Teranga Gold Corporation T.TGZ

Teranga Gold Reports Positive Feasibility Study for Banfora

[SilentRiver]

Initial gold reserves of 1.2 million ounces -- update expected in H1 2018
Major construction expected to commence in Q2 2018
Company's annualized gold production expected to increase
by 50% to between 300,000 and 350,000 ounces
(All amounts are in U.S. dollars unless otherwise stated)
TORONTO, Sept. 7, 2017 /PRNewswire/ - Teranga Gold Corporation ("Teranga" or the "Company") (TSX: TGZ) (ASX: TGZ) is pleased to announce positive results of the feasibility study (the "Feasibility Study") on its permitted Banfora gold project (the "Banfora Project") in Burkina Faso, West Africa. The Banfora Project is comprised of a mine license of 89 km(2) , and a regional exploration land package of nearly 1,000 km(2) .
Based on initial gold reserves of 1.2 million ounces, the Feasibility Study's base case demonstrates solid project economics with a 15% internal rate of return at $1,250 per ounce gold for a 2.4 million tonnes per annum carbon in leach ("CIL") processing facility modeled after the plant located at the Company's Sabodala gold operation ("Sabodala") in Senegal, West Africa.
"Development of the Banfora Project is an important step towards attaining our goal of becoming the next multi-asset, mid-tier gold producer in West Africa. It will diversify our production base and add significant scale by increasing our consolidated annual gold production by 50% to between 300,000 and 350,000 ounces(1,6) ," stated Richard Young, President and Chief Executive Officer of Teranga.
The Company expects an improvement in the Banfora Project economics following completion of an infill drill program aimed at converting inferred resources to reserves to be completed later this year, with a reserve update expected in the first half of 2018. The infill drill program is targeting inferred resources located adjacent to the current reserve pits. Overall, the Company anticipates achieving a conversion rate of between 25% and 50% of the inferred resources.
As at June 30, 2017, Teranga had cash and cash equivalents of $80 million(2) . As outlined in the updated technical report for Sabodala filed on August 30, 2017, the Company anticipates cash flows from Sabodala of more than $80 million(3) over the next two years and a total of $230 million(3) over the next five years. With cash and cash equivalents, anticipated cash flow and indicative term sheets for a project debt facility of up to $150 million, the Company is in a solid financial position to develop and fund construction of the $232 million(4) Banfora Project (see Table 5).
Mr. Young continued: "Our strategy is to grow the Company responsibly by being prudent and disciplined in our capital allocation. The initial Feasibility Study economics of the Banfora Project are solid. They are expected to improve in the first half of next year following a reserves update, which may lead to a larger or lower-cost project debt facility. As a result, we are deferring plant construction by approximately a quarter to allow us to develop an optimal financing plan for the Banfora Project as well as our other growth initiatives. Construction readiness activities will continue to move forward and the scope of work will expand in the lead up to plant construction."
Banfora Project Feasibility Study -- Base Case Highlights (at $1,250 gold(5) )

Initial proven and probable mineral 21.4 Mt @ 1.69 g/t containing 1.2
-- reserves Moz Au
35.3 Mt @ 1.61 g/t containing 1.8
-- Measured and indicated resources* Moz Au
15.8 Mt @ 1.40 g/t containing 0.7
-- Inferred mineral resources Moz Au
-- Pre-production capex $232 million(4) (see Table 5)
-- NPV(5%) (after-tax) $90 million(4,5)
-- IRR (after-tax) 15%(4,5)
-- First 5.5 years
-- Average annual production 131Koz(1)
-- Average mill grade 1.88 g/t(1)
-- Average all-in sustaining $807/oz
costs**
-- 9-year mine life ("LOM")
-- Average annual production 119Koz(1)
-- Average all-in sustaining $843/oz
costs**

* M&I resources are inclusive of reserves.
**See Non-IFRS Performance Measures on page 9 of this release.

Upside Potential with Anticipated H1 2018 Resource and Reserve Update
-- Initial gold reserves base of approximately 1.2 Moz is derived from four
deposits (Nogbele, Fourkoura, Samavogo, and Stinger) within the Banfora
mine license, and is anticipated to increase in the near-term based on
significant potential within existing resource shells

-- A large portion of the initial resources estimate that was not converted
to reserves is located in near proximity to the feasibility study design
pits based on the initial reserves base, both along strike and at depth

-- An extensive 65,000 metre infill drilling program, already 50% complete,
is increasing drill hole density in the in-pit areas currently classified
as inferred resources

-- Given the demonstrated continuity of the mineralization adjacent to the
zones of inferred resources, the Company anticipates between 25% and 50%
of the inferred resources will be upgraded to the indicated category and
converted to reserves, extending the mine life beyond the current 9 years

-- Beyond the initial four deposits included in the Feasibility Study,
Teranga has initiated a multi-year exploration program on over a dozen
other priority targets on its regional exploration land package, all
within trucking distance of the proposed mill site
"The Banfora Project is off to a solid start with an initial after-tax rate of return of 15% and economics that are anticipated to further improve once the current infill drill program is complete and reserves are updated in the first half of 2018," said Paul Chawrun, Chief Operating Officer of Teranga. "Additionally, we are undertaking a multi-year exploration program covering more than a dozen regional targets. The objective of the regional program is to identify additional deposits beyond the initial four included in the Feasibility Study to feed the central mill at Banfora."
Project Overview
As part of its acquisition of Gryphon Minerals in 2016, Teranga acquired the Banfora Project, located in the southwest corner of Burkina Faso. It is less than 10 kilometres from the border of Cte d'Ivoire and within the north-northeast trending Paleoproterozoic Birimian Senoufo Belt, which also hosts Randgold Resources' Tongon deposit in Cte d'Ivoire.
The Banfora Project is 90% owned by Teranga with the Government of Burkina Faso holding a 10% free carried interest. It includes exploration licenses covering more than 1,000 km(2) and a permitted mining license that covers 89 km(2) . As well, the property is easily accessible by road in close proximity to the regional town of Banfora and the major city of Bobo-Dioulasso. Under its Mining Convention with the Government of Burkina Faso, the Banfora Project benefits from fiscal stability guarantees that stabilize certain tax rates such as corporate income and customs duties in effect prior to the adoption of the 2015 Mining Code.
Over the last 12 months, the Company has completed follow up drilling across the defined deposits at the Banfora Project to augment and validate historical drilling and, in turn, support the resource estimate conducted independently by Roscoe Postle Associates Inc. Additionally, an independent metallurgical testwork optimization program was conducted to determine the processing plant design criteria and gold recovery values for the mine design and project economics.
Open Pit Mineral Resources and Reserves Summaries
Teranga completed a resources and reserves confirmatory drilling program at the four initially identified Banfora Project deposits in 2016: Nogbele, Stinger, Samavogo and Fourkoura. Based on this additional drilling and geologic modeling undertaken as part of the Feasibility Study, the open pit measured and indicated resources estimate is 1.8 Moz gold, with an additional 0.7 Moz of inferred resources, pit constrained at $1,450 per ounce gold (see Table 1).
The total open pit Proven and Probable Mineral Reserves estimate, based on a gold price of $1,200 per ounce, is 1.2 Moz (see Table 2).
Table 1: Open Pit Mineral Resources Summary


Measured + Indicated
Measured Resources Indicated Resources Resources Inferred Resources
Grade Grade Grade Grade
(Au (Au (Au (Au
Deposit Mtonnes g/t) Moz MTonnes g/t) Moz MTonnes g/t) Moz MTonnes g/t) Moz
Nogbele 1.17 1.47 0.06 17.92 1.43 0.82 19.08 1.43 0.88 9.11 1.18 0.34
Fourkoura 0.36 1.57 0.02 3.02 1.60 0.16 3.38 1.60 0.17 0.98 1.33 0.04
Samavogo 0.00 0.00 0.00 6.62 2.05 0.44 6.62 2.05 0.44 3.75 1.92 0.23
Stinger 0.16 2.16 0.01 6.09 1.67 0.33 6.24 1.69 0.34 1.98 1.45 0.09
Total 1.68 1.55 0.08 33.65 1.61 1.74 35.33 1.61 1.83 15.82 1.40 0.71

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Notes for Mineral Resources Estimate

1. CIM definitions were followed for Mineral Resources.
2. Open pit oxide Mineral Resources are estimated at cut-off grades ranging
from 0.35 g/t Au to 0.45 g/t Au.
3. Open pit transition and fresh rock Mineral Resources are estimated at
cut-off grades ranging from 0.45 g/t Au to 0.55 g/t Au.
5. High grade assays were capped at grades ranging from 2.5 g/t Au to 48.0 g/t
Au.
6. Mineral Resources are inclusive of Mineral Reserves.
7. Open pit shells were used to constrain open pit resources.
8. Mineral Resources are estimated using a gold price of $1,450 per ounce.
9. Sum of individual amounts may not equal due to rounding.

Table 2: Open Pit Mineral Reserves Summary


Proven Reserves Probable Reserves 2P Reserves
Grade Grade Grade
(Au (Au (Au
Deposit MTonnes g/t) Moz Au MTonnes g/t) Moz Au MTonnes g/t) Moz Au
Nogbele 1.09 1.45 0.05 10.38 1.56 0.52 11.48 1.55 0.57
Fourkoura 0.31 1.64 0.02 2.10 1.73 0.12 2.41 1.71 0.13
Samavogo 0.00 0.00 0.00 4.43 2.02 0.29 4.43 2.02 0.29
Stinger 0.15 2.09 0.01 2.95 1.72 0.16 3.10 1.74 0.17
Total 1.55 1.55 0.08 19.87 1.70 1.09 21.42 1.69 1.16

Notes for Mineral Reserves Estimate

1. CIM definitions were followed for Mineral Reserves.
2. Mineral Reserve cut-off grades range from 0.39 g/t to 0.53 g/t Au for
oxide and 0.51 g/t to 0.64 g/t Au for fresh rock based on a $1,200/oz gold
price.
3. Dry bulk density was estimated in the Mineral Resource models; values for
ore range from 1.61 t/m(3) to 2.22 t/m(3) for oxide and 2.50 t/m(3) to
2.80 t/m(3) for fresh rock.
4. Mineral Reserves account for mining dilution and mining ore loss.
5. A minimum mining width of 2.5 m was used.
6. Proven Mineral Reserves are based on Measured Mineral Resources only.
7. Probable Mineral Reserves are based on Indicated Mineral Resources and
diluting material.
8. Sum of individual amounts may not equal due to rounding.

Mining
Mining will be by way of conventional open pit mining techniques using drill and blast with material movement by hydraulic excavators and trucks. The project scale suits 110 to 140 tonne class excavators in a backhoe configuration matched to 50 tonne class mining haul trucks operating at five-metre bench heights. Following operating procedures similar to Sabodala, an extensive reverse circulation ("RC") drill program is planned to supplement the production blast hole sampling as part of the grade control strategy. The mine operations will emulate Sabodala, with multiple near-surface pits feeding the process plant.
The process plant will be located adjacent to the Nogbele deposit, which contains approximately 50% of the initial reserves. The Fourkoura, Stinger, and Samavogo deposits are located 6, 15, and 25 kilometres, respectively, from the process plant. The haul trucks selected have the ability to haul ore directly to the process plant. This is expected to reduce re-handling costs and minimize waste movement through optimized pit designs for the near-surface ore bodies. The Company will operate its own fleet.
The Banfora Project is expected to benefit from lower operating costs and reduced operational risk as a result of Teranga's experience as an owner-operator at Sabodala.
To maximize the value of the Banfora Project, the primary aim of the mine schedule is to supply the processing facility with the best value material first and stockpiling low-grade ore.
Metallurgy and Processing
The process plant design is based on a conventional CIL gold process flowsheet consisting of primary crushing, SAG and ball milling, with a pebble crusher, CIL tanks, elution, electro-winning and gold smelting to produce dor onsite. Throughput is expected to range between 2.2 and 2.5 million tonnes per annum, depending on the blend of soft and hard ore. The average predicted plant recovery is 92%, with soft material recoveries from some zones reaching as high as 95%.
The process plant design is based on a robust metallurgical flowsheet designed for optimum recovery and minimum operating costs. The key criteria for equipment selection are suitability for duty, reliability and ease of maintenance, and synergies with Sabodala, including same-sized crusher, mills, feeders and CIL tank agitators. The process selected is based on industrially proven equipment and sizing, resulting in additional operational flexibility and lower technical risk.
The tailings storage facility ("TSF") will be developed as a high density polyethylene geomembrane lined paddock type facility in a two-cell arrangement. The TSF embankments will be constructed in annual raises to suit storage requirements, using downstream raise construction methods.
Transport and logistics for mining projects in the region are well-established with eleven mines built in Burkina Faso within the past decade. Goods will be containerized and transported by liner services to the Abidjan port in Cte d'Ivoire or the Tema port in Ghana.
A construction readiness program is underway for initial engineering, site infrastructure and preparation of large vendor packages. The engineering, procurement and construction management ("EPCM") scope is currently in a tender process amongst several EPCM service providers with construction experience in West Africa and Burkina Faso. An award decision is expected shortly. Plant construction is expected to commence in Q2 2018, with first gold pour following within approximately 18 months of the construction start date.
Operating Costs
Operating costs include all direct costs for the production of gold dor. The estimates are based on annual rates determined in the mining schedule with ore delivery from the Nogbele, Fourkoura, Samavogo and Stinger deposits.
Table 3: LOM Operating Costs(5)


$/t $/oz
Mining 2.19 358
Processing 11.15 222
General & administrative 4.31 86

Mine operating costs were determined using first principles estimates and input provided by equipment quotations, supply providers and costs at Sabodala where applicable. The average mining costs are $1.73/tonne mined for soft material and $2.65/tonne mined for harder material. The mining costs include rehandle and haulage of ore from the satellite pits and stockpiles to the process plant.
Processing costs are based on metallurgical test results, quotations from suppliers and consultant recommendations and using a rate of 338 tonne per hour for soft material and 250 tonne per hour rate for hard material. The average processing cost are $9.38/tonne milled for soft material and $12.18/tonne milled for harder material.
General and administrative costs average $4.31/tonne milled and consist of site office costs, insurance, financial costs (banking charges, legal fees, etc.), refining and transportation costs and personnel costs.
Table 4: LOM Production Plan*


2019 - 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Total 2024 Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr
LOM Average -1 1 2 3 4 5 6 7 8 9 10
Ore mined Mt 21 2.7 0.2 1.4 3.3 3.1 2.8 2.0 2.2 2.6 2.0 1.8 0.1
Waste
mined Mt 155 19.0 2.2 12.4 19.2 18.6 18.3 18.3 17.5 16.4 16.2 15.2 0.3
Ore milled Mt 21 2.3 1.1 2.3 2.3 2.3 2.4 2.5 2.2 2.4 2.2 1.9
Mill head
grade g/t 1.69 1.88 2.22 2.01 1.95 2.08 1.51 1.73 1.74 1.27 1.50 1.07
Contained
gold Koz 1,165 141 82 148 146 151 115 136 124 96 104 64
Recovered
gold Koz 1,075 131 76 137 134 139 107 127 111 90 95 61



* This LOM production plan assumes plant construction will commence in Q1
2018. With plant construction moved to Q2 2018, this LOM production plan may
shift by several months.

Pre-production and LOM Capital Costs
The Company plans to replicate the first phase of the Sabodala process plant layout which is expected to lower construction and operating risk and, in turn, pre-production project capital and operating costs. The capital cost to construct the Banfora Project is estimated at $232 million(4) (see Table 5), including processing plant, infrastructure, an owner operated mining fleet, owners cost, contingency, taxes and duties. The Company is evaluating opportunities to optimize and reduce capital costs that may improve the IRR.
Owners costs have been captured in the capital estimate, including the management team, project expenses, pre-production costs, first fills, opening stocks, plant mobile equipment, project spares, vendor representatives, training and initial resettlement costs. The Company has hired Metifex Pty Ltd ("Metifex") to form part of the owners team for the project. Metifex has worked on a number of projects with the Teranga management team, including most recently the mill optimization project at Sabodala.
Pre-production capital costs exclude acquisition costs and reserve development costs incurred from acquisition through the end of 2017. It also excludes construction readiness activities of $12 million, which will be spent prior to major construction.
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Table 5: Pre-production Capital Costs


($M)
Indirect project construction 19.6
Processing plant 46.6
Reagents and plant services 12.2
Infrastructure 52.9
Mining infrastructure and equipment 30.2
EPCM costs 16.3
Owners project costs 30.5
Subtotal 208.2
Contingency 24.0
Total(a), (b), (c) 232.3



(a) Sum of individual amounts may not equal due to rounding.
(b) Excludes cost to mine and stockpile 764 Kt at 2.25 g/t or 55Koz (strip
ratio of 9:1) prior to mill production which has been included in mining
operating costs.
(c) Excludes $12 million used for construction readiness activities spent
prior to major construction.

Life of mine sustaining costs for the Banfora Project total $105 million and include mobile fleet upgrades and replacements, road construction, TSF lifts, resettlement costs and general sustaining capital in support of mining, processing and general and administrative functions.
Table 6: LOM Sustaining Capital Costs


LOM Sustaining Capital ($M)
Mining fleet replacement and mine sustaining 30.1
Processing sustaining 13.5
General and administration sustaining and other 3.8
TSF 26.9
Deferred resettlement action plan costs 30.5
Total 104.8

Social and Environmental Impact Assessments
The current resources and reserves for the Banfora Project are permitted and the environmental impact assessment study is complete.
The resettlement action plan is progressing well, strongly supported by the local communities. Under the resettlement action plan, approximately 500 households in the villages of Zegnedougou, Nangueledougou, Djondougou, Katolo, Nadjengoala will be relocated over the next five years, with a further 350 households compensated for agricultural land impact. The resettlement and livelihood restoration process for the project is being managed by an experienced team from the global sustainability firm, ERM, building on work completed under the previous project ownership.
Resettlement sites have been identified, and the physical planning, design and approval of future resettlement communities is underway. Construction of the first resettlement households is expected to begin in the first quarter of 2018. Employment opportunities and sustainable development initiatives supported by Teranga will provide further support for socio-economic growth in the area.
The Company is working with the local community to rename the Banfora Project to reflect the local culture.
LOM Cash Flow
Table 7: LOM Cash Flow(a), (b), (c), 5


2019 -
2024
Total Average 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Yr
LOM Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 11
Gold produced Koz 1,075 131 76 137 134 139 107 127 110 90 95 61
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
Gold sales $M 1,344 163 95 171 167 173 133 159 138 112 119 76
Cash costs $M (716) (81) (7) (46) (81) (80) (81) (79) (78) (83) (79) (77) (27)
Royalties and
gov't
payments(e) $M (85) (10) (6) (10) (10) (10) (8) (10) (9) (8) (8) (6)
Sustaining
capital $M (105) (15) (12) (13) (18) (14) (12) (14) (7) (6) (9) (0)
AISC(d) $M (906) (105) (7) (63) (104) (107) (106) (99) (102) (99) (92) (95) (33)
AISC(d) $/oz 843 807 830 759 801 761 926 799 897 1,030 999 549
Income taxes,
W/C and
other(f) $M (29) (3) (1) (4) (2) (2) (2) (4) (3) (8) (4) (2) (1) 5
Free cash flow
from
operations(d) $M 409 55 (8) 28 65 58 66 31 54 31 15 22 42 5
Pre-production
capital $M (232) (120) (112) (0)
Net cash flow $M 176 (128) (85) 65 58 66 31 54 31 15 22 42 5
NPV(5%) $M 90
IRR 15%



(a) This LOM production plan assumes plant construction will commence in Q1
2018. With plant construction moved to Q2 2018, this LOM production plan
is anticipated to shift by several months.
(b) Sum of individual amounts may not equal due to rounding.
(c) All figures are on a 100% basis.
(d) See Non-IFRS Performance Measures on page 9 of this news release.
(e) Includes royalties, business taxes, mortmain taxes, and surface taxes.
(f) Includes income taxes, refundable VAT movements, government social fund,
and rehabilitation and equipment residual value. Excludes all project
financing costs and allocation of corporate overhead costs.

Project Return Sensitivity


Gold Price $1,200 $1,250 $1,300 $1,350
After-tax NPV (0%) $134 $176 $219 $249
After-tax NPV (5%) $58 $90 $122 $145
After-tax IRR 11% 15% 18% 20%

Feasibility Study Technical Report Contributions and Qualified Persons
The mineral resource and mineral reserve estimates in this news release have been classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Definition Standards - For Mineral Resources and Mineral Reserves" 2014, as required by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). Roscoe Postle Associates Inc., an independent consultant prepared the resource and reserve estimates and the report with the assistance of a number of independent experts or firms.
Lycopodium Limited (ASX:LYL), an Australian headquartered engineering and project management consultancy that has successfully completed the construction of a dozen gold development projects in West Africa since 2009, completed the process design, capital estimate and execution plan for the process facilities and associated infrastructure.
Knight Pisold Consulting completed the tailings management facility design, surface geotechnical engineering and site water balance, ECG Engineering completed the Power Supply solution, BBA/Aurifex completed the metallurgical test work supporting the process design, and MBS Environmental completed the ESIA summary and Closure Plan.
Competent Persons Statements
The technical information contained in this document relating to the open pit mineral reserve estimates is based on, and fairly represents, information compiled by Glen Ehasoo, P. Eng., who is a member of the Association of Professional Engineers and Geoscientists of British Columbia, which is currently included as a "Recognized Overseas Professional Organization" in a list promulgated by the ASX from time to time. Mr. Ehasoo is independent of Teranga and is a "Qualified Person" as defined in National Instrument 43-101 and a "competent person" as defined in the 2012 Edition of the JORC Code. Mr. Ehasoo has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Ehasoo has verified the technical data in this news release related to mineral reserves estimation, and has reviewed and approved the information in this news release relevant to mineral reserves estimation.
The technical information contained in this document relating to open pit mineral resource estimates is based on, and fairly represents, information compiled by Mr. David Ross. Mr. Ross, P. Geo., is a Member of the Association of Professional Geoscientists of Ontario, which is currently included as a "Recognized Overseas Professional Organization" in a list promulgated by the ASX from time to time. Mr. Ross is independent of Teranga and is a "Qualified Person" as defined in National Instrument 43-101. Mr. Ross has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Ross has verified the technical data in this news release related to mineral resources estimation, and has reviewed and approved the information in this news release relevant to mineral resource estimation.
Non-IFRS Financial Performance Measures
The Company has included non-IFRS measures in this document, including "total cash cost per ounce of gold sold", "all-in sustaining costs per ounce" and "free cash flow from operations". The Company believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.
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Total cash costs figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is considered the accepted standard of reporting cash cost of production in North America. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measure of other companies. The World Gold Council ("WGC") definition of all-in sustaining costs seeks to extend the definition of total cash costs by adding corporate general and administrative costs, reclamation and remediation costs (including accretion and amortization), exploration and study costs (capital and expensed), capitalized stripping costs and sustaining capital expenditures and represents the total costs of producing gold from current operations. All-in sustaining cost excludes income tax payments, interest costs, costs related to business acquisitions and items needed to normalize earnings. Consequently, this measure is not representative of all of the Company's cash expenditures. In addition, the calculation of all-in sustaining costs does not include depreciation expense as it does not reflect the impact of expenditures incurred in prior periods. Therefore, it is not indicative of the Company's overall profitability. Life of mine total cash costs and all-in sustaining costs figures used in this press release are before cash/non-cash inventory movements and exclude any allocation of corporate overheads. Other companies may calculate this measure differently. The Company calculates free cash flow from operations as net cash flow provided by operating activities less sustaining capital expenditures. The Company believes this to be a useful indicator of its ability to generate cash for growth initiatives. Other companies may calculate this measure differently.
For more information regarding these measures, please refer to the Company's 2016 Management's Discussion and Analysis accessible on the Company's website at www.terangagold.com.
Conference Call & Webcast Details
Teranga will host a conference call and audio webcast later this morning, September 7, 2017, at 8:30 a.m. (ET) to discuss the Feasibility Study in more detail. Those wishing to listen can access the live conference call and webcast as follows:

Telephone: Toll-free [phone]
Local or International [phone]

Please allow 10 minutes to be connected to the conference call

Webcast: The webcast can be accessed on Teranga's website at
www.terangagold.com/banfora

Replay: The conference call replay will be available for two weeks after
the call by dialing [phone] or toll-free at
[phone] and entering the conference ID 70012458

Note: The slide presentation will be available for download at
www.terangagold.com for simultaneous viewing during the call

Technical Report
An NI 43-101 compliant technical report for the Banfora Project will be filed on the Company's website and on SEDAR (www.sedar.com) within 45 days of this news release.
Endnotes
1. Production targets are based only on proven and probable ore reserves for
the Banfora Project.

2. Teranga's consolidated cash and cash equivalents as of June 30, 2017.
For more information, please refer to the Company's Management's
Discussion and Analysis for the period ended June 30, 2017 on the
Company's website at www.terangagold.com.

3. This forecasted financial information is based on the updated life of
mine plan and reserve estimate for the Sabodala project as disclosed in a
technical report pursuant to NI 43-101 dated August 30, 2017.

4. Pre-production capital costs of $232 million excludes $12 million in
construction readiness activities spent prior to major construction.

5. LOM assumptions include:

6. Gold price of $1,250 per ounce

7. Heavy fuel oil (HFO): $0.59 per litre

8. Light fuel oil (LFO): $1.04 per litre ($0.88 per litre during the
construction period)

9. Euro to USD Exchange Rate: $1.10

10. This production target is based on proven and probable reserves only from
the Sabodala project as at June 30, 2017 as disclosed on the Company's
website at www.terangagold.com and on SEDAR at www.sedar.com. The
estimated ore reserves underpinning this production target have been
prepared by a competent person or persons (see Competent Persons
Statements in the Company's Management's Discussion & Analysis for the
three and six months ended June 30, 2017 available on the Company's
website at www.terangagold.com).
Forward-Looking Statements
This news 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, 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 "anticipates", "potential", "belief", "believe", "expected", "expects", "estimates", "plans", "anticipated", "ability" and similar expressions or statements that certain actions, events or results "may", "should", "work to" or "will" have been used to identify such forward looking information. Forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of operations, future economic conditions and anticipated courses of action. Although the forward-looking statements contained in this news release 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 statements. Such forward-looking statements are based upon assumptions, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments that management believe to be reasonable and relevant but that may prove to be incorrect. These assumptions include, among other things, the ability to obtain any requisite governmental approvals, the accuracy of mineral reserves and mineral resources estimates, gold price, exchange rates, fuel and energy costs, future economic conditions, community resettlement within anticipated timeline, 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 forward-looking statements and forward-looking information in this news release include without limitation, statements regarding (i) potential upside and improved economics from the Banfora Project; (ii) anticipated rates of conversion of inferred resources into reserves; (iii) objective to increase the mine life beyond the initial 9 years by first gold pour in 2019; (iv) anticipated financing plan; and (v) expected reserve update in the first half of 2018.
In addition, all of the results of the Banfora Project Feasibility Study constitute forward-looking statements and forward-looking information. The forward-looking statements include metal price, fuel prices and foreign exchange rate assumptions, cash flow forecasts, projected capital and operating costs, metal recoveries, mine life and production rates, and the financial results of the Banfora Project Feasibility Study. These include statements regarding (i) IRR of 15% after tax; (ii) NPV of $90 million at a 5% discount rate after tax, (iii) estimated all-in sustaining costs; (iv) capital cost estimates (including pre-production capital of $232 million(4) ), (v) proposed mining plans and methods, and (vi) a mine life estimate of 9 years.
Readers are cautioned that actual results may vary from those presented.
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 Annual Information Form dated March 30, 2017, and in other filings of Teranga with securities and regulatory authorities which are available 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 report 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 more than 5,000km(2) of land located on prospective gold belts. Since its initial public offering in 2010, Teranga has produced more than 1.2 million ounces of gold from its operations in Senegal, which as of June 30, 2017 had a reserve base of 2.7 million ounces of gold. Focused on diversification and growth, the Company is advancing its Banfora development project and conducting extensive exploration programs in three countries: Burkina Faso, Senegal and Cte d'Ivoire. Teranga has a strong balance sheet and the financial flexibility to grow its business.
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Steadfast in its commitment to set the benchmark for responsible mining, Teranga operates in accordance with the highest 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 member 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. The Company's responsibility report, is available at www.terangagold.com/responsibilityreport and is prepared in accordance with its commitments under the United Nations Global Compact and in alignment with the Global Reporting Initiative guidelines.
APPENDIX 1
JORC Code, 2012 Edition -- Table 1 report
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation Commentary
Sampling techniques Nature and quality of Representative samples
sampling (eg cut were from RC and core
channels, random chips, drilling. Drill core was
or specific specialised sawn in half over
industry standard defined sampling
measurement tools intervals, then one half
appropriate to the sampled and assayed for
minerals under gold. Oriented core
investigation, such as markings were used as
down hole gamma sondes, guides for sawing. RC
or handheld XRF chips were riffled and
instruments, etc). These split following standard
examples should not be operating procedures.
taken as limiting the All core and RC chips
broad meaning of were sampled along the
sampling. Include entire hole to determine
reference to measures the nature of
taken to ensure sample mineralisation and
representivity and the relationship to logged
appropriate calibration lithology, alteration
of any measurement tools and structure. Based on
or systems used. Aspects the detailed sampling
of the determination of results, mineralisation
mineralisation that are zones were defined.
Material to the Public Industry standard
Report. In cases where practices have been
'industry standard' work utilized for all
has been done this would sampling and analytical
be relatively simple (eg procedures. No unusual
'reverse circulation commodities or
drilling was used to mineralization types
obtain 1 m samples from occur in any of the
which 3 kg was pulverised Banfora deposits.
to produce a 30 g charge
for fire assay'). In
other cases more
explanation may be
required, such as where
there is coarse gold that
has inherent sampling
problems. Unusual
commodities or
mineralisation types (eg
submarine nodules) may
warrant disclosure of
detailed information.
Drilling techniques Drill type (eg core, RC and diamond drilling
reverse circulation, programs were conducted.
open-hole hammer, rotary Diamond drill holes were
air blast, auger, Bangka, drilled using standard
sonic, etc) and details HQ or NQ sized rods. RC
(eg core diametre, triple drilling was conducted
or standard tube, depth either to pre-collar
of diamond tails, deeper diamond tailed
face-sampling bit or drill holes or as
other type, whether core individual stand alone
is oriented and if so, by holes.
what method, etc).
Drill sample recovery Method of recording and Diamond core recoveries
assessing core and chip were measured and
sample recoveries and recorded for each
results assessed. sample. Core was sampled
Measures taken to on nominal 1 m
maximise sample recovery intervals. RC chip
and ensure representative samples were collected
nature of the samples. on 1 m intervals. RC
Whether a relationship chip recoveries were
exists between sample based on qualitative
recovery and grade and visual estimates (poor,
whether sample bias may medium or good). Chip
have occurred due to sample recoveries were
preferential loss/gain of not calculated but
fine/coarse material. estimated based on the
weight of the total
samples. RC drill
contractors have been
requested to allow for
sufficient air and
appropriate technique to
ensure dry samples are
delivered >95% of the
time. In instances where
water ingress is
unavoidable, damp or wet
samples are dried prior
to being split. There
has not been a
significant issue with
sample (RC or core)
recovery in either oxide
or fresh rock. A
relationship does not
appear to exist between
sample recovery and
grade as there is no
significant loss of
material.
Logging Whether core and chip Core samples were
samples have been geologically and
geologically and geotechnically logged
geotechnically logged to following established
a level of detail to standard operating
support appropriate procedures and includes
Mineral Resource sufficient and
estimation, mining appropriate detail to
studies and metallurgical support Mineral Resource
studies. Whether logging estimation, mining and
is qualitative or metallurgical studies.
quantitative in nature. RC chip samples were
Core (or costean, geologically logged
channel, etc) following established
photography. The total standard operating
length and percentage of procedures and
the relevant considered to be
intersections logged. appropriate for use in
Mineral Resource
estimation. Logging is
qualitative in nature.
All core and RC chip
trays are photographed.
All diamond drill core
has been geologically
and geotechnically
logged. All RC chips
have been geologically
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logged.
Sub-sampling techniques If core, whether cut or Drill core sampling
and sample preparation sawn and whether quarter, intervals were defined
half or all core taken. then cut in half with a
If non-core, whether diamond saw along the
riffled, tube sampled, core length using
rotary split, etc and oriented core markings
whether sampled wet or when available. Where
dry. For all sample oriented core was not
types, the nature, available, the core
quality and orientation was
appropriateness of the estimated prior to
sample preparation cutting. Half core was
technique. Quality sampled over one metre
control procedures lengths or occasionally,
adopted for all based on lithology
sub-sampling stages to intervals. Dry RC
maximise representivity cuttings were sampled on
of samples. Measures one metre intervals for
taken to ensure that the each metre drilled. The
sampling is one metre interval
representative of the in cuttings were passed
situ material collected, through a three-tier,
including for instance one-eighth riffle
results for field splitter resulting in an
duplicate/second-half approximately 2.0 kg to
sampling. Whether sample 2.5 kg subsample. Sample
sizes are appropriate to preparation was carried
the grain size of the out at the BIGS Global
material being sampled. Burkina SARL laboratory
located in Ouagadougou.
Mining licence core and
RC samples were dried
and crushed to 6 mm. RC
samples were then
quartered and reduced in
a Rocklabs splitter.
Core samples were not
reduced. Both RC and
core samples were then
pulverized to 70-75 um.
A 200 gram sample was
sent for analysis with
the remainder of the
sample stored for future
needs. Core was sawn in
half along the core axis
for nominal 1 metre
sample intervals, with
one half of the core
sent for assay. One
duplicate pulp sample
was inserted into the
sample stream for a
minimum of every 20
samples. Field duplicate
samples were inserted
into the sample stream
at a ratio of 1 to 20
samples. Based on the
characteristics of gold
mineralisation in these
deposits and results
from the QA/QC program
and sample duplicates,
the nominal 1 metre
sample interval is
determined to be
appropriate.
Quality of assay data and The nature, quality and All Banfora samples were
laboratory tests appropriateness of the analyzed at the BIGS
assaying and laboratory laboratory in
procedures used and Ouagadougou, Burkina
whether the technique is Faso for gold by fire
considered partial or assay with an atomic
total. For geophysical absorption finish using
tools, spectrometres, 50 gram samples. This
handheld XRF instruments, analytical methodology
etc, the parametres used is deemed appropriate
in determining the for the nature of the
analysis including deposits being
instrument make and evaluated. Not
model, reading times, applicable. Blind
calibrations factors Quality
applied and their Assurance/Quality
derivation, etc. Nature Control programs
of quality control consisted of inserting
procedures adopted (eg blanks, duplicates and
standards, blanks, certified reference
duplicates, external materials (CRM) into the
laboratory checks) and sample stream at a rate
whether acceptable levels of one for every 20
of accuracy (ie lack of samples. All samples
bias) and precision have utilized in the resource
been established. estimation process
returned results within
acceptable limits. In
the event of analytical
failures for any of the
CRM inserted materials,
re-runs of the entire
affected sample batches
are undertaken and
failed batches are
replaced.
Verification of sampling The verification of Data verification was
and assaying significant intersections conducted on an ongoing
by either independent or basis by internal
alternative company in-house Company
personnel. The use of personnel. Twinned holes
twinned holes. are occasionally drilled
Documentation of primary where structural
data, data entry information is required
procedures, data in areas where RC
verification, data drilling had occurred.
storage (physical and Drill hole logs were
electronic) protocols. entered into Excel
Discuss any adjustment to spreadsheets on
assay data. Panasonic Toughbook
computers, then uploaded
into an MS Access
database. Assay data was
received from the
laboratories in csv
format and merged into
the master database,
with access restricted
to the database manager.
Routine validation
checks were run in MS
Access as well as
Micromine software. No
adjustments were made to
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assay data returned from
the laboratory.
Location of data points Accuracy and quality of Drill hole collars are
surveys used to locate surveyed using either a
drill holes (collar and Total Station or
down-hole surveys), Differential GPS, both
trenches, mine workings of which are capable of
and other locations used providing
in Mineral Resource three-dimensional collar
estimation. Specification coordinates to sub-metre
of the grid system used. accuracy. All drill
Quality and adequacy of holes at each of the
topographic control. deposits were surveyed
in WGS84 UTM Zone 28
North coordinates.
Surveyed collars located
on the Mine Lease
property, were tied into
established control
points. The quality and
adequacy of topographic
control was considered
to be reasonable for use
in resource estimation.
Data spacing and Data spacing for Drilling is nominally on
distribution reporting of Exploration a 40 m by 40 m spacing,
Results. Whether the data with closer spaced
spacing and distribution in-fill holes at a
is sufficient to minimum spacing of 6 m
establish the degree of to 10 m locally..
geological and grade Geological
continuity appropriate interpretation based on
for the Mineral Resource the drill spacing has
and Ore Reserve identified continuity of
estimation procedure(s) geology and grade and is
and classifications determined to be
applied. Whether sample sufficient for
compositing has been estimating Mineral
applied. Resources and Mineral
Reserves. Experimental
variograms generated for
mineralized zones with
sufficient data, have
confirmed the grade
continuity ranges based
on the drill hole
spacing. RC chips and
diamond drill core were
sampled on nominal 1
metre intervals down the
hole, and assayed.
Sample compositing was
not applied.
Orientation of data in Whether the orientation Drill hole azimuths and
relation to geological of sampling achieves dips have been oriented
structure unbiased sampling of perpendicular to the
possible structures and interpreted mineralized
the extent to which this zones in order to
is known, considering the intersect the true
deposit type. If the widths of the zones as
relationship between the closely as possible.
drilling orientation and Occasionally, drilling
the orientation of key was planned at oblique
mineralised structures is angles when the
considered to have mineralisation trends
introduced a sampling were not yet well
bias, this should be defined or if the
assessed and reported if optimal collar location
material. was not accessible.
Generally, the majority
of drilling is oriented
such that the sampling
of mineralisation is
unbiased. The small
percentage of holes
oriented oblique to the
mineralisation are
located in areas with
sufficient drill density
oriented perpendicular
to mineralisation, and
will not introduce a
sampling bias.
Sample security The measures taken to Drill core and chip
ensure sample security. samples from the drill
rigs are transported
from the secure holding
areas at the drills
directly to the
Company's secure logging
and sampling facility
located at the fenced
and guarded Nianka based
exploration office
complex. Following
photography of the core
and chips; logging, and
structural data
collection is completed.
The core is sawn in
half, along defined or
estimated core
orientation lines with
half being preserved
securely on-site for
future needs, while the
other half is bagged and
sealed. RC samples are
split at the drill and
transported to the same
logging facility. Sealed
samples are then
securely delivered to
the assay laboratory.
Audits or reviews The results of any audits Mr. Ross, the Competent
or reviews of sampling Person from RPA, visited
techniques and data. the site from Jan. 19 to
24, 2017 to
independently examine
the practices employed
for resource definition
drilling and examine the
sample preparation
procedures. He examined
outcrops, drill rigs,
sampling procedures, and
other general
exploration protocols.
No significant issues or
discrepancies were
identified.

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Section 2 Reporting of Exploration Results

Criteria JORC Code explanation Commentary
Mineral tenement and land Type, reference Wahgnion Mining License :
tenure status name/number, location Decree Ndeg2014-675,
and ownership including amended by Decree
agreements or material Ndeg2015-092, located in
issues with third Niankorodougou and
parties such as joint Dakoro, Province of
ventures, partnerships, Lraba in the
overriding royalties, Cascades region, owned
native title interests, 89.8% by
historical sites, Socit
wilderness or national Minire Gryphon SA,
park and environmental 10% by the Government of
settings. The security Burkina Faso and two (2)
of the tenure held at nominative shareholders.
the time of reporting Nianka II Exploration
along with any known Permit: Decree Nodeg
impediments to obtaining 16/233, located in the
a licence to operate in Province of Lraba,
the area. owned 100% by Gryphon
Minerals Burkina Faso
Sarl Dierisso II
Exploration Permit:
Decree Nodeg16-234,
located in the Province
of Lraba, owned
100% by Gryphon Minerals
Burkina Faso Sarl Nogbele
II Exploration Permit:
Decree Nodeg16/235,
located in the Province
of Lraba, owned
100% by Gryphon Minerals
Burkina Faso Sarl
Zeguedougou II
Exploration Permit:
Decree Nodeg16-236,
located in the Province
of Lraba, owned
100% by Gryphon Minerals
Burkina Faso Sarl Nogbele
Sud Exploiration Permit:
Decree Nodeg16-042,
amended by Decree
Nodeg17-009, located in
the Province of
Lraba, owned 100%
by Gryphon Minerals
Burkina Faso Sarl
Sanembaore Sarl Pty Ltd
owns a 1% Net Smelter
Royalty from all sales
revenue derived from the
Banfora tenements under
the terms of a sale
agreement dated November
12, 2007, amended on May
22, 2008, between Teranga
Gold (Australia) Pty Ltd
(previously Gryphon
Minerals Limited) and
Sanembaore Sarl Pty Ltd.
Both the Banfora Mining
Licence and the Regional
Exploration Permits are
considered secure
Exploration done by other Acknowledgment and Prior to Teranga's
parties appraisal of exploration acquisition of the
by other parties. Banfora Gold Project in
October 2016, exploration
work on the Banfora
Mining Licence and
Regional Exploration
Permits was conducted by
Gryphon Minerals
Limited.
Geology Deposit type, geological No new exploration
setting and style of results are included in
mineralisation. this announcement.
Drill hole Information A summary of all No new exploration
information material to results are included in
the understanding of the this announcement.
exploration results
including a tabulation
of the following
information for all
Material drill holes:
easting and northing of
the drill hole collar
elevation or RL (Reduced
Level -- elevation above
sea level in metres) of
the drill hole collar
dip and azimuth of the
hole down hole length
and interception depth
hole length. If the
exclusion of this
information is justified
on the basis that the
information is not
Material and this
exclusion does not
detract from the
understanding of the
report, the Competent
Person should clearly
explain why this is the
case.
Data aggregation methods In reporting Exploration No new exploration
Results, weighting results are included in
averaging techniques, this announcement.
maximum and/or minimum
grade truncations (eg
cutting of high grades)
and cut-off grades are
usually Material and
should be stated. Where
aggregate intercepts
incorporate short
lengths of high grade
results and longer
lengths of low grade
results, the procedure
used for such
aggregation should be
stated and some typical
examples of such
aggregations should be
shown in detail. The
assumptions used for any
reporting of metal
equivalent values should
be clearly stated.
Relationship between These relationships are No new exploration
mineralisation widths and particularly important results are included in
intercept lengths in the reporting of this announcement.
Exploration Results. If
the geometry of the
mineralisation with
respect to the drill
hole angle is known, its
nature should be
reported. If it is not
known and only the down
hole lengths are
reported, there should
be a clear statement to
this effect (eg 'down
hole length, true width
not known').
Diagrams Appropriate maps and No new exploration
sections (with scales) results are included in
and tabulations of this announcement.
intercepts should be
included for any
significant discovery
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being reported. These
should include, but not
be limited to a plan
view of drill hole
collar locations and
appropriate sectional
views.
Balanced reporting Where comprehensive No new exploration
reporting of all results are included in
Exploration Results is this announcement.
not practicable,
representative reporting
of both low and high
grades and/or widths
should be practiced to
avoid misleading
reporting of Exploration
Results.
Other substantive Other exploration data, No new exploration
exploration data if meaningful and results are included in
material, should be this Report.
reported including (but
not limited to):
geological observations;
geophysical survey
results; geochemical
survey results; bulk
samples -- size and
method of treatment;
metallurgical test
results; bulk density,
groundwater,
geotechnical and rock
characteristics;
potential deleterious or
contaminating
substances.
Further work The nature and scale of No new exploration
planned further work (eg results are included in
tests for lateral this announcement.
extensions or depth
extensions or
large-scale step-out
drilling). Diagrams
clearly highlighting the
areas of possible
extensions, including
the main geological
interpretations and
future drilling areas,
provided this
information is not
commercially sensitive.

Section 3 Estimation and Reporting of Mineral Resources

Criteria JORC Code explanation Commentary
Database integrity Measures taken to ensure Drill hole logs were
that data has not been entered into Excel
corrupted by, for spreadsheeets on
example, transcription Panasonic Toughbook
or keying errors, computers, then uploaded
between its initial into an MS Access
collection and its use database. Assay data was
for Mineral Resource received from the
estimation purposes. laboratories in csv
Data validation format and merged into
procedures used. the master database, with
access restricted to the
database manager. Routine
validation checks were
run in MS Access as well
as Micromine software.
Site visits Comment on any site Mr. Ross visited the site
visits undertaken by the from Jan. 19 to 24, 2017
Competent Person and the to independently examine
outcome of those visits. the practices employed
If no site visits have for resource definition
been undertaken indicate drilling and examine the
why this is the case. sample preparation
procedures. He examined
outcrops, drill rigs,
sampling procedures, and
other general exploration
protocols. No significant
issues or discrepancies
were identified.
Geological interpretation Confidence in (or Geological interpretation
conversely, the is based on geological
uncertainty of ) the plan maps at surface and
geological at depth, and surface
interpretation of the holes drilled on a
mineral deposit. Nature nominal 40 m by 40 m
of the data used and of spacing. In addition,
any assumptions made. structural studies were
The effect, if any, of used to interpret
alternative geological and structural
interpretations on trends. Locally, closer
Mineral Resource spaced drill holes
estimation. The use of confirm the geological
geology in guiding and interpretation and
controlling Mineral continuity of grade and
Resource estimation. The geology in the
factors affecting mineralized zones. Gold
continuity both of grade mineralisation is
and geology. structurally controlled,
with the location and
trend of the mineralized
structures reasonably
defined. Geology and
grade continuity are
affected by local
variations in folding,
faulting, thinning and
widening of zones.
Wireframe models were
generated around zones
with similar geology,
alteration and grade
characteristics following
interpreted geology and
structural trends, and
treated as hard
boundaries for resource
estimation.
Dimensions The extent and The extents of the
variability of the Mineral Resources vary
Mineral Resource for each deposit and
expressed as length follow various structural
(along strike or and geological trends and
otherwise), plan width, dips, with varying widths
and depth below surface within each deposit. For
to the upper and lower Nogbele North, 198
limits of the Mineral mineralization wireframes
Resource. and 13 dilution envelopes
were generated, located
in a 3 km by 2 km area
and extending down to 140
m below surface. For
Nogbele South, 37
mineralization wireframes
and 5 dilution envelopes
were generated, located
in a 2.5 km by 1.5 km
area and extending down
to 130 m below surface.
For Nangolo, 18
mineralization wireframes
were generated, located
in a 0.8 km by 0.4 km
area and extending down
to 100 m below surface.
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For Fourkoura, 43
mineralization wireframes
were generated, located
in a 1.8 km by 0.5 km
area and extending down
to 100 m below surface.
For Stinger, 123
mineralization wireframes
were generated, located
in a 2 km by 0.5 km area
and extending down to 130
m below surface. For
Samavogo, 21
mineraliation wireframes
were generated, located
in a 4 km by 0.7 km area
and extending down to 140
m below surface.
Estimation and modelling The nature and The estimation methods
techniques appropriateness of the used to update the
estimation technique(s) revised block models were
applied and key determined separately for
assumptions, including each zone and generally
treatment of extreme determined by the
grade values, domaining, variography ranges,
interpolation parametres number and spacing of
and maximum distance of composites in each zone
extrapolation from data as well as the zone
points. If a computer extents. High grade gold
assisted estimation assays were capped by
method was chosen zone prior to
include a description of compositing. Block grades
computer software and were interpolated using
parametres used. The Inverse Distance Cubed
availability of check (ID(3) ) or Ordinary
estimates, previous Kriging (OK) in Vulcan,
estimates and/or mine Micromine or GEMS
production records and software. No assumptions
whether the Mineral were made regarding
Resource estimate takes recovery of by-products.
appropriate account of Deleterious elements or
such data. The other non-grade variables
assumptions made of economic significance
regarding recovery of were estimated. For
by-products. Estimation Nogbele North, Fourkoura,
of deleterious elements Nangolo and Stinger, a
or other non-grade block size of 2.5 m by
variables of economic 2.5 m by 2.5 m (x, y, z)
significance (eg sulphur was generated inside the
for acid mine drainage mineralisation
characterisation). In wireframes. For Nogbele
the case of block model South, a block size of
interpolation, the block 2.5 m by 2.5 m by 5 m was
size in relation to the generated inside
average sample spacing mineralization
and the search employed. wireframes. For Samavogo,
Any assumptions behind a block size of 5 m by 5
modelling of selective m by 2.5 m was generated
mining units. Any inside mineralization
assumptions about wireframes. Block grades
correlation between were estimated using 2
variables. Description metre composites in holes
of how the geological with approximate 40 m by
interpretation was used 40 m spacing, to a
to control the resource minimum of 6 m by 10 m
estimates. Discussion of spacing locally. Grade
basis for using or not interpolation searches
using grade cutting or followed the orientation
capping. The process of of each mineralisation
validation, the checking zone. Multiple
process used, the interpolation passes were
comparison of model data run with increasing
to drill hole data, and search ranges, on each
use of reconciliation zone. Block sizes inside
data if available. the mineralisation
wireframes were
determined by the mining
equipment selected to
best suit the project
scale and size of the
selective mining unit. No
assumptions were made
about the correlation
between variables.
Mineralisation wireframes
were treated as hard
boundaries with block
grades estimated inside
each wireframe using only
the samples located
inside the same
wireframe. Appropriate
capping levels were
applied to raw gold
assays by zone, prior to
compositing, and based on
a combination of
histograms, cumulative
probability plots, decile
analysis, visual
inspection in
cross-section and level
plans, and cutting
curves. Validation was
conducted on volumetric
comparisons between
mineralized blocks and
wireframes; comparisons
using alternate
estimation methods; swath
plots and various
statistical and visual
comparisons of block and
composite grades.
Moisture Whether the tonnages are Tonnages were estimated
estimated on a dry basis on a dry basis.
or with natural
moisture, and the method
of determination of the
moisture content.
Cut-off parametres The basis of the adopted For reporting purposes,
cut-off grade(s) or the Mineral Resource
quality parametres cut-off parameters were
applied. estimated by first
determining the economic
cut-off grades for the
Mineral Reserves (See
section 4). Since the
Mineral Reserves cut-off
grades were based on
determined operating
costs and a gold price of
$1200/oz, Mineral
Resource cut-offs were
lowered to determine a
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reasonable grade for
economic extraction.
Mineral Resource cut-off
grades for Nogbele North
and South, Nangolo and
Fourkoura are 0.35 g/t Au
for laterite and
saprolite, and 0.45 g/t
Au for transition and
fresh rock. Mineral
Resource cut-off grades
for Stinger are 0.40 g/t
Au for laterite and
saprolite, and 0.50 g/t
Au for transition and
fresh rock. Mineral
Resource cut-off grades
for Samavogo are 0.45 g/t
Au for laterite and
saprolite, and 0.55 g/t
Au for transition and
fresh rock.
Mining factors or Assumptions made Mining will be by way of
assumptions regarding possible conventional open pit
mining methods, minimum mining methods using a
mining dimensions and minimum 2.5 m mining
internal (or, if width in mineralized
applicable, external) zones and a five metre
mining dilution. It is bench height.
always necessary as part
of the process of
determining reasonable
prospects for eventual
economic extraction to
consider potential
mining methods, but the
assumptions made
regarding mining methods
and parametres when
estimating Mineral
Resources may not always
be rigorous. Where this
is the case, this should
be reported with an
explanation of the basis
of the mining
assumptions made.
Metallurgical factors or The basis for The process plant design
assumptions assumptions or is based on a
predictions regarding conventional CIL gold
metallurgical process flowsheet
amenability. It is consisting of primary
always necessary as part crushing, SAG and ball
of the process of milling, with a pebble
determining reasonable crusher, CIL tanks,
prospects for eventual elution, electro-winning
economic extraction to and gold smelting to
consider potential produce dor onsite.
metallurgical methods, The average predicted
but the assumptions plant recovery is 92%,
regarding metallurgical with soft material
treatment processes and recoveries from some
parametres made when zones reaching as high as
reporting Mineral 95%.
Resources may not always
be rigorous. Where this
is the case, this should
be reported with an
explanation of the basis
of the metallurgical
assumptions made.
Environmen-tal factors or Assumptions made The Nogbele, Nangolo,
assumptions regarding possible waste Fourkoura, Stinger and
and process residue Samavogo deposits are
disposal options. It is located on a permitted
always necessary as part mining licence. An
of the process of environmental impact
determining reasonable assessment study has been
prospects for eventual completed for the
economic extraction to feasibility study, with
consider the potential details to be included in
environmental impacts of the upcoming technical
the mining and report.
processing operation.
While at this stage the
determination of
potential environmental
impacts, particularly
for a greenfields
project, may not always
be well advanced, the
status of early
consideration of these
potential environmental
impacts should be
reported. Where these
aspects have not been
considered this should
be reported with an
explanation of the
environmental
assumptions made.
Bulk density Whether assumed or In-situ dry bulk density
determined. If assumed, was determined from
the basis for the diamond drill core using
assumptions. If the water displacement
determined, the method method. Poorly
used, whether wet or consolidated oxide
dry, the frequency of samples and porous
the measurements, the samples were wrapped in
nature, size and plastic prior to
representativeness of immersion. Ten-centimetre
the samples. The bulk samples were taken at
density for bulk approximate 1 m intervals
material must have been and correspond to most of
measured by methods that the mineralized and
adequately account for unmineralized rock types
void spaces (vugs, in each deposit. Bulk
porosity, etc), moisture density measurements were
and differences between averaged by major rock
rock and alteration type and by oxide
zones within the sub-domains (laterite and
deposit. Discuss saprolite), transition
assumptions for bulk and fresh rock for each
density estimates used deposit.
in the evaluation
process of the different
materials.
Classification The basis for the Mineral Resource
classification of the classification follows
Mineral Resources into Canadian Institute of
varying confidence Mining and Metallurgy and
categories. Whether Petroleum ("CIM")
appropriate account has "Definition Standards for
been taken of all Mineral Resources and
relevant factors (ie Mineral Reserves".
relative confidence in Mineral Resource
tonnage/grade classification is based
estimations, reliability on variogram ranges,
of input data, sample spacing and
confidence in continuity confidence in geological
of geology and metal and grade continuity.
values, quality, Based on the knowledge of
quantity and the geology,
distribution of the mineralisation and
data). Whether the structure of the
result appropriately deposits, the Mineral
reflects the Competent Resource classification
Person's view of the reflects the Competent
deposit. Person's view of the
deposits.
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Audits or reviews The results of any RPA conducted internal
audits or reviews of in-house reviews, with
Mineral Resource additional reviews by
estimates. Teranga.
Discussion of relative Where appropriate a The relative accuracy and
accuracy/ confidence statement of the confidence level in the
relative accuracy and Mineral Resource estimate
confidence level in the is based on the
Mineral Resource application of
estimate using an appropriate and industry
approach or procedure standard grade estimation
deemed appropriate by methods specific to each
the Competent Person. deposit and
For example, the mineralisation zone. The
application of Inverse Distance Cubed
statistical or ("ID(3) ") or Ordinary
geostatistical Kriging ("OK") estimation
procedures to quantify methods have been
the relative accuracy of applied. Additional
the resource within validation was conducted
stated confidence on volumetric comparisons
limits, or, if such an between mineralized
approach is not deemed blocks and wireframes;
appropriate, a comparisons using
qualitative discussion alternate estimation
of the factors that methods; swath plots and
could affect the various statistical and
relative accuracy and visual comparisons of
confidence of the block and composite
estimate. The statement grades. The statement
should specify whether relates to Mineral
it relates to global or Resource estimates by
local estimates, and, if deposit, which includes
local, state the the use of open pit
relevant tonnages, which shells to constrain open
should be relevant to pit resources,
technical and economic appropriate cut-off
evaluation. grades and gold price.
Documentation should Details of the revised
include assumptions made Mineral Resource
and the procedures used. estimates for the
These statements of Nogbele, Fourkoura,
relative accuracy and Stinger and Samavogo
confidence of the deposits will be
estimate should be documented in an upcoming
compared with production technical report,
data, where available. however, Mineral Resource
estimates were generated
and classified following
accepted industry
standards. Production
data is not available as
mining has not
commenced.

Section 4 Estimation and Reporting of Ore Reserves
(Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.)

JORC Code
Criteria explanation Commentary
Description of the
Mineral Resource
estimate used as a
basis for the
conversion to an
Ore Reserve. Clear
statement as to
whether the Mineral
Mineral Resources are
Resource reported additional Resources classified as Measured were used as the basis for Proven
estimate for to, or inclusive ore reserves, resources classified as Indicated were used as the
conversion to of, the Ore basis for Probable ore reserves. The mineral resources are reported
Ore Reserves Reserves. as inclusive to the ore reserves.
Comment on any site
visits undertaken
by the Competent
Person and the
outcome of those
visits. If no site
visits have been
undertaken indicate Mr. Glen Ehasoo, Director, Mine Engineering and Principal Mining
why this is the Engineer of RPA visited the Banfora Gold Project January 24(th) ,
Site visits case. 2017 to January 26(th) , 2017.
The type and level
of study undertaken
to enable Mineral
Resources to be
converted to Ore
Reserves. The Code
requires that a
study to at least
Pre-Feasibility
Study level has
been undertaken to
convert Mineral
Resources to Ore
Reserves. Such
studies will have
been carried out
and will have
determined a mine
plan that is
technically
achievable and
economically In March 2013, there was a Feasibility Study completed on the
viable, and that Project by Lycopodium Minerals Pty. Ltd. for Gryphon Minerals
material Modifying (acquired by Teranga Gold in 2016), referenced in this table as the
Factors have been Gryphon 2013 FS. Current Ore Reserves is part of the updated
Study status considered. Feasibility Study commissioned by Teranga Gold Corporation.
Banfora
The basis of the 2017 COG
cut-off grade(s) or at $1,200
Cut-off quality parametres /oz (g/t Transition Transition Fresh Fresh
parametres applied. Au) Saprolite Granatoid Mafic Granatoid Mafic
Nangolo 0.39 0.53 0.52 0.54 0.52
Nogbele NC 0.39 0.53 0.51 0.54 0.52
Nogbele South 0.40 0.54 0.53 0.55 0.53
Fourkoura 0.42 0.56 0.54 0.57 0.55
Samavogo 0.53 0.64 0.64 0.64 0.64
Stinger 0.44 0.60 0.60 0.61 0.61
The method and
assumptions used as
reported in the
Pre-Feasibility or
Feasibility Study
to convert the
Mineral Resource to
an Ore Reserve
(i.e. either by
application of
appropriate factors
by optimization or
by preliminary or
detailed design).
The choice, nature
and appropriateness
of the selected
mining method(s)
and other mining
parametres
including
associated design
issues such as
pre-strip, access, The method for conversion of Mineral Resource to Ore Reserve
etc. The involved a pit optimization study using the "Whittle" Lerch-Grossman
assumptions made algorithm to determine the economic limits of the Ore Reserve. Gold
regarding price used was $1,200 /oz. Mining will be by way of conventional
geotechnical open pit mining techniques using drill and blast with material
parametres (eg pit movement by hydraulic excavators and trucks. The project scale suits
slopes, stope 110 to 140 tonne class excavators in a backhoe configuration matched
sizes, etc), grade to 50 tonne class mining haul trucks operating at five-metre bench
control and heights. The Fourkoura, Stinger and Samavogo deposits are located 6,
pre-production 15 and 25 kilometres, respectively, from the process plant. The haul
drilling. The major trucks selected have the ability to haul ore directly to the process
assumptions made plant. This will reduce re-handling costs and minimize waste
and Mineral movement through optimized pit designs for the near-surface ore
Resource model used bodies. The Company will operate its own fleet. Extensive Grade
for pit and stope control RC drilling is planned to supplement the production blast
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optimization (if hole sampling as part of the grade control strategy. Geotechnical
appropriate). The parameters at Banfora were provided by Xstract Mining Consultants in
mining dilution 2017 at a Feasibility Study level based on the detailed work
factors used. The completed by Peter O'Bryan and Associates in 2012. The dilution
mining recovery assumption at Banfora is based on the minimum ore separation of the
factors used. Any mining excavator of 2.5m. RPA employs an algorithm that simulates
minimum mining the mining and ability to separate the ore. In addition to
widths used. The determining the internal dilution of a mining area, it also allows
manner in which for the inclusion of the contact dilution encountered at the edge of
Inferred Mineral the mining areas. Total added dilution ranges from deposit to
Resources are deposit between 10% to 15%. Minimum mining width used in pit designs
utilised in mining was 30m to allow for subsequent push backs and adequate working
studies and the space. Inferred resources were not considered in creating pit
sensitivity of the designs, and do not contribute to economic value in the cash flow
outcome to their analysis except where influencing mining dilution. Infrastructure
inclusion. The required for the Banfora project has been designed and costed as
infrastructure part of the Feasibility Study work. Infrastructure specific to the
requirements of the mining method includes the maintenance shop, emulsion plant and
Mining factors selected mining general storage areas. Plant recovery based on metallurgical
or assumptions methods. testing
Ore Type Recovery %
Nogbele and Fourkoura Oxide 95.7
Nogbele NC Primary- granitic 87.7
Nogbele NC Primary - mafic 91.6
Nogbele NC Transition 93.0
Nogbele South Primary granitic 91.0
Nogbele South Primary mafic 92.0
Nogbele South Transition 93.5
Fourkoura Transition 93.5
Fourkoura Primary 91.0
Samavogo Oxide 95.7
Samavogo Transition 95.0
Samavogo Primary 92.0
Stinger Oxide 95.5
Stinger Transition 93.0
Stinger Primary granitic 84.0
Stinger Primary volcanics 90.5
*Nangolo is regarded as part of Nogbele North Central (Nogbele NC)
Metallurgical The metallurgical Weathering and rock types are clearly coded in the resource block
factors or process proposed models. The process plant design is based on a conventional CIL
assumptions and the gold process flowsheet consisting of primary crushing, SAG and ball
appropriateness of milling, with a pebble crusher, CIL tanks, elution, electro-winning
that process to and gold smelting to produce dor onsite. Throughput is
the style of expected to range between 2.2 and 2.5 million tonnes per annum,
mineralisation. depending on the blend of soft and hard ore. The average predicted
Whether the plant recovery is 92%, with soft material recoveries from some
metallurgical zones reaching as high as 95%. The Banfora mineral deposits were
process is subjected to preliminary and detailed metallurgical testing in the
well-tested period 2010- 2012, in support of the Gryphon 2013 FS. The
technology or metallurgical testing was conducted in the Perth laboratory of ALS
novel in nature. Metallurgy (ALS) also previously named ALS Ammtec and Ammtec Ltd.
The nature, amount The series of reports issued by ALS were described in the Gryphon
and 2013 FS. Other testing was performed by Outotec (thickener sizing
representativeness determinations) and JKTech Pty. Ltd. interpreted the results of SAG
of metallurgical mill comminution (SMC) testing conducted by ALS. Subsequently,
test work Orway Mineral Consultants (OMC) conducted comminution circuit
undertaken, the modelling based on the comminution testing results obtained in the
nature of the ALS program. Metallurgical testing for the Banfora reserves are to
metallurgical feasibility study level.
domaining applied
and the
corresponding
metallurgical
recovery factors
applied. Any
assumptions or
allowances made
for deleterious
elements. The
existence of any
bulk sample or
pilot scale test
work and the
degree to which
such samples are
considered
representative of
the orebody as a
whole. For
minerals that are
defined by a
specification, has
the ore reserve
estimation been
based on the
appropriate
mineralogy to meet
the
specifications?
Environmental The status of An Environmental and Social Impact Assessment (ESIA) and associated
studies of Social and Environmental Management Plan (SEMP) for the project was
potential completed by MBS Environmental and submitted in April 2013. The
environmental documents were prepared in compliance with the Burkina Faso
impacts of the Environmental Code and considered requirements of other
mining and International guidelines where relevant. An Environmental
processing Conformance Certificate (ECC) was granted for the project by the
operation. Details Bureau National des Evaluations Environnementales (BUNEE) on 21
of waste rock January 2014. This provided specific conditions for approval that
characterisation the project is required to comply with. The Mining Licence was
and the granted on 1 August 2014. This was in relation to a revised SEIA
consideration of and SEMP document submitted in November 2013. Subsequent to this, a
potential sites, revised SEIA, SEMP and associated Resettlement Action Plan (RAP)
status of design were submitted on 9 December 2014 changing the mine plan and ore
options considered treatment methodology from CIL to heap leach. The revised documents
and, where were acknowledged by BUNEE on 23 January 2015 stating that the
applicable, the current ECC was still valid and did not require updating or
status of re-issuing. The tailings storage facility ("TSF") will be developed
approvals for as a high density polyethylene geomembrane lined paddock type
process residue facility in a two-cell arrangement. The TSF embankments will be
storage and waste constructed in annual raises to suit storage requirements, using
dumps should be downstream raise construction methods. Geochemistry testing for
reported. tailings and waste rock was completed. Samples recorded negative
acid producing potential and near neutral pH values. In addition, a
vast majority of the waste rock were non-acid forming or acid
consuming. On the bases of these results, there was no perceived
risk of acid generation in the waste rock dumps or tailings storage
facility.
Infrastructure The existence of As part of the 2017 updated Feasibility Study, a detailed design and
appropriate costing was completed for the required infrastructure for a 2.2 to
infrastructure: 2.5 million tonnes per annum carbon in leach ("CIL") processing
availability of facility. Infrastructure includes accommodations for the employees,
land for plant processing plant, maintenance facilities, tailings storage
development, facility, HFO power generation plant, water storage dam, haulage
power, water, roads connecting open pit locations to the process plant and etc.
transportation
(particularly for
bulk commodities),
labour,
accommodation; or
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the ease with
which the
infrastructure can
be provided, or
accessed.
Costs The derivation of, Project capital costs are based on actual construction costs, first
or assumptions principle estimations, and vendor quotations. Operating costs
made, regarding derived from first principles based on design specifications,
projected capital vendor quotes and operating hour estimates. Metallurgical testing
costs in the have not revealed the requirement allowances due to the existence
study. The of deleterious elements. The reserves were based on $1,200 gold
methodology used price. Transportation, treatment and refining charges, royalties,
to estimate etc. are based on existing contracts and government agreements.
operating costs.
Allowances made
for the content of
deleterious
elements. The
derivation of
assumptions made
of metal or
commodity
price(s), for the
principal minerals
and co- products.
The source of
exchange rates
used in the study.
Derivation of
transportation
charges. The basis
for forecasting or
source of
treatment and
refining charges,
penalties for
failure to meet
specification,
etc. The
allowances made
for royalties
payable, both
Government and
private.
Revenue factors The derivation of, The revenue factor was derived based on a transport and refining
or assumptions cost of $3.00 per ounce gold. The government net smelter royalty is
made regarding 3-5% depending on gold price. At $1,250 gold, a 4% royalty rate was
revenue factors applied. A gold price of $1,200 was used for pit optimization and a
including head gold price of $1,250 was used for the cash flow tables.
grade, metal or
commodity price(s)
exchange rates,
transportation and
treatment charges,
penalties, net
smelter returns,
etc. The
derivation of
assumptions made
of metal or
commodity
price(s), for the
principal metals,
minerals and
co-products.
Market The demand, supply The principal commodity of Banfora is gold. Gold is widely and
assessment and stock freely traded on the international market, with known and instantly
situation for the accessible pricing information.
particular
commodity,
consumption trends
and factors likely
to affect supply
and demand into
the future. A
customer and
competitor
analysis along
with the
identification of
likely market
windows for the
product. Price and
volume forecasts
and the basis for
these forecasts.
For industrial
minerals the
customer
specification,
testing and
acceptance
requirements prior
to a supply
contract.
Economic The inputs to the The net present value was determined using a discounted cash flow
economic analysis model of the initial mine plan at $1,250 gold and 5% discount rate.
to produce the net The NPV has been sensitized to the following gold prices:
present value $1,200/oz, $1,250/oz, $1,300/oz and $1,350/oz.
(NPV) in the
study, the source
and confidence of
these economic
inputs including
estimated
inflation,
discount rate,
etc. NPV ranges
and sensitivity to
variations in the
significant
assumptions and
inputs.
Social The status of The current resources and reserves for the Banfora Project are fully
agreements with permitted and the environmental impact assessment study is
key stakeholders complete. Positive progression of the resettlement action plan is
and matters supported by the local communities. Under the resettlement action
leading to social plan, approximately 500 households in the villages of Zegnedougou,
licence to Nangueledougou, Djondougou, Katolo, Nadjengoala will be relocated
operate. over the next five years, with a further 350 households compensated
for agricultural land impact. Resettlement sites have been
identified, and the physical planning, design and approval of
future resettlement communities is underway. Construction of the
first resettlement is expected to begin in the first quarter of
2018. Employment opportunities and sustainable development
initiatives supported by Teranga will provide further support for
socio-economic growth in the area.
Other To the extent The current resources and reserves for the Banfora Project are fully
relevant, the permitted.
impact of the
following on the
project and/or on
the estimation and
classification of
the Ore Reserves:
Any identified
material naturally
occurring risks.
The status of
material legal
agreements and
marketing
arrangements. The
status of
governmental
agreements and
approvals critical
to the viability
of the project,
such as mineral
tenement status,
and government and
statutory
approvals. There
must be reasonable
grounds to expect
that all necessary
Government
approvals will be
received within
the timeframes
anticipated in the
Pre-Feasibility or
Feasibility study.
Highlight and
discuss the
materiality of any
unresolved matter
that is dependent
on a third party
on which
extraction of the
reserve is
contingent.
Classification The basis for the Probable ore reserves are based on the CIM definition for indicated
classification of resources (compliant with JORC) using geostatistical modeling
the Ore Reserves techniques applicable to gold deposits. Proven ore reserves are
into varying based on the CIM definition for measured resources (compliant with
confidence JORC) using geostatistical modeling techniques applicable to gold
categories. deposits, and second, stockpile inventory based on production drill
Whether the result assay data. The resources appropriately reflects the Competent
appropriately Person's view of the deposit.
reflects the
Competent Person's
view of the
deposit. The
proportion of
Probable Ore
Reserves that have
been derived from
Measured Mineral
Resources (if
any).
Audits or The results of any The Ore Reserves were compiled by Mr. Glen Ehasoo, Director, Mine
reviews audits or reviews Engineering and Principal Mining Engineer of RPA (Independent to
of Ore Reserve Teranga Gold).
estimates.
Discussion of Where appropriate a The relative accuracy and confidence level in the Mineral Reserves
relative statement of the estimate is based on the application the industry standard
accuracy/ relative accuracy Lerchs-Grossman optimizer, using operating costs estimated from
(MORE TO FOLLOW) Dow Jones Newswires
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confidence and confidence first principles and benchmarked against the existing operation at
level in the Ore Sabodala. The dilution and ore recovery estimates are based on a
Reserve estimate comprehensive algorithm created by RPA that evaluates the orebody
using an approach geometry and applies the minimum mining width to the model on a
or procedure bench by bench basis. The geotechnical parameters for the pit wall
deemed appropriate angles for Banfora are based on a feasibility level analysis by
by the Competent Xstract. Metallurgical testing was completed at accredited
Person. For laboratories and reviewed by a Competent Person independent to
example, the Teranga Gold. The accuracy of the estimates within this Ore Reserve
application of are largely determined by the order of accuracy associated with the
statistical or Mineral Resource model, metallurgical inputs, and long-term cost
geostatistical adjustment factors.
procedures to
quantify the
relative accuracy
of the reserve
within stated
confidence limits,
or, if such an
approach is not
deemed
appropriate, a
qualitative
discussion of the
factors which
could affect the
relative accuracy
and confidence of
the estimate. The
statement should
specify whether it
relates to global
or local
estimates, and, if
local, state the
relevant tonnages,
which should be
relevant to
technical and
economic
evaluation.
Documentation
should include
assumptions made
and the procedures
used. Accuracy and
confidence
discussions should
extend to specific
discussions of any
applied Modifying
Factors that may
have a material
impact on Ore
Reserve viability,
or for which there
are remaining
areas of
uncertainty at the
current study
stage. It is
recognised that
this may not be
possible or
appropriate in all
circumstances.
These statements
of relative
accuracy and
confidence of the
estimate should be
compared with
production data,
where available.

SOURCE Teranga Gold Corporation
/CONTACT: Richard Young, President & CEO, T: [phone] | E: [e-mail]; Trish Moran, Head of Investor Relations, T: [phone] | E: [e-mail]


(END) Dow Jones Newswires
September 07, 2017 06:00 ET (10:00 GMT)
Teranga Gold Reports Positive Feasibility Study -15-

confidence and confidence first principles and benchmarked against the existing operation at
level in the Ore Sabodala. The dilution and ore recovery estimates are based on a
Reserve estimate comprehensive algorithm created by RPA that evaluates the orebody
using an approach geometry and applies the minimum mining width to the model on a
or procedure bench by bench basis. The geotechnical parameters for the pit wall
deemed appropriate angles for Banfora are based on a feasibility level analysis by
by the Competent Xstract. Metallurgical testing was completed at accredited
Person. For laboratories and reviewed by a Competent Person independent to
example, the Teranga Gold. The accuracy of the estimates within this Ore Reserve
application of are largely determined by the order of accuracy associated with the
statistical or Mineral Resource model, metallurgical inputs, and long-term cost
geostatistical adjustment factors.
procedures to
quantify the
relative accuracy
of the reserve
within stated
confidence limits,
or, if such an
approach is not
deemed
appropriate, a
qualitative
discussion of the
factors which
could affect the
relative accuracy
and confidence of
the estimate. The
statement should
specify whether it
relates to global
or local
estimates, and, if
local, state the
relevant tonnages,
which should be
relevant to
technical and
economic
evaluation.
Documentation
should include
assumptions made
and the procedures
used. Accuracy and
confidence
discussions should
extend to specific
discussions of any
applied Modifying
Factors that may
have a material
impact on Ore
Reserve viability,
or for which there
are remaining
areas of
uncertainty at the
current study
stage. It is
recognised that
this may not be
possible or
appropriate in all
circumstances.
These statements
of relative
accuracy and
confidence of the
estimate should be
compared with
production data,
where available.

SOURCE Teranga Gold Corporation
/CONTACT: Richard Young, President & CEO, T: [phone] | E: [e-mail]; Trish Moran, Head of Investor Relations, T: [phone] | E: [e-mail]


(END) Dow Jones Newswires
September 07, 2017 06:00 ET (10:00 GMT)