Teranga Gold Reports Golden Hill Drill Results, Including 6.08 g/t Gold Over 34 Metres at Nahiri Prospect

TORONTO, July 24, 2017 (GLOBE NEWSWIRE) -- Teranga Gold Corporation ("Teranga" or the "Company") (TSX:TGZ) (ASX:TGZ) is pleased to announce that early-stage drilling continues to yield high-grade, near-surface oxide and deeper fresh-rock gold mineralization at its Golden Hill property in Burkina Faso, West Africa. 

These most recent results comprise Phase 2 drill results at Ma and Nahiri, two new discoveries reported by the Company in April, as well as initial drilling results from two new targets, Peksou and Jackhammer Hill.  All four prospects are located approximately 5 kilometres within a central point (see Figure 1 in Appendix 1).  In addition to these results, assays are pending for 11 core holes from Ma and a total of 63 reverse circulation holes; 20 at Ma, 20 at Nahiri and 23 from a variety of targets in the Pourey-Peksou area. 

Drilling returned excellent grades and widths at Ma, Nahiri and Peksou, including:

• 9 m @ 4.04 g/t Au including 3 m @ 9.44 g/t Au (GHDD-040) at Ma
  
  
• 34 m @ 6.08 g/t Au including 14 m @ 12.38 g/t Au (GHDD-026) at Nahiri
  
  
• 36 m @ 2.32 g/t Au including 12 m @ 3.70 g/t Au (GHDD-003) at Peksou
  
  
• 82 m @ 1.43 g/t Au including 11 m @ 2.55 g/t Au (GHDD-004) at Peksou

“We are very excited with our discoveries and extension of mineralization at Golden Hill within the highly prospective Houndé belt.  Our early stage drilling has yielded excellent grades and widths displaying good continuity along trend and mineralization remains open along strike at all four of our priority prospects,” said David Mallo, Teranga’s Vice President, Exploration.  “We are expecting results from eleven core holes and over 60 reverse circulation holes shortly which should further enhance our resource footprint.  With an aggressive drilling program in place through the remainder of the year, we are targeting an initial resource estimation for Golden Hill in the coming quarters.”

The Golden Hill property is comprised of three adjacent exploration permits covering 468km² located in southwest Burkina Faso in the central part of the Houndé Greenstone Belt. This belt hosts a number of high-grade gold discoveries, including the Siou, Yaramoko and Houndé deposits, the latter property being contiguous with Golden Hill.  To the south of Golden Hill is another large land position where active exploration programs are well underway. 

Teranga, through its acquisition of Gryphon Minerals Ltd., has an earn-in agreement on the Golden Hill property with Boss Resources Limited (ASX:BOE) pursuant to which Teranga, as the operator, can earn an 80 percent interest in the joint venture upon delivery of a feasibility study and the payment of AUD2.5 million.

Ma: Phase 2 Highlights

At Ma, 30 core drill holes were completed during the initial stage of the Phase 2 drill evaluation, testing the primary northwest trending Ma structure, a secondary parallel, northwest trending structure and north-south trending cross-structures.  Gold mineralization at the Ma prospect is hosted in an extensive, favourable altered silicified and brecciated shear system within a sequence of mafic volcanics intruded by at least two distinct phases of granitic intrusive bodies.  To date, a minimum 1,300-metre extent along strike of the primary Ma structure has been successfully intersected by core drilling.  An additional 500-metres along strike, immediately to the east of the Ma core drilling, has recently been drill tested by a series of reverse circulation profiles for which results are pending (see Figure 2 in Appendix 1).  Representative sections from Ma are included (see Figures 3, 4 and 5 in Appendix 1). A listing of the highlighted drilling results from the currently available Phase 2 drill results, 19 holes, is included in Table 1.  A complete listing of assays from all Ma drill holes completed to dates are shown in an all-prospect combined results Table 4 in Appendix 1.

The Phase 2 drill program has continued to intersect favourable intersections over a minimum of 1,300-metre strike extent drilled to date at Ma.  Highlight results from Table 1 include:

• 9 m @ 4.04 g/t Au including 3 m @ 9.44 g/t Au (GHDD-040)
  
  
• 8 m @ 2.04 g/t Au including 3 m @ 4.02 g/t Au (GHDD-052)
  
  
• 11 m @ 1.80 g/t Au including 3 m @ 2.79 g/t Au (GHDD-033)
  
  
• 13 m @ 1.30 g/t Au including 7 m @ 1.95 g/t Au (GHDD-031)
  
  
• 4 m @ 3.38 g/t Au (GHDD-038)

The Phase 2 drill program (minimum 7,500 metres) is scheduled to re-start at Ma prospect in early August to further evaluate the currently outlined strike extent on regularly spaced sections, extend drilling further along trend and continue testing down dip depth extensions below the favourable gold mineralised intervals for holes completed thus far.     

Nahiri: Phase 2 Highlights

At the Nahiri prospect, which is also contained in a mafic volcanic host intruded by a set of sub-vertical porphyritic mafic intrusives, seven core holes were completed to both confirm earlier reverse circulation drill results and provide better geological and structural orientation information at this new discovery. Both infill and step-out drilling were utilized to evaluate further the minimum 350-metre strike extent for the Nahiri mineralisation (see Figure 6 in Appendix 1). Significant results from these core holes are outlined in Table 2, while the complete listing of the Nahiri results is included in Table 4 in Appendix 1.

Confirmed and refined earlier reverse circulation drill results at Nahiri with favourable core intersections include:

• 34 m @ 6.08 g/t Au including 14 m @ 12.38 g/t Au (GHDD-026)
  
  
• 10 m @ 1.89 g/t Au including 2 m @ 5.18 g/t Au (GHDD-021)
  
  
• 8 m @ 2.09 g/t Au including 1 m @ 12.14 g/t Au (GHDD-025)

The Phase 2 drill evaluation program (2,000 metres) will re-start at the Nahiri prospect in the fourth quarter to test the strike extent and further assess the interpreted geometry of the mineralised zones comprising the Nahiri prospect.

“The positive drill results obtained from both our initial and ongoing Phase 2 drill programs at Ma serve to verify the along trend and initial down-dip continuity of grade and width at this quickly advancing prospect,” stated Mr. Mallo.  “Although still at a very early stage of exploration, we recognize considerable upside exists and we will continue to test the Ma mineralised system further to depth and along trend. Similarly, the latest drill results at Nahiri have confirmed and expanded on the initial reverse circulation drill results, greatly improving our geologic understanding of this new discovery.”

Peksou: Initial Drill Highlights

The Peksou prospect consists of a broadly altered structural zone that crosses both mafic volcanics and granitic intrusives displaying favourable grades and widths in both host units.  Generally, the widths of the mineralized system increases within the more brittle granitic host and higher-grades tend to be more concentrated within the more ductile mafic volcanic host and at the geologic contact.  Only five core holes were drilled at Peksou during the initial drill phase to evaluate further the minimum 600-metre strike extent for the Peksou mineralisation.  These holes were designed to validate a series of historical reverse circulation holes that were analyzed without proper quality assurance / quality control protocols which appeared to have some down-hole assay smearing/contamination and for which no reverse circulation chips remained for inspection.  Three of the holes were twins of these reverse circulation holes and two holes were drilled in part down the interpreted trend of mineralisation to obtain an overall sense of the appropriate mineralised grade. Although one of these holes, GHDD-004, drilled down the trend of mineralisation, it did enhance the geologic model and has extended known mineralisation to greater depth beyond historical drill holes (see Figures 7, 8 and 9 in Appendix 1).

A core drilling evaluation (minimum 2,500 metres) of the high priority Peksou prospect will resume in the fourth quarter towards defining the along trend extensions of this high-grade mineralised system and to further test the geologic model at greater depths.

Favourable drill intersections from the initial validation drill program at Peksou include:

• 36 m @ 2.32 g/t Au including 12 m @ 3.70 g/t Au (GHDD-003)
  
  
• 8 m @ 5.97 g/t Au including 3 m @ 13.46 g/t Au (GHDD-005)
  
  
• 6 m @ 20.33 g/t Au including 2 m @ 56.16 g/t Au (GHDD-006)
  
  
• 82 m @ 1.43 g/t Au including 11 m @ 2.55 g/t Au (GHDD-004) – not true width (see Table 3 footnote)

A complete listing of the Peksou drill results is in Table 3 and the all-prospects combined Table 4 in the Appendix.

Jackhammer Hill: Initial Drill Highlights

Drill evaluation is at an early stage for the Jackhammer Hill prospect, a never before drilled, robust gold-in-soil and auger geochemical anomaly measuring in excess of 2 kilometres of strike extent. Although an area of artisanal activity along the entire known extent of the Jackhammer Hill anomaly, the geology and hosting mineralization here is not well understood. Jackhammer Hill appears to be a complex of altered shear structures within a mixed sequence of volcanic and intrusive units similar to that observed at Peksou. Two core holes were drilled at this prospect primarily to obtain structural orientation and geological information to guide future, more extensive drill campaigns. Drill results for Jackhammer Hill included 5.2 metres @ 1.26 g/t Au (GHDD-001) and 1 metre @ 1.48 g/t Au (GHDD-002) and are also shown in Table 4 in Appendix 1.

Additional drilling (minimum 1,500 metres) is planned at Jackhammer Hill to coincide with the current Phase 2 drill program at Ma, scheduled to begin in August.

Drilling Highlights

Table 1: Ma Prospect Drilling Highlights (Results for eleven holes still pending)

Table 2: Nahiri Prospect Drilling Highlights

Table 3: Peksou Prospect Drilling Highlights

Competent Persons Statements

Teranga's exploration programs are being managed by Peter Mann, FAusIMM. Mr. Mann is a full time employee of Teranga and is not "independent" within the meaning of National Instrument 43-101. Mr. Mann 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" (the “JORC Code”). Mr. Mann is a "Qualified Person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects. The technical information contained in this news release relating exploration results are based on, and fairly represents, information compiled by Mr. Mann. Mr. Mann has verified and approved the data disclosed in this release, including the sampling, analytical and test data underlying the information. The RC and diamond core samples are assayed at the BIGGS Laboratory in Ouagadougou, Burkina Faso. Mr. Mann has consented to the inclusion in this news release of the matters based on his compiled information in the form and context in which it appears herein.

Forward-Looking Statements

This press 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 “objective to”, “likely”, “intend to”, “potential”, “belief”, “believe”, “expects”, “estimates”, “plans”, “anticipated”, “ability” and similar expressions or statements that certain actions, events or results “should”, 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 press 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 reserve and mineral resource estimates, gold price, exchange rates, fuel and energy costs, future economic conditions, the ability to resettle the community 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 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 document 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 5,000km² 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 Côte d’Ivoire.  Teranga has a strong balance sheet and the financial flexibility to grow its business.

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

Table 4: DDH Results For All Prospects (GHDD-001 to GHDD-058)

Figure 1: Golden Hill Property - Location Plan Map

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Figure 2: Ma Prospect Drill Plan

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Figure 3: Ma Prospect– GHDD033-DD015 Cross-Section

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Figure 4:  Ma Prospect– GHDD011-041 Cross-Section

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Figure 5: Ma Prospect – GHDD011-046 Cross-Section

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Figure 6: Nahiri Prospect – Drill Plan

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Figure 7: Peksou Prospect – Drill Plan

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Figure 8: Peksou Prospect – GHDD003 Cross-Section

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Figure 9: Peksou Prospect– GHDD004 Cross-Section

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Contact Information Richard Young President & CEO T: +1 416-594-0000 E: ryoung@terangagold.com    Trish Moran Head of Investor Relations T: +1 416-564-4290 E: tmoran@terangagold.com