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Teranga sees potential to create top-tier mining project in Senegal

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(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.

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