Buckreef Gold Mine To Be Expanded

Tanzanian Gold Corporation (TSX: TNX) (NYSE American: TRX) recently announced that it has closed a financing agreement for up to USD14 million with RiverFort Global Capital.

The financing will be utilized for a significant expansion of the Buckreef Project oxide mining and processing operation, general corporate purposes, the advancement of a feasibility study for the larger sulfide mining complex, and the continuation of multiple drilling programs.

James E. Sinclair, Executive Chairman of Tanzanian Gold Corporation, commented: “We have dramatically grown our resource base at very low cost, increased the scale and scope of what we now feel will be the next world-class mine in Tanzania and have begun to unlock the tremendous blue-sky potential that exists with our continuing exploration and development programs. Critically, we have now become a gold producer. The financing will ensure the rapid expansion of oxide gold production, and by the end of the term of this agreement, we should reach our goal of becoming cash-flow positive.”

Buckreef Gold Project

The Buckreef gold project is located in north-central Tanzania immediately to the south of Lake Victoria and 110km southwest of Mwanza. 

The project area comprises the dormant Buckreef Gold Mine and four prospects with known mineralization: Buckreef, Buziba, Tembo and Bingwa. The project was acquired from the Tanzanian State Mining Company (Stamico) in December 2010.

Under a Heads of Agreement concluded with the state-owned company, Tanzanian Gold Corporation has the right to earn a 55% interest in Buckreef with Stamico holding the remainder.