In its fourth quarter report for 2021, Tanzania Gold Corporation said operating cash flow from the larger 360 tpd processing plant is anticipated to mitigate the negative operating cash flow at Buckreef Gold from the testing period of the 120 tpd test processing plant.
The report noted that anticipated cashflow generated from the larger plant will be reinvested in Buckreef Gold with a focus on: exploration and drilling; additional capital programs focused on growth and efficiencies; and enhanced corporate social responsibility programs.
Tanzania Gold Corporation’s CEO, Stephen Mullowney said in the report that Buckreef Gold will advance and construct a more than 1,000 tpd operation while simultaneously operating the 360 tpd operation.
Project capital expenditures for an expanded 1,000+ tpd processing plant are estimated to be approximately U$4.0 million with a targeted completion during the second or third quarter of 2022. Buckreef Gold has procured two additional 360 tpd ball mills (from the same manufacturer).
The two additional ball mills have been shipped and scheduled to arrive in Tanzania before the end of this year. The 1,000+ tpd operation is expected to be capable of producing 15,000 – 20,000 ounces of gold per year based on the initial mine plan and grade profile, the report stated.
The anticipated increase in cash flow from the 1,000+ processing plant will fund value enhancing activities at Buckreef Gold, which are similar to those mentioned above for the 360 tpd processing plant, including but not limited to further expansion of the exploration program in the Buckreef Main Zone, Buckreef West and the newly discovered Anfield Zone, which if successful, may expand mineral reserves and mineral resources.
“We closed 2021 on a strong note. Buckreef Gold has been repositioned to have significant exploration potential with an increasing production profile. We are enthusiastic about continually developing our ‘high return - low cost’ projects and are very excited about the drilling prospects at Anfield and Buckreef West,” said Mullowney.
He further pointed out that the 1,000+ tpd mine plan only represents approximately 10 percent of existing measured and indicated resources. “Consequently, we have considerable expansion potential, particularly in the Buckreef Main Zone ‘sulphides,’ which accounts for approximately 90 percent of our current measured and indicated mineral resources,” the TanGold CEO added.
Mullowney explained that TanGold has a safety-first, high-performance culture in which it invests in the well-being of employees and the community in which the company operates. “Along with our rejuvenated, results oriented, experienced and energetic new team, I am extremely excited for 2022,” Mullowney noted.
During October 2021, the company completed construction of a 360 tpd processing plant expansion. Buckreef Gold also continued to operate the 120 tpd processing plant subsequent to concluding the test period, which achieved a 90 percent gold recovery rate as reported in September 2021.
The existing 120 tpd processing plant has been integrated into the new processing plant circuit as a ‘regrind mill’. The new processing plant construction was completed in line with the scheduled completion date of late September/October 2021 at a capital cost of US$1.6 million, also within guidance, the report stated.