True Gold Mining Inc.

True Gold Mining Inc.

July 15, 2013 10:15 ET

True Gold Mining Inc.: Key Karma Permits and Feasibility Study on Track for Q4 2013 Completion

Relocation plan receives government committee approval and community endorsement; land compensation agreements finalized; barrage construction creates 130 jobs

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 15, 2013) - True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Company") has achieved significant milestones required to complete the feasibility study for the Karma Gold Project ("Karma Project") for Q4 2013 and advance it toward development1.

"We are on track to conclude key permits and the feasibility study as scheduled and consider making an investment decision on a low cap-ex, open-pit, heap-leach mine as proposed in the 2012 Preliminary Economic Assessment1,2," said Dwayne Melrose, President and CEO, True Gold. "We recently achieved four milestones that reflect the Company's commitment to advancing the Karma Project while working with local communities and government organizations."

  1. A government technical review committee led by the Burkina Faso Ministry of Environment and Sustainable Development has approved the Karma Project's Relocation Action Plan. The plan will undergo a public review and comment period of up to 45 days prior to final approval.
  1. The local Community Liaison Committee, which includes representatives from villages in the Karma Project area, has also endorsed the Karma Project Relocation Action Plan.
  1. The Company has substantially completed the first phase of the water reservoir ("barrage"), which provides a seasonal water supply for local community use and exploration activities. The balance of barrage armouring will be completed at the end of the rainy season. The barrage's fully permitted second construction phase, proposed for Q1 2014, will increase the barrage's water holding capacity to meet the needs of a proposed mining facility1 at the Karma Project and provide a potential year-round water source for the local community.
  1. True Gold has reached agreement with the local community on compensation for land affected by the barrage, development of an open pit at the Goulagou II deposit, and the relocation of 36 residents from the potential leach pad area1.

Permitting advancing

The permitting process is proceeding as planned to meet the Company's objectives. The exploitation permit application for an area that holds the Rambo, Goulagou I and Goulagou II deposits is in the final stages of preparation and will be submitted to the Ministry of Mines in July 2013.

Barrage benefits community

The barrage offers residents a new and valued source of water, which will assist people in agriculture and raising livestock. Barrage construction utilized a Burkinabé contractor and employed more than 130 people from surrounding villages, reflecting True Gold's commitment to create employment opportunities for local residents.

The 856-square-kilometre Karma Project includes five closely spaced deposits - Rambo, Goulagou II, Kao, Goulagou I and Nami - with a proposed central processing facility1. The Karma Project is currently undergoing a feasibility study, which entails the development of a fully engineered construction and operating plan. The barrage's second construction phase is subject to the results of the feasibility study.

Peter C. Carter, P. Eng., Chief Operating Officer and Vice President Engineering of the Company, is the Company's designated Qualified Person for this news release within the meaning of NI 43-101 and has reviewed and verified that the technical information contained in this release is accurate and approves of the written disclosure of same.

(1) The Company has not made a production decision and the Company's strategic plan to develop a stand-alone heap leach operation is subject to the results of its feasibility study, which is currently underway. Further, if and when the Company makes any production decision, it will disclose the basis of such decision in accordance with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").

(2) See True Gold news release dated August 20, 2012 and October 3, 2012 together with the Company's clarifying news release of March 20, 2013 and independent NI 43-101 compliant technical report titled, "Technical Report and Updated Resource Estimate on the Karma Project, Burkina Faso, West Africa," dated effective October 1, 2012, filed on SEDAR ( November 7, 2012.

About True Gold

True Gold Mining Inc. is where gold comes to life. We are committed to growing a profitable 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. 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 the statement regarding the on-schedule completion of key permits and the Feasibility Study and the ability to be in a position to make an investment decision, the assumptions set forth in this news release and in the Company's news release of August 20, 2012, October 3, 2012 and March 20, 2013, and risks and uncertainties relating to the possibility that future exploration and development results or the results of the Feasibility Study on the Karma Project will not be consistent with the Company's expectations, that proposed timing for completion of the barrage will not be consistent with the Company's expectations, 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 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 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.

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