TRX Gold (TSX:TNX, NYSE-A:TRX) Corporation has welcomed the positive findings of its 19-hole metallurgical variability sampling program at the Buckreef Gold Main Zone at its mine of the same name in Tanzania.
The miner said the results continued to show the continuity of mineralization down-dip and along strike of the deposit, along with "excellent" widths and grades.
"The continuity of gold mineralization in the Main Zone is clearly demonstrated by these metallurgical drill hole results - there is a great mine here!" said Stephen Mullowney, the CEO of TRX in a statement.
Highlight results included 28 metres (m) grading 10.68 grams per ton (g/t) gold from 0m in one hole, and 106.0m at a grade of 4.19 g/t of the precious metal from 85m depth in another.
"We have demonstrated over the past year our ability to mine and build an ore processing plant that is operating at 1,000+ tpd with 90% gold recoveries," continued Mullowney.
READ: TRX Gold ends fiscal year 2022 with $15.1M in revenue; Buckreef Gold sets a record by pouring 3,619 ounces of gold in 4Q
"Our next phase will focus on a simple gold recovery circuit for the broader project―the 2.0 million plus ounce Measured and Indicated Mineral Resource, and 0.6 million ounce Inferred Mineral Resource.
"These assay results provide Buckreef with excellent samples for broader deposit metallurgical testing as continuity is critical for a successful gold mining business," he added.
"If the metallurgical variability study confirms that we can utilize the current straightforward flowsheet and existing processing plants for further expansions, we would really be off to the races!"
These metallurgical holes at Buckreef Gold were designed to intersect gold mineralization lying between the current oxide ore mining and the deeper preliminary metallurgical drill holes in the sulphide deposit, which were reported last year.
According to a May, 2020 resource, the project currently hosts an NI 43-101 measured and indicated (M&I) resource of 35.88 million tonnes (MT) at 1.77 g/t gold containing 2,036,280 oz of gold and an inferred of 17.8 MT at 1.11g/t gold for 635,540 oz of the yellow metal.
The company wants to increase gold production to generate positive cash flow, which in turn, will be used for exploratory drilling in a bid to increase the current gold resource and advance the sulphide ore project, which represents 90% of current gold resources.
Contact the writer at giles@proactiveinvestors.com