Tanzanian Gold Corporation Provid es Update On Buckreef Project
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 Provid es Update On Buckreef Project
FOR IMMEDIATE RELEASE November 4, 2019
TORONTO, November 4, 2019 (GlobeNewswire) -- Tanzanian Gold Corporation’s, (TSX:TNX) (NYSE
American: TRX) (the “Company’s”) Board of Directors is pleased to provide shareholders with a simplified
guide to the progress that the Buckreef Project has made since the Company acquired it. This guide is
based on the 43-101 Standard of Reporting.
Regulators in Canada require that on any significant matter related to mining, listed companies must
follow National Instrument 43-101 (“NI 43-101”).
Disclosures covered by NI 43-101 include news releases of mineral exploration results, reporting of
resources and reserves, technical studies, various le vels of feasibility studies, presentations, oral
comments, and websites.
For a typical mining project the NI 43-101 Standard of Reporting recognizes several distinct stages
of reporting as a project moves from exploration to production. These stages are:
Exploration
Preliminary Resources
Technical Studies
Resources and Reserves
Preliminary Economic Assessment
Pre-Feasibility Study
Final Feasibility Study
Environmental Impact Study
Construction and Operation Plan
Each of these stages has more rigorous requirements of underlying work that must be completed in
order to improve the confidence that a project is viable under a broad range of assumptions. These
are increasingly demanding, such as more drilling even as part of a Final Feasibility Study that can
be costly and time consuming. For example, esti mates of costs in a Final Feasibility Study can be
only +10% to -10% and must be based on at least 3 vendor quotes.
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Various authorities have stated that it takes at least 10 years for a mining project to move from
exploration to completion of a Final Feasibility Study and Environmental Impact Study, both of which
are generally required for government permits, financing and developing comprehensive
construction plans.
The Company firmly believes that, as illustrated by this guide to NI 43-101, the Buckreef Project has
made significant advances. In June 2018, the Company published a comprehensive Pre-Feasibility
Study. The authors of this study concluded that the Buckreef Project “is likely to be technically and
economically feasible”. Highlights of that study, which was done at a gold price of $1,300 per oz are:
an after-tax US$ NPV discounted at 5% of $131 million; an IRR of 74%; a capital payback period of
4 years; and an average LOM cash cost of US$ 735 per oz.
The Buckreef Project is now one step away from a Final Feasibility Study.
Despite the attractive metrics arising from the Pr e-Feasibility Study, the Company decided to see if
the Buckreef Project can be made bigger and better; and to start to collect the technical data to
move the project to the Final Feasibility Stage. To date, the Buckreef Project has;
Drilled over 10,000m using at times three drill machines operating 24 hours per day,
Developed a geology-resource model of the entire Buckreef Mineralized Zone using
technologically advanced data-mine software that will be used for future resource and
reserve estimates,
Initiated a comprehensive metallurgical review and test data based on a plant that is two
times larger than the plant in the Pre-Feasibility Study, and
Initiated a rock stress test program to determine the possibility of mining underground below
the pit bottom.
It is the Company’s intention to make a Conceptual Study that incorporates all the new drilling results
from the 2019 drill program as well as the data arising from the metallurgical and rock stress tests.
This Conceptual Study will most likely be based on a larger open 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
Project.
Mr. James Sinclair, Executive Chairman of the Co mpany notes “Successful world class mines are
not simply discovered”, and continues by stating “They are built through years of complex scientific
work to the highest of industry standards. I am delighted with the progress that our team is making to
move Buckreef to a Final Feasibility stage.”
Respectfully Submitted,
“James E. Sinclair”
James E. Sinclair
Executive Chairman
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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
Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission limits disclosure for U.S.
reporting purposes to mineral deposits that a company can economically and legally extract or produce. We use certain terms
on this news release, such as “reserves”, “resources”, “geologic resources”, “proven”, “probable”, "measured", "indicated",
or "inferred" which may not be consistent with the reserve defi nitions established by the SEC. U.S. Investors are urged to
consider closely the disclosure in our SEC filings. You can review and obtain copi es of these filings from the SEC's website a t
http://www.sec.gov/edgar.shtml
This news release contains certain forwar d-looking statements and forward-looking information. All statements, other than statements
of historical fact, included herein are forward-looking statemen ts and forward-looking informati on that involve various risks a nd
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 differ materially fr om 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 ba sed on numerous assumptions, and involve known
and unknown risks, uncertainties and other fact ors, 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 resu lts,
performance, or achievements expressed or implied by such forwar d-looking statements. Investors are referred to our description of
the risk factors affecting the Company, as contained in our SE C filings, including our annual re port on Form 20-F and Registrat ion
Statement on Form F-10, as amended, for more information concerning these risks, uncertainties, and other factors.