True Gold is predicting start-up costs of $125 million, cash costs of ~$525 per oz and mine production beginning in late 2015. With these sort of numbers it makes one wonder why any company would bother trying to develop mines in Canada or the United States where the process can take decades and cost billions.
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VANCOUVER, BRITISH COLUMBIA–(Marketwired – Nov. 4, 2013) – True Gold Mining Inc. (TSX VENTURE:TGM) (“True Gold” or the “Company”) is pleased to announce that its recently completed drill program extends gold mineralization an additional 2,000 metres from the northern edge of the currently defined Kao deposit at the Karma Gold Project (the “Karma Project“) in Burkina Faso, West Africa. This extension more than doubles the size of the gold footprint at Kao, expanding mineralization to a total strike length of 3,400 metres.
[box type=”note” align=”aligncenter” ]True Gold’s Karma Project is located in the West African country of Burkina Faso. We’ve included a location map below. The deposit is shallow, with low grade oxide hosted gold at an average grade of 0.897 g/t. The company plans to mine using a low cost open pit with heap leach extraction. This is a same method employed by gold mines along the Carlin Trend in Nevada.[/box]
Assay highlights from the core and reverse circulation (“RC”) drill program include:
- 2.39 g/t gold (Au) over 26.00 metres in KAO13RC-482, including 4.14 g/t Au over 12.00 metres
- 2.32 g/t Au over 18.00 metres in KAO13RC-468, including 13.60 g/t Au over 2.00 metres
- 2.24 g/t Au over 30.00 metres in KAO13RC-470, including18.35 g/t Au over 2.00 metres
- 1.62 g/t Au over 33.95 metres in KAO13DD-221, including 4.13 g/t Au over 8.45 metres
- 1.55 g/t Au over 54.90 metres in KAO13DD-222, including 2.18 g/t Au over 20.34 metres
- 1.40 g/t Au over 46.50 metres in KAO13DD-223
- 1.35 g/t Au over 76.50 metres in KAO13DD-204, including 4.30 g/t Au over 8.65 metres
- 1.31 g/t Au over 63.53 metres in KAO13DD-211, including 2.09 g/t Au over 15.60 metres
- 1.23 g/t Au over 44.00 metres in KAO13RC-473, including 2.03 g/t Au over 8.00 metres
“We are very impressed with the strike continuity, grades and widths that have been intersected in drilling north of the Kao deposit,” said Dwayne Melrose, President and CEO, True Gold. “Our exploration success clearly demonstrates the resource expansion potential at the Karma Project and validates the effectiveness of our targeted exploration approach. We remain committed to creating a flexible operation that can be scaled up through organic growth1.”
[box type=”note” align=”aligncenter” ]Note that the company is using RC drilling. this is a fast, low cost drilling method which produces small chips instead of drill core. The company is fast tracking mine development in the Kao deposit shown on the map below. The new drilling is north of the deposit and appears to extend the deposit substantially. The full table of drill results is available here.[/box]
In recent months, True Gold has prioritized expanding the footprint of the 1,400-metre by 900-metre Koa deposit, which hosts a 360,501-ounce Indicated resource averaging 0.897 g/t Au in 12.5 million tonnes of oxide material2. Recent drilling intersected shallow, east-dipping, intrusive-hosted gold mineralization, which is geologically consistent with the Kao deposit. Assays released today revealed that gold mineralization can be traced for 2,000 metres northeast of the Kao deposit, for total length of mineralization of 3,400 metres. Mineralization discovered on two drill fences near the northern limits of drilling, spaced 400 metres apart, included both near-surface oxide and sulphide gold. Mineralization remains open to the north, south, and west, and down-dip to the east.
The Company reported strong initial results from the drill program’s first 20 holes in June (including 1.01 g/t gold over 62.0 metres3) and announced an additional 30 holes in August4.
Metallurgical test results indicate strong, rapid recoveries for oxide material at the Kao deposit, with recoveries up to 97.4% of gold, most of it within 10 days5.
The 856-square-kilometre Karma Project includes five closely spaced deposits – Kao, Goulagou I, Goulagou II, Rambo, and Nami – with a proposed central processing facility. The Karma Project is currently undergoing a feasibility study, which remains on schedule for release by the end of 2013.
Ian Cunningham-Dunlop, P. Eng., is the Company’s Senior Vice President Exploration and designated Qualified Person for this news release within the meaning of NI 43-101 and has reviewed and verified that the technical information contained in this release is accurate and approves of the written disclosure of same.
All new exploration holes at Kao were drilled at 090, 225 or 270 degrees azimuth, with dips of either -60 or -90 degrees, and to an average depth of 150 metres. True widths are estimated to be 70 to 90% of the intersected widths. Samples were assayed for gold by ALS Chemex in Ouagadougou, Burkina Faso. Assays were done by Fire Assay with AAS finish and repeats of all AAS assays over 5.0 g/t by Fire Assay with gravimetric finish. Control samples (accredited standards, blanks and duplicate samples at the preparation stage) were inserted on a regular basis. Results were monitored on receipt of assays.
[box type=”note” align=”aligncenter” ]If you haven’t already you may want to familiarize yourself with the reporting of interval widths in drill results and proper QA/QC procedures for geochemical testing.[/box]
About True Gold
True Gold Mining Inc. is where gold comes to life. We are committed to growing a successful gold exploration, development and 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, operations and production worldwide.
[box type=”note” align=”aligncenter” ]True Gold is predicting start-up costs of $125 million, cash costs of around $525 per ounce of gold, and mine production beginning in late 2015. With these sort of numbers it makes one wonder why any company would bother trying to develop mines in Canada or the United States where the process can take decades and cost billions. This will be an interesting project to watch.[/box]
[box type=”note” align=”aligncenter” ]The company has a fast-track mine development plan, but note from their disclaimer that they have not yet published a feasibility study which could prove up the economics of the project and identify reserves. Until then, they can only refer to their “indicated resource”.[/box]
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