Name of the Project
Buckreef gold project.

Location
In the Geita district of the Lake Victoria greenstone belt, in central Tanzania.

Project Owner/s
Tanzanian Gold Corporation and its joint venture (JV) partner State Mining Company (Stamico).

Stamico, which is 100%-owned by the Tanzania government, owns a 45% nondilutable equity interest in Buckreef Gold Company, which wholly owns the project.

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.

Ore material will be mined from the four openpits and then sent for processing to 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 (LoM), 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 been granted an extension for the renewal date of the special mining licence (SML) over its Buckreef gold project.

The company has received a certificate for renewal of the SML from the Mining Commission, a division of the Ministry of Minerals of Tanzania.

The SML renewal period for Buckreef has now been extended by an additional five years, from 2027 to 2032.

Under the Tanzanian Mining Act, an SML confers on the holder the exclusive right to conduct mining operations and prospect within the SML for minerals as specified in the licence.

The duration of the SML covers the estimated LoM, with specified renewals over that period.

The company expects that the LoM will extend significantly beyond 2032 and, therefore, the SML will be renewed before the renewal date, in accordance with the requirements under the Tanzanian Mining Act.

Key Contracts, Suppliers and Consultants
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.