Teranga Gold’s Golden Hill Drill Results Include More

TORONTO, Sept. 20, 2018 (GLOBE NEWSWIRE) -- Teranga Gold Corporation ("Teranga" or the "Company") (TSX:TGZ; OTCQX:TGCDF) is pleased to announce that the most recent diamond drill program results on its Golden Hill property in Burkina Faso, West Africa have returned strong near surface, oxide zone and deeper gold intersections at a number of advanced prospects. The latest drill results from the C-Zone, Ma North, Peksou and Jackhammer Hill prospects have also expanded mineralization along trend and to depth.

Teranga has an earn-in agreement on Golden Hill with Boss Resources Limited (ASX:BOE) pursuant to which Teranga, as operator, can earn an 80% interest in the joint venture upon delivery of a feasibility study and the payment of AUD2.5 million.

Highlight Results

C-Zone Prospect

8 m @ 4.21 g/t gold, including 2 m @ 11.54 g/t gold (GHDD-373) from 137 m down hole depth (DHD)
9 m @ 3.47 g/t gold, including 2 m @ 11.95 g/t gold (GHDD-390) from 96 m DHD
4 m @ 13.53 g/t gold, including 1 m @ 50.95 g/t gold (GHDD-391) uncut grade from 108 m DHD (Refer to Table 1 in Appendix 1 for both uncut and cut grade intervals for GHDD-391)
8 m @ 4.37 g/t gold, including 3 m @ 8.49 g/t gold (GHDD-394) from 110 m DHD

Ma North Prospect

3 m @ 19.69 g/t gold, including 1 m @ 50.37 g/t gold (GHDD-406) uncut grade from 109 m DHD (Refer to Table 2 in Appendix 1 for both uncut and cut grade intervals for GHDD-406)
9 m @ 3.11 g/t gold, including 3 m @ 4.78 g/t gold (GHDD-410) from 71 m DHD
9 m @ 2.53 g/t gold, including 5 m @ 4.17 g/t gold (GHDD-379) from 70 m DHD

Peksou Prospect

6 m @ 3.67 g/t gold, including 1 m @ 17.30 g/t gold (GHDD-360) from 115 m DHD
18 m @ 2.59 g/t gold, including 9 m @ 4.08 g/t gold (GHDD-361) from 64 m DHD

“Golden Hill continues to be one of West Africa’s most exciting advanced stage exploration projects and, with recent drilling completed, the district-scale, multi-prospect potential of the project is becoming clearer,” said Richard Young, CEO. “We continue to see consistent intervals of both high-grade and near-surface gold mineralization from a variety of prospects, all located in relatively close proximity.”

“Our advanced-stage exploration program at Golden Hill continues to provide a high rate of drilling success at all priority targets,” added David Mallo, Vice President, Exploration. “Gold intersections continue to demonstrate excellent strike and depth continuity at multiple proximal prospects. Drilling through the remainder of 2018 is designed to follow up on the dozens of high-grade gold intersections already announced and expand gold mineralization at our primary prospects, building towards our initial resource estimations.”

Teranga is investing $8 million in advanced exploration drill programs in 2018. Over the remainder of the year, significant drilling will be undertaken on all the advanced prospects listed above, as well as at Ma Main, Ma East, Peksou North, Nahiri, Zone A and Zone B.

The Company plans to announce an initial resource estimate early in 2019 based on available drilling results at the most advanced prospects. Preliminary metallurgical test work programs are underway with base line environmental studies to follow later this year. Upon satisfaction of conditions precedent relating to the project’s initial preliminary economic assessment, Teranga has secured $25 million in debt financing to advance the Golden Hill project through to feasibility.

Golden Hill Property

The Golden Hill property is comprised of three adjacent exploration permits covering 470 km² in southwest Burkina Faso in the central part of the Houndé Greenstone Belt. This belt hosts a number of high-grade gold discoveries, including the Siou, Yaramoko and Houndé deposits, the latter being contiguous with Golden Hill.

This news release provides an update on exploration drilling results from a number of prospects recently evaluated as part of ongoing advanced exploration programs at Golden Hill. All advanced stage exploration prospects at Golden Hill are located within six kilometres of a central point (Figure 1 in Appendix 2).

Recent drilling was undertaken at C-Zone, Ma North, Jackhammer Hill and Peksou prospects. Please refer to Appendix 1 for significant results (Tables 1-4) and Appendix 2 for plan maps and representative sections related to this phase of our exploration drilling program. Cumulative results from all Golden Hill drilling are available on the Company’s website www.terangagold.com under Exploration.

C-Zone Prospect: Strong Gold Mineralization Demonstrating Excellent Correlation

To-date, the Company has drill tested C-Zone with diamond drilling over a strike extent of approximately 850 metres (Figure 2 in Appendix 2) and additional recent results confirm that C-Zone remains open to depth and intersects with the southeastern portion of our Peksou prospect.

Gold mineralization is localized in a discrete, mafic volcanic hosted shear zone system that displays alteration, veining and brecciation characteristics similar to those observed at Golden Hill’s nearby Ma prospect. The correlation of gold mineralized zones between drill holes at C-Zone has been excellent along the drilled strike extent, as demonstrated by representative sections of some recent drill results (Figures 3 and 4 in Appendix 2).

Recent notable diamond drill results at C-Zone are outlined in Table 1 in Appendix 1.

Ma North Prospect: New Drilling Results Extends Mineralization Along Trend and to Depth

Our most recent Ma North diamond drill results continue to confirm that a third well-mineralized breccia zone (BZ-3) exists within the Ma structural complex where previous drilling had identified BZ-1 and BZ-2 (Figure 5 in Appendix 2). Drilling at Ma North is still at an early-stage and predominantly at shallow depths when compared to more advanced areas of the Ma structural complex. Early-stage hole-to-hole correlation is demonstrating excellent continuity of mineralization. Additional drilling is planned to further evaluate Ma North both along trend and to depth where the breccia-hosted mineralization remains open to expansion.

Representative sections demonstrating some recent drill results are shown in Figures 6 and 7 in Appendix 2.

Recent notable diamond drill results at Ma North are outlined in Table 2 in Appendix 1.

Peksou Prospect: Minimum 600-Metre Strike Extent

The Company’s diamond drilling at the Peksou prospect now covers a 600-metre strike extent (Figure 8 in Appendix 2) and extends locally to vertical depths approaching 100 metres. Gold mineralization at Peksou is hosted within both mafic volcanic and granodiorite intrusive units where two distinct styles of alteration have been noted – one hematite dominant and the second sericite dominant. With multiple favourable results from this latest drill phase, confidence in the interpretation has improved considerably and correlation of mineralized zones, both hole-to-hole and section-to-section, is greatly enhanced. A representative section including new results is included (Figure 9 in Appendix 2).

Recent notable diamond drilling results at Peksou are outlined in Table 3 in Appendix 1.

Jackhammer Hill Prospect: High-Grade Mineralization Hosting Visible Gold

Recent drilling at the Jackhammer Hill prospect has been limited while exploration drilling was focused elsewhere. More extensive drilling has been earmarked for the upcoming quarter at Jackhammer Hill.

The gold mineralized zones identified thus far at Jackhammer Hill comprise a series of southeast dipping horizons hosted within an altered and sheared diorite intrusive unit. Drilling has been directed along an approximate 1,350-metre strike extent (Figure 10 in Appendix 2), predominantly to vertical depths of 50 to 75 metres and locally to vertical depths of approximately 125 metres. A 200-metre long central portion of the Jackhammer Hill mineralization includes a number of previously announced high-grade intervals hosting visible gold in the drill core.

In the coming months, drilling will focus on increasing both lateral and depth extensions of the Jackhammer Hill mineralized zones including the high-grade central portion of the prospect.

Recent notable diamond drill results at Jackhammer Hill are outlined in Table 4 in Appendix 1.

Competent Persons Statements

Teranga's Burkina Faso exploration programs, corresponding to the drill holes being reported herein, were managed by Peter Mann, FAusIMM. Mr. Mann was a full time employee, recently retired, of Teranga and is not "independent" within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Mr. Mann has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a "Qualified Person" under NI 43-101. The technical information contained in this news release relating to exploration results are based on, and fairly represents, information compiled by Mr. Mann. Mr. Mann has verified and approved the data disclosed in this release, including the sampling, analytical and test data underlying the information. The RC and diamond core samples are assayed at the BIGS Global Laboratory in Ouagadougou, Burkina Faso. Mr. Mann has consented to the inclusion in this news release of the matters based on his compiled information in the form and context in which it appears herein.

Forward-Looking Statements

This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"), which reflects management's expectations regarding Teranga's future growth and business prospects (including the timing and development of new deposits and the success of exploration activities) and opportunities. Wherever possible, words such as “objective to”, “likely”, “intend to”, “potential”, “belief”, “believe”, “expects”, “estimates”, “plans”, “anticipated”, “ability” and similar expressions or statements that certain actions, events or results “should”, or "will" have been used to identify such forward-looking information. Forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of operations, future economic conditions and anticipated courses of action. Although the forward-looking statements contained in this press release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Teranga cannot be certain that actual results will be consistent with such forward-looking statements. Such forward-looking statements are based upon assumptions, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments that management believe to be reasonable and relevant but that may prove to be incorrect. These assumptions include, among other things, the ability to obtain any requisite governmental approvals, the accuracy of sampling, analytical and test data underlying the exploration results included herein, gold price, exchange rates, fuel and energy costs, future economic conditions, and anticipated future estimates of free cash flow. Teranga cautions you not to place undue reliance upon any such forward-looking statements.

The risks and uncertainties that may affect forward-looking statements include, among others: the inherent risks involved in exploration and development of mineral properties, including government approvals and permitting, changes in economic conditions, changes in the worldwide price of gold and other key inputs, changes in mine plans and other factors, such as project execution delays, many of which are beyond the control of Teranga, as well as other risks and uncertainties which are more fully described in Teranga's Annual Information Form dated March 29, 2018, and in other filings of Teranga with securities and regulatory authorities which are available at www.sedar.com. Teranga does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Nothing in this document should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities. All references to Teranga include its subsidiaries unless the context requires otherwise.

About Teranga

Teranga is a multi-jurisdictional West African gold company focused on production and development as well as the exploration of more than 6,400 km² of land located on prospective gold belts. Since its initial public offering in 2010, Teranga has produced more than 1.5 million ounces of gold from its operations in Senegal, which as of June 30, 2017 had a reserve base of 2.7 million ounces of gold. Focused on diversification and growth, the Company is building Wahgnion, its second gold mine, and is conducting extensive exploration programs in three countries: Burkina Faso, Senegal and Côte d’Ivoire. The Company had nearly 4.0 million ounces of gold reserves from its combined Sabodala Gold operations and Wahgnion Gold Project as of June 30, 2017. Teranga applies a rigorous capital allocation framework for its investment decisions to execute on its growth strategy relying on a combination of cash on the balance sheet, free cash flow from operations and debt.

Steadfast in its commitment to set the benchmark for responsible mining, Teranga operates in accordance with the highest international standards and aims to act as a catalyst for sustainable economic, environmental, and community development as it strives to create value for all of its stakeholders. Teranga is a member of the United Nations Global Compact and a leading member of the multi-stakeholder group responsible for the submission of the first Senegalese Extractive Industries Transparency Initiative revenue report. The Company's responsibility report is available at www.terangagold.com/responsibilityreport and is prepared in accordance with its commitments under the United Nations Global Compact and in alignment with the Global Reporting Initiative guidelines.

Contact Information

Richard Young			Trish Moran
President & CEO			Head of Investor Relations
T: +1 416 594 0000 \| E: ryoung@terangagold.com			T: +1 416 607 4507 \| E: tmoran@terangagold.com

APPENDIX 1

Drilling Results Tables 1 - 4

Table 1: C-Zone Prospect – Selected Drill Highlights

Hole #	Northing	Easting	Elevation	Azimuth	Dip	EOH (m)	Interval (m)	Core length (m)	Grade (g/t Au)
GHDD-367	1227326	451617	306	020	-55	116	88-91	3	1.34

GHDD-368	1227214	451828	306	020	-55	160	50-52	2	1.48
							108-109	1	3.12
							127-129	2	1.26
							132-137	5	7.19

GHDD-369	1227267	451892	306	020	-55	110	72-81	9	1.12

GHDD-370	1227193	451904	306	020	-60	160	119-120	1	21.59
							129-131	2	1.98

GHDD-371	1227288	451986	302	020	-55	110	44-48	4	1.11
							50-52	2	1.53
							55-60	5	1.47

GHDD-372	1227340	451721	310	020	-55	90	63-70	7	1.82
			Including				63-65	2	4.54

GHDD-373	1227216	451783	305	020	-55	161	112-114	2	1.80
							131-132	1	17.08
							137-145	8	4.21
			Including				137-139	2	11.54

GHDD-374	1227281	451750	306	020	-55	125	46-48	2	9.98
							95-105	10	2.52
			Including				98-101	3	4.11

GHDD-381	1227299	451687	306	020	-55	110	62-63	1	24.01

GHDD-386	1227438	452412	298	330	-55	89	52-53	1	24.55
							81-82	1	1.69

GHDD-387	1227415	452277	300	270	-55	83	37-38	1	3,81
							52-54	2	3.32
							70-71	1	6.90

GHDD-388	1227496	452278	299	270	-55	100	61-62	1	61.50 *
							61-62	1	30.00 **
							68-69	1	1.55

GHDD-389	1227256	452269	299	270	-55	95	70-72	2	3.06
							87-92	5	1.58
			Including				88-89	1	4.36

GHDD-390	1227291	451710	307	020	-55	126	96-105	9	3.47
			Including				99-101	2	11.95

GHDD-391	1227231	451812	305	020	-55	143	108-112	4	13.53 *
			Including				110-111	1	50.95 **
							108-112	4	8.30 *
			Including				110-111	1	30.00 **
							119-120	1	3.14
							124-127	3	5.93

GHDD-392	1227183	451836	304	020	-55	176	106-109	3	4.46
			Including				106-107	1	11.92
							150-160	10	1.77
			Including				153-156	3	3.41

GHDD-393	1227279	451725	307	0200	-55	134	74-79	5	3.47
			Including				74-76	2	7.58
							103-108	5	1.12
							123-125	2	1.26

GHDD-394	1227223	451879	303	020	-55	146	110-118	8	4.37
							112-115	3	8.49

Intervals calculated with a 0.4 g/t Au cut-off and 2 metres maximum internal dilution. True widths are unknown. UTM's are WGS84-30N. Intervals with grade x thickness (gram x metre) of 10 or higher are highlighted in bold. * Uncut grades, ** Cut grades – individual assays above 30.0 g/t gold are cut to 30.0 g/t gold.

Table 2: Ma North Prospect – Selected Drill Highlights

Hole #	Northing	Easting	Elevation	Azimuth	Dip	EOH (m)	Interval (m)	Core length (m)	Grade (g/t Au)
GHDD-375	1237880	452788	400	310	-50	121	12-13	1	2.21
							19-20	1	1.51
							32-34	2	1.39
							41-42	1	1.97
							49-51	2	1.12
							74-75	1	2.81

GHDD-376	1237973	452919	400	310	-50	110	37-38	1	2.32
							74-75	1	1.95
							81-82	1	2.87

GHDD-377	1237864	452157	410	010	-50	130	84-90	6	1.65
			Including				84-85	1	7.43
							93-97	4	3.85

GHDD-378	1237913	452206	400	010	-50	107	33-36	3	4.55
							40-42	2	1.50

GHDD-379	1237864	452197	410	010	-50	105	70-79	9	2.53
			Including				73-78	5	4.17
			Including				73-74	1	10.70

GHDD-380	1237965	452686	411	311	-50	110	22-23	1	4.42
							33-34	1	1.47
							42-43	1	2.63

GHDD-401	1237858	452237	410	010	-50	104	66-68	2	1.11
							77-81	4	1.36

GHDD-402	1237851	452276	410	010	-50	100	67-70	3	5.06
							82-84	2	1.72

GHDD-403	1237844	452316	410	010	-50	98	71-72	1	1.53

GHDD-404	1237912	452603	419	220	-50	92	40-41	1	1.73

GHDD-406	1237811	452266	410	010	-50	134	89-90	1	1.75
							92-95	3	1.35
							97-98	1	3.58
							109-112	3	19.69 *
			Including				110-111	1	50.37 *

							109-111	3	12.90 **
			Including				110-111	1	30.00 **

GHDD-407	1237801	452301	410	010	-50	143	97-99	2	1.08
							105-107	2	1.68

GHDD-408	1237786	452629	427	007	-45	152	18-19	1	1.55
							79-80	1	5.23
							133-136	1	2.14
							144-145	1	1.51

GHDD-409	1237854	452819	419	306	-50	188	43-45	2	1.69
							58-60	2	2.57
							82-83	1	6.12
							132-134	2	2.19
							140-141	1	1.54
							179-180	1	2.00

GHDD-410	1237907	452874	419	306	-50	99	12-15	3	2.18
							32-36	4	3.48
							71-80	9	3.11
			Including				73-76	3	4.78

GHDD-411	1237939	452716	411	306	-50	128	28-30	2	1.53

Intervals calculated with a 0.4 g/t Au cut-off and 2 metres maximum internal dilution. True widths are unknown. UTM's are WGS84-30N. Intervals with grade x thickness (gram x metre) of 10 or higher are highlighted in bold. * Uncut grades, ** Cut grades – individual assays above 30.0 g/t gold are cut to 30.0 g/t gold.

Table 3: Peksou Prospect – Selected Drill Highlights

Hole #	Northing *	Easting *	Elevation	Azimuth	Dip	EOH (m)	Interval (m)*	Core length (m)*	Grade (g/t Au)
GHDD-354	1227543	452372	298	025	-50	158	83-89	6	1.35
			Including				83-85	2	3.09

GHDD-355	1227556	452334	298	025	-50	164	20-22	2	2.31

GHDD-356	1227610	452317	299	025	-50	74	49-50	2	5.28
							67-68	1	2.62

GHDD-357	1227590	452283	299	025	-50	120	99-101	2	9.25

GHDD-358	1227586	452458	299	025	-50	80	49-55	6	1.05
			Including				49-50	1	3.48

GHDD-359	1227585	452260	299	025	-50	161	69-70	1	1.69
							124-126	2	1.68
							135-136	1	2.16
							138-139	1	2.53

GHDD-360	1227617	4522230	299	025	-50	175	45-47	2	5.22
							95-98	3	3.90
							107-108	1	14.14
							115-121	6	3.67
			Including				115-116	1	17.30

GHDD-361	1227665	452209	300	025	-50	112	64-82	18	2.59
			Including				70-79	9	4.08
			Including				73-74	1	18.49

GHDD-362	1227661	452115	300	025	-50	170	14-16	2	3.82
							23-25	2	13.16
							99-100	1	1.78
							121-122	1	2.62

GHDD-363	1227676	452084	301	025	-55	170	114-116	2	1.92

GHDD-365	1227798	452032	302	025	-50	125	42-43	1	8.58

* Intervals calculated with a 0.4 g/t Au cut-off and 2 metres maximum internal dilution. True widths are unknown. UTM's are WGS84-30N
Intervals with grade x thickness (gram x metre) of 10 or higher are highlighted in bold.

Table 4: Jackhammer Hill Prospect – Selected Drill Highlights

Hole #	Northing	Easting	Elevation	Azimuth	Dip	EOH (m)	Interval (m)	Core length (m)	Grade (g/t Au)
GHDD-395	1229223	453293	300	315	-55	143	2-3	1	8.70

GHDD-396	1230330	453090	331	311	-55	140	120-124	4	1.24

GHDD-397	1230216	453085	352	311	-55	197	46-48	2	1.61
							181-182	1	1.75

GHDD-398	1229894	452789	328	311	-55	130	1-2	1	1.28
							15-16	1	1.24

GHDD-399	1229792	452838	330	311	-55	120	102-105	3	1.10
							115-116	1	2.65

GHDD-400	1229727	452845	332	315	-55	170	132-133	1	1.37
							138-139	1	2.01
							149-151	2	1.37

Intervals calculated with a 0.4 g/t Au cut-off and 2 metres maximum internal dilution. True widths are unknown. UTM's are WGS84-30N. Intervals with grade x thickness (gram x metre) of 10 or higher are highlighted in bold.