Continues To Execute Mine Development
Tanzanian Gold Corporation (TSX:TNX) has announced positive results and achievements for the third quarter of 2021.
Highlights Overview
• Upgrade of five tph oxide test plant to 15 tph oxide operation, which is anticipated to mitigate negative cash flow on the 5 tph oxide test plant as well as maintain continuity of workforce
• Cash flow generated will enable reinvestment in the business and fund exploration, drilling and capital expenditures at the Buckreef Gold level
• Discovery of Buckreef West and the Anfield Zone further expands exploration potential
• Preliminary metallurgical report sets the foundation for final feasibility study on the sulphide project
• Additional Management changes at TanGold and Buckreef Gold further reinvigorates
operations
CEO, Stephen Mullowney, said the company and Buckreef Gold have continued to make significant progress this quarter.
“We developed and are actively implementing a plan to mitigate the cash burn at the Buckreef Gold operating level through an upgrade of the oxide test plant circuit.
“This plan maintains the continuity of the core team and ramps up mining activity in the short term. With the discovery of Buckreef West and the Anfield Zone, and the continuing exploration potential of the Buckreef Main Zone, we are developing a robust exploration triangle.
“Finally, we were very pleased with the excellent results from the preliminary metallurgical report, providing what we believe is a solid foundation for the progression of a final feasibility study on the sulphides.”
Accomplishments and Highlights
Operations
• Buckreef Gold reported zero lost time injuries, zero medical aid incidents and had no COVID-19 related cases in Q3 2021. There were also no reportable environmental or community related incidents in Q3 2021.
• The operation of the five tonne per hour (tph) oxide test plant continued in the third quarter, operating seven days a week with two 12-hour shifts. The testing period will conclude in the next couple of months and the company intends to upgrade the existing 5 tph oxide test plant to a 15 tph oxide operation, subject to various approvals (including approval of an expanded tailings facility).
• The targeted completion of the 15 tph oxide plant upgrade is expected in September/October 2021 and is anticipated to mitigate the negative cash flow on the 5 tph oxide test plant, while maintaining continuity of the existing workforce. The cash flow generated from the larger plant will enable reinvestment in the business and fund exploration, drilling and capital expenditures at the Buckreef Gold level.
• The 15 tph oxide mine plan is based on the grade control and block model; the mine plan has been reviewed by SGS Canada Inc. (SGSC). Based on the mine plan and financial inputs from the 5 tph oxide test mining operations, the Company anticipates the following operating guidance for the 15 tph oxide mine operation over an 18-month mining program:
Buckreef Gold will continue with plans to build a separate 40 tph oxide mine operation while simultaneously operating the 15 tph oxide mine operation. The Company is in the process of finalizing the 40 tph oxide mine plan and financial models for this operation, and SGSC is also reviewing this information.
Buckreef Gold plans to operate the 15 tph oxide plant for an initial 18 month period while undergoing construction of the 40 tph oxide plant. The 40 tph and 15 tph oxide plants will be situated in different locations on the Buckreef Special Mining License, and the Company in conjunction with Buckreef Gold, will assess the possibility of an expanded 55 tph (40 tph + 15 tph) oxide mining operation over the medium to long-term time horizon. The 40 tph oxide mining operation plans to utilise dry stack tailings while the 15 tph oxide mining operations will utilise wet tailings. The 40 tph oxide mine operations are expected to be capable of producing 15,000 – 20,000 oz. of gold per year based on the initial mine plan and grade profile.
• The request for proposal process for the construction of the 40 tph oxide plant and related infrastructure is complete. The company has entered into a letter of intent (“LOI”) with an Engineering, Procurement and Construction (EPC) contractor and is in the process of finalisng the agreements for the construction of this facility. The company has hired Ausenco Engineering Canada Inc. as Management Engineer to assist in management of the 40 tph oxide plant project. More details will be released after this process is complete.
• Through its testing program, Buckreef Gold has been able to substantiate the grade control block model, confirm forecasted operating cost inputs such as mining and processing costs for 15 tph and 40 tph oxide mining operations, and develop a more comprehensive understanding of oxide mill feed grind, processing of clays, retention times and how to achieve higher recovery rates. More importantly, this knowledge has been applied to the design of the 15 tph and 40 tph oxide mine operations, substantially de-risking these operations.
• In consultation with SGSC Lakefield Inc. (SGSL) and Ausenco, Buckreef Gold has continued to refine targeted recovery rates for the 15 tph and 40 tph oxide mining operations. The targeted recovery rates for these operations are anticipated to be approximately 85%-90%. The final phase of the 5 tph oxide test plant will focus on recovery rates versus balancing output and recovery rates; this test phase has already commenced with encouraging initial results (
For the nine months ended May 31, 2021, recovery rates at the five tph oxide test plant ranged from 77% to 87%. In Q3 2021 the oxide test plant produced 446 ounces of pure gold and 1,440 ounces of pure gold on a year-to-date basis.
For further information please visit: https://www.tangoldcorp.com
