Teranga Gold (TSX: TGZ) has produced more than 1.2 million ounces of gold from its Sabodala mine in Senegal since 2009 and expects its flagship operation will produce another 1 million ounces of the metal over the next five years.
“If we don’t put another drill hole in, we’ve got a further 14 years remaining at Sabodala, with production averaging 176,000 ounces a year at all-in-sustaining costs of less than US$900 per oz.,” says the company’s president and CEO, Richard Young.
In July, the company announced that it had increased Sabodala’s proven and probable reserves to 2.7 million oz. gold, an increase of 400,000 ounces over the previous reserve estimate, and forecast gold production between 2018 and 2022 should generate a total of US$230 million in free cash flow. This year the mine is on track to churn out between 205,000 and 225,000 oz. gold.
But the mid-tier gold producer has a broader vision of its future in West Africa that extends its footprint beyond Senegal and into Burkina Faso. The company expects to start building a second gold mine at its Banfora project there starting in the second half of next year, with the first gold pour to follow in 2019.
Continue reading at The Northern Miner.