Gold Mining in Tanzania

Tanzania is the 4th largest gold producer in Africa after South Africa, Ghana, and Mali 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

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 Project 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 360 tonnes per day processing plant and plans to increase capacity to 1,000 tonnes per day by the end of 2022, increasing the yield capacity from about 9,000 oz. of gold to up to 20,000 oz. per year. Thanks to the project’s rather simple metallurgy and low-cost nature, current gold production has been able to achieve a 90% gold-recovery rate and 57% gross profit margin.

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 (June 2022), 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.