True Gold Mining Inc.
TSX VENTURE : TGM

True Gold Mining Inc.

April 14, 2014 08:42 ET

True Gold Provides Progress Report on Key Development Activities at Karma Project

Detailed engineering and barrage construction nearing completion

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 14, 2014) - True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Company") is pleased to announce key development updates for its Karma Gold Project (the "Karma Project") in Burkina Faso, West Africa. Construction of the fresh water reservoir ("barrage") and detailed engineering are both on-track for completion, and early earthworks are scheduled to start in Q2.

RECENT HIGHLIGHTS

  • Barrage construction 80% complete, ahead of schedule
  • Detailed engineering 70% complete, on schedule
  • Early earthworks to start mid-Q2

"Our permitting milestones have been achieved and development progress thus far in 2014 keeps us on track to build Burkina Faso's next gold mine," stated Dwayne Melrose, President & CEO of True Gold. "Mine construction is targeted to begin in Q3 with early earthworks starting in Q2. With our owner's team built in country and led by senior management, and detailed engineering approaching completion, we are positioned to advance the project as scheduled."

Barrage

Construction of a fresh water barrage for the Karma Project is over 80% complete. The barrage is a key component of True Gold's proposed heap leach mine at Karma. It is designed to capture sufficient water run-off during the annual wet season, resulting in an excess of the Karma Project's construction and annual operational water needs under the proposed mine plan.

The barrage was designed to be constructed in two phases. Phase 1 was completed in 2013 and involved construction of a one-metre high dam with sufficient capacity to provide water for exploration and development operations. Phase 2, presently underway, increases the barrage height to 2.5 metres and deepens the barrage basin to allow for increased storage capacity. This reduces water-related project risk while providing an anticipated year-round water source for local communities.

Construction of the barrage is being overseen by SENET (Pty) Ltd. ("SENET") together with True Gold's on-site owner's team, and is expected to be complete in late April, two months ahead of schedule. SENET is a South African based mineral process and engineering firm with extensive heap leach and African mine construction experience.

Detailed Engineering

Detailed engineering and construction-level design work for the proposed processing facility and related infrastructure is 70% complete. Work is expected to conclude on schedule in May 2014. Once the detailed engineering is complete, True Gold can move forward towards earthwork construction and ordering of materials for mine construction.

SENET is leading the detailed engineering, and progress to date has resulted in identifying the following cost-saving measures as compared to the Feasibility Study:

  • A revised approach to foundation design, which will reduce site preparation costs;

  • Fabrication of tanks and low-pressure vessels in-country, which will reduce plant costs, and;

  • Sourcing of rebar from neighbouring countries, which will reduce freight costs.

Early Construction Activities

In addition to the barrage, other pre-finance construction activities currently planned in Q2 include upgrading the site access road and the start of plant site earthworks. The plant site will be located on hard laterite, which will permit earthworks to continue throughout the rainy season.

True Gold continues to advance the Karma Project ahead of its planned H2 2014 construction start target. Since the beginning of the year, the Company has built a strong treasury to fund development, including raising an additional $51.9 million in equity in February. Lead arrangers for bank debt financing are engaged and the Company is also assessing alternative debt options. In its news release dated March 13, 2014, the Company announced an initial Inferred resource estimate for North Kao, which could potentially improve Karma's production profile under an increased through-put scenario. True Gold has commenced a Preliminary Economic Assessment on the new resource to evaluate the potential economic impacts of an increased production profile and/or the potential to extend the mine life laid out in the Karma Feasibility Study1. The PEA is anticipated to be completed by July.

Qualified Persons

Peter C. Carter, P. Eng., Chief Operating Officer and Vice President Engineering of the Company, is the designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("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) See Technical Report, entitled "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.

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 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 accretive nature that newly discovered mineralization at the two drill targets discussed in the Company's News Release dated March 13, 2014 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, 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 bottle roll tests will be indicative of ultimate column test results, 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, 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 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 to be in a position to consider a production decision, 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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