Document 448578

Fully funded, permitted, and in construction.
First gold pour on target for Q4 2015.
Our strategy is disciplined. Determined. Focused on exploring, developing and operating mines. With low cost
of entry. Low capital expenditures. And simple technical operations.
Our Karma Project in Burkina Faso, West Africa, perfectly reflects this disciplined approach. Open-pittable, freedig deposits. A proposed centralized, low-cost, heap-leach processing facility.
Karma Project Advancing
The Karma Project is fully funded and permitted, and
is one of a select few gold mines under construction
globally. It is scheduled to be the next gold mine to go
into production in Burkina Faso.
The Karma Project Feasibility Study1 supports a technically simple, open-pit heap leach operation that
offers high-margins, low capital and operating costs,
rapid payback and strong financial performance at
the current gold price.
Currently in construction, True Gold has spent and
committed approximately US$51.5 million, or more
than 39% of the US$131.5-million initial capex, and
is on track to pour gold by Q4 2015. The mine will
produce an average of 97,000 ounces of gold per
year over 8.5 years, at direct cash operating costs of
US$550 an ounce.
A centralized heap leach processing facility will process leachable material from five pits. The two pits
with the highest-grade ore would be mined first, providing True Gold with strong cash flow at production
True Gold recently completed a PEA on the North Kao
Deposit, which provides a blueprint on how the Company can expand mine life and the production profile
at Karma. North Kao will have a production rate of
118,000 oz Au/year on average over a 2.5 year mine
life. It has an after-tax IRR of 213% and a NPV @ 5% of
$69.6 million. There are plans to integrate the North
Kao Deposit into the current Karma mine plan.
Exploration is ongoing, with more than 40 high-priority exploration targets over the 856-square-kilometre
property. Exploration will be focused on discovering
new domains of open-pit, leachable materail that
could be incorporated into a future mine plan.
(1) See Technical Report, Updated Resource Estimate and
Feasibility Study on the Karma Gold Project prepared by P&E
Mining Consultants Inc. dated effective December 17, 2013,
available on the Company’s profile.
Karma Project Feasibility
Study Highlights2:
Gold price: Base case economic
evaluation: US$1,250/oz Au
Probable Mineral Reserves: 33.2 Mt
@ 0.89 g/t containing 949,000 oz Au
Production: 97,000 oz Au/ yr over an
8.5-year mine life
Initial Capex: US$131.5 million
(includes working capital and contingency)
NPV @ 5%3: US$198.8 million (after
IRR: 46.3%3 (after tax)
Payback: 1.33 years (after tax)
26%3 IRR at US$1,000/oz Au
Direct cash operating costs4:
Total cash costs5: $630/oz
All-in sustaining cash costs6: US$678
(After-tax economic highlights represent True
Gold’s anticipated 90% interest in the Karma
Project, taking into account Burkina Faso’s 10%
carried interest and all government and contractual royalties).
(2) Reflects cost-savings of the long-term cement
contract procured.
(3) Compared to metrics disclosed in the Technical Report.
(4) Includes all mining costs, processing costs,
on-site G&A.
(5) Includes all direct operating cash costs plus
refining cost and royalties.
(6) Includes all total cash costs plus sustaining
Karma Project Attributes
• Fully financed, permitted, and in construction
• Key partners: Franco-Nevada, Sandstorm Gold,
Liberty, and Teck
• Up to US$120M financing secured from FrancoNevada/Sandstorm
• After-tax IRR of 46.3%, NPV (5%) US$198.8
million @ US$1,250/oz gold
• Excellent existing infrastructure (water, roads,
labour, off-site accommodation)
• Exceptional gold jurisdiction (nine mines
permitted in past eight years)
• Proven mine builders/operators team in place
• Engineered by design for flexible, adaptable
and incremental scale-up potential
• ~C$46 M cash on hand to meet project equity
• Resilient at $1,000 gold: 26% IRR
Karma Project Growth
• ~856km² land package with +100km aggregate
strike corridor
• More than 40 high-priority targets with 100%
hit rate to date
• Three major gold trends:
Kao Gold Trend: 10km long corridor and
open; 410,000 ounces Probable Mineral
Reserves* (leachable) to date.
The Golden Arch: 28km long corridor and
up to 3kms wide; 539,000 ounces of Probable
Mineral Reserves* (leachable) to date.
The Rounga Domain: Multiple NE trending
splays off country-scale shear zone.
Directors & Management
Analyst coverage
Key Financial Statistics
True Gold is led by a team of proven mine-builders with
global experience in operations and mine development,
exploration, project finance and capital markets.
BMO Capital Markets
(as at November 19, 2014)
• Shares outstanding: 397.57 million
Clarus Securities
• Cash: ~$46 million
Cormark Securities
Edgecrest Capital
• Stock options outstanding: 20.66
Haywood Securities
• Major shareholders:
Jennings Capital
National Bank Financial
RBC Capital Markets
Scotia Capital Markets
Mark O’Dea, Executive Chairman
Dwayne Melrose, Director
Michael McInnis, Director
Donald McInnes, Director
Nolan Watson, Director
Rick Bailes, Director
Robert Martinez, Director
Robin Merrifield, Director
Stephan Theron, Director
Directors, management &
associates: ~10%
Mark O’Dea: 2.41%
Total strategic: ~31%
Liberty: 19.5%
Teck: 11.5%
Total institutional: ~16%
Mark O’Dea, Executive Chairman
Dwayne Melrose, President and Chief Executive Officer
Peter Carter, Chief Operating Officer and Vice President
Ryan Torvik, Chief Financial Officer
Scott Heffernan, Vice President, Exploration
Alex Holmes, Vice President, Business Development
Blaine Monaghan, Director of Investor Relations
Tel: 604-801-5020
Email: [email protected]
Suite 1900 - 1055 West Hastings
Vancouver, BC Canada V6E 2E9
Cautionary language
*See NI 43-101 Technical Report, Updated Resource Estimate and Feasibility Study on the Karma Gold Project, prepared by P&E Mining Consultants Inc. dated effective December
17, 2013, available on our website at or on SEDAR at
Scott Heffernan, M.Sc., P. Geo., Vice-President Exploration for True Gold and a “qualified person” within the meaning of National Instrument 43-101., has approved the technical
content of this fact sheet. All statements, other than statements of historical fact, set forth herein including statements relating to True Gold’s future operating or financial performance, development and projected production timeline for the Karma Project and True Gold’s other projects and other statements not supported by fact are forward-looking
statements within the meaning of applicable securities laws. Forward-looking statements involve various risks and uncertainties, and other factors which may cause the actual
results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking
statements. These forward-looking statements are based on certain assumptions which the Company believes are reasonable, including that: all necessary government and third
party permits, approvals and licences necessary for the planned exploration and development of the Company’s mineral projects will be obtained in a timely manner and on terms
acceptable to the Company; key management and directors will continue to be retained by the Company; any proposed future development of the Company’s mineral projects
will be viable operationally and economically and proceed as expected; that the company will be able to access required financing; and the other assumptions listed in the section
entitled “Cautionary Statement Regarding Forward-Looking Statements” in the Company’s annual information form which is available under the Company’s profile on the SEDAR
website at
United States investors are cautioned that the requirements and terminology of Canadian NI 43-101 and the CIM Standards on Mineral Resources and Reserves – Definitions and
Guideline differ significantly from the requirements and terminology of the United States Securities and Exchange Commission (“SEC”) set forth in the SEC’s Industry Guide 7 (“SEC
Industry Guide 7”). Accordingly, the Company’s disclosures regarding Probable Mineral Reserves may not be comparable to similar information disclosed by companies subject to
SEC Industry Guide 7. This fact sheet and the disclosure contained therein DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES OF