Targeting an expected commercial production delivery date in the second half of fiscal 2024, TRX Gold’s management team is on track and on budget towards delivering its third mill expansion within a 24-month period.
The new 1,000 tpd ball mill arriving at Buckreef Gold. (Credit:
TRX Gold Corporation (TSX: TNX) (NYSE American: TRX) (the “Company” or “TRX Gold”) is pleased to announce that the new 1,000 tonne per day (“tpd”) capacity ball mill has arrived on site at the Buckreef Gold Project (“Buckreef Gold”). Over the last few months, technical teams on site have commenced preparatory works in anticipation of receiving key equipment for this mill expansion. Targeting an expected commercial production delivery date in the second half of fiscal 2024, TRX Gold’s management team is on track and on budget towards delivering its third mill expansion within a 24-month period.
Mill expansion highlights:
Significant increase in gold production: The mill expansion is expected to increase processing capacity from 1,000 tpd to 2,000 tpd, and on an average annual basis, increase ore throughput from 75% to 100%. The near doubling of milling capacity is expected to enable Buckreef Gold to increase gold production beyond the Company’s fiscal 2023 annual guidance of 20,000-25,000 ounces of gold.
Expansion is fully funded: The capital expenditures required for the expanded 2,000+ tpd processing plant are estimated to be approximately US$6.0 million. The mill expansion is expected to be funded from a combination of existing cash resources, cash flow from operations, ore stockpiles, gold forward sales and bank financing. Buckreef Gold is currently in advanced discussions with Tanzanian banks for both operating and term loan facilities. The management team continues to demonstrate superior capital management capabilities, internally funding growth activities in a high cost of capital market.
A proven milling process: The newly expanded mill is expected to process both oxide and sulphide ore from the Buckreef Gold deposit. As previously outlined in the June 15, 2023 press release, following a bulk sample test of 6,500 tonnes of sulphide ore, and the continued processing of sulphide ore from current operations, the deposit’s overall metallurgy allows the milling operation to benefit from a simple, straightforward flowsheet consisting of crushing, grinding, and carbon in leach. This allows for operational flexibility and advantageous mine planning. As part of the mill expansion, the crushing circuit will also be upgraded to process sulphide ore more efficiently.
Locally built: The manpower, material and equipment involved in this third expansion is predominantly locally sourced, benefitting regional communities and economies while reinforcing a local supply chain and avoiding delays and cost overruns.
Stephen Mullowney, TRX Gold Chief Executive Officer states, “We are very pleased with the on-time arrival of the new ball mill at Buckreef Gold. Other long-lead items have also been ordered and we will be focused on getting the 2,000 tpd operation online as soon as possible so that we can reap the benefits of increased gold production. The market can expect updated production guidance as this expansion approaches commercial operation.”
Source: Company Press Release