Tanzanian Gold Corp has reached commercial level gold production at the oxide ore processing plant of the Buckreef Project in Tanzania. First bucket at the oxide open pit was on April 6, 2020, and since then oxide ore has been stockpiled at a ROM pad.
Construction of the plant ended on May 28, 2020, following which the plant successfully completed both cold and hot commissioning and has now reached commercial production and is being operated 24/7 under two 12-hour operating shifts per day.
A public tender for an increase in the treatment capacity of the oxide gold processing plant was recently completed. The company is planning to start construction to increase the processing capacity of the oxide plant capacity by approximately 200% in the fourth quarter of this year.
Executive chairman James Sinclair said: "I am delighted that we have achieved this important milestone in our gold production growth plan.
"We are now well positioned to increase the production of gold significantly; and to accelerate our final feasibility on bringing a second, much larger plant on-line to produce more gold from processing the sulphide ore."
Tanzanian Gold is building a world-class gold mine at the Buckreef Project. An ongoing drill program has, to date, more than doubled the size of measured and indicated resources to 2.036 million ounces. NI 43-101 compliant exploration mining targets have the potential to add up to another 2 million ounces.
The company recently engaged PricewaterhouseCoopers Corporate Finance Inc (PwCCF) to assist in securing project financing for the construction of two gold mining projects at Buckreef.
In the last 10 years, PwCCF provided financial advice on over 4,000 transactions globally and in 2019, was ranked first by deal count by Mergermarket with over 569 deals completed.
Sinclair said: "We have engaged a very talented international finance team with a world recognised ability to help us bring our two gold mining projects at Buckreef into production.
"The PwCCF team has worked for several months conducting extensive due diligence and we look forward to working with them during this exciting period."
PwCCF's managing director of corporate finance Stephen Mullowney said: "We are pleased to be working with Tanzanian Gold to arrange project mining financing of two gold mining operations. Buckreef is uniquely positioned with a significant high-grade resource of +2.0 million ounces of gold, with a shovel ready oxide project and a sulphide project fast-tracking through a Bankable Feasibility Study."