True Gold Mining Inc.

True Gold Mining Inc.

September 25, 2014 16:36 ET

True Gold Commences Draw Down of Project Financing

Karma Gold Project Construction 23% Complete, on Schedule

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 25, 2014) - True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Company") is pleased to report that the Company has commenced draw down on the US$100M project financing from Franco-Nevada Corporation ("Franco-Nevada") (TSX:FNV)(NYSE:FNV) and Sandstorm Gold Ltd. ("Sandstorm") (TSX:SSL)(NYSE MKT:SAND). Pursuant to the terms of the financing agreement announced in August (see press release of August 11, 2014), the Company has received payment of US$37M, representing the initial draw down. Draw down of the balance of the US$100M will be made over the course of the next 12 months.

Project construction is well underway with approximately US$30M to be spent by the end of September, representing 23% of the estimated US$131.5M Karma Gold Project initial capex. With True Gold's portion of the up-front capital expenditure substantially invested, Franco-Nevada and Sandstorm will be responsible for funding the majority of the remaining capex through to construction completion.

Development Highlights and Progress Update

Construction at the Karma mine site continues to proceed as planned. Administration and Security Offices are complete and the Mine Operations and Engineering Offices are well advanced. By the end of September, site earthworks are expected to be over 60% complete, with civils works on the mine workshop, kitchen facilities, and ablution blocks progressing on schedule.

Long lead-time capital items such as the soft and hard rock crushing circuits, leach pad liner, cement silos, and power plant have been ordered, and the major mining equipment including the primary excavator, haul trucks, dozers, and graders will begin to arrive at site in November.

By year end, the majority of earthworks and civil construction will be complete, with the mining fleet engaged in excavation of the waters ponds, and preparation for the leach pad. In addition, a scoping study of the North Kao deposit is underway and is expected to be released in Q4, 2014.


Exploration at Karma is ongoing. A total of 14,712 metres of drilling in 97 holes and 373 line-kilometres of ground geophysics have been completed. Exploration is focused on both the expansion of 2013/14 discoveries, such as the northern extension of the Nami deposit (6.0 metres of 29.5 g/t Au1), Watinoma (70.5 metres of 1.91 g/t Au2), and Yabonsgo (5.6 metres of 12.6 g/t Au3), as well as testing new targets to feed the exploration pipeline (Soulou and Anomaly B).

(1) See news release dated June 9, 2014.

(2) See news release dated August 20, 2013.

(3) See news release dated March 3, 2014.

Scott Heffernan, M.Sc., P.Geo., Vice President Exploration of the Company, and Peter C. Carter, P. Eng., Chief Operating Officer and Vice President Engineering of the Company, are the designated Qualified Persons within the meaning of NI 43-101 for this news release. They have reviewed and verified that the scientific and technical information contained in this release is accurate and approves of the written disclosure of same.

About True Gold

True Gold Mining Inc. is where gold comes to life. We are committed to growing a successful gold exploration, development and production company, by focusing on projects with low costs, low technical risks and solid economics. The Company's board, management and technical teams have proven track records in gold exploration, development, operations and production worldwide.

Additional information about the Company and its activities may be found on the Company's website at and under the Company's profile at


Dwayne Melrose, President & CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain statements made and information contained in this news release and elsewhere constitutes "forward-looking information" within the meaning of Canadian securities legislation. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may constitute forward-looking statements. Such forward-looking statements are based on certain assumptions and are subject to risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, with respect to statements regarding officer appointments and resignations, the potential to growing a successful gold exploration, development and production company, ability to find projects with low costs, low technical risks and solid economics, expectations that corporate social responsibility ("CSR") programs and local community engagement will reduce project risk, continued excellent community relations that will bear clear benefits for local residents and the Company, including improved project design, reduced costs, water for community use and reduced social impacts, continued local community support for the development of the Karma Project, the possibility that the key personnel in the Karma Project CSR leadership team may not perform as anticipated or remain with the Company, accidents, and risks and uncertainties relating to equipment breakdowns, risk of undiscovered, title defects and surface access, labour disputes, the potential for delays in exploration and permitting activities, the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, political risk, the potential for growth and scalability of the Karma Project including, but not limited to, potential for additional mining centres, continued exploration success, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the potential initial resource estimate on the Kao North discovery, and other risks and uncertainties including those described under Risk Factors in each management discussion and analysis and in the Company's annual information form which are available under the Company's profile at
Forward-looking information is based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of gold, that the Company will receive required permits and access to surface rights, that the Company can access required financing, appropriate and sufficient equipment and labour will be available and accessible to the Company to meet its development goals, retention of key personnel and that the political environment within Burkina Faso will continue to support the development of environmentally safe mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

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