TRX Gold Corporation, listed on both TSX: TNX and NYSE-A: TRX, has recently received a new ball mill that can process 1,000 tonnes per day at their Buckreef project in Tanzania. This exciting new addition is a significant step in the company’s ongoing efforts to expand its gold production capacity.
Here’s a breakdown of what’s happening:
- What’s the Update? The new ball mill is expected to double the processing capacity at Buckreef. This means they can handle up to 2,000 tonnes per day, up from their previous capacity of 1,000 tonnes.
- Why is this Important? With this new capacity, Buckreef gold aims to produce even more gold. In fact, they plan to surpass their 2023 goal, which was set at 20,000-25,000 ounces of gold.
- How are they Paying for This? The expansion has a price tag of around US$6 million. But TRX Gold has got it covered. They’ll use a mix of their own cash, money from their day-to-day business, savings from ore stockpiles, sales of gold they plan to mine in the future, and loans from banks.
- Speaking of Banks: TRX Gold is deep in talks with local Tanzanian banks. They’re discussing getting loans for both day-to-day expenses and longer-term needs.
- What Will the New Mill Process? This new and improved mill is designed to process two types of ore from the Buckreef gold deposit – oxide and sulphide.
Stephen Mullowney, the head honcho at TRX, shared his thoughts: “The new ball mill’s arrival at Buckreef Gold is right on schedule. We’ve also placed orders for other important items. Our main goal now is to get the 2,000 tpd system up and running ASAP. This way, we can start enjoying the perks of producing more gold. And for those watching the market, we’ll be sharing new production targets as we get closer to fully using the expanded mill.”
In a nutshell, TRX Gold is ramping things up in Tanzania. With more capacity to produce gold, the future looks bright for the Buckreef project.
Overview of the Buckreef Gold Mining Project in Tanzania
Tanzania is a powerhouse in the African gold industry. As the 3rd largest producer on the continent, it trails only Ghana and South Africa. In 2021, the nation was responsible for 1.3% of global gold production, boasting annual production figures of roughly 50 tonnes. Regarding reserves, Tanzania is estimated to hold a golden treasure of about 45 million ounces.
Key Exploration Zone:
The quest for gold in Tanzania majorly orbits the greenstone belts near Lake Victoria. This region has proven itself a gold haven, with significant deposits discovered and under development. It’s here that TRX Gold’s flagship Buckreef Project lies, specifically in the Geita District of the Geita Region. It’s conveniently positioned roughly 110 km southwest of Mwanza city. It shares its neighbourhood with prominent mines: Barrick Gold’s Bulyanhulu gold mine, which is 45 km to the east, and AngloGold Ashanti’s Geita mine, about 35 km to the north.
Location and Infrastructure:
The Buckreef Project is more than just rich in gold but also inaccessible infrastructure. It can be approached through a ferry across Smiths Sound, followed by a drive on a tarred national road and then onto the region’s well-kept unpaved roads. The project’s commitment to sustainable practices is evident in its energy sources; it’s almost entirely powered by hydroelectricity from the local grid.
Diving into Buckreef:
The sprawling Buckreef Project is a conglomerate of five prospects: Buckreef, Bingwa, Tembo, Eastern Porphyry, and Buziba. These span three mineral-rich zones: Buckreef South, Main, and North. It’s fully licensed for gold extraction.
Production Highlights:
As of late 2022, TRX Gold was extracting gold from its plant, which processes 1,000 tonnes daily. This capacity was realised after their second mill expansion within a year at Buckreef. With an eye on the future, TRX is mulling over boosting production further, potentially by the latter half of 2023. The 2022 fiscal year witnessed a record production of 8,874 ounces, and 2023 is projected to yield between 20,000-25,000 ounces. The efficiency of Buckreef’s operations is underscored by its impressive 62% gross profit margin for 2022 and cash costs standing at $665 per ounce of gold.
Exploration and Expansion Plans:
The lion’s share of Buckreef’s gold resource (around 90%) is held in sulphide material. With three drills at the site, the Company has ambitious plans. These include magnifying the scale of the Buckreef Gold project, which already boasts an impressive NI43-101 Measured and Indicated Mineral Resource of over 2 million ounces of gold and an Inferred Mineral Resource nearing 636,000 ounces (as per the Press Release on June 24th, 2020).
The Buckreef Gold Project isn’t just a mine; it’s a testament to Tanzania’s golden legacy and potential. With its strategic location, rich reserves, and robust infrastructure, Buckreef is poised to remain a golden feather in TRX Gold’s cap.
