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AXMIN Inc. announced that Teranga Gold Corporation, formerly Mineral Deposits Limited, has released an exploration update on AXMIN’s Senegal Permits, which are the subject of a joint venture between Teranga and AXMIN.
The complete May 2, 2011 press release can be found on Teranga’s website www.terangagold.com. In the press release Teranga highlighted that early results at the Gora deposit have identified an inferred resource of 106,000 contained ounces of gold (543,000 tonnes at 6.0 g/t Au) and the deposit remains open in all directions. The Gora project is located on AXMIN’s wholly-owned Senegal gold permits (Sounkounkou, Heremakono and Sabodala NW) where its joint venture partner and operator, Teranga has earned a 51% interest. AXMIN has elected not to participate in further expenditure on a pro rata basis, and thus will dilute its interest to 20% in return for Teranga expending a further US$3.5 million. The Gora deposit is located within the Sounkounkou permit approximately 25 km northeast of Teranga’s Sabodala processing plant. As a result of the exploration success to date, Teranga is increasing its exploration budget for the Gora project and the company has initiated a feasibility study and permitting with a goal of processing the high-grade ore through the Sabodala mill as early as late-2012. An updated resource estimate is planned for this summer, after the current phase of drilling has been completed. Once the boundaries of the deposit have been delineated, an infill drill program to bring the resource to reserve status will be completed, which is expected by the end of 2011. Drilling of the Gora Project began in early February, with three drill rigs active on the project (two core drill rigs and one dual purpose reverse circulation / core drill rig). In total, 6,989 metres of RC and 2,491 metres of core drilling has been completed. An additional 6,000 metres of RC and 5,500 metres of core are planned. This second phase of drilling will be testing the deposit to a vertical depth of 120 metres and along strike and is expected to be completed by the end of June. |
