Teranga Gold Corporation

Teranga Gold Corporation

February 14, 2012 09:28 ET

Teranga Gold Corporation Provides 2012 Guidance-Rising Production and Declining Costs; and Notice of Year-End 2011 Conference Call and Webcast

TORONTO, ONTARIO--(Marketwire - Feb. 14, 2012) - Teranga Gold Corporation (TSX:TGZ)(ASX:TGZ) is pleased to announce that, with the completion of the mill expansion, on track for the end of the first quarter 2012, gold production for the year is expected to total between 210,000 to 225,000 ounces, an increase of 65 percent over 2011. Cash costs are also expected to decline to between $600-$6501 per ounce for the year.

The Company is continuing with its extensive exploration program, budgeting $40M for 2012, split equally between its Mine License and Regional Land Package. The two programs will include a total of 167,000 metres of RC ("Reverse Circulation") and DD ("Diamond Drilling") and an additional 140,000 metres of RAB ("Rotary Air Blast").

Capital expenditures for 2012 are expected to total approximately $30 million2, primarily for the completion of the mill expansion, additional mining equipment and construction of a new tailings management facility.

The Company will release its 2011 year-end results after market on Tuesday, February 21, 2012. Following the release of the results, Management will host a Conference Call and Webcast at 5:00 PM EST (Wednesday, February 22, 2012 at 9:00AM - Sydney) to discuss 2011 and provide its outlook for 2012.

2011 Year-End Conference Call and Webcast

Via Webcast:

A live webcast of the call will be available on the Company's website:


The webcast can be directly accessed using the following link:


Via Telephone:

For those preferring to listen by telephone, North American callers please dial Toll-free 1-866-226-1792 or Toronto callers 416-340-2216. International callers please dial Toll-free +1-800-9559-6849.

Replay archive:

Please dial +1-905-694-9451 or Toll-free +1-800-408-3053; pass code 5778220. The conference call replay will expire in two weeks.

The webcast along with presentation slides will be archived for one year on the Company website.

Annual General Meeting

The Annual General Meeting of Shareholders will be held on Thursday, March 29, 2012 at 9:30AM EST, at the offices of Stikeman Elliott LLP, Main Board Room, 51st Floor, 199 Bay Street, Toronto, ON.


Teranga Gold Corporation is a Canadian-based gold company listed on the Toronto Stock Exchange (TSX:TGZ) and Australian Securities Exchange (ASX:TGZ). Teranga is principally engaged in the production and sale of gold, as well as related activities such as exploration and mine development.

Teranga was created to acquire the Sabodala gold mine and a large regional exploration land package, located in Senegal, West Africa. Management believes the mine operation, together with the Company's prospective 1,533km2 land package, provides the basis for growth in reserves, production, earnings and cash flow as new discoveries are made and processed through the Company's existing mill.

The Sabodala Gold Operation, which came into operation in 2009, is located 650 kilometres east of the capital Dakar within the West African Birimian geological belt in Senegal, and about 90 kilometres from major gold mines and discoveries in Mali.

1 For 2012 onward, the Company will report cash costs of sales after adjusting for inventory movement, in line with its accounting policies and reported cost of sales in the financial statements and in line with industry standards. As a result, total cash costs for 2012 are expected to be between $600 to $650 per ounce, a decrease of 30 percent over 2011 (or $675 to $725 under the previous calculation).

2 Excludes capitalized Mine License exploration and capital cost to develop regional deposits.

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