TARUGA MINERALS LIMITED — M&A Activity 2012

Mar 18, 2012

**TARUGA

GOLD
LIMITED**

**ASX

ANNOUNCEMENT**

**19 March

2012**

**Taruga

Commences
Exploration
Drilling**

**Fast

Facts**

**ASX

code:
TAR**

Shares
on
issue: 85,616,000 (33,116,000
trading)

Projects

**Kossa

Project,
Niger**

• -­‐ 970km²
  granted
  licences
  in developing
  gold
  district

• -­‐ Encouraging
  grades
  and width
  with
  1km
  strike
  to date

• -­‐ Broad,
  high-­‐tenor anomalies
  untested
  by drilling

**Ducie

Project,
Ghana**

• -­‐ 1,100km²
  granted
  licences in
  exciting
  gold
  province

• -­‐ High-­‐tenor
  geochemical anomalies

**Mangkono

&
Tortiya
projects, Cote
d’Ivoire**

• -­‐ Licence
  applications
  for 2,000km²
  of
  Birimian greenstone
  geology

• -­‐ Limited
  modern
  exploration completed

Directors

Bernard
Aylward Executive
Chairman
and Managing
Director

Peter
Newcomb Finance
Director
and
Company Secretary

Ed
Edwards Non-­‐Executive
Director

Taruga
Gold
Limited
(“Taruga”
or
“Company”)
(ASX:TAR)
is
pleased
to announce
the
commencement
of
the
maiden
exploration
drilling campaigns
at
the
Company’s
Kossa
Project,
Niger
and
the
Ducie Project,
Ghana.

The
Company
has
prepared
an
extensive
work
program
that
is
focused on
defining
and
extending
the
known
gold
mineralised
zones
at
Kossa. This
program
will
include
a
combination
of
reverse
circulation
(RC) drilling,
aircore
drilling
and
delineating
new
prospect
areas
with extensive
auger
geochemical
sampling.

In
addition
Taruga
is
undertaking
auger
geochemical
sampling
at
Ducie targeting
identified
mineralised
structures
and
completing
a
focused aircore
drilling
program
to
target
highly
anomalous
geochemical samples
from
historic
work.

Taruga’s
initial
exploration
drilling
program
consists
of:

• 5,000m
  reverse
  circulation drilling
  at
  Kossa

• 40,000m
  auger
  geochemical drilling
  at
  Kossa
  and
  Ducie

• 27,000m
  aircore drilling
  at
  Kossa
  and
  Ducie

“This
is
a
very
exciting
time
for
Taruga
as
we
embark
on
our
maiden drilling
programs,”
Taruga
Gold’s
Executive
Chairman
Bernard
Aylward said.

“We
have
planned
a
very
busy
work
schedule
for
this
field
season.
We are
keen
to
test
our
high-­‐priority
drill
ready
targets
and
continue
to extend
the
gold
mineralisation
highlighted
by
previous
exploration drilling
and
extensive
artisanal
workings”.

“Our
extensive,
under-­‐explored
Kossa
Project
in
Niger
is
initially
the major
focus
as
we
begin
our
targeted
RC
drilling.

We
will
also
be completing
early
stage
exploration
to
develop
a
pipeline
of
prospects for
drill
testing.”

“
We
will
be
continuing
to
build
our
knowledge
of
the
project
and
the gold
mineralisation
and
will
be
maintaining
regular
news
flow
to
the market.”

**Kossa

Project
Update**

At
the
Kossa
Project,
the
initial
5,000m
RC
drilling
program
has commenced
and
is
targeting
the
10km
zone
of
gold
mineralisation extending
from
the
Kossa
workings
through
the
Kole
workings
to
the Borobon
workings
(previously
referred
to
as
“Kossa
Prospect”).

This

63 Lindsay Street, Perth Western Australia 6000 P +61 (8) 9428 2980 F +61 (8) 9428 2910 E taruga@tarugagold.com.au

t ld

**TARUGA

GOLD
LIMITED ASX
ANNOUNCEMENT**

first
phase
of
RC
drilling
will
be
focused
on
follow-­‐up
and
extension
of
historic
drilling
returning significant
gold
mineralised
intersections
as
well
as
completing
initial
drill
testing
of
areas
of extensive
artisanal
workings
with
no
previous
drilling.
It
is
anticipated
that
additional
RC
drilling
will be
undertaken
following
this
initial
program
with
the
Company
preparing
for
further
extensive programs
during
the
field
season.

A
systematic
program
of
aircore
drilling
has
been
planned
to
target
the
10km
link
between
the Kossa-­‐Borobon
trend
and
the
Fatatako
prospect.

This
link
is
a
highly
prospective
target
zone
that has
been
masked
by
extensive
sand,
however
areas
of
artisanal
workings
highlight
the
potential
to locate
extensions
to
the
known
mineralised
structures.

No
previous
drilling
has
tested
this
large area
and
the
results
of
this
aircore
drilling
will
be
used
to
target
additional
infill
drilling
and
future
RC drilling
of
mineralised
zones.

The
aircore
drilling
is
expected
to
commence
in
April
with
a
25,000m program
planned.

Auger
geochemical
sampling
has
commenced
at
the
Black
Hills
prospect
area
where
previous
surface geochemical
sampling
has
indicated
a
gold
anomalous
zone
and
this
program
is
aimed
at
defining the
anomalous
zone
and
targeting
extensions
to
the
north
and
south.

The
auger
geochemical sampling
is
also
planned
to
undertake
first
pass
testing
of
larger
areas
of
the
Kossa
Project
where sand
cover
has
prevented
previous
explorers
being
able
to
complete
first
pass
exploration.

This extensive
geochemical
sampling
will
initially
focus
on
extensions
to
the
known
mineralised structures
as
well
as
testing
for
parallel
mineralised
trends
and
new
zones.
The
auger
geochemical sampling
is
expected
to
continue
for
the
field
season
with
1
drill
rig
initially
and
a
second
drill
rig
on site
when
available.

Since
listing,
on
7 February,
Taruga
has
established
an
office
base
in
Niamey,
the
capital
city
of
Niger, as
well
as
establishing
a
field
camp
and
crew
on
site
at
Kossa.

A
team
of
local
geologists
and contractors
has
been
employed
and
field
activities
have
commenced
immediately
with
site geological
review,
investigation
of
artisanal
workings
and
previous
drilling
and
preparation
of
drill sites
for
the
new
RC
drilling
program.

**Ducie

Project
Update**

Exploration
activities
have
commenced
at
the
Ducie
Project
with
a
10,000m
auger
geochemical sampling
program
targeting
the
major
geological
structures
identified
in
the
prospect
area
as
well
as testing
extensions
to
the
previously
defined
gold
anomalous
zones.
The
auger
program
is
expected to
take
approximately
two
months
to
complete.

In
addition
a
small
aircore
drilling
program
is planned
to
test
the
geological
setting
beneath
geochemical
anomalous
zones
with
results
up
to 954ppb
Au
and
150ppb
Au.

The
aircore
drill
rig
is
expected
to
arrive
on
site
in
the
last
week
of March
and
will
complete
this
program
before
mobilising
to
Kossa.

For
further
information
see
the
Company’s
website
www.tarugagold.com.au
or
contact: Bernard
Aylward Executive
Chairman Taruga
Gold
Limited Bernard.aylward@tarugagold.com.au Mob:
+61
418
943
345 63 Lindsay Street, Perth Western Australia 6000 P +61 (8) 9428 2980 F +61 (8) 9428 2910 E taruga@tarugagold.com.au tarugagold com au

**TARUGA

GOLD
LIMITED ASX
ANNOUNCEMENT**

Nathan
Ryan Investor
Relations NWR
Communications Nathan.ryan@nwrcommunications.com.au Mob:
+61
420
582
887

Competent person’s statement

The information in this report that relates to geological information and exploration results is based on information compiled by Mr Bernard Aylward. Mr Aylward is the Executive Chairman and Managing Director of Taruga Gold Limited and is a full-time employee of the company. Mr Aylward is a member of The Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Aylward consents to the inclusion in the report of the matters based on information in the form and context in which it appears.

_**About

Taruga
Gold**_

Taruga
Gold
Limited
listed
on
the
ASX
on
7
February
2012
with
a
portfolio
of
exciting exploration
projects
in
West
Africa
containing
more
than
3,960km[2] of
Birimian
greenstone geology
located
in
Niger,
Ghana
and
Cote
d’Ivoire.
The
West
African
region
is
one
of
the
world’s best
gold
districts
and
has
had
significant
rates
of
discovery
and
development
of
new
gold mines
over
recent
decades.

Taruga’s
projects
have
been
carefully
selected
by
the
Company
and
include
the
Kossa
Project
in Niger,
the
Ducie
Project
in
northwest
Ghana
and
the
Mangkono
and
Tortiya
projects
in
Cote d’Ivoire.

The
Kossa
Project
consists
of
two
granted
exploration
licences
covering
970km[2
] located
in northwest
Niger,
230km
northwest
of
the
capital
city
Niamey.
The
eastern
boundary
of
the Kossa
Project
is
defined
by
the
border
with
Burkina
Faso
and
lies
approximately
15km
east
of the
Essakane
Gold
Mine,
located
in
Burkina
Faso.

The
Essakane
Gold
Mine
is
operated
by IAMGold
of
Canada
and
produces
approximately
350,000oz
gold
per
annum.

The
Ducie
Project
is
located
in
northern
Ghana.
The
Company
has
the
rights
to
explore
and
an option
to
purchase
100%
of
the
Ducie
project
that
consists
of
1,126km[2] of
reconnaissance
and prospecting
licences
covering
the
gold
mineralized
Bole-­‐Bolgatanga
greenstone
belt.

63 Lindsay Street, Perth Western Australia 6000 P +61 (8) 9428 2980 F +61 (8) 9428 2910 E taruga@tarugagold.com.au tarugagold com au

**TARUGA

GOLD
LIMITED ASX
ANNOUNCEMENT**

==> picture [503 x 370] intentionally omitted <==

Figure 1: Taruga Gold Limited – Location of West African gold exploration projects

63 Lindsay Street, Perth Western Australia 6000 P +61 (8) 9428 2980 F +61 (8) 9428 2910 E taruga@tarugagold.com.au tarugagold com au

**TARUGA

GOLD
LIMITED ASX
ANNOUNCEMENT**

==> picture [485 x 532] intentionally omitted <==

Figure 2: Kossa Project – Surface geochemistry highlighting anomalous zones and areas of extensive sand cove r

63 Lindsay Street, Perth Western Australia 6000 P +61 (8) 9428 2980 F +61 (8) 9428 2910 E taruga@tarugagold.com.au tarugagold com au

**TARUGA

GOLD
LIMITED ASX
ANNOUNCEMENT**

==> picture [448 x 289] intentionally omitted <==

Figure 3: Ducie Project – Geological setting and historic geochemical sampling.

63 Lindsay Street, Perth Western Australia 6000 P +61 (8) 9428 2980 F +61 (8) 9428 2910 E taruga@tarugagold.com.au tarugagold com au