Positive Results from Metallurgical Test Work at the Buckreef Gold Project
Positive Results from Metallurgical Test Work at the Buckreef Gold Project
FOR IMMEDIATE RELEASE – February 25, 2021
TORONTO, February 25, 2021 (GLOBE NEWSWIRE) - Tanzanian Gold Corporation (TSX:TNX) (NYSE
American:TRX) (TanGold or the Company) (operating through its wholly owned subsidiary in Tanzania)
and its joint venture partner, The State Mining Company (STAMICO), announces that it has received
initial and highly favourable metallurgical test results from the sulphide component of the Buckreef
Gold Mine (Buckreef) mineral resource.
SGS Canada Inc. (SGS) was retained to complete initial metallurgical test work at their Lakefield facility
on the sulphide component of the mineral resource. SGS flowsheets will be a cornerstone of the
feasibility study and help prove the viability of the project to financiers and stakeholders as Buckreef
progresses towards full operation. SGS has reviewed the information in the press release.
The initial metallurgical test work is now concluding. SGS has now been commissioned to undertake
the metallurgical variability phase for Buckreef.
Highlights
• Three diamond drill core samples were taken from the fresh rock (‘sulphide’ mineral resource)
of the Buckreef deposit for the purposes of metallurgical test work . The following intercepts
and gold recovery rates were observed (see figure on the subsequent page):
o MC01: 0.54 g/t over 78.88m – 94.1%
o MC02: 19.4 g/t over 27.99m – 95.4%
o MC03: 1.71 g/t over 52.53m – 85.3%
• SGS have advised that a flowsheet consisting of crush/grind and flotation followed by
regrinding of the rougher concentrate and cyanidation at site, along with cyanidation of the
flotation tailing is currently the metallurgically optimal mill circuit. Dore will be produced at site.
• Test work is ongoing on the MC03 sample, for the purpose of improving the gold recovery rate.
The same test work can be applied to the MC01 and MC02 samples.
• SGS have now been commissioned to complete feasibility level metallurgical testing that will
focus on the first 5-7 years of production at Buckreef.
Mr. Stephen Mullowney, CEO (TanGold) commented, “the initial metallurgical results from a reputable
and prestigious organization (SGS Lakefield) have indicated that a well -known and simple flowsheet
for our large high-grade deposit and plant is most likely. The initial recoveries are excellent, and I look
forward with confidence to the results of the variability testing."
Mr. Andrew Cheatle, COO (TanGold) added, “the initial metallurgical recovery results are excellent
and typical of Archean shear zone type hosted gold deposits. These results also firmly underscore our
overall plan to have two plants with two different flowsheets; one plant to treat gold bearing oxides and
a second plant to treat gold bearing sulphide or primary materials . We look forward to continuing to
work with SGS on the metallurgical study.”
Further Details of Test Work
In 2020, three diamond drill holes were completed for the purposes of initial, modern era metallurgical
test work. Diamond drill hole details are tabulated below:
The samples were extracted as fresh drill core samples from areas/zones with known lithologies from
within the current projects open pit limit. The samples were selected by TanGold and confirmed by the
SGS geological services group that worked together doi ng the metallurgical sample selection. The
investigation included ore characterization, comminution, mineralogy, head analyses, and potential for
gold preg robbing, and evaluated the amenability of the three samples to two primary processing
flowsheet options, that incorporate comminution (crushing and grinding), gravity separation, flotation
and cyanidation unit operations. A high-level summary of the test work is provided below:
• Bond ball mill work index values were 18.3 and 18.5 in MC 01 and MC02 respectively. MC03
was slightly softer at 17.1. The hanging wall (HW) comp was at 17.1 and the foot wall (FW)
was 18. All of these comminution samples are classified as “Hard” when compared to the SGS
comminution database. All of these samples are somewhat softer than the values indicated for
Buckreef ore as seen in the historical documentation.
• Gravity separation testwork completed to date by SGS has indicated poor gold recoveries,
averaging just under 5%. This seems to conflict somewhat with indications in the historical
testwork records which indicated potential gold recoveries of >30%.
• Direct cyanide leaching of the gravity separation tailing indicated that composites MC 01 and
MC02 yielded ~80% gold extraction at a grind size of ~150 μm (P80). The softer material,
MC03, yielded 72% gold extraction at the same approximate grind size. Grinding significantly
finer, to ~75 μm (P80), resulted in 8-9% additional gold extraction (to 88-89%) from MC01 and
MC02 material. MC03 gold extraction increased to 79% with the same reduction in leach feed
size. Tests were run over 48 hours and gold extraction had more-or-less ceased after 24 hours,
with only minor additional gold extraction up to 48 hours retention time.
• Rougher flotation tests were conducted on gravity tailing at grind size P80’s of ~150, ~120 and
~90 μm. Mass pulls of ~13-20% were observed. Sulphide recovery was very stable (97-98%)
and showed no impact from coarser/finer grinding. Gold recoveries improved only slightly, in
MC01 and MC02 tests, with finer grinding, from ~87-90%. MC03 gold recovery remained rather
stable at ~90% across the feed size test series.
Composite
ID
Easting (m) Northing (m) RL (m) AzimuthDip From (m) T o (m)
BMMT001 DD MC01 391562.00 9658608.00 1220.00 303 -72 77.50 156.80 78.88 0.54 94.1 Partial to completely altered mineralised shear zone
5% quartz veining
BMMT002 DD MC02 391320.00 9658036.00 1223.00 307 -69 239.9 267.89 27.99 19.4 95.4 Partial to completely altered mineralised shear zone
BMMT003 DD MC03 391593.00 9658358.00 1217.00 310 -63 222.81 275.34 52.53 1.71 85.3 Partial to completely altered mineralised shear zone
With graphitic altered fractutured surfaces
Sample Preparation and analysis are performed by independent SGS (Lakefield) Laboratory, Ontario, Canada
The sample chain of custody was managed by SGS Tanzania team, as per local sample export regulations. Reported results are from composite diamond drilled core samples. Intervals of core for
metallurgical testwork analyzed are full HQ core size. Diamond drilled core has been a HQ size and recoveries are consistently 100% across all drill holes intercept reported.
Sampling and analytical procedures are subject to a comprehensive quality assurance and quality control program. The QAQC program involves insertion of duplicate samples, blanks and certified reference
materials in the sample stream. Gold analyses are performed by screened metallics assaying protocols.
Buckreef Main Metallurgy samples
Hole
T ype Comme ntHole ID Width (m) Grade (g/t) Recovery %Drill Holes Location Sample Depth
About Tanzanian Gold Corporation
Tanzanian Gold Corporation along with its joint venture partner, STAMICO is building a significant
gold project at B uckreef in Tanzania that is based on an expanded Mineral Resource base and the
treatment of its mineable Mineral Reserves in two standalone plants. Measured Mineral Resource now
stands at 19.98MT at 1.99g/t gold containing 1,281,161 ounces of gold and Indicated Mineral
Resource now stand at 15.89MT at 1.48g/t gold containing 755,119 ounces of gold for a combined
tonnage of 35.88MT at 1.77g/t gold containing 2,036,280 ounces of gold. The Buckreef Project also
contains an Inferred Mineral Resource of 17.8MT at 1.11g/t gold for contained gold of 635,540 ounces
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, for more information.
Tanzanian Gold Corporation is advancing on three value-creation tracks:
1. Strengthening its balance sheet by expanding near-term production to 15,000 - 20,000 oz. of
gold per year from the processing of oxide material from an expanded oxide plant.
2. Advancing the Final Feasibility Study for a stand-alone sulphide treating plant that is
substantially larger than previously modelled and targeting significant annual gold production.
3. Continuing with a drilling program to further test the potential of its property, Exploration
Targets and Mineral Resource base by: (i) identifying new prospects; (ii) drilling new
oxide/sulphide targets; (iii) infill drilling to upgrade Mineral Resources currently in the Inferred
category; and (iv) a step-out drilling program in the Northeast Extension.
Andrew M. Cheatle, P.Geo. is the Company’s Qualified Person as defined by the NI 43-101 who has
verified the data disclosed in this new s release and has otherwise reviewed and assumes
responsibility for the technical content of this press release.
About SGS
SGS is the world’s leading inspection, verification, testing and certification company. They are
recognized as the global benchmark for quality and integrity. With more than 89,000 employees, SGS
operates a network of more than 2,600 offices and laboratories around the world. Bankable flowsheets
help prove the viability of a gold mining project to financers and stakeholders. SGS has, in this regard,
earned a global reputation as a proven leader in the development of transparent, bankable flowsheets
for a wide range of mineral and metal extraction operations.
For further information, please contact Michael Martin, Investor Relations,
[email protected], 860-248-0999, or visit the Company website at www.tangoldcorp.com
The Toronto Stock Exchange an d NYSE American have not reviewed and do not accep t
responsibility for the adequacy or accuracy of this release.
U.S. Investors are urged to consider closely the disclosure in our SEC filings. You can review and
obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml
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 Tanzanian Gold
management’s expectations or beliefs regarding future events and include, but are not limited to, statements with respect
to the estimation of mineral reserves and resources, recoveries, subsequent project testing, success and viability of mining
operations, the timing and amount of estimated future production, and capital expenditure.
Although TanGold believes the expectations ex pressed in such forward-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 activiti es; changes in government
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 under Item 3.D in Tanzanian
Gold’s Form 20-F for the year ended August 31, 2020, as amended, as filed with the SEC.
The information contained in this pres s release is as of the date of the pres s release and TanGold assumes not duty to
update such information.
Note to U.S. Investors
US investors are advised that the mineral resource and mineral reserve estimated disclosed in this press release have been
calculated pursuant to Canadian standards which use terminology consistent with the requirements CRIRSCO reporting
standards. For its fiscal year ending August 31, 2021, and thereafter, the Company will follow new SEC regulat ions which
uses a CRIRSCO based templet for mineral resources and mineral reserves, that includes definitions for inferred, indicated,
and measured mineral resources.