875	423	308	- 48	101	1-4	3	1.87
GHDD-499	1237901	452823	417	306	- 49	101	30-39	9	3.00
						Including	36-39	3	6.92
GHDD-500	1237931	452845	418	305	- 51	110	33-40	7	2.10
						Including	38-40	2	4.57
GHDD-501	1237824	452787	418	306	- 49	147	37-41	4	46.05**
						Including	39-40	1	180.5**
							37-41	4	8.41*
						Including	39-40	1	30.00*
							92-104	12	1.15
						Including	97-100	3	2.86
GHDD-503	1237866	452723	410	010	- 45	98	23-28	5	1.24
							58-64	6	1.23
GHDD-510	1237120	452699	399	023	- 45	116	59-64	5	1.55
GHDD-512	1237811	452085	409	012	- 45	164	137-143	6	5.20
						Including	138-139	1	12.59
GHDD-583	1237779	452386	440	010	- 50	182	105-111	6	2.71
GHDD-588	1237810	452766	416	306	- 50	152	97-102	5	2.04
						Including	97-99	2	4.38
GHRC-133	1237945	452254	413	010	- 45	67	11-16	5	3.09
							19-24	5	4.64
GHRC-134	1237882	452319	432	010	- 50	100	42-47	5	1.49
							51-53	2	6.93
GHRC-135	1237894	452284	435	010	- 50	114	34-38	4	2.26
							46-54	8	1.42
						Including	48-51	3	2.50
GHRC-137	1237874	452730	414	310	- 50	100	10-17	7	2.67
							81-85	4	2.97
Ma Jonction
GHDD-572	1237649	452613	444	300	- 50	107	1-4	3	1.56
							33-36	3	44.11**
						Including	34-35	1	114.5**
							33-36	3	15.94*
						Including	34-35	1	30.00*
GHDD-573	1237620	452580	456	300	- 50	100	87-90	3	2.98
GHDD-574	1237590	452552	461	300	- 50	80	10-18	8	6.40
GHDD-576	1237626	452648	441	300	- 50	130	25-28	3	2.55
							41-43	2	2.31
GHDD-577	1237567	452591	447	300	- 50	128	95-100	5	1.77
GHDD-578	1237610	452683	436	300	- 50	128	21-23	2	1.98
GHDD-581	1237599	452616	449	300	- 50	137	64-66	2	6.42
Ma East
GHDD-592	1236340	453271	365	060	- 55	97	9-13	4	2.53
							17-21	4	2.39
							55-58	3	3.90
							67-76	9	1.78
						Including	67-70	3	3.97
							87-89	2	3.84
GHDD-593	1236379	453252	366	060	- 55	131	29-31	2	4.74
							63-66	3	1.77
GHDD-595	1236480	453111	369	061	- 65	134	26-30	4	1.81
							46-53	7	1.15
GHDD-596	1236360	453305	365	061	- 55	100	7-9	2	2.33
							90-95	5	6.15
						Including	91-93	2	12.07
C-Zone
GHDD-515	1227183	451952	302	018	- 59	176	125-131	6	4.60
						Including	126-129	3	8.57
GHDD-517	1227258	452101	298	022	- 55	101	46-53	7	32.67**
						Including	49-50	1	196.6**
							46-53	7	8.86*
						Including	49-50	1	30.00*
GHDD-557	1227275	451833	302	020	- 55	115	81-90	9	1.57
						Including	86-89	3	3.13
GHDD-558	1227355	451803	304	020	- 55	47	22-33	11	2.60
						Including	28-33	5	5.03
GHDD- 559	1227195	451739	303	020	- 55	179	148-152	4	2.14
GHDD-560	1227234	451734	304	020	- 55	161	135-138	3	2.80
GHDD-561	1227236	451710	305	020	- 55	167	63-64	1	10.60
GHDD-562	1227254	451696	305	020	- 55	152	81-82	1	6.83
GHDD-563	1227287	451646	308	020	- 55	128	100-106	6	4.87
						Including	100-101	1	27.10
GHDD-564	1227243	451668	306	020	- 55	147	140-144	4	1.30
GHDD-565	1227415	452245	298	270	- 55	71	17-20	3	6.54
							54-56	2	15.72**
							54-56	2	15.27*
GHDD-566	1227495	452245	297	270	- 55	71	44-45	1	7.88
A-Zone
GHDD-539	1226227	451053	299	293	- 55	64	17-20	3	1.96
GHDD-540	1226258	450999	298	296	- 55	106	84-90	6	1.15
GHDD-541	1226302	450980	298	300	- 55	63	0-11	11	1.16
						Including	3-6	3	2.32
GHDD-543	1226336	451016	299	300	- 50	62	17-21	4	1.90
							24-32	8	1.07
GHDD-544	1226299	451087	299	300	- 57	140	80-104	24	1.31
						Including	85-88	3	2.57
GHDD-545	1226325	451098	299	300	- 55	119	94-103	9	1.48
						Including	98-101	3	2.24
GHDD-546	1226395	451063	300	300	- 55	62	0-38	38	1.58
						Including	5-12	7	2.43
						And	18-22	4	2.56
							51-52	1	30.83**
							51-52	1	30.00*
GHDD-547	1226364	451112	300	300	- 55	118	28-31	3	1.69
							33-38	5	12.13**
							33-38	5	6.94*
							63-69	3	9.67
							77-83	6	1.48
							116-118	2 +	6.20
GHDD-548	1226337	451121	300	300	- 55	140	87-102	15	1.26
							106-116	10	1.47
GHDD-549	1236309	451123	300	300	- 55	140	110-129	19	1.13
						Including	106-109	3	2.03
GHDD-550	1226440	451047	300	300	- 55	62	3-18	15	1.79
GHDD-551	1226388	451132	300	300	- 55	121	79-86	7	1.59
						Including	82-85	3	2.93
GHDD-552	1226416	451085	300	300	- 55	74	1-15	15	2.03
						Including	5-9	4	3.96
							18-31	13	1.13
Copper
GHDD-526	1227836	448000	330	356	- 50	53	28-30	2	9.21
GHDD-531	1228212	447377	329	349	- 50	59	33-39	6	1.27
						Including	34-37	3	2.09
GHDD-536	1228289	447688	327	348	- 50	65	36-38	2	2.34
GHDD-537	1228395	447726	326	351	- 50	62	37-46	9	1.90
						Including	40-45	5	2.57
Intervals calculated with a 0.4 g/t Au cut-off and 2 metres maximum internal dilution.  True widths are unknown.  UTMs are WGS84-30N. Intervals with grade x thickness (gram x metre) of 10 or higher are highlighted in bold. **Cut grades-individual assays above 30.0 g/t Au are cut to 30.0 g/t Au. *Un-cut grades

Appendix B

Figure 1: Golden Hill Property – Prospect Location Plan Map

https://www.globenewswire.com/NewsRoom/AttachmentNg/ab5f0a2d-fa64-4185-a91b-b0d6d67c54af

Figure 2: Golden Hill Property – Ma Structural Complex Plan Map

https://www.globenewswire.com/NewsRoom/AttachmentNg/f1d394e8-f6e5-4eb7-942d-d0c615020ee0

Figure 3: Golden Hill Property – C-Zone / Peksou Plan Map

https://www.globenewswire.com/NewsRoom/AttachmentNg/75ac90b4-f7c7-47da-8e0f-bd67e3b1da25

Figure 4: Golden Hill Property – A-Zone Plan Map

https://www.globenewswire.com/NewsRoom/AttachmentNg/1d363990-d6d2-4020-acc0-8be656d949c1