TRX Gold (TSX:TNX, NYSE-A:TRX) said it expects to double throughput to 2,000 tons per day and increase production at the Buckreef gold project as it nears completion of the plant expansion at the site.
The company said the expansion is progressing on time, with first gold expected in June 2024.
Following the completion of the expansion, TRX Gold (TSX:TNX, NYSE-A:TRX) said it expects to be well-positioned to transition to a more cash flow generative phase in the last quarter of fiscal 2024 and into fiscal 2025.
As part of the initial phase of the plant expansion, the company said it has completed construction of the new crushing circuit which is undergoing wet commissioning.
During the commissioning phase, the crushing circuit has achieved 1,800 tons per day and is ramping up to final commissioning where it is expected to produce a finely crushed ore ‘product’ suitable for the existing and future ball mills.
Meanwhile, during Q2 the company poured 4,067 ounces of gold and sold 3,951 ounces of gold at an average realized price of $2,026 per ounce.
Revenue was $8 million and profit was $1.9 million. The company exited the quarter with about $8 million in cash.
“We knew Q2 2024 was going to be a challenging quarter, as our existing, smaller crushing system was at its limit for crushing sulphide material, and consequently, the crushed product entering the mill was inconsistent and much too large,” commented TRX Gold (TSX:TNX, NYSE-A:TRX) CEO Stephen Mullowney.
“This led to an increase in mill downtime and a longer period to mill the ore, thus lowering throughput rates. The new expanded crushing circuit directly addresses these issues.”
He added that in March 2024, the company has already begun to see the benefits of the new crushing system, with significantly higher mill utilization and throughput rates.
Following Q2, between March 1 and April 9, the company produced 2,302 ounces of gold.
“We expect further improvements when the tertiary cone crushers come online later this month,” he said.
The CEO highlighted that the Buckreef Gold project "continues to demonstrate robust economics through its high-margin gold production, in what seems to be an increasingly bullish gold market environment."
“We very much look forward to doubling plant throughput capacity to 2,000 tons per day and ramping up a comprehensive exploration program later this year,” Mullowney said.
The company intends to conduct diamond drilling and reverse circulation drilling which includes brownfield drilling at the Buckreef Main Zone (NE and SW), Eastern Porphyry, and greenfield drilling at Anfield starting in Q4 2024.