TRX Gold Corporation (TSX:TNX) (NYSE:TRX) has announced the on-site arrival of a new ball mill with a capacity of 1,000 tonnes per day (tpd) at the Buckreef Gold Project, situated in north-central Tanzania.
The expanded facility is designed to process both oxide and sulphide ore sourced from the Buckreef Gold deposit.
The anticipated mill expansion is set to double the processing capacity from 1,000 tpd to 2,000 tpd, potentially elevating the ore throughput from 75% to 100% on an annual basis.
This significant boost in milling capacity is projected to propel Buckreef Gold’s gold production past its 2023 annual guidance, which stands at 20,000-25,000 ounces.
With an estimated cost of USD 6.0 million, the expansion is fully financed. The funding amalgamates resources from existing cash reserves, operational cash flow, ore stockpiles, forward sales of gold, and bank loans.
A noteworthy aspect of this third expansion is the predominant local sourcing of manpower, materials, and equipment.
Stephen Mullowney, the CEO of TRX Gold, conveyed his contentment regarding the punctual arrival of the new ball mill. He stated, “Our primary focus is to expedite the initiation of the 2,000 tpd operation to leverage the surge in gold production. As we approach the commercial operation phase of this expansion, the market can anticipate an updated production guidance.”
Nestled in north-central Tanzania, just south of Lake Victoria and 110km southwest of Mwanza, the Buckreef Gold Project encompasses four gold deposits: Buckreef, Eastern Porphyry, Tembo, and Bwinga, all within a 4km radius of one another.
The project, fully licensed for gold mining and extraction, is managed by Buckreef Gold Company, a joint venture between TRX Gold Corporation which holds 55% of the capital, and the Tanzania State Mining Corporation (STAMICO) which holds 45%.