True Gold Announces Agreement to Purchase Mining Fleet for Karma Project

As pre-production become closer, True Gold Mining reveals plans of obtaining Komatsu equipment for its West African gold mine

Vancouver-based company, True Gold Mining Inc., has signed a letter of intent to purchase its primary mining fleet for the development of its Karma Project in Burkina Faso, West Africa. The company selected Equipment & Services BIA, a licensed dealer of Komatsu heavy equipment, as its supplier of choice for the mining fleet.

"The purchase of the mining fleet brings the Karma Project one step closer to production, and we believe that our choice of equipment, supplier and dealer is well matched to our project needs," stated Peter Carter, Chief Operating Officer and Vice President, Engineering of True Gold.

The fleet for pre-production and initial production will incorporate one 15 m3 excavator, one 10 m3 front-end loader, six 90t rigid-frame haul trucks, four 50t bulldozers and two 300 HP graders. Delivery of the fleet is scheduled for December 2014.

Once production of the Karma mine has commenced, the fleet will be amplified with a second primary excavator and eight additional trucks. Additional auxiliary equipment will be purchased to support the primary mining fleet, assisting in project construction, and aid in the operation of the mine. The Komatsu equipment is expected to achieve an average mining rate of roughly 14 million tons per year.

"Our owner-operated approach results in greater value to our shareholders as compared to contract mining and also provides us with increased flexibility to take full advantage of future exploration success."

Equipment & Services BIA was chosen based on price competitiveness, purchase terms and conditions, and its dealer presence in Burkina Faso. The locally-based dealer will support and provide spare parts, technical expertise, and training.

The Karma Project is a low-cost, open-pit heap leach gold mine in West Africa. The mine is expected to produce 97,000 oz of gold per year. 

Read the full press release here.