Monday March 16: Top News ReleasesTeranga Gold - (TGZ:TSX) – Teranga had positive news this morning that they have successfully received an environmental license for the high grade Gora satellite deposit. The deposit sits ~25 km from the current mill and construction on a road has already begun. Ore is expected to be processed from Gora before the fourth quarterof this year. Gora has been estimated to produce between 30-45 thousand ounces this year. The grade of Gora is ~5 grams per tonne which is ~4 times the grade of the material processed at Sabodala. Teranga is now debt free after paying a $4 million dollar equipment loan in February. Teranga is focused on generating free cash flow and makes money at $1200 gold. Over $700 million has been invested in the project and the current market cap is ~$200 million.
Pierre Lassonde, Chairman of Franco Nevada with whom Teranga has a streaming deal with recently mentioned Teranga as a stock on the Casey Research promotion Going Vertical. Franco has obviously done its due diligence on the project and likes what it sees. If you are looking for a gold producer generating Free Cash Flow you would be smart to take a look at Teranga in my opinion.