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
Construction of the plant ended on May 28, 2020.

Latest Developments
Tanzanian Gold has reached commercial production at the oxide ore processing plant at its Buckreef project.

The plant is being operated in two 12-hour shifts a day.

Since April 6, when the company had its first bucket at the oxide openpit, the oxide ore has been stockpiled at a run-of-mine pad.

The plant has now been successfully completed on cold and hot commissioning.

Additionally, a public tender for an increase in the treatment capacity of the oxide gold processing plant was recently completed. Tanzanian Gold now plans to start construction to increase the processing capacity of the oxide plant by about 200% in the fourth quarter of 2020.

Executive chairperson James Sinclair has said that Tanzanian Gold is “now well positioned to increase the production of gold significantly”, and to accelerate its final feasibility by bringing a second, much larger plant on line to produce more gold from processing the sulphide ore.

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

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