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TRUE GOLD MINING INC.: KARMA PROJECT UPDATE; ACTIVITIES RELATED TO FEASIBILITY STUDY PROGRESSING
True Gold Mining Inc. has provided an update of the studies and preliminary information arising from the continuing preparation of a feasibility study (FS) for the Karma gold project.
The FS is being conducted by SENET, a leading project management and engineering firm in the field of mineral processing, with the participation of globally recognized subcontractors such as SRK Consulting, Knight-Piesold (Pty) Ltd. and Roche Ltd., Consulting Group. The FS entails the development of a fully engineered construction and operating plan with considerations for social management planning, environment, permitting, geotechnical engineering, hydro-geology, water management, metallurgical testing, process design, and mine planning.
Key updates include:
-- Geotechnical work in progress intersected thicker than expected laterite in proposed areas selected for the leach pad and plant. Thicker laterite potentially provides a load-bearing, impermeable layer that could simplify construction and liner design. -- Hydro-geology studies reveal limited groundwater in only one of the pits, indicating little groundwater-related risk for mine design. -- The proposed process flow sheet is expected to incorporate both mineral sizing and crushing to provide operational flexibility and effectiveness, potentially mitigating risks and reducing costs associated with variations in material hardness. -- Investigations to employ a mobile crushing and sizing plant intended to simplify process design and reduce capital costs are ongoing. Site reviews of existing operations with throughputs in excess of those planned for the Karma Project have been completed. -- Preliminary estimates indicate that the Karma Project is expected to require approximately 1.5 million cubic metres of water a year, considerably less than a carbon-in-leach (CIL) plant for a similar size operation. -- Conceptual plans for water management provide a basis for engineering studies that would utilize a barrage (reservoir) with a small footprint to supply sufficient water to meet the requirements of both the Karma Project and the needs of the community. The Company has received approval for the construction of the barrage (see True Gold release dated March 25, 2013). -- A metallurgical core drilling campaign at the five Karma Project pits is complete and samples are being shipped to McClelland Laboratories in Nevada for ore characterization and column leach variability test work (see True Gold news releases dated Feb.27, March 6 and March 13, 2013 for assay results). -- Extensive environmental baseline monitoring, which commenced in July 2012, is ongoing and is expected to satisfy all requirements for the FS. The framework for an environmental management system is being developed to coordinate a series of action plans designed to mitigate project impacts related to employee health and safety, water and air quality, waste management, and site closure. -- Ongoing metallurgical, geo-technical and geological investigations are helping to provide a deeper understanding of the mineralization at the Karma Project, and may assist in optimizing mine sequencing and pit design.
The FS is expected to be completed by the end of 2013.