Tanzanian Gold Corporation (TSX: TNX) (NYSE American: TRX) recently announced that gold production has reached commercial level at the oxide ore processing plant at the Buckreef Project.
The first bucket at the oxide open pit was on April 6, 2020. Since then oxide ore has been stockpiled at a ROM pad. Construction of the plant ended on May 28, 2020. The plant successfully completed both cold and hot commissioning and has now reached commercial production and is being operated 24/7 under two 12-hour operating shifts per day.
James E. Sinclair, Executive Chairman of the company, said “I am delighted that we have achieved this important milestone in our gold production growth plan. We are now well-positioned to increase the production of gold significantly; and to accelerate our final feasibility on bringing a second, much larger plant on-line to produce more gold from processing the sulphide ore.”
A public tender for an increase in the treatment capacity of the oxide gold processing plant was recently completed. The Company is planning to start construction to increase the processing capacity of the oxide plant capacity by approximately 200% in the fourth quarter of this year.
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.
