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TRX Gold Ord Shs T.TRX

Alternate Symbol(s):  TRX

TRX Gold Corporation is a Canada-based company, which is advancing the Buckreef Gold Project. The Company is engaged in the exploration, development and production of mineral property interests in the United Republic of Tanzania. The Buckreef Project's prospects include Buckreef, Bingwa, Tembo, Anfield, Eastern Porphyry and Buziba. The Buckreef Project encompasses three main mineralized zones: Buckreef South, Buckreef Main and Buckreef North. The Company produces gold at its 1,000 tons per day processing plant. Its gold development operations include the Sulphide Development Project, in which the sulphide ore encompasses over 90% of the Buckreef Main Zone's two-million-ounce gold measured and indicated mineral resources. The Buckreef Project hosts an NI 43-101 measured and indicated mineral resource of over 35.88 million tons (MT) at 1.77 grams per ton (g/t) gold containing 2,036,280 ounces of gold and an inferred mineral resource of 17.8 MT at 1.11 g/t gold for 635,540 ounces of gold.


TSX:TRX - Post by User

Bullboard Posts
Post by otcmoonboundon Jun 26, 2013 4:43pm
197 Views
Post# 21574649

let me get this straight

let me get this straight
TRE is going to start building a mine for a deposit that doesn't even have a PEA, let alone a FS. The 43-101 on the property (2011) showed 408k oz M&I at less than a gram/ton and 178k oz inferred at only 0.62 grams/ton. And they're going to do this with maybe $12 million in the treasury. lol
https://www.tanzanianroyalty.com/wp-content/uploads/2011/08/KigosiNI-43-101ReportNov-5-2011-2.pdf

Well, I guess it's better to build a project for which you have no understanding of the economics (Kigosi) than to build one (Buckreef) where you know for sure that the economics don't work. The much ballyhooed Buckreef PEA showed an aftertax NPV10 of just $33 million at $1,300 gold. That's not a typo...$33 million. No one would finance a project with upfront capex of >$300 million with such a ridiculously low NPV. And TRE only owns half the property!
https://www.tanzanianroyalty.com/wp-content/uploads/2012/12/BuckreefPEA_2012August23.pdf

I love this gem from the news release:

"The Company is adequately financed to begin construction on the properties and there will be no equity or debt offering, and no forward sale of gold, in order to launch these projects."

Anyone with a modicum of sense and understanding of how mines are financed and built would RUN from this company. But obviously, this pr was not targeted to those people.
Bullboard Posts