VANCOUVER, BRITISH COLUMBIA–(Marketwired – Feb. 11, 2016) – True Gold Mining Inc. (TSX VENTURE:TGM) (“True Gold” or the “Company“) (all dollar figures in US dollars) is pleased to provide an update for the Karma Gold Mine, including the stacking of ore on the leach pad.
“With construction nearing completion and commissioning underway, our team is now focusing on ramping up to commercial production,” stated Christian Milau, President & CEO of True Gold. “Our mining team has been in full operation for the past four months, starting with pre-stripping waste and now stockpiling ore. Our processing team has successfully commissioned the ore crushing to stacking circuit, and we are in the final stretch of process plant completion in preparation for plant commissioning. It’s incredibly exciting to be on the eve of a major company milestone.”
To view the latest construction photos, click here: http://truegoldmining.com/our-projects/karma#field-project-tab-tab-7
Construction at Karma is approximately 94% complete with commissioning being the major activity on site today. Over 500,000 tonnes of stockpiled ore will provide the initial feed to the fully commissioned soft rock crusher, agglomeration and stacking circuit.
Soft Rock Crushing, Agglomeration, and Ore Stacking Circuit:
Ore has been introduced into the crushing and agglomerating circuits, and agglomerated ore is being stacked on the leach pad.
Piping and solution collection systems for leach pad cells 1 to 3 have been completed with the installation of the last of the HDPE lining for the pad to pond interface. Cell 1 is receiving agglomerated ore, while Cells 2 and 3 will be completed in the coming weeks, with final placement of the drainage layer underway. Cells 4 through 9 are levelled and are ready for HDPE lining installation.
Construction of the three process solution ponds (pregnant, intermediate, and barren) is complete. They are full of water, with pontoon pumps installed.
ADR Plant and Gold Room:
The ADR plant is nearing completion with the final installation of piping, electrical and instrumentation remaining. The main construction focus is now on completion of the gold room where are all the equipment is in the building ready to be placed in position once the second floor brickwork and plastering is completed. The gold vault has been completed and is ready to receive doré.
Site structural steel work is complete, and the remaining civil works are limited to the gold room and minor infrastructure items.
Phase I of the grade control drilling program for the Goulagou II pit has been successfully completed and the results are consistent with the anticipated tonnage and grade for the volume drilled. Phase II of this ongoing program will start in mid-February.
As at December 31, 2015, management forecasts remaining project spend to completion of $23.5 million, which excludes corporate costs. Remaining project costs will be funded by (1) True Gold’s December 31, 2015 cash position of $5.1 million; (2) $15.4 million remaining on the US $100 million Franco-Nevada/Sandstorm Gold facility (all $15.4 million drawn in January 2016); and (3) $20 million Increase Option, $5 million of which was drawn in January 2016. To help offset further drawing on the Increase Option, the Company has drawn $6 million of the $10 million equipment re-finance facility.
David Laing, MIMMM Chief Operating Officer of True Gold is the designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects and has reviewed and verified that the technical information contained in this release is accurate and approves of the written disclosure of same.
About True Gold
True Gold Mining Inc. is where gold comes to life. We are committed to growing a successful gold production company, by focusing on projects with low costs, low technical risks and solid economics. The Company’s board, management and technical teams have proven track records in gold exploration, development, and production worldwide.
ON BEHALF OF THE BOARD
Christian Milau, President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All statements in this press release, other than statements of historical fact, are “forward-looking information” with respect to True Gold within the meaning of applicable securities laws, including statements with respect to the potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of construction completion and first gold pour. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “planned”, “expect”, “project”, “predict”, “potential”, “targeting”, “intends”, “believe”, “potential”, and similar expressions, or describes a “goal”, or variation of such words and phrases or state that certain actions, events or results “may”, “should”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about processing and recovery of mined and stockpiled ore, future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of True Gold and there is no assurance they will prove to be correct.
Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Karma Project, processing and recovery of mined and stockpiled ore, reliance on technical information provided by third parties as related to the Karma Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; satisfaction of Burkina Faso requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, uncertainties relating to the interpretation of drill results and the estimation of mineral resources, the geology, grade and continuity of mineral deposits, accidents, equipment breakdowns, risk of undiscovered, title defects and surface access, the potential for delays in exploration and permitting activities, uncertainties related to the Company’s relationship with communities that surround its properties in Burkina Faso, risks related to the financing agreement with Franco-Nevada and Sandstorm, including the Company’s ability to meet its scheduled delivery obligations, the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, political risk as well as those factors discussed in the Annual Information Form of the Company dated April 27, 2015 in the section entitled “Risk Factors”, under True Gold’s SEDAR profile at www.sedar.com.
Although True Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. True Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.