.....…. .....….
..... . ..... . Forward-Looking Statements All information included - - PowerPoint PPT Presentation
..... . ..... . Forward-Looking Statements All information included - - PowerPoint PPT Presentation
..... . ..... . Forward-Looking Statements All information included in this presentation, including any information as to Terangas future financial or operating performance and other statements that express managements expectations or
2
Forward-Looking Statements
All information included in this presentation, including any information as to Teranga’s future financial or operating performance and other statements that express management’s expectations or estimates of future performance, other than statements of historical fact, constitute forward-looking information or forward-looking statements within the meaning of applicable securities laws and are based on expectations, estimates and projections as of the date hereof. Forward-looking statements are included for the purpose of providing information about management’s current expectations and plans relating to the future. Wherever possible, words such as “plans”, “expects”, “scheduled”, “trends”, “indications”, “potential”, “estimates”, “predicts”, “anticipate”, “to establish”, “believe”, “intend”, “ability to”, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “will”, or are "likely" to be taken, occur or be achieved, or the negative of these words or other variations thereof, have been used to identify such forward-looking information. Specific forward-looking statements include, without limitation, all disclosure regarding future results of operations, economic conditions and anticipated courses of action. Although the forward-looking statements contained herein reflect management's current beliefs and reasonable assumptions based upon information available to management as
- f the date hereof, Teranga cannot be certain that actual results will be consistent with such forward-looking information. Such assumptions include, among others, the ability to
- btain any requisite governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and energy costs, future economic
conditions, anticipated future estimates of free cash flow, and courses of action. 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. For a more comprehensive discussion of the risks faced by Teranga, and which may cause the actual financial results, performance or achievements of Teranga to be materially different from estimated future results, performance or achievements expressed or implied by forward-looking information or forward-looking statements, please refer to Teranga’s latest Annual Information Form filed with Canadian securities regulatory authorities at www.sedar.com or on Teranga’s website at www.terangagold.com. The risks described in the Annual Information Form (filed and viewable on www.sedar.com and on Teranga’s website at www.terangagold.com) are hereby incorporated by reference herein. Teranga disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law. Nothing herein should be construed as either an offer to sell
- r a solicitation to buy or sell Teranga securities.
All references to Teranga include its subsidiaries unless the context requires otherwise. This presentation contains references to Teranga using the words “we”, “us”, “our” and similar words and the reader is referred to using the words “you”, “your” and similar words. All dollar amounts stated are denominated in U.S. dollars unless specified otherwise.
3
Sabodala Gold Mine
(Senegal)
Wahgnion Gold Mine
(Burkina Faso)
Golden Hill Project
(Burkina Faso)
Miminvest & Afema JVs
(Côte d’Ivoire)
Exploration & Resource Conversion
Mid-Tier Producer with Scale and Diversification
Sabodala – Flagship Asset Generating Free Cash Flow to Fund Growth
3
4
Land Package
Sabodala Land Package Senegal, West Africa 291 km2 Mine License 629 km2 Exploration Land Package
First Industrial Large-Scale Gold Mine & Mill in Senegal
- First gold pour in March 2009
- $500M+ invested to date
Operations
- Conventional shovel and truck open pit mining (4 pits)
- 40Mtpa capacity with 4 shovels and 24 trucks (100t)
Processing Facility
- Two stage crushing, parallel primary crusher commissioned in Q3
2016: SAG mill, 2 ball mills, CIL plant
- 3.5Mtpa design throughput rate with 100% fresh ore, 4.0Mtpa
throughput with 75% fresh/25% oxide ore Exploration
- Mine license and regional land package
- Looking for satellite & standalone mill-friendly deposits
and heap leachable deposits Corporate Social Responsibility (CSR)
- Mine-site examples
- Wider community initiatives (i.e. market garden, accommodations)
- Niakafiri village relocation a world-class resettlement setting the
benchmark for resettlements in Senegal
Overview of Sabodala
5
6
17 131 214 207 212 182 217 233 245
Dec. 2010 (IPO) 2011 2012 2013 2014 2015 2016 2017 2018
Record Annual Production 3-Years Running (Koz Au) +5%
1.7Moz of Gold Produced Since December 2010
Refer to Endnote (2) in the Appendix
gold ounces(2)
……………………………………..
SABODALA’S 2019 GUIDANCE
215,000 - 230,000
10-Year Track Record at Sabodala
7
Key Highlights Teranga acquired Sabodala gold mine and completed IPO CSR Achievement Establish vision to set the benchmark for responsible mining in Senegal Key Highlights Commenced mill expansion to increase milling capacity CSR Achievement Launched corporate social responsibility program Key Highlights Completed mill expansion CSR Achievement Began reporting according to Global Reporting initiative standards & implemented ISO 14001 compliant environmental management system Key Highlights Acquired 43.5% of Oromin Joint Venture Group CSR Achievement Established long-term fiscal and investment agreement with Government
- f Senegal
Key Highlights Acquired remaining stake in Oromin Joint Venture Group CSR Achievement Launched regional development strategy setting out long-term priorities and areas of development Key Highlights Initiated mill expansion project add secondary crusher CSR Achievement Submitted the first Senegalese Extractive Industries Transparency initiative report to improve in-country transparency of industry revenues Key Highlights Completed second mill expansion (~4.3Mt) CSR Achievement Started the Gora community investment fund to mitigate the loss of illegal artisanal mining with long term solutions Key Highlights Received approvals required to commence drilling at Niakafiri deposit CSR Achievement PDAC Environmental & Social Responsibility Award UN Global Compact Award & Corporate Knights Future 40 Key Highlights Commenced resettlement of village surrounding Niakafiri deposit CSR Achievement Successfully implemented the Resettlement Action Plan for Niakafiri Deposit
2010 2011 2012 2013 2014 2015 2016 2017 2018
Occupational Health & Safety
8
Safety Record Amongst Best in Industry (based on LTIs per million hours worked)
9
Local Health & Safety Improvement Contributions
- Effective anti-malaria programs including indoor spray programs,
ULV fogging, larvacide treatment of nearby water at site and near- mine villages
- Active participation in local and regional health initiatives
- Vaccination campaigns
- First rate occupational health and safety training for all employees
- Annual disaster management planning exercises
- Logistical support for gendarmes
- Open discussion on health issues with regional health authorities
*Based on mining profile of ANZSIC 2006, 2016/17 for metal ore mining
Safety culture promoted at work is strongly transferred to the homes of our employees
LTI frequency rate at SGO
……………………………………..
WELL BELOW INDUSTRY AVERAGE* OF 5.81 LTIs PER MILLION HOURS WORKED
0.53
Health & Safety Statistics Year-to-Date
10 Annual Occupational Health & Environmental Audit Annual Improvement
Environment Audit
Health Audit
Note : Legend for above scoring: 0 - 20% - No process developed or implemented 20 - 40% - Informal or incomplete process 40 - 60% - Formal process implemented and functional with general conformance to the requirements of the OHSAS & ISO Standards 60 - 80% - As above, and with effective internal review processes, auditing and continual improvement 80 - 100% - Fully complies with international external OHSAS18001:2007 and ISO14001:2004 certification requirements
Incident with Injury Hours Worked 2,651,925,31 Injury Rating Total 2018 First Aid Injury 34 Medical Aid Injury 5 Lost Time Injury 2 Total Injuries 41
Emergency Response & Occupational Health
11
- Fully-equipped advanced rescue team with two primary
response units
- 2 ambulances
- 6 permanent qualified ERT team members
- 14 qualified ERT volunteers
- Emergency Preparedness and Response systems that is ISO
18001 certifiable, achieving 90%* of the ISO requirements.
- Full Occupational Health management facility
- Stringent medical screening criteria
- Occupational health and hygiene facility manned by:
- 2 Senegalese occupational health specialists
(Doctors)
- 4 Senegalese nurses
- 2 expat paramedic through a medical services
provider providing ISO9001 aligned clinic management practices
Sabodala Personnel
12
Site Operations
David Schmitz
Commercial
Troy Barclay
Environment
Robert Ndong
CSR
Issa Dabo
Asset Management
Robert Cronin
OHS
Wayne Botes
Protective Services
Ibrahima Ndiaye
Processing
Trent Kerr & Victor James
Mining
Mohamed Sid’Ahmed
Site-Based Management
CORPORATE
13
Labour Distribution: Recruiting, Retaining & Progressing Local Talent
Mining 48% Processing 15% Camp 15% G&A 22%
Mining Processing Camp G&A Origin of Sabodala Workforce (Total 1,187 people) Departmental Distribution
95% of Sabodala employees are Senegalese
14
- SOM House: 3 rooms
- Quads: 152 rooms
- Hblock Accommodations: 528 rooms
Camp Capacity of 683 Rooms
Mining Operations
Permitted mining license: 291 km2
16
Mining Operations Located Within Close Proximity to Mill
Multi-Pit, Multi-Phase Sequencing Operations Model Provides Operating Flexibility
- Variable ore types provide consistent plant feed
- Sequencing waste movement to match mine
fleet capability
- Oxide/fresh ratio can be managed during year
- Stockpile strategy allows for varying strip ratios
and mined ore grade
- Lower risk for variations in operating conditions
and ore body characteristics
- Mining fleet consists of 53 pieces of Komatsu equipment:
- 4 face shovels & 4 support excavators
- 24 x 100t dump trucks
- Dozers, graders, water trucks as support
- Mining fleet owned by Sabodala, maintained by BIA under
a “Repair and Maintenance Program” (RAMP); transitioning to Owner-Maintain in June 2019
- Drill total of 12 blast hole rigs
- Fleet owned and maintained by Sabodala
- LV and ancillary fleet owned and maintained by Sabodala
- ~500 SGO mining & technical services personnel
- ~200 contractor support (BIA, Orica, FTE)
- ~50 expats total in mining (SGO,BIA,ORICA)
Mining Fleet
17
Reconciling Well To Reserve Model
18
Grade Control Process Working Well in High-Grade Lode Vein Deposits
- RC grid drilling in advance, controlled drill & blast techniques,
floor mapping and visual controls
- Conservative geological interpolation in oxide zones
- Detailed bench by bench dilution analysis for mineable grade
estimates
- Continuous improvement programs, geological control integrated
within mine operations
Grade Mined Q1 Actual FY Guidance NI 43-101 Mine Plan(2) 2019 2.23 g/t 1.50 g/t – 2.00 g/t 1.41 g/t
Refer to Endnote (2) in the Appendix
19
OPERATIONAL PITS Sabodala Phase 4 (Looking NNE)
20
OPERATIONAL PITS Kerekounda (Looking East)
21
OPERATIONAL PITS Golouma West (Looking East)
22
MINED OUT Gora (Looking West, 28 km from Mill)
Processing
23
24
2009
First ore 2.3Mtpa
2012
Expansion to 3.5Mtpa
2016
Expansion to ~4.3Mtpa
Optimizing the Mill to Increase Throughput & Reduce Costs
24
Utilize contractors from C2K, DLM, MGS, Polytech, SMR, Spark and others for shutdown support
- Third party managed laboratory
- Contracted to SGS
- Processes Aqua Regia assay samples for processing, mining,
and exploration
- Fire assay sent offsite
- On site lab accredited to ISO 17025
Personnel at the Processing Plant
25
- 176 full-time employees
- 15 expatriate employees
- 2 x Metso C140 primary crushers
- 2 x Metso double deck and vibrating grizzly screens
- 1 x Sandvik secondary cone crusher
- 1 x Sag mill, 2 x ball mills coupled to 4 Mw drive motors via
Hoffman gearboxes
- 2 x Cyclone clusters, primary & secondary
- CIL, 3 x leach & 9 adsorption tanks
Infrastructure at the Plant
26
- SEC. CRUSHER
27
Processing Flow Sheet
99% power availability (36MW power station) 95% mill availability 95% leach efficiency 0.32kg/t NaCN, 1.2kg/t CaO, 1.2kg/t grinding media reagent consumption
28
Processing Plant KPI’s
28
Power Generation Plant
29
- Wartsila-Finland engineered and Built
- Full OEM spec maintenance regime with scheduled
rebuilds done by Viking UK
- Monthly consumption of ~2.5M litre HFO 180
- Burn rate 0.23l/kWh
- 36Mw generation capacity with a WIOS control system
- 3 engine Fail safe Redundancy
- ~11M kWh monthly generation
- 75% consumed by processing facility
30
TSF01 current lift capacity meets site requirements until 2021 Future expansion and lifts being optimised (capable of an additional 10 metres) Design work for TSF02 is fully-permitted and complete as a LOM contingency – study for in-pit options ongoing TSF and raw water dams are audited annually by Worley Parsons – detailed independent dam safety review completed in 2016
Tailings Dam – Ample Capacity
30
Exploration
32
Mine License Exploration Strategy
2019 Program
- Sterilization programs at near-term operational sites
- Currently underway at the GKK deposit - initially focused on the planned
waste dumps
- Re-interpretation of data has identified potential extensions of the Goumbati
West mineralized trend for considerable distance to the south - as far as our boundary (+/- 3 km)
- Previous RAB drill results also suggest a northern extension of the Goumbati
West mineralized trend for a minimum of 400 - 500m
- Prospecting, mapping and soil sampling are underway in advance of
proposed excavator trenching and drilling
- Continuation of the Goumbati West SE expansion exploration program and
data re-interpretation of the entire southern half of the ML
2020 Program
- Initiation of the drill program at the Niakafiri deposit following resettlement
- Initiation of drilling at the Maki Medina village target
- Minimum budget for 2020 will be approximately $4 - $4.5 Million
GKK
New Residential Houses, Niakafiri Resettlement
33
Track Record for Replacing Reserves, Opportunity for Near-Term Expansion
- Sabodala village relocation provides opportunity to drill out
Niakafiri, the largest deposit on the mine license, and to increase remaining mine life
- World-class resettlement of ~600 homes according to IFC
Performance Standards and international best practices
- Full government and community support
Sabodala Proven and Probable Reserves(1) (Moz)
1.4 1.7 1.6 2.8 2.6 2.6 2.7
2010 2011 2012 2013 2014 2015 2017
Advancing the Village Resettlement to Access the Largest Deposit on the Mine License
Resettlement expected to be completed in 2020
Refer to Endnote (1) in the Appendix
34
Opportunities to Maintain Annual Production of +200Koz Beyond 2022
Niakafiri Deposit Four significant opportunities for continued growth at Niakafiri 1. Restricted areas (sacred sites, cemetery, schools) 2. Extending the Niakafiri West trend Northwards 3. Exploring a potential NW trend under Sabodala village 4. Extending the Niakafiri Main zone at depth Underground (Long-term)
- Current reserves of 346Koz within a resource (MII) base of 1.3Moz
- OJVG previously reported ~900Koz in underground reserves
- Extended drilling as we complete pit bottoms for higher grade and
thicker zones for improved mining methods (long-hole vs cut & fill)
- Current operating scenario is for an owner mine fleet – capital
reduction if contractor fleet
2 3 4
1 1 1
Corporate Social Responsibility
Integrating Responsible Mining at All Aspects of the Mine Life Cycle
36
Four Priorities That Drive Our CSR Strategy
37
Four Priorities Which Align With Our Long-term Business Goals:
Business ethics Transparency Compliance Integrity Human Rights Employment & people development Health, safety & security People engagement Environmental management Community relations Resettlement Local procurement Partnering for sustainability Regional development & planning
GOOD GOVERNANCE OUR PEOPLE & CULTURE MITIGATING OUR IMPACTS SHARING THE BENEFITS
Ongoing Transparent Dialogue at All Stakeholder Levels
38
- Partners committee
- Canadian initiatives round table
National
- Teranga Regional Development Strategy
monitoring committee Regional
- Weekly recruitment committees
- Monthly consultation framework
Community
- Negotiation forum
- Complaints management mechanism
- Gora Fund committee
Project
- Village development committees
- Ongoing consultation
Villages SGO Consultations with local community
Investing in the Community
39
- Award-winning social fund empowers
communities to select and implement long-term sustainable projects that will benefit families
- Gora Fund administered in partnership with the
communities Direct Contributions to the Sabodala Community
$1.2M
Teranga’s Contribution to Senegal
(for the year ended December 31, 2018) Local Procurement $139.7M Local Payroll $9.8M Government Payments $42.9M
$194M
10,000
…………………………..
seedlings produced for rehabilitation
+2,000
…………………………..
farmers directly & indirectly supported
$1.2M
…………………………..
direct contributions to the Sabodala community
$136M
…………………………..
local procurement
1,282
…………………………..
trees planted for Gora rehabilitation
Sharing the Benefits – By The Numbers
500
…………………………..
bags of seeds collected for forestry rehabilitation
+1,000
…………………………..
women cultivating 11 market gardens
95
…………………………..
tons of vegetables produced 40
Working in Partnership to Make a Difference
41
Fostering Relationships with All Levels of Government
- Maintain good standing within our mining convention
- Committed to a fair share fiscal framework
- Engaged in proactive community development.
Committed to the Highest Standards and Best Practices
- Teranga Code of Business Conduct and Ethics
- Extractive Industries Transparency Initiative (EITI)
- UN Global Compact
- Extractive Sector Transparency Measures Act (ESTMA)
- Publish What You Pay Canada, part of a global network focused on
transparency in the extractives sector
- Agenda for Sustainable Development and its 17 Sustainable
Development Goals
Network of Partners to Help Implement Development Programs
42 Agricultural Development program for the Kedougou region Financial support from our suppliers to our community investment program - ongoing Revitalization of the cotton industry in the Kedougou Region completed Funding of development projects including income generation (DAC of Itato), health, education, safety, development of the mining sector completed KariteDiema – production and processing of Shea butter in the Region - completed Support program for the development and integration
- f learning - PADIA - ongoing
Financing of the departmental development plans (Kedougou, Salemata, Saraya)
43
Leading with Our Social License
Prospectors & Developers Association of Canada 2017 Environmental & Social Responsibility Award United Nations Global Compact Network Canada Sustainability Award 4X Winner of Corporate Knights Future 40 Responsible Corporate Leaders in Canada Capital Finance International: Best ESG Responsible Mining Management West Africa
Working hard with all of our stakeholders to be a partner of choice
Appendix
Sabodala: Life of Mine Production Plan
49
LOM 2018- 2022 AVG 2017 (H2) 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Ore Mined Mt 5.2 0.1 0.5 0.9 2.7 1.0 Ore Grade g/t 1.42 0.82 1.06 1.29 1.45 1.70 Contained Oz Moz 0.24 0.00 0.02 0.04 0.12 0.06 Waste Mt 55.3 9.4 15.4 15.3 12.8 2.4 Ore Mined Mt 18.6 0.4 1.0 3.1 3.1 5.3 5.7 Ore Grade g/t 1.10 0.76 0.87 1.04 1.06 1.03 1.28 Contained Oz Moz 0.66 0.01 0.03 0.10 0.11 0.17 0.23 Waste Mt 113.2 0.7 10.0 23.6 24.1 24.3 20.1 10.3 Ore Mined Mt 0.8 0.6 0.3 Ore Grade g/t 5.25 4.94 5.92 Contained Oz Moz 0.14 0.09 0.05 Waste Mt 7.2 6.4 0.8 Ore Mined Mt 0.5 0.1 0.4 Ore Grade g/t 4.71 3.91 4.91 Contained Oz Moz 0.08 0.01 0.07 Waste Mt 12.8 4.9 8.0 Ore Mined Mt 4.4 0.4 1.0 1.3 1.6 Ore Grade g/t 1.99 2.45 1.87 1.94 1.98 Contained Oz Moz 0.28 0.03 0.06 0.08 0.10 Waste Mt 42.8 7.6 18.6 12.5 4.2 Ore Mined Mt 15.7 1.5 4.6 1.6 6.2 1.4 0.4 Ore Grade g/t 1.16 1.26 1.22 0.82 1.23 1.00 1.04 Contained Oz Moz 0.59 0.06 0.18 0.04 0.24 0.04 0.01 Waste Mt 59.1 4.3 8.4 21.2 17.0 7.4 0.7 Ore Mined Mt 1.0 1.0 Ore Grade g/t 1.12 1.12 Contained Oz Moz 0.04 0.04 Waste Mt 2.8 2.8 Ore Mined Mt 1.4 0.4 0.1 0.5 0.4 Ore Grade g/t 1.31 1.68 1.48 1.13 1.16 Contained Oz Moz 0.06 0.02 0.01 0.02 0.02 Waste Mt 11.7 3.7 0.4 3.9 3.7 Ore Mined Mt 2.1 0.1 0.3 0.3 0.3 0.1 0.2 0.4 0.4 0.2 Ore Grade g/t 5.01 5.00 4.95 4.63 4.33 4.39 5.55 5.36 5.52 4.76 Contained Oz Moz 0.35 0.02 0.05 0.05 0.04 0.01 0.03 0.06 0.07 0.02 Ore Mined Mt 49.8 5.1 1.1 1.8 4.4 7.5 4.4 7.7 2.5 4.3 3.9 5.5 5.8 0.2 0.4 0.4 0.2 Ore Grade g/t 1.51 1.45 3.89 3.14 1.41 1.41 1.22 1.27 1.10 1.31 1.39 1.18 1.33 5.55 5.36 5.52 4.76 Contained Oz Moz 2.42 0.24 0.13 0.18 0.20 0.34 0.17 0.31 0.09 0.18 0.17 0.21 0.25 0.03 0.06 0.07 0.02 Waste Mt 305.03 33.6 18.9 36.8 35.0 31.6 35.2 29.4 31.1 28.7 28.0 20.1 10.3 Movement Mt 354.84 38.7 19.9 38.5 39.4 39.1 39.5 37.1 33.6 32.9 31.9 25.6 16.1 0.2 0.4 0.4 0.2 Stockpile Ore Balance Mt 10.7 8.2 8.2 11.5 11.5 14.9 13.0 12.7 12.1 13.1 14.4 10.1 6.1 2.1 Stockpile Grade g/t 0.87 0.93 0.81 0.89 0.74 0.75 0.69 0.69 0.69 0.70 0.81 0.69 0.69 0.69 Contained Oz Moz 0.30 0.24 0.21 0.33 0.27 0.36 0.29 0.28 0.27 0.29 0.37 0.23 0.13 0.05 Ore Milled Mt 61.6 4.4 2.2 4.3 4.5 4.5 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 2.2 Head Grade g/t 1.37 1.64 1.72 1.71 1.62 1.62 1.62 1.62 1.11 1.29 1.30 1.27 1.15 1.25 1.09 1.11 0.97 Oxide % 23% 35% 28% 30% 50% 37% 31% 29% 23% 33% 30% 23% 4% 4% 6% 6% 6% Produced Oz Moz 2.464 0.213 0.111 0.213 0.215 0.213 0.211 0.211 0.143 0.168 0.168 0.164 0.146 0.159 0.139 0.141 0.062 Golouma 2017 Mid-Year LOM Plan Sabodala Masato Gora Kerekounda Niakafiri Maki Medina Goumbati West Kobokoto Underground SummaryLOM assumptions include: Gold Price $1,250 per ounce Heavy Fuel Oil (HFO): Sabodala - $0.46 per litre Light Fuel Oil (LFO): Sabodala - $0.81 per litre Euro to USD Exchange Rate: $1.10.
Sabodala: Mineral Reserves (By Pit)
46
Deposits Proven Probable Proven and Probable
(Mt) (g/t) Au (Moz) (Mt) (g/t) Au (Moz) (Mt) (g/t) Au (Moz)
Masato 18.62 1.10 0.66 18.62 1.10 0.66 Niakafiri East 4.61 1.32 0.20 9.92 1.10 0.35 14.53 1.17 0.55 Golouma West 4.11
1.91
0.25 4.11 1.91 0.25 Sabodala 2.04 1.56 0.10 3.18 1.33 0.14 5.22 1.42 0.24 Gora 0.82 5.25 0.14 0.82 5.25 0.14 Kerekounda 0.53 4.71 0.08 0.53 4.71 0.08 Goumbati West and Kobokoto 1.42 1.31 0.06 1.42 1.31 0.06 Maki Medina 0.98 1.12 0.04 0.98 1.12 0.04 Niakafiri West 1.20 1.06 0.04 1.20 1.06 0.04 Golouma South 0.24 3.23 0.02 0.24 3.23 0.02 Subtotal Open Pit 6.65 1.39 0.30 41.02 1.35 1.78 47.66 1.35 2.07 Stockpiles 11.80 0.75 0.28 11.80 0.75 0.28 Total Open Pit with Stockpiles 18.45 0.98 0.58 41.02 1.35 1.78 59.47 1.23 2.36 Golouma West 1 0.62 6.07 0.12 0.62 6.07 0.12 Kerekounda 0.61 4.95 0.10 0.61 4.95 0.10 Golouma West 2 0.45 4.39 0.06 0.45 4.39 0.06 Golouma South 0.47 4.28 0.06 0.47 4.28 0.06 Total Underground 2.15 5.01 0.35 2.15 5.01 0.35 TOTAL Open Pit and Underground 18.45 0.98 0.58 43.17 1.53 2.12 61.62 1.37 2.70 Notes for Mineral Reserves Summary 1) CIM definitions were followed for Mineral Reserves. 2) Mineral Reserve cut-off grades range from 0.38 g/t to 0.57 g/t Au for oxide and 0.44 g/t to 0.63 g/t Au for fresh rock based on a $1,200/oz gold price. 3) Underground Mineral Reserve cut-off grades range from 2.3 g/t to 2.6 g/t Au based on a $1,200/oz gold price. 4) Mineral Reserves account for mining dilution and mining ore loss. 5) Proven Mineral Reserves are based on Measured Mineral Resources only. 6) Probable Mineral Reserves are based on Indicated Mineral Resources only. 7) Sum of individual amounts may not equal due to rounding. 8) The Niakafiri East and West deposits are adjacent to the Sabodala village and relocation of at least some portion of the village will be required, which will necessitate a negotiated resettlement program with the affected community members. As at June 30, 2017
Sabodala: Underground Assumptions
47
xxxx
TABLE 15-4 DILUTION PARAMETERS Teranga Gold Corporation – Golouma Gold Project Development Width (m) Height (m) Dilution Width (m) Dilution Height (m) % Dilution Ramp/Level Access/Remuck 5 5 0.3 0.15 8 Operating Waste Development 2.5 5 0.15 0.15 8 Ore Development (lifts 1,3) 4 5 0.075 0.15 5 Ore Development (lifts 2,4) 4 5 0.075 0.3 7 Attack Ramps 4 5 0.3 0.15 10 Vent Access/Sumps 4 4 0.3 0.15 10 TABLE 15-5 CUT-OFF GRADE ESTIMATE Teranga Gold Corporation – Golouma Gold Project Deposit Kerekounda Golouma South Golouma West Average Grade (g/t) 2.5 3.37 3.37 Unit Cost ($/t) Unit Cost ($/t) Unit Cost ($/t) Underground Mining 65.00 65.00 65.00 Processing 15.50 15.50 15.50 G&A 3.50 3.50 3.50 Total 84.00 84.00 84.00 TABLE 15-6 UNDERGROUND MINERAL RESERVE ESTIMATE – JUNE 30, 2017 Teranga Gold Corporation – Golouma Gold Project Probable Orebody Tonnes (000) Grade g/t Au Ounces (000) Au GOLW 1 619 6.1 121 GOLW 2 454 4.4 63 GOLS 472 4.3 65 KRKD 605 5.0 96 Total 2,151 5.0 346
Sabodala: LOM Capital Expenditures
48
Sustaining Capex Unit LOM 2018- 2022 AVG 2017 H2 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Open Pit Mining USDM 61.1 8.6 4.7 8.0 11.8 10.1 6.9 6.3 7.2 4.6 0.5 0.4 0.3 0.3
- Processing
USDM 32.1 2.2 1.2 2.2 2.2 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 1.2 Admin & Other Sustaining USDM 11.1 0.8 0.9 0.7 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.4 Community Relations USDM 26.6 5.2 0.6
- 15.0
11.0
- Total Sustaining Capex
USDM 130.8 16.8 7.4 10.9 29.8 24.1 10.0 9.3 10.2 7.6 3.5 3.5 3.4 3.4 3.1 3.1 1.5 Capital Projects & Development Underground Equipment & Development USDM 102.1 4.9
- 24.4
23.4 8.9 2.4 0.8 8.5 18.2 10.4 4.1 0.9 Other Projects & Development USDM 4.0 0.8
- 2.0
2.0
- Total Projects and Development
USDM 106.1 5.7
- 2.0
2.0 24.4 23.4 8.9 2.4 0.8 8.5 18.2 10.4 4.1 0.9 Combined Total (USDM) USDM 236.9 22.5 7.4 10.9 29.8 26.1 12.0 33.8 33.6 16.5 5.9 4.3 12.0 21.6 13.5 7.2 2.4
Sabodala: LOM Operating Costs
49
Operating Costs Unit LOM 2018-2022 AVG 2017 H2 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Open Pit Mining USD/t mined 2.38 2.34 2.45 2.29 2.33 2.39 2.33 2.37 2.28 2.43 2.40 2.54 2.62- Underground Mining
- 76.30
- Underground Mining
- 7
- Byproduct Credits
- (0)
- (15)
- Royalties(2)
- 15
- Capitalized Reserve Development
Sabodala: LOM Cash Flows
50
*Cash flows exclude impact of gold forward contracts. The Company executed gold sales contracts totaling 131,000 ounces commencing October 1, 2017 through December 31, 2018, at a gold price of $1,336 per ounce. The forward sale contracts can be settled either in cash or by physical delivery at the option of Teranga. As part of the forward sales program, 25,000
- unces are due during the fourth quarter of 2017, with 26,500 ounces due in each of the four quarters of 2018 for a total of 131,000 ounces.
Unit LOM 2018- 2022 AVG 2017 H2 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Production Moz 2.46 0.21 0.11 0.21 0.22 0.21 0.21 0.21 0.14 0.17 0.17 0.16 0.15 0.16 0.14 0.14 0.06 Gold Price $/oz 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 Revenue USDM 3,080 266 139 267 269 267 264 263 179 210 210 205 182 199 174 176 77 Total Cash Costs USDM 1,947 152 76 167 166 168 166 162 151 170 170 152 115 74 84 84 43 Capex USDM 254 23 25 11 30 26 12 34 34 17 6 4 12 22 13 7 2 All-in Sustaining Costs USDM 2,201 175 101 177 196 194 178 196 184 186 176 156 127 96 97 92 46 All-in Sustaining Costs $/oz 893 885 908 832 911 910 845 928 1,290 1,110 1,044 951 871 599 702 651 736 Franco Nevada USDM 172 17 11 23 23 13 13 13 9 10 10 10 9 10 8 8 4 Franco Nevada $/oz 70 78 101 105 105 60 60 60 60 60 60 60 60 60 60 60 60 Cash Flow before Taxes, Interest and other USDM 707 61 27 67 51 60 73 55 (14) 13 25 39 46 94 68 76 28 Cash Flow before Taxes, Interest and other $/oz 287 287 241 313 235 280 345 262 (100) 80 146 239 319 591 488 539 454 Taxes, Interest, and other (1) USDM 152 15 6 20 8 15 20 12 16 5 4 5 5 1 1 (2) 35 Net Cash Flow USDM 556 46 21 46 42 45 53 43 (30) 9 20 34 42 93 67 78 (6)
(1) Other items include working capital, government waiver payments, government social fund, VAT refunds, closure costs, plant residual value, regional office costs, CSR costs, and regionalexploration costs. Excludes any allocation of corporate overheads.
Endnotes
51
1. Sabodala’s Mineral Reserve and Mineral Resource estimates as at June 30, 2017. For more information regarding Sabodala’s Mineral Reserves and Resources and related notes, please refer to the NI 43-101 compliant technical report for the Sabodala Project dated August 30, 2017 accessible on the Company’s website at www.terangagold.com and on SEDAR at www.sedar.com. 2. This production target is based on proven and probable reserves only from Teranga’s Sabodala Project as of June 30, 2017. For more information regarding Teranga Gold’s Mineral Reserves and Resources and related notes, please refer to the NI 43-101 compliant technical report for the Sabodala Project dated August 30, 2017 available on the Company’s website at www.terangagold.com and on SEDAR at www.sedar.com.
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