VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 4, 2014) - True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Company") is pleased to announce that drill results from two new target areas have returned encouraging high-grade gold mineralization. The Yabonsgo and Rounga targets are located within easy trucking distance of the proposed Karma Gold Project (the "Karma Project") mining centre and represent excellent examples of the widespread potential for resource growth throughout the 856 square kilometre property. Gold mineralization at these target areas starts at surface, is oxidized to approximately 75 metres depth and remains open in all directions.
Yabonsgo: Highlights from the five-hole, 869.4-metre drill program at Yabonsgo include:
- 12.61 g/t Au over 5.60 metres in GLG13DD-157, including
- 30.60 g/t Au over 1.50 metres, and
- 17.50 g/t Au over 1.40 metres
- 10.82 g/t Au over 4.50 metres in GLG13DD-155, including
- 31.70 g/t Au over 1.50 metres
- 2.51 g/t Au over 9.00 metres in GLG13DD-158, including
- 5.89 g/t Au over 3.00 metres
- 1.21 g/t Au over 9.50 metres in GLG13DD-154 and 4.13 g/t Au over 4.00 metres, including
- 11.60 g/t Au over 1.00 metre
Rounga: Highlights from the four-hole, 608.3-metre drill program at the Rounga target include:
- 5.94 g/t Au over 3.00 metres in hole RNG-DD-13-011, including
- 10.50 g/t Au over 1.50 metres
- 0.89 g/t Au over 16.33 metres in hole RNG-DD-13-012, including
- 5.45 g/t Au over 1.00 metres
"The discovery of high-grade, near-surface oxide material to add to our current open pit mineral reserves is a key part of our business strategy. The simple and flexible mine plan at Karma, as laid out in our Feasibility Study(1), is specifically designed to enable us to capture incremental opportunities such as these, as new potential mining centres(2) emerge across the Karma Project through ongoing exploration," stated Dwayne Melrose, President and CEO, True Gold. "As our development advances, we remain committed to increasing the size of the leachable gold resources at Karma, integrating that growth into our mine plan and evaluating a phased approach to production expansion."
One of the standout attributes of the Karma Project is its pipeline of exploration targets and the Company's demonstrated ability to rapidly advance targets from drill-ready, through discovery to mineral resource definition. North Kao, for example, was a blind discovery in late 2013 and will have a mineral resource estimate completed within the next month. Over the past year the Company has tested five new targets and has had a 100% success rate, establishing five new areas that have the potential to meaningfully add to our current resource base. They include North Kao, Watinoma, Yabonsgo, Rounga, and Rambo West. There are currently another 35 drill-ready targets within three major gold trends with an aggregate strike length in excess of 100 kilometres on the Karma Project.
The new Yabonsgo and Rounga areas clearly demonstrate the potential for domains of high-grade gold mineralization within trucking distance of the proposed processing site. At Yabonsgo, True Gold drilled three of five holes in areas of historic workings and stepped out 200 and 300 metres along strike with holes GLG13DD-157 and GLG13DD-158. The two step-out holes hit high-grade gold and all five drill holes intersected significant oxide gold mineralization. At Rounga, True Gold hit oxide gold mineralization in all four holes drilled. Gold mineralization at both targets is associated with multiple phases of quartz veining within a variably sheared sequence of metavolcanic, volcaniclastic and intrusive rocks.
Yabonsgo and Rounga are located in the Rounga Domain, one of three major gold trends on the Karma Project. It is significant to note that the Rounga Domain, which hosts dozens of areas of outcropping high grade gold mineralization, covers multiple splays of the Ouahigouya Shear Zone (OSZ). These SW-NE trending structures transect the Karma property and link into the Houndé Belt in southwestern Burkina Faso.
The Karma Project Feasibility Study confirms that the Karma Project is scalable. While the Feasibility Study is based on slightly less than one million ounces of probable mineral reserves, True Gold's 2013 exploration success is clearly demonstrating the potential to add open-pit leachable material at the Karma Project for potential mine life extensions or incremental throughput ramp-up.
Scott Heffernan, M.Sc., P.Geo., is the Company's Vice President Exploration and designated Qualified Person for this news release within the meaning of NI 43-101. He has reviewed and verified that the technical information contained in this release is accurate and approves of the written disclosure of same. Holes were drilled at an azimuth of 310 degrees and with dips ranging from -45 to -50 at Yabonsgo and at an azimuth of 270 degrees and with dips ranging from -50 to -60 at Rounga. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be 30 to 100 percent of the reported lengths. Samples were submitted to ALS Chemex in Ouagadougou, Burkina Faso for geochemical analysis for gold by fire assay of a 30-gram charge with an Atomic Absorption finish (AA). Samples with AA assays over 5.0 g/t were re-assayed by Fire Assay with gravimetric finish. Control samples (accredited standards, blanks and duplicate samples at the field and preparation stages) were inserted on a regular basis. Results were monitored on receipt of assays.
||See Technical Report, Updated Resource Estimate and Feasibility Study on the Karma Gold Project prepared by P&E Mining Consultants Inc. dated effective December 17, 2013, a copy of which is available under the Company's profile on SEDAR at www.sedar.com.
||The mining centre expansions are conceptual in nature, and the Company has not undertaken any economic analysis of these expansion concepts to date. No resource estimate has been established based on these drill results and there is no assurance that this mineralization will add to the reserves on the Company's Karma Project.
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 www.truegoldmining.com and under the Company's profile at www.sedar.com.
ON BEHALF OF THE BOARD
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 statements" and "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 materially from those reflected in the forward-looking statements and forward-looking information, including, without limitation, with respect to statements regarding the potential accretive nature that newly discovered mineralization at the two drill targets discussed herein may have on the Karma Project, the potential for growth and scalability of the Karma Project including, but not limited to, potential for additional mining centres, continued exploration success, the assumptions set forth in this news release and in the Company's news releases of December 17, 2013, and 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 possibility that future exploration and development results in the Karma Project will not be consistent with the Company's expectations, the potential initial resource estimate on the Kao North discovery, accidents, 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 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 www.sedar.com.
Forward-looking statements and 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 financing, appropriate equipment and sufficient labour 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 undertakes no obligation to update any of the forward-looking statements or forward-looking information in this presentation, other than as may be required by applicable laws.
United States investors are cautioned that the requirements and terminology of NI 43-101 and the CIM Standards on Mineral Resources and Reserves - Definitions and Guideline ("CIM Standards") differ significantly from the requirements and terminology of the United States Securities and Exchange Commission ("SEC") set forth in the SEC's Industry Guide 7 ("SEC Industry Guide 7"). Accordingly, the Company's disclosures regarding mineralization may not be comparable to similar information disclosed by companies subject to SEC Industry Guide 7. Without limiting the foregoing, while the terms "mineral resources", "inferred mineral resources", "indicated mineral resources" and "measured mineral resources" are recognized and required by NI 43-101 and the CIM Standards, they are not recognized by the SEC and are not permitted to be used in documents filed with the SEC by companies subject to SEC Industry Guide 7. In addition, the NI 43-101 and CIM Standards definition of a "mineral reserve" differs from the definition in SEC Industry Guide 7.