El Salvador lawmakers overturn mining ban in win for president
The legislation will grant the Salvadoran government sole authority over mining activities within the country's land and maritime territory.
Teranga Gold (TSX: TGZ) has provided an updated life of mine (LOM) plan and issued new 2020 guidance for its Wahgnion gold operation in Burkina Faso as a result of the mine achieving higher than planned production.
Since commercial production began in November 2019, Wahgnion’s processing plant has performed approximately 25% above nameplate capacity for throughput and gold recovery, the company said.
Given the increase in planned production, Teranga has updated the LOM plan to accommodate the higher plant throughput capability, increasing Wahgnion’s average annual production by 25% and reducing the mine life to 10 years.
Since commercial production began in November 2019, Wahgnion’s processing plant has performed approximately 25% above nameplate capacity
With the goal of extending the mine life to 15 years, Teranga has initiated a multi-year drilling and exploration campaign around three of the existing deposit areas and at more than a dozen promising targets at Wahgnion.
Teranga has also increased Wahgnion’s 2020 output guidance to between 150,000 and 165,000 ounces, up from earlier guidance of 130,000 to 140,000 ounces. The higher guidance for 2020 is based on mill throughput of between 3.0Mtpa and 3.2Mtpa and total material movement of between 22Mtpa and 26Mtpa, the miner said.
“The updated life of mine plan is very good news for Wahgnion, and for Teranga overall,” CEO Richard Young said in a media release.
“With production averaging about 150,000 ounces of gold per year through 2025 at reasonable costs and at current gold prices, we expect to generate significantly more net cash flow from Wahgnion in the coming years, compared to the original feasibility study.”
Shares of Teranga Gold were down 2.8% on the TSX by 1:30 p.m. EDT, capping the Toronto-based gold producer at a market value of C$2.6 billion.
Last week, analysts at Canaccord Genuity raised the stock’s price target to C$19.00 from C$17.50 following release of the company’s Sabodala-Massawa gold complex prefeasibility study, which confirmed the Senegal mine as a “top tier” asset.
