True Gold begins mining at Karma Gold’s Goulagou II deposit in Burkina Faso

20 October 2015 (Last Updated October 20th, 2015 18:30)

True Gold has started mining from the Goulagou II deposit at the Karma Gold Mine in Burkina Faso.

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True Gold has started mining from the Goulagou II deposit at the Karma Gold Mine in Burkina Faso.

The deposit, which is the first of six that will be mined over an 11.5 year period, has reserves of 273,000 leachable ounces of gold, and will be mined during the first two years of production.

True Gold president and CEO Christian Milau said: "As we transition into gold production over the next few months, our team is increasingly focused on operational readiness.

"Karma will produce approximately 120,000oz of gold per year during our first five years at the lowest quartile of cash costs, laying the foundation for True Gold to become a mid-tier producer."

Construction on the Karma mine is progressing, with around 73% of it complete.

"Karma will produce approximately 120,000oz of gold per year during our first five years at the lowest quartile of cash cost."

As of 30 September, True Gold has $19m in cash and up to $48m available under its finance facility.

At GGII, the company started open-pit mining and grade control drilling. It deployed a mine fleet after completing excavation of bulk earthworks at the processing and storage ponds.

Excavation of cells 1, 2 and 3 of the heap leach pad is finished. At cell 2, herring bone underdrains are complete and installation of lining has begun.

A feasibility study, revised in December 2014, confirmed that the Karma mine is scalable and has the potential to remain strongly profitable at lower gold prices, as well as at increased prices for key consumables.


Image: The Goulagou II deposit at the Karma Gold Mine has reserves of 273,000 leachable ounces of gold. Photo: courtesy of TrueGold Mining Inc.