Tanzanian Gold (TNX) is enhancing and expanding its relationship with Tanzania to advance the Buckreef Gold Project.
The company is working closely with The State Mining Company (STAMICO), to submit an updated mine plan for the Buckreef Project to the Mining Commission in Tanzania.
Due to evolving circumstances, an updated plan is seen as necessary. STAMICO is solely owned by the United Republic of Tanzania who owns 45 per cent stake interest in the Buckreef Gold Company.
Some changes include looking into the mining license area to provide artisanal mining, also known as small-scale mining (ASM) with certain adjustments, and the separation of compounds, from the mine processing plants for metallurgical considerations.
Gold has seen an increase over the past decade and there has been a surge in people lining up to these deposits. ASM is a fast growing-trade which allows freelance work to be done at big, formal sites. Often, ASM workers use smaller tools fit for one person to carry and carry what they excavate on their back.
Once approved by the Mining Commission, this plan will replace the old one which was approved in 2017.
TanGold is also reviewing the Buckreef joint venture agreement with STAMICO to bring the agreement up to-date with recent changes to the Tanzanian mining laws.
This agreement was made back in 2011 and will allow both parties a fresh, modernized working arrangement. Stephen Mullowney, CEO of Tanzanian Gold, is looking forward to the new changes.
“I would like to commend the TanGold, Buckreef and STAMICO teams on modernizing our relationship. I very much look forward to working with STAMICO to move the Project forward to reach its full potential,” he said.
Meetings with TanGold and the Government on how to best address these changes are currently unfolding.
James Sinclair, Executive Chairman of TanGold who has been involved in Tanzania for over 30 years weighs in.
“We have always adhered to and support local laws related to procurement, employment, the environment and non-corruption. This is why we agreed to a significant shareholding for our government-owned partner when we entered into the Buckreef joint venture,” he said.
“We will always strive to support and assist Tanzania to meet its objectives, particularly with regard to the development of the local mining industry, local communities, and national development, including the important artisanal mining industry,” he added.
Tanzanian Gold (TNX) is down 7.23 per cent with shares trading at C$0.77 per share at 1:40 pm EST.