TRX Gold (NYSEAMERICAN:TRX) is advancing a fourth expansion at its Buckreef Gold Project in Tanzania, with Chief Financial Officer Michael Leonard saying the company expects to operate a combined 5,500-tonne-per-day milling configuration as it updates its mine plan and preliminary economic assessment.
Speaking during a presentation hosted by Very Independent Research Founder John Tumazos, Leonard said Buckreef is an operating open-pit gold mine with a measured and indicated resource of approximately 1.6 million ounces at about 2.5 grams per tonne. The company produced nearly 28,000 ounces over the past 12 months, generating almost $115 million in revenue and more than $66 million in EBITDA, according to Leonard.
Expansion Program and Updated Study
Leonard said the SAG mill is intended to better process Buckreef’s harder sulfide material. About 80% of the company’s 1.6-million-ounce resource is sulfide material and approximately 20% is oxide material, he said. Buckreef uses a conventional crush, grind and carbon-in-leach processing circuit and does not require pressure oxidation or bioleaching, Leonard added.
The company’s preliminary economic assessment, published in May 2025, outlined an 18-year mine life, average annual production of roughly 62,000 ounces, and a pre-tax net present value of about $1.9 billion at a gold price of $4,000 per ounce. That assessment was based on a 3,000-tonne-per-day processing plant, Leonard said.
TRX Gold is now preparing an updated PEA incorporating the larger planned milling configuration and a revised mine plan. Leonard said the company is targeting completion by the end of the calendar year, though publication could extend into early next year. He said the revised plan may extend open-pit mining to about five years, compared with three years in the previous study, before underground development begins.
The prior PEA identified approximately $90 million of growth capital over four to five years, including about $30 million for plant expansion and roughly $60 million for underground development. Leonard said the company believes operating cash flow can fund those requirements.
Exploration and Resource Growth
Leonard highlighted exploration as a potential source of future resource growth. TRX Gold holds a 16-square-kilometer land package, while its drill-hole database contains roughly 125,000 to 130,000 meters of drilling, he said.
The existing resource is concentrated in the Main Zone, while the company has identified parallel shear zones and satellite targets. Leonard cited the Anfield Zone, located about 500 meters east of the Main Zone, as one target for additional drilling. Historical artisanal workings in that area produced grab samples exceeding 28 grams per tonne, he said, while cautioning that the company must complete drilling before drawing conclusions about the zone’s resource potential.
TRX Gold also plans further work at the Stamford Bridge Zone, a newly identified shear zone that Leonard said may connect the Main Zone with prospective deposits to the east. The company reported its best drill-hole results in Buckreef’s history from the zone last year, according to Leonard, though the area was not included in the prior PEA.
During the question-and-answer session, Leonard said assays from drilling across 10 geophysical target areas were expected the following week. He described the targets as favorable anomalies identified through a geophysical survey.
Joint Venture Discussions and Balance Sheet
Buckreef is operated through a 55/45 joint venture with Tanzania’s State Mining Company, Leonard said. He said Chief Executive Officer Stephen Mullowney was meeting with government representatives regarding the terms of the current joint venture.
Leonard said the company is seeking a structure broadly consistent with a framework used by other mining companies in Tanzania, describing the objective as a 50/50 economic sharing arrangement. He said TRX Gold did not expect to “get a haircut” in the discussions but did not provide a timetable for a potential resolution.
Leonard also said the company had approximately $27 million in cash, no debt, and more than 300 million shares outstanding. TRX Gold has access to a $25 million at-the-market program, a Tanzanian bank credit facility, and a gold prepayment facility, he said, though management expects to fund growth primarily through operating cash flow.
About TRX Gold (NYSEAMERICAN:TRX)
TRX Gold Corporation is a Canadian-based gold exploration, development and production company focused on the Buckreef Gold Project in north-central Tanzania. The company’s common shares trade on the NYSE American under the symbol TRX and on the Toronto Stock Exchange under the symbol TNX.
Buckreef Gold is the company’s principal asset and includes open-pit mining and ore-processing operations, along with significant exploration and development potential. TRX Gold produces gold doré and continues to invest in expanding processing capacity, improving operations and evaluating additional mineral resources across the project area.
The Buckreef project is operated through a joint venture with Tanzania’s State Mining Corporation, giving TRX Gold a long-term operating presence in Tanzania.
