True Gold begins extraction at 7th Burkina Faso mine
True Gold estimates the Goulagou II deposit contains 273,000 leachable ounces of gold at 1.12 g/t.
"As we transition into gold production over the next few months, our team is increasingly focused on operational readiness," True Gold President and CEO Christian Milau said. "Karma will produce approximately 120,000 ounces of gold per year during our first five years at the lowest quartile of cash costs, laying the foundation for True Gold to become a mid-tier producer."
The company expects to extract gold from the project as early as the first quarter of 2016. Actual mining at the Goulagou II deposit will continue for two years and be followed by a sequence of mining at six other Karma deposits. The total project is expected to last 11 1/2 years and is fully funded.
The mining began after earthmoving crews excavated the processing and storage ponds. The project employs nearly 1,000 company staff and is funded through production at a cost of at least $67 million.
The Karma mine is True Gold's seventh open mine in Burkina Faso. The company also maintains seven more Advanced Exploration Properties.