TRX Gold Corporation (Company or TRX Gold) has reported the arrival of a new 1,000-tonne-per-day (tpd) capacity ball mill at the Buckreef Gold Project, known as “Buckreef Gold.”
The new 1,000 tpd ball mill arriving at Buckreef Gold. Image Credit: TRX Gold Corporation
In recent months, the on-site technical teams have initiated preparatory activities in anticipation of receiving critical equipment for this mill expansion. With the objective of achieving commercial production in the latter half of fiscal 2024, TRX Gold's management team remains firmly on schedule and within the allocated budget for their third mill expansion in a 24-month timeframe.
Mill Expansion Highlights
- Significant increase in gold production: The upcoming mill expansion is anticipated to boost the processing capacity from 1,000 tpd to 2,000 tpd. On an annual basis, this increase will elevate ore throughput from 75% to 100%. This near doubling of milling capacity is poised to empower Buckreef Gold to surpass the Company's earlier fiscal 2023 annual gold production estimate of 20,000-25,000 ounces.
- Expansion is fully funded: The projected capital expenditures for the expanded processing plant, which will exceed 2,000 tpd, are estimated at approximately US$6.0 million. Funding for this mill expansion is expected to come from a combination of existing cash reserves, operational cash flow, ore stockpiles, forward gold sales, and potential bank financing.
Buckreef Gold is presently engaged in advanced negotiations with Tanzanian banks, exploring options for both operating and term loan facilities. The management team's adept capital management skills are evident as they internally finance growth initiatives in a market characterized by a high cost of capital.
- A proven milling process: The newly expanded mill will handle both oxide and sulfide ore extracted from the Buckreef Gold deposit. As detailed in the June 15th, 2023, press release, after conducting a bulk sample test using 6,500 tonnes of sulfide ore and continuous processing of sulfide ore from ongoing operations, the deposit's metallurgical characteristics support a streamlined milling process involving crushing, grinding, and carbon in leach, ensuring operational flexibility and favorable mine planning.
As part of the mill expansion, improvements will be made to the crushing circuit to enhance the efficiency of sulfide ore processing.
- Locally built: The majority of the labor force, materials, and equipment engaged in this third expansion are sourced locally, providing significant advantages to regional communities and economies. This approach strengthens the local supply chain and helps prevent delays and cost overruns.
We are very pleased with the on-time arrival of the new ball mill at Buckreef Gold. Other long-lead items have also been ordered and we will be focused on getting the 2,000 tpd operation online as soon as possible so that we can reap the benefits of increased gold production. The market can expect updated production guidance as this expansion approaches commercial operation.
Stephen Mullowney, Chief Executive Officer, TRX Gold Corporation