TRX Gold Releases Positive Metallurgical Drill Hole Assay Results
TRX Gold Releases Positive Metallurgical Drill Hole Assay Results
Including: 106 m @ 4.19 g/t, 28 m @ 10.68 g/t, 123 m @ 2.69 g/t and 121 m @ 2.96 g/t Au
TORONTO, Dec. 12, 2022 -- TRX Gold Corporation (TSX: TNX) (NYSE American: TRX) (the “Company” or “TRX Gold”) is
pleased to announce positive assay results from its 19-hole metallurgical variability sampling program on the Buckreef Gold
Main Zone.
The results are positive and significant for the Company as they continue to demonstrate: (i) continuity of mineralization down
dip and along strike of the deposit; and (ii) excellent width and grade of mineralization.
As part of the upcoming metallurgical variability study, using core from this program, the Company will assess the amenability
of the sulphide material to be processed through the existing processing plant, using its relatively simple flowsheet. In turn,
this may have positive implications for potential plant expansions.
Highlights include:
◾ Hole BMMT015 intersected 28.0 m grading @ 10.68 g/t Au from 0 m;
◾ Hole BMMT020 intersected 123.0 m grading @ 2.69 g/t Au from 3 m;
◾ Hole BMMT009 intersected 121.0 m grading @ 2.96 g/t Au from 3 m;
◾ Hole BMMT022 intersected 106.0 m grading @ 4.19 g/t Au from 85 m, 77 m grading @ 3.09 g/t from 241 m; and
◾ Hole BMMT021 intersected 90.0 m grading @ 1.56 g/t Au from 139 m.
Notes: Sample Protocol QA/QC – see footnote below. Sampled widths are not true widths. Of 19 holes drilled, 18 are reported, with the remaining hole unreported due to an
incomplete intersection of the Main Zone.
“The continuity of gold mineralization in the Main Zone is clearly demonstrated by these metallurgical drill hole results - there
is a great mine here!” noted Stephen Mullowney, Chief Executive Officer of TRX Gold. “We have demonstrated over the past
year our ability to mine and build an ore processing plant that is operating at 1,000+ tpd with 90% gold recoveries. Our next
phase will focus on a simple gold recovery circuit for the broader project―the 2.0 million plus ounce Measured and Indicated
Mineral Resource, and 0.6 million ounce Inferred Mineral Resource. These assay results provide Buckreef with excellent
samples for broader deposit metallurgical testing as continuity is critical for a successful gold mining business. If the
metallurgical variability study confirms that we can utilize the current straightforward flowsheet and existing processing plants
for further expansions, we would really be off to the races!”
Detailed results are shown in Table 1 and locations are shown in Figure 1.
Table 1: Metallurgy Drill Hole Sample Results Summary
Notes: Sample Protocol QA/QC – see footnote below. Sampled widths are not true widths. Of 19 holes drilled, 18 are reported, with the remaining hole unreported due to an
incomplete intersection of the Main Zone.
https://www.globenewswire.com/NewsRoom/AttachmentNg/02597369-4a36-4a14-ac2d-49f1cbccf4c4
Figure 1: Map Showing Location of Metallurgical Drill Holes and Their Result Highlights
https://www.globenewswire.com/NewsRoom/AttachmentNg/2d104833-e6bc-4ff9-a303-06294b014280
Metallurgical Variability Program Background
TRX Gold will also be evaluating the existing processing plant flowsheet of: (i) crushing; (ii) grinding; (iii) and carbon-in-leach,
with primary grinding of P80 = ~75 µm. The operations have achieved gold recovery rates of ~90% since production began in
October 2021, with over 100,000 tonnes being processed. SGS Canada Inc. (“SGS”), as part of the initial metallurgical test
work at their Lakefield, Ontario facility, achieved a comparable recovery rate for a similar flowsheet as current operations as
described below.
During the year, the Company working with Ausenco, revised and elaborated the request for proposal process (for the
metallurgical variability study), including studies for dry stack tailing parameters. The Company has identified a number of
global laboratories to complete this work, which will encompass the first 5-7 years of production from a larger mine and
processing operations at Buckreef Gold. This study will build on the prior work of SGS on deeper parts of the mineral resource
and data gathered during processing of the oxide, transitional mineral reserve.
The 18 metallurgical holes reported (of 19 drilled) from Buckreef Gold are designed to intersect gold mineralization between
current oxide ore mining and the deeper preliminary metallurgical drill holes in the sulphide deposit reported in 2021 (see
Press Release dated June 9, 2021).
SGS was previously retained to complete initial metallurgical test work at their Lakefield, Ontario facility on the sulphide
component of the mineral resource. This work was completed in 2021. As part of the initial 2021 study, three diamond core
samples taken from the fresh rock (‘sulphide’ mineral resource) of the Buckreef Gold deposit were submitted to SGS Lakefield
for the study. In addition to the straightforward flowsheet reported in the June 9, 2021 Press Release, SGS also evaluated a
flowsheet which is similar to Buckreef Gold’s flowsheet in current operations. The additional flowsheet SGS evaluated
consisted of: (i) gravity separation and (ii) cyanide leaching.
Maximum gravity + cyanidation leach gold recoveries for MC-1, MC-2, and MC-3 were ~88%, ~89%, and ~79%, respectively,
at P80’s in the ~75-80 μm range. This is similar to the grind size and recovery rates achieved in current operations over the
past year. Composites MC-1 and MC-2 demonstrated a very similar metallurgical response despite the extreme grade
differences between the samples. As disclosed in the June 21, 2021 Press Release, further opportunities to improve gold
extraction from MC-3 have been identified through diagnostic leach testing.
In the initial metallurgical test work, gravity separation at a grind size between ~144-152 μm represented a low proportion of
overall gold recovery, representing 4.2%, 4.2% and 4.4% for MC-1, MC-2, and MC-3 respectively. It is the Company’s view that
given the low recovery of gravity separation, it would not make sense to add this (a gravity circuit) to a flowsheet as the
majority of the gold recovered in the gravity separation process would be recovered in the cyanide leaching process.
As reported in the June 21, 2021 Press Release, recovery rates of 94.1%, 95.4% and 85.3% were achieved for MC-1, MC-2,
and MC-3 respectively, from the straightforward flowsheet as follows: (i) primary grinding to P80 = ~100-150 µm; (ii) rougher
flotation; (iii) regrind of the rougher concentrate to ~15-20 µm (P80); (iv) cyanide leaching of the reground flotation concentrate
and (v) cyanide leaching of the flotation tailing.
It is important to note other highlights from the initial metallurgical test work include: (i) no refractory association of gold with
arsenic sulphide was detected; (ii) the samples tested did not exhibit any preg-robbing or other refractory characteristics; and
(iii) clean tailings with a high probability of mine tailings not being acid generating, thus confirming the potential approach for
dry stack tailings in the future.
Qualified Person
Mr. Andrew Mark Cheatle, P.Geo., MBA, ARSM, Chief Operating Officer of TRX Gold, is the Company’s Qualified Person
under National Instrument 43-101 “Standards of Disclosure for Mineral Projects” (“NI 43-101”) and has reviewed and assumes
responsibility for the scientific and technical content in this press release.
Sample Protocol QA/QC
The sample chain of custody is managed by the Buckreef geology team on site. Reported results are from diamond drilled
core samples. Intervals of core to be analyzed are split into half using a mechanized core cutter, with one half sent to the
Laboratory for geochemical analysis and the remaining half kept in storage for future reference and uses. 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 standard fire assaying protocols using a 50-gram charge with atomic absorption (AAS) finish and a
gravimetric finish performed for assays greater than 10 grams per tonne.
Sample Preparation and analysis are performed by independent SGS Laboratory in Mwanza, Tanzania. SGS Laboratory is
ISO17025 accredited and employs a Laboratory Information Management System for sample tracking, quality control and
reporting.
The metallurgical drill hole intersections reported here are down-hole length and may not represent true width. The drilling
objective was to intersect the orebody in oblique/acute angles to maximize samples weights for metallurgical test work, and to
test the down-dip continuity of gold mineralization. The true width is estimated at approximately 30% of drilled length.
About TRX Gold Corporation
TRX Gold is rapidly advancing the Buckreef Gold Project. Anchored by a Mineral Resource published in May 2020, the project
currently hosts an NI 43-101 Measured and Indicated Mineral Resource of 35.88 MT at 1.77 g/t gold containing 2,036,280 oz of
gold and an Inferred Mineral Resource of 17.8 MT at 1.11g/t gold for 635,540 oz of gold. The leadership team is focused on
creating both near-term and long-term shareholder value by increasing gold production to generate positive cash flow. The
positive cash flow will be utilized for exploratory drilling with the goal of increasing the current gold Resource base and
advancing the Sulphide Ore Project which represents 90% of current gold Resources. TRX Gold’s actions are led by the
highest ESG standards, evidenced by the relationships and programs that the Company has developed during its nearly two
decades of presence in Geita Region, Tanzania.
Investors
Christina Lalli
Vice President, Investor Relations
TRX Gold Corporation
+1-438-399-8665
www.TRXgold.com
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 TRX Gold management’s expectations or
beliefs regarding future events and include, but are not limited to, statements with respect to continued operating cash flow,
gold recovery rates, expansion of its process plant, estimation of mineral resources, ability to develop value creating activities,
subsequent project testing, success, scope and viability of mining operations, the timing and amount of estimated future
production, and capital expenditure.
Although TRX Gold believes the expectations expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance. The actual achievements of TRX Gold 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 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 in reports that TRX Gold files with the Securities and
Exchange Commission (“SEC”) and Canadian Securities Administrators. You can review and obtain copies of these filings
from the SEC's website at www.sec.gov and the Company’s profile on www.sedar.com.
Investors are advised that the terms mineral resource and mineral reserve estimates disclosed in this press release have
been calculated pursuant to Canadian standards which may differ from SEC reporting standards.
The information contained in this press release is as of the date of the press release and TRX Gold assumes no duty to
update such information.
The TSX and NYSE America have not reviewed and do not accept responsibility for the adequacy or accuracy of the contents
of this press release, which has been prepared by the management of TRX Gold.