TRX Gold (TSX:TNX, NYSE-A:TRX) Corporation has taken delivery of a new 1,000 tonne per day ball mill at the Buckreef project in Tanzania.
The delivery represents the latest stage in a series of planned expansions to production capacity.
Commercial production from the new mill is expected in the second half of fiscal 2024.
The new mill is expected to increase processing capacity from 1,000 tonnes per day to 2,000 tpd.
The near doubling of milling capacity is expected to enable Buckreef gold to increase gold production beyond the company’s fiscal 2023 annual guidance of 20,000-25,000 ounces of gold.
The cost of the expansion is seen at approximately US$6mln and will be funded from a combination of existing cash resources, cash flow from operations, ore stockpiles, gold forward sales, and bank financing.
Advanced discussions with Tanzanian banks for both operating and term loan facilities are currently underway.
The newly expanded mill is expected to process both oxide and sulphide ore from the Buckreef gold deposit.
“We are very pleased with the on-time arrival of the new ball mill at Buckreef Gold,” said Stephen Mullowney, TRX’s chief executive.
“Other long-lead items have also been ordered and we will be focused on getting the 2,000 tpd operation online as soon as possible so that we can reap the benefits of increased gold production. The market can expect updated production guidance as this expansion approaches commercial operation.”