VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 8, 2014) - True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Company") is pleased to announce that the Company will begin Phase 2 construction of the fresh water reservoir ("barrage") at the Karma Gold Project ("Karma Project") in Burkina Faso, West Africa in February 2014. The barrage is expected to be complete by June 2014.
The barrage is an important element of the Company's plan to develop and operate a heap leach mine at the Karma Project. It will enable True Gold to collect water during the 2014 rainy season and ensure the Company has sufficient water available to meet mine construction needs in 2015. The barrage will also offer local residents a valued source of water for agriculture and livestock.
"True Gold's decision to build the barrage now reflects our strong commitment to developing the Karma Project while assisting nearby communities," said Dwayne Melrose, President and CEO, True Gold.
The Company has awarded the contract to oversee Phase 2 construction of the barrage to South Africa-based SENET (Pty) Ltd. ("SENET"), a leading project management and engineering firm in the field of mineral processing. SENET was the lead engineer of the Karma Project Feasibility Study, and is currently overseeing detailed engineering and design work for the Karma Project.
The barrage, which is fully designed and permitted, is being constructed in two phases across a water drainage system about four kilometres from the Karma Project. Phase 1 was completed in 2013 and involved construction of a one-metre-high dam with sufficient capacity to provide water for exploration operations. Phase 2 will add 1.5 metres to the barrage height and significantly expand the amount of water available. Phase 2 construction is expected to cost approximately $2.5 million.
In the past month, True Gold has released the results of a positive Feasibility Study1 for the Karma Project and received Burkina Faso Council of Minister's approval for a Karma Exploitation (mining) Permit.
Peter C. Carter, P. Eng., Chief Operating Officer and Vice President Engineering of the Company, is the Company's designated Qualified Person within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") for this news release, 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 True Gold news release dated December 17, 2013
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. 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 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 for receipt of all required permits and approvals to develop and operate a heap leach mine at the Karma Project, the possibility that development results on the Karma Project will not be consistent with the Company's expectations, the expectations that the completed barrage will provide sufficient water to meet mine construction needs in 2015 and residents a source of water for agriculture and livestock, accidents, the assumptions set forth in this news release and the December 17, 2013 news release, 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 including expenses greater than the estimated $2.5 million for barrage construction, 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 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 required to develop and operate a heap leach mine at the Karma Project, that the Company can access required financing to be in a position to consider a production decision, that the Company will file an independent technical report supporting the Feasibility Study within the prescribed time pursuant to NI 43-101, 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 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.