More good news for Vancouver gold junior on month-long tear

03 February 2014 | 13:21 Code : 22118 Geoscience events
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TrueGold Mining (CVE:TGM) jumped 5% on Monday on heavy volumes, after announcin....

TrueGold Mining (CVE:TGM) jumped 5% on Monday on heavy volumes, after announcing environmental permit for the Kao deposit at its Karma project in Burkina Faso.By the close the Vancouver-based junior settled at $0.42, up 3.7% on the Toronto Venture Exchange, off its highs for the day. Around 770,000 shares in the $111 million company had changed hands on Monday compared to the usual daily average of 180,000.TrueGold’s share price is up 31% over the past month after a strong feasibility study and mining permits for three other deposits at Karma were announced in December.The feasibility calls for a $130 million mine at Karma which is 90%-owned by TrueGold with the Burkina Faso government holding the remainder. Karma’s probable reserves are pegged at 949,000 ounces (33.2mt at 0.89 g/t) and the operation could produce 97,000 ounces on average annually for 8.5 years starting end-2015.What makes Karma stand out are all-in sustaining costs of $720 and direct cash costs of $591 thanks to shallow pits and proposed heap-leach extraction and what the company characterizes as “strong gold grades, excellent infrastructure, low power and water requirements, strong recoveries from simple metallurgy and soft, free digging material.”

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