Tanzanian Gold Corporation Plans to Start Mining At Buckreef Property; Continues Focus on the Development of the Buckreef Shear Zone; Announces 2019 Year End Results
CONNECTICUT OFFICE TORONTO OFFICE:
PO Box 577 Bay Adelaide Centre, East Tower
U.S.A. 06784 22 Adelaide Street West, Suite 3400
Sherman, CT Toronto, Ontario M5H 4E3 Canada
U.S.A. 06784 Toll Free (844) 364-1830
[email protected] www.tangoldcorp.com
Tanzanian Gold Corporation Plans to Start Mining At Buckreef Property;
Continues Focus on the Development of the Buckreef Shear Zone;
Announces 2019 Year End Results
For Immediate Release November 29, 2019
TORONTO, November 29, 2019 (GlobeNewswire) - Tanzanian Gold Corporation, (TSX:TNX) (NYSE
American:TRX) (the “Company”) announced an update on the Buckreef Project and results for its fiscal
year ended August 31, 2019.
Buckreef Project
The Company is executing its plan to begin gold pr oduction at the Buckreef Project. The Company will
begin with the mining and processing of high grade oxide reserves at or close to surface at the location of
the open pit defined in the 43-101 Pre-Feasibility St udy. An oxide open pit and a monthly production
schedule has been defined. The Company expects to start a grade control drilling program on this oxide
open pit in the next week. SGS/Bateman from South Afri ca is visiting the site to finalize a design for a
15tph plant to process the oxide reserves. Requests fo r bids have been published seeking Expressions of
Interest for both the mining of the oxide open pit and for the construction of the oxide treatment plant. It
is anticipated that the winning mining contractor will be mobilizing to site at the end of January 2020 to
start mining. The material extracted will be added to an existing ore and waste stockpiles until the plant
construction is completed.
The Company continues to focus on completion of Phase II drilling and the technical development
program at the Buckreef Project. The Company has completed its resource-geology model, samples have
been collected and sent to Queens SGS Canada for rock strength testing, following which SGS Canada
will do a conceptual design of an underground stope, a review of past metallurgical testing is almost
complete and will give rise to drilling holes for new samples to conduct variability testing; and a program
for Phase III drilling in the ultra-deep is being fina lized and will be started when the Phase II drilling
program is completed.
As previously disclosed, it is the Company’s intenti on to make a Conceptual Study that incorporates all
the new drilling results from the 2019 drill program as we ll as the data arising from the metallurgical and
rock stress tests. This Conceptual Study is based on a larger op en pit than that in the Pre-Feasibility
Study and an underground mine that can access resources below the pit bottom. This Study will assist the
Company to determine the key parameters of a Final Feasibility Study of the Buckreef Mine.
August 31, 2019 Year End Results
For the year ended August 31, 2019, the Company incurred a net loss of Cdn$29,318,000, or Cdn$0.22
per common share, as compared to a net loss of Cdn$6,897,000 or Cdn$0.06 per common share for the
year ended August 31, 2018. As a result of the Company’s continued strategic decision to focus on the
Buckreef Mine, the Company continues to place its other properties in the care and maintenance phase.
In accordance with IFRS accounting rules, the Company therefore decided to recognize a non-cash write
down of approximately $22,230,000 on its non-Buckreef properties. Depending on the development of
the Buckreef Mine, market conditions, and financing, the Company intends to seek development of these
non-Buckreef properties in the future.
Respectfully Submitted,
"James E. Sinclair"
James E. Sinclair
Executive Chairman
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 and NYSE MKT LLC have not reviewed and do not accept responsibility for the
adequacy or accuracy of this release
This news release contains certain fo rward-looking statements and forward-looking information. All statements,
other than statements of historical fact, included herein are forward-looking statements and forward-looking
information that involve various risks and uncertainties. There can be no assurance that such statements will prove
to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
Important factors that could cause actual results to diffe r materially from the Company's expectations are disclosed
in the Company's documents filed from time-to-time with the British Columbia, Alberta and Ontario provincial
securities regulatory authorities.
Certain information presented in this release may constitute “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on numerous
assumptions, and involve known and unknown risks, uncertainties and other factors, including risks inherent in
mineral exploration and development, which may cause the actual results, performance, or achievements of the
Company to be materially different from any projected future results, performance, or achievements expressed or
implied by such forward-looking statements. Investors are referred to our description of the risk factors affecting
the Company, as contained in our SEC filings, including our annual report on Form 20-F and Registration
Statement on Form F-10, as amended, for more information concerning these risks, uncertainties, and other factors.