teranga gold (TGZ)

[JonnyRBuck12]

There is a major undervaluation in the resource estimate from the Gora deposit in Senegal. Teranga Gold(TGZ) has said on their website and in previous MD&A reports that only 140,000 ounces of Gold exist. However, Axmin clearly states on their website that Gora has just under 400,000 ounces of Gold. Now if we break this down, Gora has much more life ahead of it and here are the numbers to prove it.


Note – Gora did not start production until Q4 2015.


TGZ Gora Estimate – 140,000 Ounces Proven + Probable
AXM Gora Estimate – 395,000 Ounces Proven + Probable


2015
Ounces Mined: 22,814
Royalty Paid To Axmin: $300K USD


2016
Ounces Mined: 67,948
Royalty Paid To Axmin: $1M USD


2017
Ounces Mined: 115,398 – 60,587 coming from Q4 2017, major increase in production
Royalty Paid To Axmin: $1.6M USD


Total ounces mined: 206,160 (from 2015 to 2017)


So that has already exceeded TGZ’s estimate by 60,000 ounces. However, that is only over half of what Axmin has stated. As well, keep in mind that TGZ mined the most gold out of Gora in the most recent quarter, how is that possible if the resource is ending? Someone must of made a huge mistake on the Teranga side. On top of this, there are three other adjacent claims that could very well go into production soon (Honey, Jam, Cinnamon) as these are 1-2km’s away from Gora and results were similar or better from the 70,000m of drilling, bulk sampling and other tests performed.



Sources:


http://www.axmininc.com/Senegal.php



The Gora deposit, located on the Sounkounkou licence, has a proven and probable reserve, based on a US$1,500 gold price, of 2.1 Mt grading 4.22 g/t Au containing 285,000 ounces. The Measured and Indicated Resource at Gora has increased to 374,000 ounces of gold at 5.0 g/t Au and an Inferred resource of 20,000 ounces grading 3.4 g/t Au.



Note - This was last updated in 2012, so the resource could easily have increased since then with more exploration.



http://www.terangagold.com/English/investors/news/newsreleasedetails/2017/Teranga-Gold-Increases-Sabodalas-Reserve-Base-to-27-Million-Ounces-Adds-More-Than-400000-Ounces-of-Gold-and-Improves-Five-Year-Production-and-Cash-Flow-Profile/default.aspx



Financials on Sedar for TGZ show all the sales from Gora and royalties paid.