Targeting Initial Average Gold Production Increase To 750-800 Ounces Per Month
Tanzanian Gold Corporation (TSX:TNX) has confirmed that the commissioning phase has commenced at Buckreef Gold Company Limited’s processing plant.
The new expanded processing plant will increase processing by 360 tonnes per day (tpd). Tanzanian Gold and Buckreef Gold continue to advance the previously disclosed 1,000+ tpd operation.
During October, Buckreef Gold completed construction of the 360 tpd processing plant expansion. Buckreef Gold also continued to operate the 120 tpd processing plant subsequent to concluding the test period, which achieved a 90% gold recovery rate, as previously disclosed in September 2021. The existing 120 tpd processing plant has been integrated into the new processing plant circuit.
The new expanded processing plant construction was completed in line with the scheduled completion date of late September/October 2021 and within project capital expenditures guidance of US$1.3-1.6 million. This includes completion of all major construction activities associated with the processing plant expansion, including the ongoing execution of dry, cold and hot commissioning performance tests.
Highlights of Processing Plant Expansion:
- Low-Cost Expansion: $1.6 million in project capital expenditures to increase throughput by 360 tpd;
- Increased Gold Production: Expanded throughput expected to increase production to 750-800 ounces of gold per month upon final commissioning and prior to construction of the 1,000+ tpd processing plant;
- Attractive Cost Profile: Total Cash Costsexpected to average US$725-825/oz;
- Improved Cash Flow: Operating cash flow from the expanded processing plant is anticipated to mitigate the negative cash flow from the testing period of the 120 tpd processing plant;
- Project Reinvestment: Anticipated cash flow generated from the larger plant will be reinvested in Buckreef Gold with a focus on: (i) exploration and drilling; (ii) enhanced CSR/ESG programs; and (iii) additional capital programmes focused on growth and efficiencies;
- Short Expansion Timeframe: A five-month timeline from ordering the major components of the 360 tpd operation to the start of project commissioning in October 2021; and
- In-House Construction: The 360 tpd processing plant expansion was completed by the Buckreef Gold and TanGold teams in conjunction with key consultants/contractors, including: (i) Ausenco; (ii) Solo Resources; and (iii) CSI Energy Group. In-house execution resulted in an accelerated construction timeline which has enabled advanced production over initially envisioned timelines and the ability to maintain continuity of the workforce.
“The dedication and hard work of the Buckreef Gold and TanGold teams in the construction of the 360 tpd processing plant expansion is a very exciting milestone,” Stephen Mullowney, TanGold’s CEO, said.
“The increased processing capacity is expected to allow us to advance the mine plan and increase near-term production in a cost-effective and efficient manner. The increased anticipated cash flow from the new larger plant will enable us to speed up the advancement of Buckreef Gold, including exploration at the Buckreef Main Zone, Buckreef West and Anfield Zone.”
Buckreef Gold will continue with plans to advance a 1,000+ tpd operation while simultaneously operating the 360 tpd operation. The 1,000+ tpd operation is expected to be capable of producing 15,000 – 20,000 ounces of gold per year based on the initial mine plan and grade profile.
For further information please visit: https://www.tangoldcorp.com/
