Tanzanian Gold Corporation (TSX:TNX) has announced results for the first quarter of 2022.
Highlights:
• Production Growth: Positive operating cash flow at Buckreef Gold in December 2021 with 533 ounces of gold production, after successfully completing construction and substantial commissioning of 360 tonnes per day (tpd) processing plant. The 1,000+ tpd expansion is on track for calendar Q2/Q3 2022 with two additional ball mills already having arrived in Dar es Salaam.
• Exploration Upside: Drilling has recommenced at Buckreef Gold with the goal of expanding resources, discovering new resources and converting resources to reserves. To date, a total of six exploration holes (1,716m) have been completed, including three holes (758m) in the northeast extension of the Buckreef Main Zone. The company plans to expand the exploration program in 2022, including a focus on the Anfield Zone.
- Sulphide Development Project Advancement: Advanced the metallurgical study, one of the longest lead items on the Sulphide Development Project, which contains approximately 90% of the Buckreef Gold resource.
To date, a total of 19 holes (2,367m) have been completed for the metallurgical program. These metallurgical sample holes have been logged and are in preparation for shipment for metallurgical testing in Q2 2022.
Exploration drilling will also focus on infill drilling Inferred Mineral Resources, which if successful, has the potential to increase tonnes to the Indicated Mineral Resource category and add, if economic, to the Mineral Reserves.
“It has been an extremely busy year. In conjunction with our Tanzanian colleagues, contractors and suppliers, we have successfully moved the company to a position where we have proven we can execute on a mine plan, build plants and successfully produce gold to cover operating costs,” CEO, Stephen Mullowney, said.
“As we continue to expand production in 2022, we will move to a position where value accretive activities including exploration and unlocking the value of the Sulphide Development Project, will be predominantly funded from anticipated positive operating cash flow. 2022 is setting up to be quite an exciting year, with a lot of activity focused on our goal of making everything “Bigger”: production growth, potential resource expansion through exploration and unlocking the significant value of the sulphide project by making it much larger than previously disclosed.”
Q1 Accomplishments and Outlook
• Successfully completed construction and substantial commissioning of the expanded 360 tpd processing plant. Buckreef Gold was operating cash flow positive for the first time in December 2021.
The company continues to expect the 360 tpd throughput to increase production to 750-800 oz of gold per month at a total average Cash Cost of US$725-825/oz once steady state processing has been achieved in fiscal Q2/Q3 2022. The larger 1,000+ tpd processing plant is expected to be completed in calendar Q2/Q3 2022 and is forecast to produce 15,000 – 20,000 oz of gold per year.
TanGold believes that the Buckreef Gold property and immediate surrounding area is highly prospective for economic gold mineralisation. Within the last six months the Anfield Zone was discovered. The Anfield Zone lies ‘on-trend’ between a historical mineral resource (the Eastern Porphyry) and an adjacent mining facility with nearly three km of untested shear zone located 500 meters to the east of the Buckreef Main Zone. High grade fresh rock samples were retrieved from an artisanal mine shaft. Geological assessment of the property and adjacent leases continues and will pick up pace throughout fiscal 2022.
• Following up on positive metallurgical results from the oxide operations (top of Buckreef Main Zone deposit) and the preliminary metallurgical testing for the sulphide portion of Buckreef Main Zone deposit (three bottom of pit samples), metallurgical testing for sulphide project development has moved to variability testing of the first five to seven years of production and will continue into 2022 including tailing characteristics for dry stack tailings. Geotechnical and groundwater work will continue on identified areas (i.e. plant, tailings, waste rock storage facility). To date, a total of 19 holes (2,367m) have been completed for the metallurgical program. These metallurgical sample holes have been logged and are in preparation for shipment for metallurgical testing in Q2 2022.
For further information please visit: https://www.tangoldcorp.com/
