1
PRODUCING AND EXPLORING
SEPTEMBER QUARTER 2011 CONFERENCE CALL & WEBCAST
PRODUCING AND EXPLORING SEPTEMBER QUARTER 2011 CONFERENCE CALL - - PowerPoint PPT Presentation
PRODUCING AND EXPLORING SEPTEMBER QUARTER 2011 CONFERENCE CALL & WEBCAST 1 CAUTIONARY STATEMENT This presentation contains forward looking information, within the meaning of applicable Canadian securities legislation, and forward looking
1
SEPTEMBER QUARTER 2011 CONFERENCE CALL & WEBCAST
2
CAUTIONARY STATEMENT
This presentation contains forward looking information, within the meaning of applicable Canadian securities legislation, and forward looking statements, within the meaning of applicable United States securities legislation, which reflects management’s expectations regarding Teranga Gold Corporation’s (“Teranga” or the “Company”) future growth, results of operations (including, without limitation, future production and capital expenditures), performance (both operational and financial) and business prospects (including the timing and development of new deposits and the success of exploration activities) and opportunities. Wherever possible, words such as “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, have been used to identify such forward looking information. Although the forward looking information contained in this presentation reflect management’s current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Teranga cannot be certain that actual results will be consistent with such forward looking information. A number of factors could cause actual results, performance or achievements to differ materially from the results expressed or implied in the forward looking information, including those listed in the “Risk Factors” section of the prospectus of Teranga, dated November 11, 2010 (the “Prospectus”). These factors should be considered carefully and prospective investors should not place undue reliance on the forward looking information. Forward looking information necessarily involves significant known and unknown risks, assumptions and uncertainties that may cause Teranga’s actual results, performance, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward looking information. Although Teranga has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in the forward looking information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that the forward looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on such forward looking information. Teranga expressly 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 in accordance with applicable securities law. Forward looking information and other information contained herein concerning mineral exploration and management’s general expectations concerning the mineral exploration industry are based on estimates prepared by management using data from publicly available industry sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which management believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance
and uncertainties and industry data is subject to change based on various factors. In addition, please note that statements relating to “reserves” or “resources” are deemed to be forward looking information as they involve the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be profitably mined in the future. While management has confidence in its projections based on exploration work done to date, the potential quantity and grade disclosed herein is conceptual in nature, and there has been insufficient exploration to define a mineral resource, therefore it is uncertain if further exploration will result in the targets being delineated as a mineral resource.
3
SEPTEMBER 2011 CONFERENCE CALL & WEBCAST
Alan R. Hill Chairman & CEO Richard Young President & CFO Bruce Van Brunt Business Development Manager Martin Pawlitschek Regional Exploration Manager FOCUSED ON GROWTH
FOCUSED ON: GROWING RESERVES GROWING PRODUCTION FINANCIAL STRENGTH
4
Gold production for the Sept. quarter:
maintenance costs Gold Production for last 12 months:
5
Net loss for the quarter and twelve months:
Cash and cash equivalents*:
Revenue for the quarter:
* Including short term investments and restricted cash
6
Hedge book:
Capital Expenditures:
/ Mine License exploration costs
7
FOCUSED ON GROWING RESERVES
Goal:
1.5 Moz to 3 Moz
reserve grade
FOCUSED ON ADDING RESERVES
8
Budget: $10M 33km2
September quarter:
* Full drill results are posted at terangagold.com
9
“THE CORRIDOR”
Continuation of the main Sabodala structural trend to the north
MAIN FLAT EXTENSION
One of the principal gold hosts of the Sabodala deposit immediately adjacent to the current ultimate pit
MASATO EXTENSION
Continuation of Masato deposit
10
MAIN FLAT EXTENSION
expanded pit
reserves and similar amount in underground in 2012
* Full drill results are posted at terangagold.com
11
THE CORRIDOR and AYOUB’S
pit
Mylonite Shear Zone Ayoub’s Thrust Sabodala Pit
12
MASATO
length of 500 metres / dip 200 metres
* Full drill results are posted at terangagold.com
13
“THE DONUT” GORA TOUROKHOTO TOUMBOUMBA
Budget: $25M 1,455km2
14
GORA – HIGH-GRADE QUARTZ VEIN
SYSTEM
exploration to development
(May 2, 2011)
completed over the Gora deposit and has been shown to track veins to the south. Several look alike targets identified.
Trace of blind veins from RC holes Projected to surface – high correlation with IP trends.
15
GORA – HIGH-GRADE QUARTZ VEIN SYSTEM
resource area
130m along the strike extent
holes
reserve drilling
down dip where mineralized structures are expected to intersect a major intrusive body
nearby parallel IP anomalies
16
GORA – HIGH-GRADE QUARTZ VEIN SYSTEM *
Gora as quickly as possible including:
* Full drill results are posted at terangagold.com
17
GORA – INTERPRETED IP MAP SHOWING DRILLED
AND PLANNED HOLE
18
GORA – CROSS SECTION SHOWING INTERSECTION
OF VEINS
19
TOUMBOUMBA – NEWEST
TARGET*
regional deposit through the mill
cover)
structural domain
100m x 50m grid
encountered in western portion of anomaly
* Full drill results are posted at terangagold.com
20
TOUMBOUMBA*
are the subject of the current RC program
completed
auriferous zones
in depth
leaching
tracked without displacing material from Sabodala mill
* Full drill results are posted at terangagold.com
21
MAJIVA – RC DRILLING
Niakafiri (Mine License)
structure
22
to start late November.
required to test 2nd order surface geochemical anomalies
alteration zones in more detail
TOUROKHOTO
RAB defined Au Targets
23
DIEGOUN NORTH – “THE DONUT”*
north east trending structures that trend for several kms
Sabodala Ore Body
* Full drill results are posted at terangagold.com
24
remains untested
season
sediments
eastern side of the target area
gold anomalies at Cinnamon
DIEGOUN NORTH – “THE DONUT”
25
DEMBALA HILL*
same structure host the 240,000 oz Makabingui Deposit
diorite intrusion
g/t
* Full drill results are posted at terangagold.com
26
SAIENSOUTOU*
anomaly on a NS trend
to the immediate north
* Full drill results are posted at terangagold.com
27
1. Toughest quarter operationally behind us 2. Extensive $35m exploration program 3. Exploration updates on a regular basis 4. 2012 Est. 220,000 oz @ $625-$675/oz 5. Eliminate hedge book as quickly as possible 6. Significant free cash flow to self fund exploration and development of Gora 7. Focused on growing production and reserves
28
SEPTEMBER QUARTER 2011 CONFERENCE CALL & WEBCAST