True Gold Mining Inc.
TSX VENTURE : TGM

True Gold Mining Inc.

June 17, 2015 06:30 ET

True Gold Provides Progress Update on Karma

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 17, 2015) - True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Company") today provided a general corporate update on the construction of its Karma Gold Project ("Karma" or the "Project") in Burkina Faso.

Construction activities and local procurement have ramped up and we are on schedule for first gold pour by the end of Q1-2016. With over 250 staff onsite, we are underway with excavation of the storm and raw water ponds as well as site preparation for the heap-leach pad.

Key construction highlights include:

  • Full construction resumed June 1, 2015

  • Komatsu PC3000 excavator and mine fleet (4 of 6 Komatsu 785, 100T trucks) commissioned

  • Clearing started on cells 1, 2 and 3 of the heap-leach pad

  • Excavation started on raw and storm water ponds

  • Excavation and backfill started for hard rock crusher area

  • Foundations for ADR building nearing completion

  • Employment ramped up with over 250 staff active on site

  • Arrival of Hard Rock Crusher MV 2000 VSI

  • WA800 wheel loader assembly started

  • Temporary Fuel storage farm completed

  • Construction of main haul road initiated

  • ADR building structural steel delivered to site

Upcoming activities in the coming weeks:

  • Arrival of ADR plant to site

  • Erection of ADR building steel

  • Assembly of the hard rock crusher

  • Commissioning of WA800 wheel loader

Christian Milau, True Gold's CEO commented, "I am extremely pleased with the speed and efficiency our team has demonstrated in getting back to work since mid-May. Over the last few weeks we have made significant progress towards first gold pour. The site is buzzing with energy and excitement of being back at work and I want to thank our team for their dedication and diligence in getting Karma back on track. The local communities, suppliers, and the government, have been extremely supportive of the return to work."

To view the latest photos of construction efforts at Karma please click here: http://truegoldmining.com/our-projects/karma-project#field-project-tab-tab-7X.

Timeline and Capital Expenditures Remaining to Production

The project remains funded to complete construction and is on schedule for first gold pour by the end of the first quarter of 2016. As of May 31, 2015, True Gold estimates that capital expenditures to projected initial production are approximately $70 million.

The Company has approximately $29 million in cash and cash equivalents, with $63 million available under the Franco-Nevada - Sandstorm Gold Financing Agreement.

Community

The Company, Government of Burkina Faso and representatives of the community of Ramatoulaye recently reached an accord in support of the mine. The tripartite agreement assures the operation of the mine in a peaceful climate and benefits all stakeholders. The parties are committed to ensuring the security of properties, people, and ongoing dialogue supporting the construction of the mine.

Scott Heffernan, P. Geo., Vice President Exploration of True Gold is the designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects and has reviewed and verified that the 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 www.truegoldmining.com and under the Company's profile at www.sedar.com.

ON BEHALF OF THE BOARD

Christian Milau, 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.

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 licences 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, the Company's ability to efficiently recommence operations at the Karma Project, that the Company will receive additional drawdowns under the financing agreement with Franco-Nevada and Sandstorm and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot 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, uncertainties related to the Company's relationship with communities that surround its properties in Burkina Faso, risks related to the financing agreement with Franco-Nevada and Sandstorm, including the Company's ability to meet its scheduled delivery obligations, 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 27, 2015 in the section entitled "Risk Factors", under True Gold's SEDAR profile at www.sedar.com.

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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