True Gold Mining Inc.

True Gold Mining Inc.

January 20, 2015 09:20 ET

True Gold Provides Corporate and Operational Update

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 20, 2015) - True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Company") today provided the following corporate and operational update:

Effective immediately, Mark O'Dea, the Company's current Executive Chairman, will replace Dwayne Melrose, and assume the role of President and Chief Executive Officer on an interim basis. The Company has retained Korn Ferry to lead the search for a permanent CEO. The Company wishes to thank Mr. Melrose for his contribution, and wishes him well in his future endeavours.

"We have been closely monitoring the changing landscape in Burkina Faso and near our project area over the past six weeks and have developed a much clearer understanding of certain of the communities' perceptions and concerns related to the Karma project," said Dr. O'Dea. "We are now taking steps to re-focus our efforts in Burkina Faso, re-engage with the local community, address these concerns, and put Karma in a position to move forward. We're making progress, but the state of affairs in Burkina Faso remains fluid as we reconcile a number of competing interests within some of the nearby villages."

The Company will continue to liaise with government and representatives of the local community to gain additional clarity on the local concerns as well as the instability affecting the country's mining industry and economy.

Given the current situation, at this time the Company is not able to provide a definitive update on any potential impact recent events could have on the project timeline. It is working to compile information in order to provide such an update as expeditiously as possible.

Karma Operational Update

All True Gold employees are safe, and the sites and property are secure. As always, the safety of its employees is the Company's first priority. True Gold is also working closely with all levels of government, including the central government in Burkina Faso, local authorities and representatives from local communities to ensure continued safety and security.

Further to the Company's news release of January 14, 2015, True Gold is in the process of assessing the extent of damage to its equipment and property.

At this time, the Company estimates that certain equipment, supplies, and one office building suffered varying degrees of damage, of which True Gold is working with consultants and suppliers to ascertain the value. The currently estimated impact based on the information available indicates that the cost associated with the damages is in the range of US$4 million to US$8 million. True Gold carries various insurance policies and is working with its insurance providers to formally assess the quantum and coverage.

True Gold is actively working with its operations team and SENET on a go forward plan to mitigate any project delays. The Company will continue to provide updates as events warrant.

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


Mark O'Dea, Interim President & CEO

Neither the 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.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to True Gold within the meaning of applicable securities laws, including statements with respect to the potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licenses and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of True Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Karma Project, reliance on technical information provided by third parties as related to the Karma Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; satisfaction of Burkina Faso requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration, uncertainties relating to the interpretation of drill results and the estimation of mineral resources, the geology, grade and continuity of mineral deposits, accidents, equipment breakdowns, risk of undiscovered, title defects and surface access, the potential for delays in exploration and permitting activities, the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, political risk as well as those factors discussed in the Annual Information Form of the Company dated April 29, 2014 in the section entitled "Risk Factors", under True Gold's SEDAR profile at Although True Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. True Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

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