A preliminary feasibility study (PFS) into West Africa-focused Teranga Gold's Sabodala-Massawa gold complex, in Senegal, has demonstrated that it is a top-tier mine with a large proven and probable reserve base of 4.8-million ounces, with low all-in sustaining costs (AISC) of $749/oz and new cash flow of over $2.2-billion over a 16.5-year mine life.
The PFS has also outlined the strong potential for growth through further exploration and discovery.
Earlier this year, Canada-headquartered Teranga completed the acquisition of the Massawa gold project from Barrick Gold Corp.
The PFS focused on an initial concept to mine the project’s deposits leveraging the existing plant at Teranga’s flagship Sabodala gold operations.
Teranga CEO and president Richard Young says the PFS confirms that the Massawa acquisition is “truly transformational” for Teranga, and repositions the company as a leading midtier gold producer with one of the lowest AISC profiles in the industry.
Now that a base case technical concept has been established with the PFS, Teranga will continue the technical work in support of a definitive feasibility study, slated for completion in 2021, to further derisk the project’s value.