Tanzanian Gold Corporation has provided the Buckreef Project update, as well as the results for its fiscal year that ended August 31st, 2019.
Tanzanian Gold is implementing its plan to commence gold production at the Buckreef Project. The Company will start with the mining and processing of high-grade oxide reserves at or near the surface at the location of the open pit described in the 43-101 Pre-Feasibility Study. An oxide open pit and a monthly production plan have been fixed.
Tanzanian Gold hopes to begin a grade control drilling program on this oxide open pit in the following week. SGS/Bateman from South Africa will be visiting the site to decide on a design for a 15-tph plant for oxide reserves processing. Bid requests have been published looking for Expressions of Interest for mining of the oxide open pit as well as the construction of the oxide treatment plant.
At the end of January 2020, it is expected that the winning mining contractor will be mobilizing to the site to commence mining. The extracted material will be incorporated into a current ore and waste stockpiles until the plant construction is finished. The focus of Tanzanian Gold on completing Phase II drilling and the technical development program at the Buckreef Project continues.
Tanzanian Gold has finished its resource-geology model, while samples have been gathered and transported to Queens SGS Canada for rock strength testing.
Subsequently, SGS Canada will perform a conceptual design of an underground stope. A review of past metallurgical testing is nearly complete, which will result in the drilling of holes for new samples to carry out variability testing. A program for Phase III drilling in the ultra-deep is being finalized and will be started upon completion of the Phase II drilling program.
As disclosed earlier, it is Tanzanian Gold’s plan to conduct a Conceptual Study that adds all the latest drilling results from the 2019 drill program, as well as the data obtained from the metallurgical and rock stress tests.
The basis for this Conceptual Study is a larger open pit rather than the Pre-Feasibility Study and an underground mine that can get to the resources under the pit bottom. This study will help the company to establish the main parameters of a Final Feasibility Study of the Buckreef Mine.
August 31st, 2019 Year-End Results
For the year ending August 31st, 2019, Tanzanian Gold suffered a net loss of Cdn$29,318,000, or Cdn$0.22 per common share, as compared to a net loss of Cdn$6,897,000 or Cdn$0.06 per common share for the year ending August 31st, 2018. On account of Tanzanian Gold’s continued strategic decision to concentrate on the Buckreef Mine, the company continues to position its other properties in the care and maintenance phase.
Complying with IFRS accounting rules, Tanzanian Gold, therefore, decided to acknowledge a non-cash write-down of around $22,230,000 on its non-Buckreef properties. Based on the progress of the Buckreef Mine, financing, and market conditions, the Company plans to pursue the development of these non-Buckreef properties in the months ahead.