CURRENT GOLD PRODUCTION
TRX Gold continues to deliver on its growth strategy, quarter after quarter
over the last 24 months.
Key highlights for Q3 2023 include:
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1,000 tonne per day (“tpd”) mill running efficiently: In Q3
2023, Buckreef Gold poured 4,764 ounces of gold and sold 4,810 ounces of
gold, resulting in positive operating cash flow for the Company of $3.2
million. Year to date, Buckreef Gold poured and sold 15,794 and 16,068
ounces of gold respectively; both nine-month production records for the
Company, resulting in positive operating cash flow of $14.6 million.
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Maintaining strong profit margins: In Q3 2023, Buckreef
Gold recognized revenue of $9.3 million and cost of sales of $5.4 million,
generating gross profit of $3.9 million, gross profit margin of 42% and
Adjusted EBITDA of $3.3 million. Year to date, Buckreef Gold recognized
revenue of $29.1 million and cost of sales of $15.0 million, generating
gross profit of $14.1 million, gross profit margin of 48% and Adjusted
EBITDA1 of $11.6 million.
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Sulphide bulk sample test proves future potential: During
the quarter, the Company pivoted its mining plan to include a test bulk
sample of sulphide ore which was subsequently processed through Buckreef
Gold’s existing processing plant. Over 6,500 tonnes of sulphide ore were
successfully processed, achieving an indicative gold recovery of 88.7%. This
was a significant achievement as approximately 90% of Buckreef Gold’s gold
mineral resource is held in sulphide material, thus unlocking the
significant economic potential of the project. The bulk sample test
indicates that the Company can likely process sulphide ore through its
existing processing plant, thus potentially minimizing capex for future
plant expansions.
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Reinvesting cash flow to grow operations: The Company used
cash flow from operations to invest in the further growth of Buckreef Gold,
including procurement of an additional 1,000 tpd ball mill to increase
annual throughput by 75-100% through the addition of this new mill, and
advanced construction of a significantly expanded tailings storage facility
to accommodate higher production volumes.
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Exploration results from high-priority gold zones: During
the quarter, the Company drilled 839 meters at Buckreef Gold and announced
near surface drill results at the Anfield and Eastern Porphyry Zones, with
highlights of 14 meters @ 3.5 g/t including 3.0 meters @ 10.9 g/t from a
downhole depth of 47 meters from the Eastern Porphyry zone, and 2.94 meters
grading 13.74 g/t, from a downhole depth of 43 meters in the Anfield Zone.
Year to date, the Company drilled 11,171 meters of exploration, infill and
sterilization drilling.
Outlook for the Remainder of Fiscal 2023
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Maintaining market guidance: The Company continues to
expect gold production from the 1,000+ tpd processing plant for fiscal 2023
to be between 20,000 - 25,000 ounces and expects total average cash cost2
to be at the upper end of the originally estimated range of between $750 -
$850 per ounce.
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Near-term production growth on target: The Company
continues to advance a project aimed at increasing the average annual
throughput by 75-100% with an expansion of the existing carbon-in-leach
plant. Construction will seamlessly integrate into the existing operating
plant, with the addition of a new 1,000 tpd ball mill and construction of an
extended foundation and bund wall to support the additional leach tanks, as
well as all ancillary work. The capital cost of the expanded plant is
expected to be approximately US$6 million and will be funded using operating
cash flow from Buckreef Gold. Construction of the expanded milling circuit
is expected to start in Q4 2023 and potentially benefit production in early
calendar 2024.
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Larger development project advancement: The Company
continues to work with our principal consultants on advancing the larger
development project that will target a large-scale gold mine operation,
including advanced metallurgical testing across the deposit and geotechnical
studies for a deeper pit. Concurrent with this work, the Company has started
assessing a significantly larger processing facility.
1 Refer to "Non-IFRS Performance Measures" section.
2 Refer to "Non-IFRS Performance Measures" section.
