TRX Gold Corporation (TSX:TNX, NYSE-A:TRX) has announced that a 1,000 tonne per day (tpd) capacity ball mill has been ordered for the company’s Buckreef Gold Project.
As previously disclosed, TRX Gold is committed to a short-term objective of increasing Buckreef Gold’s current average annual throughput of oxide ore by 75%-100%, through the addition of this new mill.
In a statement, Stephen Mullowney, TRX Gold chief executive officer commented: “We are very pleased to be making today’s announcement as we continue to prove to the market that we deliver on our objectives. A nod goes to our engineering consultants and construction and operations teams who built the current 1,000-plus tpd mill, using larger tanks and agitators, with the optionality and foresight of creating an opportunity for this short-term expansion.
"Once this project is delivered, it will be our third mill expansion at Buckreef Gold; phenomenal growth for a junior gold mining company within a 24-month period.”
READ: TRX Gold expects to increase gold production, generate cash flow and invest in exploration
The near doubling of milling capacity is expected to enable Buckreef Gold to increase gold production beyond current annual guidance of 20,000-25,000 ounces of gold. TRX Gold expects the commissioning of this project to occur early fiscal 2024, therefore benefiting gold production in the near-term. The company will provide its annual gold production guidance for full-year 2024 at a later date.
The 1,000 tpd mill has been ordered from CSI Energy Group (Tanzania) in partnership with Solo Resources Pty in South Africa, an equipment and services sector expert with over 30 years of experience in the sale, design, installation and commissioning of metallurgical processing equipment for various applications.
The mill will have dimensions of 3,200 millimetres (mm) diameter by 4,500 mm equivalent grinding length and a 630 kW drive motor. The ball mill is the long-lead critical item and is scheduled to be shipped within 60 days, ex-works.
Orders are in the final stages for several other major items of equipment including the crushing circuit upgrade equipment (apron feeder, vibrating grizzly and double deck screen), additional CIL inter-tank screens, and CIL agitators. Three more CIL leach tanks, with 400 cubic metres nominal capacity each, will be constructed on-site to maintain the retention time above 24 hours.
The mill expansion will occur simultaneously with the upgrade of the existing power supply, from the current 2.5 MVA to 5.0 MVA, through the addition of a second 2.5 MVA transformer on the national grid.
TRX Gold remains committed to sustainable practices and is pleased that it will be able to rely on additional capacity from the national power grid, which is mainly powered by clean hydroelectricity.
This is one of many growth projects that TRX Gold has outlined for full-year 2023, in line with its business strategy of reinvesting cash flow from operations into value-accretive activities to create shareholder value.
Anchored by a Mineral Resource published in May 2020, the Buckreef Gold Project currently hosts an NI 43-101 Measured and Indicated Mineral Resource of 35.88 million tonnes (MT) at 1.77 grams per ton (g/t) gold containing 2,036,280 ounces of gold and an Inferred Mineral Resource of 17.8 MT at 1.11g/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.
Contact the author at jon.hopkins@proactiveinvestors.com