Buckreef Gold Completes First Phase of Mill Expansion TORONTO, Feb. 17, 2022 (GLOBE NEWSWIRE) -- Tanzanian Gold Corporation (TSX:TNX) (NYSE American:TRX) (TanGold or the Company) is pleased to announce that the first phase of the oxide mill expansion of 360 tonnes per day (tpd) at the Buckreef Gold Project (Buckreef Gold) is now fully commissioned, and production has successfully ramped up to design capacity.
January 2022 Highlights
- Poured 764 ounces of gold, a new monthly production record at Buckreef
- Completed final commissioning and ‘ramp up’ of 360 tpd processing plant, which is now operating at design capacity
- Processed total mill feed of 9,725 tonnes at an average grade of 3.21 g/t
- Achieved an average monthly processing plant utilization of 97%, with higher (daily) peak processing rates reaching 15 – 16.4 tonnes per hour (tph)
- Achieved record gold recovery of 91.0%
- Project is on track to step up ore production rates to 1,000+ tpd in Q2/Q3 2022
- Buckreef Gold was operating cash flow positive for the second consecutive month
“The monthly production record of 764 ounces is a great start and a significant milestone for Buckreef Gold. It is a testament to all the hard work by the team on the ground in Tanzania. The proceeds from sale of this expanded production is being used to fund value enhancing activities, including exploration in the Buckreef Main Zone, Buckreef West, and the newly discovered Anfield Zone, development of the 1,000+ tpd processing plant, and sulphide project development activities. Buckreef Gold has great momentum as we move forward in our exploration activities while at the same time increasing our production profile, there is an excitement at site!” noted Stephen Mullowney, Chief Executive Officer of TanGold.
Andrew Cheatle, Chief Operating Officer of TanGold commented, “The whole Buckreef Gold team has safely delivered this production milestone with great passion and purpose. There has also been a sharp focus on local content, for example, the steel CIL tanks were locally constructed using steel industry skills from Mwanza, on the shores of Lake Victoria. We now look forward to a similarly successful completion of the next phase: our production expansion to 1,000 tpd.”
The Company is also pleased to announce that it has entered into a refining agreement with Argor Heraeus, a leading international gold refiner based in Switzerland, and has successfully completed its first export of dor for refining in February 2022.
The Company has also entered into a Gold Purchase and Sale Agreement with Auramet International LLC (Auramet) through which Buckreef Gold will, at its discretion, sell up to 100% of the gold produced from Buckreef Gold to Auramet at market rates, for a period of one year, with an option to extend for successive periods. As part of its inaugural export of dor, the Company sold 200 ounces of Buckreef Gold production to Auramet at market rates in February 2022. Auramet is one of the largest physical precious metals merchants in the world with over $20 billion in annual revenues and provides a full range of services to all participants in the precious metals chain, from extraction and production to manufacturing and consumption.
Buckreef Gold Completes First Phase of Mill Expansion and Achieves Record Gold Production