Tanzanian Royalty Exploration Corporation announced that it has filed on SEDAR, a feasibility study for the Buckreef Project which positively establishes that 1.064 Million ounces of gold reserves are available to be mined over a 15-year initial life of mine through conventional open pit mining methods.
"Today is a great day in the history of the Company as this Study assigns a net positive value of USD$243 million at the Buckreef Project, using a 5% discount rate and a gold price of US$1,250 per ounce. We are completely delighted with results of this independent feasibility study.
We have steadfastly pursued our goals at Buckreef and this study clearly indicates the value of the Buckreef Project which we expected was present. We anticipate even more mineral reserves to become known after implementing the planned close spaced grade control drilling program" said Executive Chairman, James E. Sinclair.
The completion of the MFS was led by an independent consulting team from MaSS Resources Ltd of Tanzania and is dated effective as of April 27, 2017. The MFS was prepared in accordance with National Instrument 43-101. Additional technical support was provided by the Company's internal technical team incorporating and updating the previously published Preliminary Economic Assessment study results by Venymn of South Africa.
Other historical conducted over the years on this historic deposit were also included for continuity. The Buckreef Project is in the Geita District in Lake Victoria Greenstone Belt in central Tanzania, East Africa.
"Our initial capital costs are estimated at a modest $32 million dollars (USD). That amount includes the first year's pre-stripping program. The mining and processing components are simple, straight forward operations utilizing common earthmoving methods and equipment. Our plant design makes use of standard Gravity / CIL plant technology used worldwide." said Acting Chief Executive Officer Jeffrey Duval. "Shareholders will be extremely pleased with the results of our MFS. We encourage shareholders to take time to review the Study in its entirety, particularly to gain a thorough understanding of the project design, and to note the discussion on the potential for future underground development of Buckreef. The MFS validates everything we have known about our Buckreef Project, and is now officially defined in this Study," Mr. Duval concluded.
The highlights of the MFS include:
- 1.064 million ounces of open pittable gold reserves to be mined over the life of the project.
- Conventional open pit mining methods selected in pit designs.
- Over an initial 15-yr Life of Mine, a total of 17.49Mt of ore with a strip ratio of 8.12:1 (waste to ore) will be mined.
- Overall recoveries from the flotation and cyanide leach circuits are expected to be 89% and 93% for primary ore and saprolite ore, respectively.
- Over the life of the mine an average of 53,534 oz Au per annum will be produced as doré.
- Pre-existing stockpile (ROMPAD) ore totaling 119,726t grading 1.86g/t to be used for process plant commissioning.
- Discussion of future underground development potential.
- Life of Mine capital cost outlay estimated at $ 59.6 million (USD) and sustaining capital, excluding closure costs.
- Cash operating costs of $ 696/oz (USD).
- Generation of a positive NPV of $243 million (USD) at a 5% discount rate and an IRR of 53.7%
For further information, including the key assumptions, parameters and methods use to estimate the mineral reserves on the Buckreef Project, please see the MFS in its entirety under the Company's profile on SEDAR at www.sedar.com.
The MFS is an in-depth independent Study, which addresses the continued refinement of pit-optimized mining reserves, mine production schedule, process plant ore feed schedule and financial projections and analysis based on comprehensive cost estimations for process plant (design, fabrication, construction and operation) and mining (equipment purchase and mine production) among other things for the Buckreef Project.
"We are very pleased and excited that our expectations of our Buckreef Project have been validated and confirmed by the MFS. Our corporate team, together with our consultants worked tirelessly. The dedication of all of us throughout this process is the foundation of our impending success with the Buckreef Project." stated Mr. Duval.
Executive Chairman Sinclair concluded, "It is a credit to our shareholders who remained loyal during the most difficult of times, who will ultimately be rewarded by our success at the Buckreef Project. We are very happy for our outstanding MFS which shows 1.064 million ounces of gold reserves minable at our Buckreef Project. We are also incredibly grateful for the continued support of our valued shareholders throughout this process."
The Company's Qualified Person, Mr. Peter Zizhou, has reviewed and approved the contents of this news release. Mr. Zizhou is the COO of Tanzam2000, a subsidiary of Tanzanian Royalty Exploration Corporation Limited. He has a Master of Science (Exploration Geology) degree from the University of Zimbabwe (2000) and is a registered scientist with SACNASP (Reg. No.400028/08).