TRX Gold Corporation has announced the arrival on-site of a new 1,000-tonne-per-day (tpd) ball mill at the Buckreef Gold Project in north-central Tanzania. The enhanced plant will process both oxide and sulfur dioxide ore from the Buckreef Gold mine. Buckreef Gold’s gold production will likely exceed its 2023 annual projection of 20,000–25,000 ounces as a result of this major increase in milling capacity.
Oxide mineral resources make up around 10% of Buckreef’s overall mineral resources. The project consists of an inferred mineral resource of 17.8 million metric tons at 1.11 g/t gold for 635,540 oz of gold and a measured and indicated mineral resource of 35.88 million metric tons at 1.77 g/t gold containing 2.04 million ounces of gold.
The expansion is completely funded, with an anticipated cost of USD 6.0 million. The funding is derived from existing cash reserves, operational cash flow, ore stockpiles, gold forward sales, and bank loans. The third expansion is noteworthy for its predominance of locally sourced labour, supplies, and machinery. TRX Gold CEO Stephen Mullowney expressed gratitude for the new ball mill’s prompt arrival. Our primary objective is to take advantage of the spike in gold production by commencing the 2,000 tpd operation as quickly as possible. As this expansion moves closer to its commercial operating phase, the market should expect updated production guidance.