Teranga sees potential to create top-tier mining project in Senegal
(Kitco News) - The results of its preliminary feasibility study (PFS) show that Teranga ’s SabodalaMassawa Gold Complex has the potential to be a top-tier, low-cost gold mine in Senegal, West Africa, the company said.
In the study, released Monday, the company said that the project has a proven and probable reserve base of 4.8 million ounces of gold. The updated study was completed after Teranga bought acquisition the Massawa gold project, one of Africa ’s highest grade undeveloped open-pit gold projects, from Barrick Gold Corporation.
The company said that it the Massawa project was an opportunity to leverage Teranga ’s existing operations at its Sabodala Gold Operations.
“The PFS announced today confirms that the Massawa acquisition is truly transformational for Teranga and repositions the Company as a leading mid-tier gold producer with one of the lowest all-in sustaining cost profiles in the industry,” said Richard Young, president and CEO.
According to the study, the company expects to see annual production of 384,000 ounces at all-in sustaining costs of $671 an ounce. Production in the first five years is expected generate average net cash flow of $215 million per year with a gold price of around $1,600; total net cash flow is expected to be around $1.1 billion.
“Bringing the Massawa and Sabodala projects together builds on and amplifies the strengths of the two assets – infrastructure is largely in place, labour and contractors are trained and available, and exploration and mine investments can be better leveraged over a longer period of time,” stated Paul Chawrun, Chief Operating Officer.