True Gold (TGM:TSXV) 12 month chart (Stockwatch)

True Gold (TGM:TSXV) 12 month chart (Stockwatch)

Burkina Faso gold developer, True Gold Mining (TGM:TSXV) received its environmental permit for its Goulagou I, Goulagou II and Rambo deposits which make up the company’s Karma gold project.  The next and final step to bring Karma into production is the receipt of the exploitation permits which the company expects getting in 2 months.  In the meantime, the company is optimizing their mine plan including capital and operating costs as part of their final feasibility study to be complete later this year.

Here’s the release: True Gold Receives Environmental Permit for Karma Project

True Gold's Burkina deposits (Company)

True Gold's Burkina deposits (Company)

A few days ago, the market shrugged off what were significant metallurgical results for the project which showed that on their three largest deposits (Goulagou I, Goulagou II and Kao) they leached between 90.2 and 97.4% (most of that came within 10 days). High recoverable grades are key for heap leach projects like this because they equate to quick paybacks.  Karma's average gold grade of 0.88g/t and recovery rates of 88% in the PEA fit that description.  The company expects to complete phase 2 metallurgical results on the transitional and free-leaching sulphide material later this year.

Recently TGM received backing from Teck and Liberty Metals & Holdings for the amount of $10 million and $23.5 million, respectively.  In August, company Chairman, Dr. Mark O’Dea was adding to his almost 10 million share position by buying 200,000 shares out of the market (the board includes Sandstorm founder, Nolan Watson). Watch for their feasibility study later this year to improve on the economics of the PEA which, at $1,350/oz gold, valued Karma at $192 million (after-tax/royalties).

Note, Liberty Metals invested their $23.5 million at current prices ($0.33 per share).