Buckreef Gold Completes First Phase of Mill Expansion and Achieves Record Gold Production
Buckreef Gold Completes First Phase of Mill Expansion and Achieves Record Gold
Production
FOR IMMEDIATE RELEASE – February 17, 2022
TORONTO, February 17, 2022 (GLOBE NEWSWIRE) - Tanzanian Gold Corporation (TSX:TNX)
(NYSE American:TRX) (TanGold or the Company) is pleased to announce that the first phase of the
oxide mill expansion of 360 tonnes per day (tpd) at the Buckreef Gold Project (Buckreef Gold) is now
fully commissioned, and production has successfully ramped up to design capacity.
January 2022 Highlights
• Poured 764 ounces of gold, a new monthly production record at Buckreef
• Completed final commissioning and ‘ramp up’ of 360 tpd processing plant, which is now operating
at design capacity
• Processed total mill feed of 9,725 tonnes at an average grade of 3.21 g/t
• Achieved an average monthly processing plant utilization of 9 7%, with higher ( daily) peak
processing rates reaching 15 – 16.4 tonnes per hour (tph)
• Achieved record gold recovery of 91.0%
• Project is on track to step up ore production rates to 1,000+ tpd in Q2/Q3 2022
• Buckreef Gold was operating cash flow positive for the second consecutive month
“The monthly production record of 764 ounces is a great start and a significant milestone for Buckreef
Gold. It is a testament to all the hard work by the team on the ground in Tanzania. The proceeds from
sale of this expanded production is being used to fund value enhancing activities, including exploration
in the Buckreef Main Zone, Buckreef West, and the newly disc overed Anfield Zone, development of
the 1,000+ tpd processing plant, and sulphide project development activities. Buckreef Gold has great
momentum as we move forward in our exploration activities while at the same time increasing our
production profile, there is an excitement at site! ” noted Stephen Mullowney, Chief Executive Officer
of TanGold.
Andrew Cheatle, Chief Operating Officer of TanGold commented, “The whole Buckreef Gold team has
safely delivered this production milestone with great passion and purpose. There has also been a
sharp focus on local content , for example , the steel CIL tanks were locally constructed using steel
industry skills from Mwanza, on the shores of Lake Victoria. We now look forward to a similarly
successful completion of the next phase: our production expansion to 1,000 tpd.”
The Company is also pleased to announce that it has entered into a refining agreement with Argor
Heraeus, a leading international gold refiner based in Switzerland, and has successfully completed its
first export of dorè for refining in February 2022.
The Company has also entered into a Gold Purchase and Sale Agreement with Auramet International
LLC (Auramet) through which Buckreef Gold will, at its discretion, sell up to 100% of the gold produced
from Buckreef Gold to Auramet at market rates, for a period of one year, with an option to extend for
successive periods. As part of its inaugural export of dorè, the Company sold 200 ounces of Buckreef
Gold production to Auramet at market rates in February 2022. Auramet is one of the largest physical
precious metals merchants in the world with over $20 billion in annual revenues and provides a full
range of services to all participants in the precious metals chain, from extraction and production to
manufacturing and consumption.
About Tanzanian Gold Corporation
TanGold along with its joint venture partner, STAMICO is advancing a significant gold project at
Buckreef in Tanzania. Buckreef is anchored by an expanded Mineral Resource published in May 2020.
Measured Mineral Resource is 19.98 million tonnes (“MT”) at 1.99 grams per tonne (“g/t”) gold (“Au”)
containing 1,281,161 ounces (“oz”) of gold and Indicated Mineral Resource is 15.89 MT at 1.48 g/t
gold containing 755,119 ounces of gold for a combined tonnage of 35.88 MT at 1.77 g/t gold containing
2,036,280 oz of gold. The Buckreef Gold Project also contains an Inferred Mineral Resource of 17.8
MT at 1.11g/t gold for contained gold of 635,540 oz of gold. The Company is actively investigating and
assessing multiple exploration targets on its property. Please refer to the Company’s Updated Mineral
Resources Estimate for Buckreef Gold Project, dated May 15, 2020 and filed under the Company’s
profile on SEDAR on June 23, 2020 (the “Technical Report”), for more information. Buckreef is being
advanced in a value accretive sustainable manner through:
Expanding Production Profile: A 360 tonne per day (“tpd”) processing plant is being expanded to
1,000+ tpd, enabling a near term production profile of 15,000 - 20,000 oz of gold per year. Positive
operating cash flow will be utilized for value enhancing activities, including exploration and Sulphide
Project Development.
Exploration: Continuing with a drilling program with the goal of expanding resources, discovering new
resources and converting resources to reserves, by: (i) step -out drilling in the northeast extension of
Buckreef Main; (ii) infi ll drilling to upgrade Mineral Resources currently in the Inferred category in
Buckreef Main; (iii) infill drilling program of Buckreef West; (iv) develop exploration program for the
newly discovered Anfield Zone; (v) upgrade historical mineral resources a t Bingwa and Tembo; (vi)
identification of new prospects at Buckreef Gold Project, and in the East African region.
Sulphide Development Project: Unlocking the value of the Sulphide Project in which the ‘sulphide
ore’ encompasses approximately 90% of the Resources. It is the goal of the Company to substantially
exceed all metrics as outlined in the Technical Report, including annual production and strip ratio.
For further information, please contact Michael Martin, Investor Relations,
[email protected], 860-248-0999, or visit the Company website at www.tangoldcorp.com
Andrew M. Cheatle, P.Geo., the Company’s COO and Director, is the Qualified Person as defined by
the NI 43- 101 who has reviewed and assumes responsibility for the technical content of this press
release.
The Toronto Stock Exchange a nd NYSE American have not reviewed and do not acce pt
responsibility for the adequacy or accuracy of this release. Tanzanian Gold Corporation is providing
the reference of the research report in this press release for information only.
Forward-Looking Statements
This press release contains certain forward-looking statements as defined in the applicable securities
laws. All statements, other than statements of historical facts, are forward- looking statements.
Forward-looking statements are frequently, but not always, identified by words such as “expects”,
“anticipates”, “believes”, “hopes”, “intends”, “estimated”, “potential”, “possible” and similar
expressions, or statements that events, conditions or results “will”, “may”, “could” or “should” occur
or be achieved. Forward-looking statements relate to future events or future performance and reflect
TanGold management’s expectations or beliefs regarding future events and include, but are not
limited to, statements with respect to the continued operating cash flow, expansion of its process
plant, the ability to successfully expand production to 1,000 tpd, estimation of m ineral resources,
recoveries, subsequent project testing, success, scope and viability of mining operations, the timing
and amount of estimated future production, and capital expenditure.
Although TanGold believes the expectations expressed in such forwar d-looking statements are
based on reasonable assumptions, such statements are not guarantees of future performance. The
actual achievements of TanGold or other future events or conditions may differ materially from those
reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors.
These risks, uncertainties and factors include general business, legal, economic, competitive,
political, regulatory and social uncertainties; actual results of exploration activities and economic
evaluations; fluctuations in currency exchange rates; changes in costs; future prices of gold and other
minerals; mining method, production profile and mine plan; delays in exploration, development and
construction activities; changes in governm ent legislation and regulation; the ability to obtain
financing on acceptable terms and in a timely manner or at all; contests over title to properties;
employee relations and shortages of skilled personnel and contractors; the speculative nature of, and
the risks involved in, the exploration, development and mining business. These risks are set forth in
reports that Tanzanian Gold files with the SEC. You can review and obtain copies of these filings
from the SEC's website at http://www.sec.gov/edgar.shtml.
The information contained in this press release is as of the date of the press release and TanGold
assumes no duty to update such information.