TRX Gold
Declares Commercial Production of 1,000+ TPD Processing
Plant
TORONTO, Ontario, November 16, 2022
- TRX Gold Corporation (TSX:TNX)
(NYSE American:TRX)
(the "Company" or "TRX Gold") is pleased to report the declaration
of commercial production of the 1,000+ tonne per day ("tpd")
processing plant at the Buckreef Gold Mine ("Buckreef Gold"),
effective November 2022.
The declaration of commercial
production for the 1,000+ tpd processing plant at Buckreef Gold in
Tanzania is made after successful construction, commissioning and
ramp-up of processing to a steady state throughput of 1,000+ tpd.
The processing plant has now been running consistently at or above
nameplate capacity since October 2022 with gold recoveries
exceeding 90%. All major construction activities have been
completed and Buckreef Gold has demonstrated its ability to sustain
ongoing production levels. The mine will continue to seek
opportunities to improve efficiencies and increase throughput with
the goal of exceeding design nameplate capacities.
Highlights include:
-
Construction, commissioning and
ramp-up of the 1,000+ tpd processing facility was completed on
schedule and to budget;
-
Throughout construction, safety has
been a top priority for the Company. Site management, along with
the whole workforce are thanked for making safety their priority,
and for achieving this key milestone 'Lost Time Injury
free';
-
Gold production in October exceeded
budget with 2,200 ounces of gold poured during the month (22% above
plan); and
-
Gold recoveries in October exceeded
budget and were 91.1% (against a plan of 90%).
"The Board, Executive Management
and I are very excited to have reached this remarkable milestone in
the Company's history," noted Stephen Mullowney, CEO. "During the
last 12 months, the Buckreef Gold team have delivered excellence in
safety and built not only a great 1,000+ tpd processing plant, but
also a track record for achievement - this is the second successful
build during this period. While we celebrate this goal, we are also
ready to advance the growth of the business with improvement
initiatives, exploration and ever-increasing
production.
TRX Gold and Buckreef Gold are
currently evaluating a potential further near-term expansion of the
processing plant. Let's keep growing!"
Qualified
Person
Mr. Andrew Mark Cheatle, P.Geo.,
MBA, ARSM, is the Company's Qualified Person under National
Instrument 43-101 "Standards of Disclosure for Mineral Projects"
("NI 43-101") and has reviewed and assumes responsibility for the
scientific and technical content in this press release.
About TRX Gold
Corporation
TRX Gold is rapidly advancing the
Buckreef Gold Project. Anchored by a Mineral Resource published in
May 2020, the project currently hosts an NI 43-101 Measured and
Indicated Mineral Resource of 35.88 MT at 1.77 g/t gold containing
2,036,280 ounces of gold and an Inferred Mineral Resource of 17.8
MT at 1.11 g/t gold for 635,540 ounces of gold. The leadership team
is focused on creating both near-term and long-term shareholder
value by increasing gold production to generate positive cash flow.
The positive cash flow will be utilized for exploratory drilling
with the goal of increasing the current gold Resource base and
advancing the Sulphide Ore Project which represents 90% of current
gold Resources. TRX Gold's actions are led by the highest ESG
standards, evidenced by the relationships and programs that the
Company has developed during its nearly two decades of presence in
Geita Region, Tanzania.
Forward-Looking Statements
This press
release contains certain forward-looking statements as defined in
the applicable securities laws. All statements, other than
statements of historical facts, are forward-looking statements.
Forward-looking statements are frequently, but not always,
identified by words such as "expects", "anticipates", "believes",
"hopes", "intends", "estimated", "potential", "possible" and
similar expressions, or statements that events, conditions or
results "will", "may", "could" or "should" occur or be achieved.
Forward-looking statements relate to future events or future
performance and reflect TRX Gold management's expectations or
beliefs regarding future events and include, but are not limited
to, statements with respect to positive cash flow, operations of
its processing plant and gold recoveries thereunder, estimation of
mineral resources, ability to develop value creating activities,
recoveries, subsequent project testing, success, scope and
viability of mining operations, the timing and amount of estimated
future production, and capital expenditure.
Although TRX
Gold believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance. The actual achievements of
TRX Gold or other future events or conditions may differ materially
from those reflected in the forward-looking statements due to a
variety of risks, uncertainties and other factors. These risks,
uncertainties and factors include general business, legal,
economic, competitive, political, regulatory and social
uncertainties; actual results of exploration activities and
economic evaluations; fluctuations in currency exchange rates;
changes in costs; future prices of gold and other minerals; mining
method, production profile and mine plan; delays in exploration,
development and construction activities; changes in government
legislation and regulation; the ability to obtain financing on
acceptable terms and in a timely manner or at all; contests over
title to properties; employee relations and shortages of skilled
personnel and contractors; the speculative nature of, and the risks
involved in, the exploration, development and mining business.
These risks are set forth in reports that TRX Gold files with the
SEC. You can review and obtain copies of these filings from the
SEC's website at http://www.sec.gov/edgar.shtml
.
The information
contained in this press release is as of the date of the press
release and TRX Gold assumes no duty to update such
information.
Investors
Christina Lalli
Vice President, Investor
Relations
TRX Gold Corporation
+1-438-399-8665
c.lalli@TRXgold.com
www.TRXgold.com