|By Marketwired .||
|May 12, 2014 07:00 AM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/12/14 -- True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Company") is pleased to announce that construction of the fresh water reservoir ("barrage") is now complete, providing sufficient water for mine construction and operational needs, as well as providing a year-round water source for local communities. The construction of the barrage was overseen by SENET (Pty) Ltd. ("SENET") together with True Gold's on-site owner's team, and was completed ahead of schedule and under budget.
"The completion of this major piece of infrastructure is a significant milestone in the mine development process, as it mitigates water-related project risks as we gear up to begin construction of Burkina Faso's next gold mine," stated Dwayne Melrose, President & CEO of True Gold. "The construction of the barrage ahead of schedule and under budget is a testament to our integrated team's ability to deliver project results as planned in the field."
The barrage is constructed on a tributary to the Nkambe River, four kilometres south of the proposed mine site. Initial construction (phase 1), completed in 2013, involved construction of a one-metre high dam with sufficient capacity to provide water for exploration and development operations. The second and final phase of construction, now complete, increases the barrage height to 2.5 metres and deepens the barrage basin to allow for increased storage capacity to fulfill the annual requirements for the Karma Project, while also providing a water source for our local communities.
The barrage will now provide 1.3 million m3 water annually to meet the operating requirements of the mine. The average annual flow of the Nkambe River is 22 million m3 which, based on hydrological studies conducted over the past 50 years, can vary from 7 million m3 to 40 million m3 during ten year lows and highs, respectively.
Water will be drawn from the barrage during the three month rainy season, generally late June to mid-September, and will be pumped to water storage ponds for use throughout the remainder of the year. Water stored in the raw and storm water ponds will be used for heap leach irrigation, plant processing, dust suppression, potable water and other mining construction and operational needs.
In addition to overseeing construction of the barrage, SENET is also leading detailed engineering and construction-level design work, which True Gold expects to be completed on schedule and on budget by the end of May. SENET is a South African based mineral process and engineering firm with extensive heap leach and African mine construction experience.
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.
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. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may constitute forward-looking statements. 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 officer appointments and resignations, 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 that corporate social responsibility ("CSR") programs and local community engagement will reduce project risk, continued excellent community relations that will bear clear benefits for local residents and the Company, including improved project design, reduced costs, water for community use and reduced social impacts, continued local community support for the development of the Karma Project, the possibility that the key personnel in the Karma Project CSR leadership team may not perform as anticipated or remain with the Company, accidents, 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, commodity price fluctuations, currency fluctuations, political risk, the potential accretive nature that newly discovered mineralization at the two drill targets discussed in the Company's News Release dated March 13, 2014 may have on the Karma Project, the potential for growth and scalability of the Karma Project including, but not limited to, potential for additional mining centres, continued exploration success, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that bottle roll tests will be indicative of ultimate column test results, the possibility that future exploration and development results in the Karma Project will not be consistent with the Company's expectations, the potential initial resource estimate on the Kao North discovery, 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, that the Company can access required financing to be in a position to consider a production decision, appropriate and sufficient equipment and labour will be available and accessible to the Company to meet its development goals, retention of key personnel 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.