Karma site plan
Map of Burkina Faso
Karma property map

We are operating the open pit, heap-leach Karma gold mine in West Africa, which we advanced from PEA to production in approximately 3.5 years. First gold pour was on April 11, 2016.

The Karma mine offers a compelling production profile with strong potential for growth. 

Karma Project Attributes

  • High grade for an open-pit heap leach project
  • Soft, shallow and free digging mineralization (minimal drill and blast)
  • Low power requirements
  • Excellent existing infrastructure (water, roads, labour, accommodation)
  • Strong metallurgical results: Gold recoveries from oxide material for all deposits were rapid and substantially complete within 10 days, with heap leach recoveries averaging 87.2% LOM
  • Opportunity to add open-pittable leachable material close to proposed central processing facility
  • Fresh water reservoir ("barrage") provides sufficient water for mine construction and operational needs, as well as providing a year-round water source for local communities.

David Laing, BSc., ARSM, MIoM3, SME, Chief Operating Officer of the Company, is a  Qualified Person within the meaning of NI 43-101.  Mr. Laing has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.

At True Gold Mining we believe in the actions and values that constitute our Corporate Social Responsibility policy and we commit to following these tenets in all Company endeavours :

integrity, honesty, mutual respect, inclusion of all stakeholders with open and ongoing communication and plain disclosure of information, and transparency of mining exploration and exploitation processes. All with a particular sensitivity to local cultural norms, management of realistic expectations, utilizing fair conflict resolution mechanisms, always acting in a consistent and predictable manner while remaining flexible enough to accommodate the needs of the local communities and stakeholders.

Deeper Roots Make Stronger Branches

Our key core value is integrity. All of us at True Gold Mining (TGM) strive to meet the highest ethical standards in all of our dealings with our partners; including investor, government, business, community and worker relationships. To maintain and promote our integrity as our primary guiding principle, TGM holds its workers to the highest standards and encourages employees to be accountable and responsible and report any questionable conduct they may observe in any of our operations. We believe in being transparent with and responsive to our stakeholders at all times. We respect and comply with the letter and the spirit of all applicable laws in any jurisdiction where we conduct our business. As well, our principles of conduct and engagement our informed by those outlined in the United Nations Declaration of Human Rights, the Voluntary Principles on Security and Human Rights and those of the Equator Principles Association.

Trust is built on honesty. We believe in being honest first with ourselves, and so it follows, with all others. We do what we say we will do.

TGM is committed to building lasting partnerships that help create prosperity in the communities influenced by our projects - now and for future generations. We will work with partners to identify needs and invest in solutions and programs that will deliver measurable and sustainable results.

TGM is generating economic growth and improving the quality of life for our partner communities in Burkina Faso. We want to be known not just for our accomplishments, but for achieving results the right way; with integrity. We are committed to protecting our workforce with the highest standards of operations safety, protecting the environment and dealing responsibly and ethically with all of our stakeholders; including stockholders, employees, local suppliers and businesses, governments, community interests and other key stakeholders.

CSR Gallery

Worker Health and Safety

The health of our employees is important to True Gold Mining. We recognize that healthy employees are safer workers and are better able to perform their jobs.

True Gold Mining provides support programs and services to help our employees live healthier lives. We believe that worker and community health issues are key considerations in our project planning.

True Gold Mining is committed to helping its employees and contractors remain safe and healthy. All work carries risks. However, we identify and manage our risks by enhancing our technology, tools and competency at all levels. We have stringent safety policies in place, we have ongoing workforce training and we give our workers the authority and responsibility to stop work if they believe conditions are unsafe. We also believe in offering health awareness and education programs to our employees, dependents and residents of the communities where we operate. We are committed to fostering a culture of safety and our guiding principal is that all workplace incidents are preventable and that ”zero incidents” is, and will always be, our stated goal for workplace safety. We do, and will continue to nurture improved policies, processes, tools and workplace behaviour to achieve that goal.

Suppliers

We encourage our suppliers to treat their employees and to interact with communities in ways that respect human rights and are consistent with the spirit of True Gold's directive on human rights:

True Gold recognizes that governments have the primary responsibility to promote and protect human  rights. True Gold will work with governments and agencies to support and respect human rights within the scope of our activities.  True Gold will not tolerate human rights abuses, and will not engage or be complicit in any activity that solicits or encourages human rights abuse.

True Gold will always strive to build trust, deliver mutual advantage, and demonstrate respect for human dignity and rights in all relationships it enters into, including respect for the cultures, customs and values of individuals and groups.

We insist that our key suppliers adhere to all domestic laws and encourage them to align their practices with the International Labour Organization’s core principles. These principles include the freedom of association, the right to collective bargaining, the elimination of forced and compulsory labor, the abolition of child labor, and the elimination of discrimination in the workplace. We also use regular meetings with our key suppliers to reinforce our human rights principles and to raise our suppliers’ awareness of potential human rights issues.

Land Use and Resettlement

We respect property rights wherever we operate. TGM policy is to avoid relocation or resettlement whenever possible. When resettlement is unavoidable, we will work collaboratively and transparently with all levels of government and local communities to find an outcome acceptable to all parties involved. 

Community

True Gold Mining is fully aware that our business success is deeply linked to society’s progress.

By contributing to the economic growth of Burkina Faso through direct business investment and taxes, we make significant contributions in social investments to local partner communities. These investments aim to foster economic growth in the region with a significant focus on health, education and economic development programs and partnerships.

We partner with local governments, communities, non-governmental organizations and businesses to first understand their needs and then, working together, develop programs that will help remove economic barriers and deliver measurable and sustainable results. Our aim is to work with them in achieving stability and prosperity. We demonstrate our commitment to the communities where we operate by creating jobs, employing and developing local workforces, and sourcing from local suppliers. We train the local people we hire to develop their skills and capabilities and to help build capacity within the broader local communities.

We are committed to addressing the key challenge of sustainable development —balancing economic growth, social development and environmental protection so that future generations are enhanced and not compromised by the actions we take today.

Community Health and Well-being

Our success is tied to the health and prosperity of the communities where we operate. When public health issues put employee productivity, the well-being of communities and supply chain reliability at risk, they are a business issue. Ture Gold is committed to using our human, financial and technological resources to support partnerships and programs that promote stable, healthy communities and improve access to health care for our employees, their families and the communities where we operate.

We partner with governments and global, national and local organizations to strengthen the health systems where we operate. It’s an investment that benefits us all. 

Education

If people and communities are to thrive, nothing is more important than education and job training. A workforce armed with the critical skills needed to succeed in the jobs of tomorrow is key to a country’s ability to grow and compete in the global marketplace. That’s why True Gold invests in schools and teachers. We focus first on improving basic literacy performance and then offer support to improved teaching outcomes everywhere we operate.

Environment

At TGM, we know that preserving, nurturing and supporting a clean, safe, healthy environment is a key measure of our success. We are always evaluating and working to improve our processes to reduce pollution and waste, be energy aware, and reduce the potential for environmental impacts of our activities and operations.

From our everyday actions to major capital investments, we are dedicated to making the right decisions for the environment.

Water is a particularly valuable resource Burkina Faso, and TGM recognizes the value of fresh water as a fundamental social, environmental and economic resource. We know that access to sufficient sources of water, including fresh water and water of lower quality, is essential for the communities where we operate. As users of this critical natural resource, we take our management and stewardship obligations seriously. We are always working to improve our water use management efficiency and to monitor and record our water-related social and environmental impacts.

Youth

Youth are enthusiastic, energetic, creative and adaptable and they are interested in the skill and knowledge building opportunities available to them. By supporting the youth of our communities with positive and constructive outlets and mentorship, we are encouraging them to take active roles in the development of their communities and in shaping a collective future. Their energy and enthusiasm is a wonderful natural resource and we are working with community and youth groups to apply it to everyone’s benefit; involving young people in local development decision-making, giving them voice and influence, promoting themselves and their communities.

We are working with our partners to Increase the capacity of all youth to play meaningful roles in the sustainable development of their communities, including the protection and enhancement of basic health, economic growth and security, literacy and education, and the environment.

Neighbours

At True Gold Mining, we recognise that we operate in relatively close proximity to several local communities and, as a part of the regional community, we continually aim to form and strengthen our relationships with our neighbours through open, clear and honest communication.

We are always working to be a “good neighbour” by constantly monitoring and assessing the impact of our operations on the community, with all actions conforming to the terms of our environmental licences. As a good neighbour we work to ensure the safety of our neighbours. For example, we have erected boundary safety fences so that no one can accidentally find themselves in an active mining area. We have planned for and implemented strategies to ensure our neighbours comfort, such as employing noise and dust mitigation techniques.

Our mine management is responsible for maintaining strong relationships with the community and make themselves readily available to discuss all matters of concern directly with our neighbours. They also ensure that all employees display the attributes of a good neighbour. Our employees make certain that all concerns raised by the local community are appropriately recorded and communicated to senior management, so that necessary investigations can be initiated.

We understand that the success of our operations rely on a good relationship with our neighbours and the local communities where our employees also live. We are constantly improving our “good neighbour” approach, and our goal is to become “best neighbours”, built on a reputation of friendship and trust

Orpailleur

While developing the Karma Project to mineability, True Gold was faced with a serious challenge to our mine development timeline when the actions of a small handful of unruly artisinal miners (called orpailleur in Burkina Faso, which translates as “gold diggers”) led to disruptions in the mine’s construction. Unfortunately for both the company and our neighbours employed by us, these actions led to a complete work stoppage and the wide scale layoffs of our workers until identified issues could be resolved.  Ultimately, the lawful rights of True Gold to mine the Karma Project were re-confirmed and with broad government and community support, employees have been recalled and work has resumed.

This incident was the genesis for an internal review of our CSR policies and as part of that process we identified a need for a still stronger commitment to our social engagement responsibilities. In the review process we looked first at ourselves. We were comfortable with our performance knowing that we have always acted within the laws of Burkina Faso and the accepted international standards of good business practice, and we worked to create an honest, inclusive, respectful and transparent dialogue with all of our stakeholders. We acted with integrity at all times.

Could we have done better? Yes, and we are. We acknowledge that the management of realistic expectations for local communities, a dispute resolution mechanism created in consultation with stakeholders, and a renewed commitment to social engagement are key issues and we are actively pursuing improvements in all areas. Going forward, we are out to become the best neighbours to our neighbours, and a valued thread in the community fabric so that we can all share in the benefits generated from the Karma Project. Benefits for this generation and for generations to come.

Regional geology
Karma property
Karma geology

West Africa regional setting
West Africa has experienced the fastest growth in gold production in the world over past five years. Some of the most important types of gold deposits in West Africa are shear-hosted quartz vein deposits which occur in Birimian Greenstone Belts, composed of Lower Proterozoic volcanic or volcano-sedimentary rocks.  This geological setting is analogous to the prolific Precambrian gold belts of eastern Canada and other parts of the world, yet West Africa has received only a small fraction of the exploration coverage that those other belts have experienced.  Burkina Faso has undergone even less exploration with only 10 years of modern exploration, starting in the mid-1990s, with little activity occurring between 1999 and 2003.

West Africa regional geology
The geology of West and Central Africa consists of Precambrian shields of Archean (2.7 Ga) to Paleoproterozoic (2.2 to 2.0 Ga) age, Pan-African mobile zones of Neoproterozoic to lower Paleozoic age (600 to 450 Ma), and intracratonic sedimentary basins ranging from Proterozoic to Quaternary age. The Precambrian geology of West Africa has resulted from the accretion of a series of successively younger orogenic belts to older cratonic areas. The Man Craton, the oldest cratonic nuclei, in Guinea and Sierra Leone, stabilized in the Archean at approximately 2.7 Ga, and is a remnant of a much larger Craton that included the present-day Guyana Craton of South America. The West African Shield stabilized with the accretion of Paleoproterozic Birimian greenstone belts to the Man Craton at the end of the Eburnean orogenic event at about 2.1 Ga.

The Birimian rocks host the majority of the gold mineralization in West Africa encompass a vast area of approximately 350,000 km² covering parts of Niger, Burkina Faso, Benin, Togo, Ghana, Ivory Coast, Mali, Guinea, Liberia and Sénégal. The Birimian greenstone belts are preserved as linear terranes that are a few tens of kilometers wide and hundreds of kilometers long. The Birimian rocks are generally metamorphosed to greenschist facies with areas of amphibolite facies associated with intrusive stocks, granitic plutons or migmatitic zones that separate the belts. In Burkina Faso, these belts consist of predominately northeast trending volcano-sedimentary sequences associated with flanking granitoid intrusive rocks and magmatic gneisses. The Birimian belts typically consist of basal, tholeiitic, mafic metavolcanic rocks, overlain by calc-alkaline metavolcanic and inter-layered detrital sediments and limestone.

Karma property geology
True Gold’s Karma Property is situated in the Paleoproterozoic Baolé-Mossi domain and located in the regionally east-west trending Goren greenstone belt. This belt is considered a segment of the larger Boromo-Goren greenstone belt and is one of the larger greenstone belts in central north Burkina Faso.   The property is Interpreted to be underlain by a folded sequence of greywacke, siltstone, shale and volcaniclastic rocks that is draped over a granodiorite-tonalite batholith. The western margin of the batholith is defined by a broad north-south lineament that is interpreted as a first-order, crustal-scale, sinistral, shear zone named the Ouahigouya Shear Zone (“OSZ”). The OSZ extends to the south into the Houndé Greenstone Belt and branches into a series of north-east trending sub-shears that cross the Karma Property.

These supracustal sequences are deformed by at least three deformation events. D1 forms a weak NW trending foliation and massive “buck” quartz veins that are weakly prospective for gold mineralization. D2 corresponds to the main phase of the Eburnean orogeny at 2,130 to 1,980 Ma and resulted in the progressive development of NE trending shear zones, NE trending southerly plunging folds and a pervasive NE foliation. N to NNE trending dextral shear faults formed during D2 and are associated with stockwork quartz veins and significant gold mineralization. A late D3 deformation results in WNW trending dextral reverse shears and crenulation of earlier fabrics.

Substantial areas of the Karma Property are covered by lateritic units, dominantly gravels and cuirasse, which forms a highly indurated upper facies of the lateritic regolith. A number of lateritization events have resulted in weathering to depths of up to 100 m. Laterites and sand cover limit the extent of bedrock outcrop in the project area and have obscured the geological understanding of the region.

West Africa gold deposits
The West African Lower Proterozoic greenstone belts have produced a number of world-class gold deposits, such as the Obuasi mines of Anglo-Ashanti Corp. in Ghana that has been in continuous production since 1897.

Much of the gold mineralization in the Ouahigouya district in Burkina Faso is either hosted by metasedimentary rocks associated with granodioritic to dioritic plutonic rocks or by the plutonic rocks themselves. The gold mineralization is associated with the presence of disseminated Fe-sulphide phases (mainly pyrite and/or arsenopyrite), quartz veins and hematitic to epidotitic alteration.

Many of the significant gold deposits in the Birimian greenstone belts of Burkina Faso are related to major NNE trending shear zones that result from transcurrent deformation during Eburnean D2 structural events. Two major sinistral shear zones oriented NNE, namely the Tiébélé-Dori-Markoye shear zone to the E and the Houndé-Ouahigouya shear zone to the W extend through Burkina Faso. The Markoye fault system and splays are in the eastern part of the country and controls mineralization at a number of major deposits, notably IAMGOLD Corporation’s Essakane Deposit, and Orezone Gold Corporation’s Bombore Deposit. The western fault system at its splays is associated with True Gold’s Karma Property as well as producing and past-producing gold mines such SEMAFO’s Mana Deposit, Newmont’s recently acquired Poura Deposit, and Amara Mining’s Sega and Kalsaka Deposits.

Karma property deposit model
The Karma Property deposits have characteristics of mesothermal, shear-hosted gold deposits associated with orogenic activity. Elements of stratigraphic control may result from mineralization/alteration being channeled along specific structural/lithological controls that have affected porosity and fluid flow. Therefore, the Karma deposits may be best described as structurally controlled, orogenic, hydrothermal deposits. The classification of orogenic gold deposits is restricted to those deposits composed of quartz-carbonate veins and associated wall rock replacement, associated with compressional or transpressional geological structures such as reverse faults and folds. Orogenic deposits consist of variably complex arrays of quartz-carbonate veins that display significant vertical continuity, commonly in excess of 1 km, without any significant vertical zoning. The ores are enriched in Ag-As+/-W, with Au:Ag ratios >5. Other commonly enriched elements include B, Te, Bi, and Mo. The dominant sulphide mineral is pyrite at greenschist grade and pyrrhotite at amphibolite grade. Arsenopyrite is the dominant sulphide in many clastic-sediment-hosted ores at greenschist grade and loellingite (FeAs2) is also present at amphibolite grade. Ore bodies are surrounded by carbonate-sericite-pyrite alteration halos that are variably developed depending on host rock composition. At the regional scale a majority of deposits are spatially associated with regional shear zones and occur in greenschist-grade rocks, consistent with the overall brittle-ductile nature of their host structures.

Karma Property geology deposits
True Gold has defined five mineral deposits on the Karma Property.  From largest to smallest on the basis of ounces of gold, these include the Kao, Goulagou II (“GGII”), Goulagou I (“GGI”), Nami and Rambo deposits. The Kao deposit occurs within a plutonic body, the Rambo deposit embraces a plutonic contact zone, and the Goulagou I and II deposits occur peripherally to known or suspected plutonic masses. The regional gold metallogenesis on the Karma Property is tightly constrained to the Eburnean Orogeny between 2,130 and 1,980 Ma and that the major phase of gold deposition occurs during the latter part of the Eburnean event between 2,105-1,980 Ma. Details for the specific deposits can be found below.   Oxidation depth varies from 50 metres at Nami to as deep as 100 metres at Rambo.

Kao Deposit - The Kao Deposit, as presently defined, extends 1,400 m in a north-south direction, and extends approximately 900 m down-dip to the east.. Mineralization is hosted entirely by a granodiorite intrusive within a set of north-south tending, broad shallow east-dipping structural zones, which are in turn cut by a secondary narrow steep west-northwest trending structure which controls a significant portion of the higher grade gold mineralization with the Kao Deposit. The thickness of shallow mineralized zones ranges from 3 m to 50 m. Most of the mineralized zones are continuous from their westward extent, where they subcrop below thin laterite cover, to the edge of the presently delineated deposit to the east. The Kao Deposit is open along strike to the north and south and down-dip to the east.

Goulagou I and Goulagou II Deposits - The GGI Deposit has continuous mineralized lenses hosted within metasediments over a presently defined east-west strike length of 2,100 m. It consists of up to 10 separate continuous sheets, ranging from 5 m to 40 m thick, dipping near vertically. The GGI deposit is open along strike and down-dip below 200 m, the level of present drilling. The GGII Deposit is similar, with an east-west strike length of 2,400 m. There are 3 to 5 steeply dipping sheets, with widths ranging from 5 m to 30 m. The deposit is open along strike and down dip. Higher grade shoots that plunge steeply are targets for deeper drilling. The central portion of the GGII deposit is thickened in a “Z” fold configuration.

The Rambo Deposit - The Rambo Main Deposit as presently known is a small mineralized lens within metasediments in hanging wall contact with a granodiorite intrusive, containing a steeply plunging mineralized shoot. The deposit has a length of approximately 450 m along the east-west strike and dips steeply south, with a down-dip length of 230 m, and a thickness of the mineralized zone ranging from about 2.5 m to 25 m. The shoot is open to the east and down dip, and within it the mineralization exhibits good continuity.

Nami Deposit - The Nami Deposit, hosted within granodiorite similarly to Kao, is presently composed of three mineralized lenses with shallow dips of 20° to 25° toward the west-south-west. The strike length of the Nami Deposit is about 550 m, with a down-plunge extension of 300 m, and a thickness of the mineralized zone ranging from about 2.5 to 30 m. The deposit is open to the west, north and south, and within it the mineralization exhibits good continuity.

Scott Heffernan, M.Sc., P. Geo, is the Company’s Vice President Exploration and a  Qualified Person within the meaning of NI 43-101.  Mr. Heffernan has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.

Global Mineral Inventory

(1) Mineral Reserves are that portion of the mineral resource that has been identified as mineable  within a design pit and incorporates criteria such as mining recoveries and waste dilution. The  Mineral Reserves are reported on the basis of parameters and assumptions defined in our Feasibility Study, which is published on SEDAR at www.sedar.com. The Feasibility Study is based on an open-pit operation averaging 97,000 ounces of gold per year over 8.5 years and all-in sustaining cash costs of $720/oz gold, at  a US$1250/oz gold price. Cut-off grades (COG) vary by pit and material type as shown in the table.

(2) Mineral Resource estimates were based on a gold price of US$1,557 per ounce, a 90%, 80% and 85% respective process recoveries for oxide, transition and sulphide; oxide mining costs of US$1.61/tonne, $US1.94 per tonne for transition and US$2.05 for sulphide ; process costs of US$7.25/tonne for oxide and transition and US$19 per tonne for sulphide; and General & Administrative costs of US$1.35 per tonne were used to determine the respective 0.20, 0.22 and 0.50 oxide, transition and sulphide open pit cut-off grades. Mineral resources are reported at cut-off grades of 0.20 g/t Au for oxide material in all deposits, 0.22 g/t Au for transition material in all deposits and the sulphide material at Rambo and Nami, and at 0.5 g/t Au for the remaining sulphide material at GG1, GG2, Kao and North Kao. Mineral resources are inclusive of mineral reserves. Mineral resources which are not mineral reserves do not have demonstrated economic viability.  The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The quantity and grade of reported Inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred mineral resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category. The mineral resources reported here was estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council. Material within optimized pit shells have engineering mining aspects applied to the global mineral inventory.

For more information on Karma Resources and Reserves, please refer to NI 43-101 technical report entitled “Updated Resource Estimate and Feasibility Study on the Karma Gold Project, Burkina Faso, West Africa”, dated December 17, 2013 and filed on SEDAR on January 27, 2014 at www.sedar.com.  For more information on the North Kao Inferred Resource, please see news release dated March 13, 2014, filed on SEDAR at www.sedar.com

Scott Heffernan, M.Sc., P. Geo, is the Company’s Vice President Exploration and a  Qualified Person within the meaning of NI 43-101.  Mr Heffernan has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.

Kao: Oxide gold leach rate profile
GGI and GGII: Oxide gold leach rate profiles
Met program overview

A comprehensive program of metallurgical testing was executed to support the Feasibility Study.  Test work included ore characterization, determination of physical and mechanical properties, bottle roll testing to establish the size-recovery relationship, column leach testing to relate bottle roll results and cyanide solubilities to heap leach performance, and load permeability testing to accurately project cement consumption. Of particular note are the oxide material’s rapid leach kinetics, which indicates gold extraction being substantially complete in a period of 10 days during lab column leach tests with average life of mine recoveries of 87.2%.

A total of 832 metallurgical variability samples and 24 columns were tested as part of the feasibility metallurgical test work program.

The program was undertaken for each material type in each of the five deposits.  Overall metallurgical recovery was calculated at 87.2% with recovery by material type for oxide 93.3%, transition 75.7%, and sulphide 83.4%.  Average consumption for cement of 14.7 kg/t for all material processed was found to be consistent with a design heap height of 20 m. 

Average cyanide consumption for all material types was determined to be 0.56 kg/t.   Approximately 94% of the mineral reserves at Karma consist of oxide and transition material and exhibit similar leach kinetics.

David Laing, BSc., ARSM, MIoM3, SME, Chief Operating Officer of the Company, is a  Qualified Person within the meaning of NI 43-101.  Mr. Laing has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.

Mining
Approximately 113.8 Mt of material will be mined from five open pits over the course of the estimated project life.  This will deliver approximately 33.2 Mt of ore to the processing facility and 80.6 Mt of waste to storage facilities located near each pit. The overall strip ratio for the project is 2.43:1 with mining being conducted 350 days/yr by an owner-operated fleet at total material movement rates ranging from 35,000 to 45,000 tpd.

The mining operation employs conventional truck and shovel methods. Two hydraulic excavators load a fleet of up to fourteen 90t trucks for the transport of ore and waste to the primary crusher and respective near pit waste dumps.

The soft nature of the open pit ore and waste material allows the majority to be “free-digging” (excavated without blasting).  Twenty-five percent of the transition ore and all of the sulphide ore material will be drilled and blasted at low powder factors.  This comprises only about 10% of the total material to be excavated over the mine life.

Process
The Karma Project process design is based on the use of conventional heap leach technology with a production capacity of 4.0 Mtpa.  Mined ore is crushed, agglomerated, and conveyed to the leach pad where it is be stacked in two 10 m lifts and irrigated with dilute cyanide solution. Gold dissolved by the cyanide is then adsorbed onto activated carbon in a carbon-in-column (CIC) circuit.  The loaded carbon is then stripped of the gold using Zadra-type elution and the resulting product is subjected to electrowinning and smelting to produce dore on site.

Operating costs
Unit and total operating costs were estimated for the Karma Project over the life of the project. Operating costs were developed from first principles for mining, processing, and administration using operating plans as the bases and considering labour, materials, consumables, and certain contract services.

Primary operating cost drivers are diesel fuel, cement, and sodium cyanide.  Labour costs were modeled on existing operations in Burkina Faso employing industry standard work schedules while taking into account local labour legislation. Power costs are all based on diesel generation.

Camp costs are reduced for the Karma Project relative to other projects because most administrative facilities are in the city of Ouahigouya, 23 kilometres from the project, and employees travel to and from home every day rather than living in a remote camp on site. 

David Laing, BSc., ARSM, MIoM3, SME, Chief Operating Officer of the Company, is a  Qualified Person within the meaning of NI 43-101.  Mr. Laing has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.

Map of Karma Project
Map of recent drilling at Kao
North Kao gold grade contours
Map of recent drilling at Watinoma

Karma hosts a target-rich landscape with the essential hallmarks of a multi-deposit environment. The property consists of six contiguous exploration permits (Goulagou, Rambo, Kao, Rounga, Youba, and Tougou) totaling over 856 sq. km in size, and includes more than 45 high-priority targets with high-grade rock values associated with gold-in-soil anomalies and historical workings that remain untested to date.

Our resource growth team continues to explore the property to identify extensions to the five known gold deposits and discover near-surface oxide mineralization within trucking distance of Karma’s proposed heap leach processing facility. Drilling in 2013 reported positive results at priority targets—North Kao, Watinoma and Rambo West— which demonstrate continuity of gold mineralization and highlight the potential to add open-pittable oxide gold mineralization within the Karma Project.

North Kao Target
Exploration at the Kao permit in 2013 included more than 20,000 metres of RC drilling, detailed structural mapping, soil sampling and IP/Resistivity geophysical surveying. Encouraging results from the North Kao Target more than doubled the size of the gold footprint at Kao, extending gold mineralization an additional 2,000 metres from the northern edge of the currently defined deposit. This extension expanded mineralization to a total strike length of 3,400 metres. Numerous, widespread intercepts with strong mineralization demonstrate potential to add more near-surface oxide material within the Karma Project, including:

  • 1.08 g/t Au over 50.0 metres in KAO-13-RC-410
     
  • 2.39 g/t Au over 26.00 metres in KAO13RC-482, including 4.14 g/t Au over 12.00 metres
  • 2.32 g/t Au over 18.00 metres in KAO13RC-468, including 13.60 g/t Au over 2.00 metres
  • 2.24 g/t Au over 30.00 metres in KAO13RC-470, including 18.35 g/t Au over 2.00 metres
  • 1.55 g/t Au over 54.90 metres in KAO13DD-222, including 2.18 g/t Au over 20.34 metres
     
  • 1.01 g/t Au over 62.0 metres, in KAO-13-RC-406           

For a full table of recent results related to gold mineralization north of Kao, please click on this link:
http://www.truegoldmining.com/sites/default/files/KaoDrillResults1336.pdf

Watinoma Target
A 2013 core drilling program at the Watinoma target revealed significant gold mineralization over a distance of 600 metres, and reinforced the area’s strong prospectivity. The core drilling program was a follow-up to an extensive rotary air blast (RAB) campaign completed in 2012, which was highlighted by 2.15 g/t Au over 30.0 metres in hole RAB-4143. The RAB program included 11,039 metres of drilling in 449 vertical holes and confirmed six distinct drill-ready areas of anomalous gold mineralization.

Assay highlights from core drilling include:

  • 1.91 g/t Au over 70.5 metres, including 8.66 g/t Au over 4.5 metres, in RNG-DD-13-001 (near-twin of RNG-13-RC-001)
  • 0.89 g/t Au over 42.5 metres, including 1.41 g/t Au over 12.4 metres, in RNG-DD-13-003 (near-twin of RNG-13-RC-005)
  • 1.92 g/t Au over 11.1 metres, in RNG-DD-13-002
  • 3.27 g/t Au over 8.00 metres and 1.05 g/t Au over 20.0 metres, in RNG-DD-13-004
  • 0.45 g/t Au over 10.18 metres, in RNG-DD-13-005
  • 1.79 g/t Au over 4.5 metres, in RNG-DD-13-007

For a full table of results related to gold mineralization at Watinoma, please click on this link:
http://www.truegoldmining.com/sites/default/files/KarmaDrillResults1329.pdf

Rambo West Target
The 2013 exploration program  at Rambo included detailed structural mapping, 290 composite rock samples, 1,512 metres of RC drilling and a further 3,884 metres of core drilling. Assay results from the initial Rambo West RC program identified a zone of gold mineralization approximately 300 metres west of the Rambo deposit.

Assay results received for the initial Rambo West RC program identified a zone of gold mineralization approximately 300 metres west of the Rambo deposit. Assay highlights from RC drilling include:

  • 1.39 g/t Au over 28.0 metres, including 1.82 g/t Au over 10.0 metres, in RMB-13-RC-096;
  • 1.02 g/t Au over 32.0 metres, including 2.26 g/t Au over 8.0 metres; in RMB-13-RC-096B; and
  • 1.02 g/t Au over 24.0 metres, including 1.93 g/t Au over 10.0 metres, in RMB-13-RC-098.

Assay highlights released from follow-up core drilling include:

  • 1.18 g/t Au over 25.5 metres, including 2.21 g/t Au over 6.0 metres, in RMB-DD-13-086
  • 1.31 g/t Au over 6.0 metres, in RMB-DD-13-087; and
  • 1.15 g/t Au over 15.0 metres, including 1.42 g/t Au over 10.5 metres, in RMB-DD-13-091.

For a full table of results related to gold mineralization at Rambo, please click on this link:
http://www.truegoldmining.com/sites/default/files/KarmaDrillResults1328.pdf

Yabonsgo & Rounga Targets
The Yabonsgo and Rounga targets are located within easy trucking distance of the proposed Karma Gold Project mining centre and represent excellent examples of the widespread potential for resource growth throughout the 856 square kilometre property. Gold mineralization at these target areas starts at surface, is oxidized to approximately 75 metres depth, and remains open in all directions. 

Assay highlights from the five-hole, 869.4-metre drill program at the Yabonsgo target include:

  • 12.61 g/t Au over 5.60 metres in GLG13DD-157, including
    • 30.60 g/t Au over 1.50 metres, and
    • 17.50 g/t Au over 1.40 metres
  • 10.82 g/t Au over 4.50 metres in GLG13DD-155, including
    • 31.70 g/t Au over 1.50 metres
  • 2.51 g/t Au over 9.00 metres in GLG13DD-158, including
    • 5.89 g/t Au over 3.00 metres
  • 1.21 g/t Au over 9.50 metres in GLG13DD-154 and 4.13 g/t Au over 4.00 metres, including
    • 11.60 g/t Au over 1.00 metre

Assay highlights from the four-hole, 608.3-metre drill program at the Rounga target include:

  • 5.94 g/t Au over 3.00 metres in hole RNG-DD-13-011, including
    • 10.50 g/t Au over 1.50 metres
  • 0.89 g/t Au over 16.33 metres in hole RNG-DD-13-012, including
    • 5.45 g/t Au over 1.00 metres

The new Yabonsgo and Rounga areas clearly demonstrate the potential for domains of high-grade gold mineralization within trucking distance of the proposed processing site. At Yabonsgo, True Gold drilled three of five holes in areas of historic workings and stepped out 200 and 300 metres along strike with holes GLG13DD-157 and GLG13DD-158. The two step-out holes hit high-grade gold and all five drill holes intersected significant oxide gold mineralization. At Rounga, True Gold hit oxide gold mineralization in all four holes drilled. Gold mineralization at both targets is associated with multiple phases of quartz veining within a variably sheared sequence of metavolcanic, volcaniclastic and intrusive rocks.

Yabonsgo and Rounga are located in the Rounga Domain, one of three major gold trends on the Karma Project. It is significant to note that the Rounga Domain, which hosts dozens of areas of outcropping high grade gold mineralization, covers multiple splays of the Ouahigouya Shear Zone (OSZ). These SW-NE trending structures transect the Karma property and link into the Houndé Belt in southwestern Burkina Faso.

For a full table of results related to gold mineralization at Yabonsgo and Rounga, please click on this link: http://www.truegoldmining.com/sites/default/files/DrillResults1412.pdf

Scott Heffernan, M.Sc., P. Geo, is the Company’s Vice President Exploration and a Qualified Person within the meaning of NI 43-101.  Mr. Heffernan has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.