TORONTO, ONTARIO — (Marketwired) — 11/06/13 — Teranga Gold Corporation (TSX: TGZ)(ASX: TGZ) –
For a full explanation of Financial, Operating, Exploration and Development results please see the Interim Condensed Consolidated Financial Statements as at and for the period ended September 30, 2013 and the associated Management-s Discussion & Analysis at .
Third quarter in line with plan and 2013 guidance reiterated.
„We remain on track to meet our production and cash costs guidance for 2013. Our third quarter mining activities were consistent with our annual mine plan which is expected to deliver higher grade ore to our mill in fourth quarter 2013. We are pleased with the performance of the Sabodala mill, which has been operating at design capacity since mid-June 2013. With the acquisition of Oromin now behind us, our focus shifts to completion of an integrated mine plan including production from the OJVG satellite deposits and negotiation of a toll milling agreement or an agreement to purchase the remaining interest in the OJVG with our joint venture partners“ said Alan R. Hill, Executive Chairman.
FINANCIAL HIGHLIGHTS (details on Page 6)
„In this volatile gold price environment, we have taken further steps to strengthen our balance sheet and improve our financial flexibility. We have prepared a revised mine plan which, on a standalone basis, maximizes gold production while minimizing operating, sustaining and new project development costs. As well, we-ve removed the lump sum loan payment that was previously due in June 2014 which allows the Company to better match cash flows in a lower gold price environment. We will now focus on working with the OJVG partners to integrate their deposits into our mine plans in order to increase production from the Sabodala mill,“ said Richard Young, President and CEO.
OPERATING HIGHLIGHTS (details on Page 6)
OUTLOOK 2013
LIQUIDITY AND CAPITAL RESOURCES
STRATEGY AND MINE PLAN
GORA DEVELOPMENT
ACQUISITION OF OROMIN
OROMIN TECHNICAL INTEGRATION
The acquisition of Oromin in August 2013 provided access to the OJVG technical data. Since then, management has been evaluating the geological and technical databases to be able to develop an integrated mine plan that will support a NI 43-101 compliant resources and reserves technical report, targeted for Q1 2014.
The ongoing technical work for the OJVG integrated mine plan includes:
In addition to development of an integrated LOM, the Oromin technical team has been engaged with the Teranga technical teams both at site in Senegal and the corporate offices.
Next steps are anticipated to be:
MINE LICENSE (ML) RESERVE DEVELOPMENT
REGIONAL EXPLORATION
RESERVES AND RESOURCES
Review of Third Quarter Financial Results
Review of Third Quarter Operating Results
Third Quarter Cost of Sales
Non-IFRS Financial Measures
The Company provides some non-IFRS measures as supplementary information that management believes may be useful to investors to explain the Company-s financial results. Refer to page 15 of the Company-s Management-s Discussion and Analysis for further details.
FORWARD LOOKING STATEMENTS
This news release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws („forward-looking statements“). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Teranga, or developments in Teranga-s business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of operations that are based on assumptions about future economic conditions and courses of action. Teranga cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. The risks and uncertainties that may affect forward-looking statements include, among others: the inherent risks involved in exploration and development of mineral properties, 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 the Company-s Annual Information Form dated March 27, 2013, and in other company filings with securities and regulatory authorities which are available at . Forward-looking statements are based on management-s current plans, estimates, projections, beliefs and opinions, and, except as required by law, 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 news release should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities.
COMPETENT PERSONS STATEMENT
The technical information contained in this document relating to the mineral reserve estimates for Gora and Niakafiri is based on information compiled by Julia Martin, P.Eng. who is a member of the Professional Engineers of Ontario and a Member of AusIMM (CP). Ms. Martin is a full time employee with AMC Mining Consultants (Canada) Ltd., is independent of Teranga, is a „qualified person“ as defined in NI 43-101 and a „competent person“ as defined in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves“. Ms. Martin has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity she is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves“. Ms. Martin is a „Qualified Person“ under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Ms. Martin has reviewed and accepts responsibility for the Mineral Reserve estimates for Gora and Niakafiri disclosed in this document and has consented to the inclusion of the matters based on her information in the form and context in which it appears in this document.
The technical information contained in this document relating to the Mineral Resource estimates is based on information compiled by Patti Nakai-Lajoie, P. Geo., who is a Member of the Association of Professional Geoscientists of Ontario. Ms. Nakai-Lajoie is a full time employee of Teranga and is not „independent“ within the meaning of National Instrument 43-101. Ms. Nakai-Lajoie has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves“. Ms. Nakai-Lajoie is a „Qualified Person“ under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Ms. Nakai-Lajoie has reviewed and accepts responsibility for the Mineral Resource estimates disclosed in this document and has consented to the inclusion of the matters based on her information in the form and context in which it appears in this document.
The technical information contained in this document relating to the Mineral Reserve estimates for Sabodala and the stockpiles is based on information compiled by Paul Chawrun, P. Eng., who is a member of the Professional Engineers of Ontario. Mr. Chawrun is a full time employee of Teranga and is not „independent“ within the meaning of National Instrument 43-101. Mr. Chawrun 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 Competent Person as defined in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves“. Mr. Chawrun is a „Qualified Person“ under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Chawrun has reviewed and accepts responsibility for the Mineral Reserve estimate for Sabodala disclosed in this document and has consented to the inclusion of the matters based on his information in the form and context in which it appears in this document.
ABOUT TERANGA
Teranga is a Canadian-based gold company listed on the Toronto Stock Exchange (TSX: TGZ) and Australian Securities Exchange (ASX: TGZ). Teranga is principally engaged in the production and sale of gold, as well as related activities such as exploration and mine development.
Teranga-s mission is to create value for all of its stakeholders through responsible mining. Its vision is to explore, discover and develop gold mines in West Africa, in accordance with the highest international standards, and to be a catalyst for sustainable economic, environmental and community development. All of its actions from exploration, through development, operations and closure will be based on the best available techniques.
Contacts: Teranga Gold Corporation Kathy Sipos Vice-President, Investor & Stakeholder Relations +1 416-594-0000
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