Name and Location
Karma gold project, Burkina Faso.

Client
True Gold.

Project Description
An October 2012 Canadian National Instrument 43-101-compliant mineral resource update estimated that the Karma project hosted a total pit shell-constrained resource of 56.5-million tonnes grading 1g/t gold for 1.94-million ounces, while the inferred resource comprised 15.3-million tonnes grading 1.07 g/t gold for 492-million ounces.

The project consists of five closely spaced deposits – Kao, Goulagou I, Goulagou II, Rambo and Nami – which remain open in multiple directions.

The preliminary economic assessment (PEA) completed on the project examined the integrated development of the five deposits under three operating scenarios:
• heap-leach processing of all nonrefractory resources;
• carbon-in-leach (CIL) processing of all nonrefractory resources; and
• heap-leach processing of all nonrefractory resources and flotation processing of a small portion of high-grade refractory resources.

The PEA recommends that mining will be conducted using a fleet of seven to ten 91 t trucks and two 15 m3 excavators in backhoe configuration working 5-m-high benches. Mining rates, depending on the operating scenario, range from 30 000 t/d to 40 000 t/d, with strip ratios of 2.5 to 3.2:1. Most of the oxide and transition material are free-digging, with drilling and blasting required for the transition and sulphide rocks.

Heap leach and CIL were deemed suitable for processing the nonrefractory material. A processing rate of 9 000 t/d, or three-million tonnes a year, was identified as the best compromise between plant cost and throughput to generate production in each scenario of 70 000 oz/y to 90 000 oz/y of gold over a nominal ten-year mine life.

In the third operating scenario, flotation of refractory mineralisation was applied to a small (2.2-million tonnes), higher-grade (2.34 g/t gold) portion of the sulphide resource to generate a direct-shipping concentrate. Refractory feed processing was planned for a throughput of 1 200 t/d as an adjunct to heap leach, supplementing gold production in the latter years of the mine life when mined oxide grades decline.

Value
Initial startup capital is estimated at $125-million, which could potentially be reduced to $96-million using contract mining.

Duration
The company plans to start production by the end of 2015.

Latest Developments
True Gold Mining has completed building the freshwater reservoir at its Karma gold project, which will provide water for mine construction and operational needs, as well as a year-round water source for local communities.

The construction of the barrage was overseen by South Africa-based SENET, in collaboration with True Gold's on-site owner's team, and was completed ahead of schedule and under budget.

The completion of this major piece of infrastructure is a significant milestone in the mine development process, as it mitigates water-related project risks as the company prepares to begin construction of the mine.

The barrage is constructed on a tributary to the Nkambe river, 4 km south of the proposed mine site.

Phase 1 construction, completed in 2013, involved building a one-metre-high dam with enough capacity to provide water for exploration and development operations. The second and final phase of construction, now complete, increased the barrage height to 2.5 m and deepened the barrage basin to store more water.

The dam will provide 1.3-million cubic metres of water a year to meet the operating requirements of the mine. The average yearly flow of the Nkambe river is 22-million cubic metres, which, based on hydrological studies conducted over the past 50 years, can vary from seven-million cubic metres to 40-million cubic metres during ten-year lows and highs.

Water will be drawn from the dam during the three-month rainy season, generally from late June to mid-September, and will be pumped to water storage ponds for use throughout the remainder of the year. Water stored in the raw and storm water ponds will be used for heap-leach irrigation, plant processing, dust suppression, potable water and other mining construction and operational needs.

SENET is also leading detailed engineering and construction-level design work, which True Gold expects to be completed on schedule and within budget by the end of the month.

Key Contracts and Suppliers
SENET (barrage construction and detailed engineering and construction-level design work).

On Budget and on Time?
Not stated.

Contact Details for Project Information
True Gold, tel +1 604 801 5020 or email info@truegoldmining.com.