Name of the Project
Buckreef gold project.

Location
The project is located in the Geita district, in the Lake Victoria greenstone belt, in central Tanzania.

Project Owner/s
Tanzanian Gold Corporation.

Project Description
The project has proven and probable reserves of 19-million tonnes grading  1.54 g/t of gold.

A prefeasibility study (PFS) has determined that the mineral reserves can support a 1.5-million-tonne-a-year mine for 16 years.

The ore material will be mined from the four openpits and then sent for processing at a plant at Buckreef, which is designed to achieve gold recovery of 92.3%, and 85% for the oxides and sulphides material over the life of the project.

Over the estimated life of mine, about 822 000 oz of gold are expected to be produced.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated after-tax net present value, at a 5% discount rate, of $130.96-million and an internal rate of return of 74%, with a payback of four years.

Capital Expenditure
The project’s estimated initial capital outlay for the earthmoving equipment, processing plant and related infrastructure will be $76.5-million, including a 15% contingency.

Planned Start /End Date
Not stated.

Latest Developments
Tanzanian Gold reports that SGS Canada Lakefield will soon start comprehensive metallurgical testing on the primary or sulphide gold mineralisation at the Buckreef gold project.

The results will be the basis for a final feasibility study.

The company believes that data points to a potential tripling of the sulphide plant's capacity to produce 150 000 oz/y to 175 000 oz/y of gold.

“[The] announcement that one of the world’s premier metallurgical facilities will be confirming a new flowsheet is a direct result of our prior announcement that the company has more than doubled its mineral resources.

"With the addition of the new sulphide plant, the Buckreef project could have two ore treatment plants producing at the same time,” Tanzanian Gold executive chairperson James Sinclair has stated.

Key Contracts and Suppliers
Virimai Projects (PFS); Coreworthy and Stamico (drilling programme); Pricewaterhouse Coopers (project finance); and SGS Canada Lakefield (metallurgical testing).

Contact Details for Project Information
Tanzanian Royalty Exploration Corporation, email investors@tanzanianroyalty.com.