Gold Mining

Tanzania is the 3rd largest gold producer in Africa after Ghana and South Africa, and accounts for 1.3% of the total global gold production in 2021. Tanzania’s gold reserves are estimated at about 45 million ounces and Tanzania’s annual gold production stands at around 50t per year.

Gold exploration is mostly centered on the greenstone belts around Lake Victoria, where several large deposits have been discovered and are being developed. TRX Gold’s Buckreef Project is located in the Geita District of the Geita Region, south of Lake Victoria, approximately 110 km southwest of the city of Mwanza, Tanzania. Buckreef is situated about 45 km to the west of Barrick Gold’s Bulyanhulu gold mine and nearly 35 km south from AngloGold Ashanti’s flagship Geita mine in north-central Tanzania.


Buckreef gold mining project location

Because of the surrounding region’s long history in gold mining, all of the necessary infrastructure that is crucial to a mining operation is found at site. The Buckreef Project area can be accessed by ferry across Smiths Sound, via a tarred national road and, thereafter, via well maintained unpaved regional roads. Furthermore, the Buckreef Gold Project runs almost entirely on hydro-electricity, being connected to the local electric grid, making it a sustainability-focused project.

Buckreef Gold Overview

The Buckreef Project comprises five prospects, namely Buckreef, Bingwa, Tembo, Eastern Porphyry and Buziba. The Buckreef Project itself encompasses three main mineralized zones: Buckreef South, Buckreef Main and Buckreef North. The Buckreef Project is fully licensed for mining and the extraction of gold.

TRX is currently producing gold at its 1,000 tonnes per day processing plant, which attained its nameplate capacity at the end of October 2022. This was the second mill expansion within the last 12 months, at Buckreef Gold. TRX Gold will continue to evaluate further increasing gold production at site, with the possibility of doing so into the second half of 2023. Gold production increased throughout fiscal 2022, attaining a record of 8,874 ounces for the year. Buckreef Gold is expected to produce between 20,000-25,000 ounces of gold in fiscal 2023. Thanks to the project’s rather simple metallurgy and low-cost nature, Buckreef Gold attained gross profit margin of 62% for 2022 and cash costs1 of $665 per ounce of gold.

The Company plans to use cash flow from current production to expand its exploration program which began in 2021, as well as to advance the metallurgical study of its Sulphide Development Project. Approximately 90% of Buckreef’s gold resource is held in sulphide material. Through the drill-bit, with three drills currently on site, the Company plans to expand the scale and scope of the Buckreef Gold project beyond the initial NI43-101 Measured and Indicated Mineral Resource of 35.88 MT at 1.77 g/t gold containing 2,036,280 oz of gold and an Inferred Mineral Resource of 17.8 MT at 1.11g/t gold for 635,540 oz of gold (0.4g/t cut-off). (see Press Release June 24th, 2020) NI43-101 Independent Technical Report , Updated Mineral Resource Estimate for the Buckreef Gold Mine Project, Tanzania, East Africa.

1The company has included certain non-IFRS measures in this presentation. Refer to pages 32 and 33 of the Company’s August 31, 2022 MD&A for an explanation, discussion and reconciliation of non-IFRS measures.