TRX Gold Corporation (TSX:TNX, NYSE-A:TRX) has revealed promising results from bulk sample testing at its Buckreef Gold mine in Tanzania, and also reaffirmed its full-year production estimate and previewed its Q3 production results.
The company said it successfully processed over 6,500 tonnes of sulphide ore through its existing milling facility at Buckreef, achieving an indicative gold recovery rate of 88.7%.
It noted that this development is particularly significant as the majority of the mine's gold mineral resource, accounting for over 2 million ounces, is held in sulphide material. The successful processing of sulphide ore opens up significant economic potential for the project, reducing the need for additional capital expenditure on plant expansions.
In a statement, TRX Gold CEO Stephen Mullowney commented: "The results from this bulk sample demonstrate that we can process sulphide material through our existing processing plant, which has been successfully processing oxide material for close to 24 months.
"We are excited at the optionality this creates for near-term mine planning and the positive impact these results will have on project economics for future plant expansions, as we have been able to construct plants very cost effectively compared to other plants elsewhere."
In addition to the bulk sample test, TRX Gold recently upgraded the Buckreef crushing system, which contributed to the successful recovery rates achieved. The company is also actively refining the existing circuit to enhance both gold recovery and throughput. An ongoing 18-hole metallurgical study by SGS (South Africa) will provide further insights and identify potential improvements to the flowsheet.
Alongside the operational update, TRX Gold previewed its preliminary Q3 2023 financial results, with reported production of 4,764 ounces of gold and sales of 4,810 ounces of gold for the period from March to May 2023.
The company reaffirmed its full-year production estimate of 20,000 to 25,000 ounces of gold for fiscal 2023, maintaining the previous estimate released in November 2022.
TRX Gold said it will provide a comprehensive analysis of its Q3 2023 production and sales in July 2023 when it releases its quarterly results. The average market price for gold during Q3 2023 was approximately $1,963 per ounce.
TRX Gold is dedicated to advancing the Buckreef Gold Project, with a focus on generating both short-term and long-term shareholder value through increased gold production and positive cash flow.
Contact the author at jon.hopkins@proactiveinvestors.com