Teranga produces its most gold ever, eyes higher 2020 output

8th January 2020 By: Creamer Media Reporter

TSX-listed Teranga Gold, which mines in Senegal and Burkina Faso, has reported record gold production of 288 768 oz for 2019, exceeding the top-end of its full-year production guidance.

Production increased by 18% over the 245 230 oz of gold produced in 2018, the gold mining company said in a statement on Monday, ahead of its fourth quarter and year-end results announcement, scheduled for February.  

The Wahgnion mine, in Burkina Faso, achieved commercial production effective November 1, and surpassed the high end of its production guidance of 30 000 oz to 40 000 oz with a total of 47 492 oz of gold.

Sabodala, in Senegal, topped its 2019 anticipated production guidance of 215 000 oz to 230 000 oz, with a total of 241 276 oz of gold produced.

“2019 represents the fourth consecutive year in which we have exceeded our production guidance and reported record results, a testament to the quality of our operating teams,” commented COO Paul Chawrun.

Teranga is also buying the Massawa gold project from senior Canadian miner Barrick Gold for $430-million.

“We anticipate the Sabodala-Massawa complex, together with our new mine, Wahgnion, will significantly increase our consolidated annual production and support Teranga’s transformation into a low-cost, midtier gold producer,” said president and CEO Richard Young.

Prior to announcing its acquisition of the Massawa gold project, the company had been targeting 2020 gold production of between 300 000 oz and 350 000 oz. However, with production of Massawa’s free-milling ore expected to start at Sabodala’s existing carbon-in-leach plant in the second half of the year, 2020 production is expected to increase beyond the previously anticipated range, Teranga said.

Within six months of closing the Massawa acquisition, Teranga plans to complete a prefeasibility study highlighting updated production and costs for the integrated Sabodala-Massawa gold complex. 

The transaction, announced in December, is expected to close during the current quarter.