Mining exploration company Tanzanian Gold Corporation (TanGold) (TSX:TNX) (NYSE:TRX) recently announced its financial results for the second quarter of 2022 indicating record revenues and gross profit margin.
TanGold, along with its joint venture partner, the Tanzania State Mining Corporation (Stamico), is advancing the Buckreef gold project in north-central Tanzania.
During Q2 of 2002, the company achieved a low cash cost of USD 796 per ounce of gold and a significant gross margin of 57% and was operating cash flow positive (USD 1.5 million) in the quarter for the first time in the company’s history. This was achieved on 1,812 ounces of gold sold.
Commenting on the results, Stephen Mullowney, CEO of TanGold said: “The Q2 results demonstrate our ability to drive significant, profitable sustainable growth at Buckreef Gold. The processing plant is currently being expanded and will triple in size to 1,000+ tpd in the coming months. We have also started advancing the technical work for the much larger sulphide development project with the goal of exceeding all the metrics as outlined in the 2018 PFS, particularly yearly annual production. Exploration has recommenced in the Buckreef Main northeast extension and overall exploration activities will accelerate across the entire Buckreef Gold project over the next year. We are in the process of resetting the long-term vision for the Buckreef Gold project with the goal of a much larger project than was originally envisaged in the 2018 PFS.”
The Buckreef Gold Project
Buckreef is anchored by an expanded Mineral Resource published in May 2020. Measured Mineral Resource is 19.98 million tonnes (“MT”) at 1.99 grams per tonne (“g/t”) gold (“Au”) containing 1,281,161 ounces (“oz”) of gold and Indicated Mineral Resource is 15.89 MT at 1.48 g/t gold containing 755,119 oz of gold for a combined tonnage of 35.88 MT at 1.77 g/t gold containing 2,036,280 oz of gold.
The Project also contains an Inferred Mineral Resource of 17.8 MT at 1.11g/t gold for contained gold of 635,540 oz of gold.