Name of the Project
Buckreef gold project expansion.

Location
Tanzania.

Project Owner/s
Junior gold mining company TRX Gold Corporation.

Project Description
The project proposes an expansion and upgrade of the existing process plant at Buckreef and a transition from openpit mining to underground mining over the next two to three years, according to an April 2025 preliminary economic assessment (PEA).  

Production over the 17.6-year life-of-mine is expected to average about 62 000 oz/y of gold with peak production of 94 000 oz/y of gold in Year 5.

Underground production starts in Year 3. The underground mine will use a contractor. Initial development of the two portals in the Main Zone will start in Year 3, with stoping production starting in Year 4 and ramp-up to the targeted 1.08-million tonnes a year in Year 5.

The underground mining method will be longhole, with longitudinal retreat stopes measuring 3 m to 13 m wide. The existing facility includes two three-stage crushing trains, four closed-circuit ball mills and 11 carbon-in-leach (CIL) tanks, as well as full elution, electrowinning and carbon reactivation circuits for gold doré production.

TRX Gold plans a two-phase expansion. Phase 1 will lift capacity to 636 738 t/y for the first two years, adding a flotation circuit, a regrind mill, concentrate and tailings thickeners (16.5 m each), two additional CIL tanks and a 4 t/d elution circuit, alongside upgrades to pumps, screens, reagents and water systems.

Phase 2, to be commissioned in Year 3, will raise throughput to 1.08-million tonnes a year. Equipment will include a semiautogenous grinding (SAG) mill, cyclone clusters with SAG and ball mill circuits, a surge bin, feeders, conveyors and a new jaw crusher for feed preparation. With flotation, regrinding, thickening, added CIL capacity and expanded elution, overall gold recovery is expected to reach 88%.

Potential Job Creation
Not disclosed.

Net Present Value/Internal Rate of Return
The PEA indicates an upside pretax net present value, at an 8% discount rate, of $1.2-billion at $3 000/oz gold. There is no quoted internal rate of return.

Capital Expenditure
$89-million will be invested over the next four-year period comprising $55-million in capital for the underground expansion; $30-million for process improvements, process plant throughput expansion and camp upgrades; and $3-million for tailings facility upgrades. Life-of-mine growth capital is estimated at $175-million and is primarily for underground development.

Planned Start/End Date
Not confirmed.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
Not disclosed.

Contact Details for Project Information
TRX Gold Corporation, tel +1 437 224 5241 or email ir@trxgold.com.