Buckreef Gold Commences Commissioning Of Expanded Processing Plant

TORONTO - Tanzanian Gold Corporation reported on Buckreef Gold Company Limited’s processing plant and the commencement of the commissioning phase of the new expanded processing plant by 360 tonnes per day (tpd). The Company and Buckreef Gold continue to advance the previously disclosed 1,000+ tpd operation. Buckreef Gold completed construction of the 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% gold recovery rate. The existing 120 tpd processing plant has been integrated into the new processing plant circuit.

The new expanded processing plant construction was completed in line with the scheduled completion date and within project capital expenditures guidance of US$1.3-1.6 million. This includes completion of all major construction activities associated with the processing plant expansion, including the ongoing execution of dry, cold and hot commissioning performance tests.

Stephen Mullowney, Chief Executive Officer, said, “The dedication and hard work of the Buckreef Gold and TanGold teams in the construction of the 360 tpd processing plant expansion is a very exciting milestone. The increased processing capacity is expected to allow us to advance the mine plan and increase near-term production in a cost-effective and efficient manner. The increased anticipated cash flow from the new larger plant will enable us to speed up the advancement of Buckreef Gold, including exploration at the Buckreef Main Zone, Buckreef West and Anfield Zone.”

Buckreef Gold will continue with plans to advance a 1,000+ tpd operation while simultaneously operating the 360 tpd operation. 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.