True Gold Mining (TGM:TSXV)

True Gold Mining (TGM:TSXV)

Dr. Mark O’Dea’s True Gold Mining (TGM:TSXV) continues to drill good heap leach gold intercepts and this morning announced assay results from a recent 9 hole campaign at the Watinoma zone of the Karma gold project in Burkina Faso.  The company twinned a couple previously drilled RC holes and encountered the same widths with improved grades.  One of the twinned holes resulted in 70.5m of 1.91g/t gold whereas the previously drilled RC hole encountered 72m of 1.31g/t gold.  New holes included 11m of 1.92g/t gold and 20m of 1.05g/t gold.

Dwayne Melrose, President and CEO of True Gold said: “we are pleased with the results of the core drilling program and our exploration work to date at Watinoma. They confirm the presence of widespread near-surface gold mineralization and strongly support our goal of adding near-surface oxide material within trucking distance of our proposed Karma project processing facility.”

The Karma project is composed of five deposits; Rambo, Nami, Kao, Goulagou I and Goulagou II, which the company anticipates processing at a central plant.  They are currently working on a feasibility study to improve the economics of their PEA which was published in September 2012 and showed a low cost heap leach operation with $525 per ounce cash costs and manageable capex of $125 million.  O’Dea and company were able to secure a strong strategic partner in the Boston-based Liberty Mutal group who invested $23.5 million into TGM in July 2013 for 19.95% of the company.

News Release here: True Gold Intersects 1.91g/t Gold over 70.5 metres at Northern Karma Target

Financing News Release here: True Gold Announces $23.5 million Strategic Investment by Liberty Metals and Mining