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Re: dr_airtime post# 31105

Monday, 03/17/2014 1:01:19 PM

Monday, March 17, 2014 1:01:19 PM

Post# of 35776
TGZ.TO - First Technical Presentation...

..from PDAC i would assume. See slide 8 for staging of open pits. Resources & Reserves summarized in link at bottom which I have referenced.

http://www.terangagold.com/English/Investors/Presentations-and-Webcasts/default.aspx

Looks like current Sabadola resource exhausted in 2014 (1.31 g/t M&I grade) with (former Oromin) Masato deposit mined in 2015 (1.11 g/t indicated grade). Conclusion: If they can get their mill optimized in 2014 and keep throughput high in 2015 the drop in grade could be offset by increase in throughput keeping AISC/cash costs low. Will be a transition period in late 14/15 as they switch pits though the pits are only 2.5km apart so can't imagine ore can be that different.

...See slide 8 for pit production from 2016+ - this is a combination of ore from a bunch of pits so I image things will become more complex at this stage. They actually stop mining Masato at this point which has lots of resources (1.58M oz at 1.11 g/t indicated grade) for 2016-2019 and then mine it again in 2020.

Conclusion: Simple operations for 2014-2015 mining from either existing Sabadola pit or Masato pits 2.5km apart at similar grades. Teranga just needs to deliver on guidance and they will go much higher in 2014 from current $1.00 share price. There aren't any more TSX junior producers with 10 year mine lives, 200k-250k+ / year production profile and lowest-quartile AISC selling for a $313M MC. Selloff to $1.00 today is buy-opp IMO and I may add, but just a little as my position is large for me relatively speaking.

http://www.terangagold.com/English/Operations-and-Exploration/Reserves-and-Resources/default.aspx
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