Mining exploration company Tanzanian Gold Corporation (TanGold) (TSX:TNX) (NYSE:TRX) recently announced 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.
In January 2022, the company poured 764 ounces of gold, a new monthly production record at Buckreef.
Commenting on the achievement, Stephen Mullowney, CEO of TanGold explained that the proceeds from the sale of this expanded production are being used to fund value-enhancing activities, including exploration in the Buckreef Main Zone, Buckreef West, and the newly discovered Anfield Zone, development of the 1,000+ tpd processing plant, and sulfide 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 the site,” he noted.
For his part, Andrew Cheatle, COO of TanGold stressed the use of local content: “There has 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 similarly successful completion of the next phase: our production expansion to 1,000 tpd.”
The company also announced 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 (Auramet), one of the largest physical precious metals merchants in the world.
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.
The Buckreef Project
The Buckreef Project is located in north-central Tanzania immediately to the south of Lake Victoria and 110km southwest of Mwanza.
The Project is fully licensed for mining and the extraction of gold and is developed by TanGold along with its joint venture partner, the Tanzania State Mining Corporation (Stamico).