Tanzanian Gold Enhances and Expands its Relationship with Tanzania to Advance the Buckreef Gold Project
January 08 2021 - 12:05AM
Tanzanian Gold Corporation (TSX:TNX) (NYSE American:TRX) (TanGold
or the Company) announces that TanGold (operating through its
wholly owned subsidiary in Tanzania) and its joint venture partner,
The State Mining Company (STAMICO), have worked together to submit
an updated mine plan for the Buckreef Gold Project (Buckreef or the
Project) to the Mining Commission in Tanzania. STAMICO, which is
100% owned by the United Republic of Tanzania (the Government),
owns a 45% non-dilutable equity interest in Buckreef Gold Company
Limited, which wholly-owns the Project.
Changing circumstances necessitated an updated
mine plan, including reviewing the mining license area to
accommodate artisanal mining on certain concessions, and the
separation of the oxide and sulphide mine processing plants for
metallurgical considerations. As part of the submission to the
Mining Commission, Buckreef intends to relinquish certain
concessions since this has no impact on the Buckreef concession and
Mineral Resources (2.04 million ozs), as reported in the Company’s
press release dated June 24, 2020. The updated mine plan, once
approved, will replace the mine plan submitted to the Mining
Commission in 2017 as part of the renewal of Buckreef’s Special
Mining License. An update of a mine plan is a normal procedure
under the provisions of the Tanzanian mining laws.
The Company has also reviewed the Buckreef Joint
Venture Agreement (the “JV Agreement”) with STAMICO to bring its
terms in line with recent changes in the Tanzanian mining laws and
to modernize the working arrangement between the parties (the
original JV Agreement was entered into in 2011). The parties have
identified and agreed to amendments to the JV Agreement, which have
now been submitted to the relevant Government authorities for
further processes. The amendments are subject to the obtaining of
necessary Government approvals and the finalization of relevant
legal documentation. One provision in the new mining laws, which
provides for the Government to receive a free carried interest in
mining projects, does not directly address the situation where the
Government already has a significant interest in the mining
project, such as in the case of Buckreef where the Government,
through STAMICO, has a 45% non-dilutable equity interest in the
Project. TanGold is in consultations with the Government regarding
how best to address this nuanced issue given the Government’s
significant interest already held in Buckreef through STAMICO.
Mr. James Sinclair, Executive Chairman
(TanGold), commented, “I have been involved in Tanzania for over 30
years. From the beginning, I have always felt that the development
of a mining project requires a close working relationship and
sharing of economic benefits with all stakeholders, including local
communities, country citizens, partners and our shareholders. We
have always adhered to and support local laws related to
procurement, employment, the environment and non-corruption. This
is why we agreed to a significant shareholding for our
government-owned partner when we entered into the Buckreef joint
venture. We will always strive to support and assist Tanzania to
meet its objectives, particularly with regard to the development of
the local mining industry, local communities, and national
development, including the important artisanal mining
industry.”
Mr. Stephen Mullowney, Chief Executive Officer
(TanGold), commented, “This is an important step forward in the
development of Buckreef. I would like to commend the TanGold,
Buckreef and STAMICO teams on modernizing our relationship. I very
much look forward to working with STAMICO to move the Project
forward to reach its full potential.”
The Company continues to advance the Buckreef
Feasibility Study. SGS Lakefield is in the process of completing
its initial metallurgical test work. Terrane Geoscience is well
advanced in completing a geotechnical study, which will be crucial
in determining pit slopes. The Company has also advanced internal
pit modelling. In addition, the Phase III exploration program is
ongoing, and the Company will provide an update on the results of
both the Phase III exploration program and various components of
the Buckreef Feasibility Study when they are completed.
About Tanzanian Gold
Corporation
Tanzanian Gold Corporation along with its joint
venture partner, STAMICO is building a significant gold project at
Buckreef in Tanzania that is based on an expanded Mineral Resource
base and the treatment of its mineable Mineral Reserves in two
standalone plants. An ongoing drill program has, to date, more than
doubled the size of Measured and Indicated Mineral Resources to
include 2.04 million ounces of gold. Exploration Targets determined
in accordance with NI 43-101 standards have the potential to add up
to another 2.0 million ounces of gold (see press release dated June
24, 2020). The Company commenced initial test production from oxide
ore in June 2020 at an oxide test plant and is now anticipating
government approval for an expanded (oxide) plant.
Tanzanian Gold Corporation is advancing on three
value-creation tracks:
- Strengthening its balance sheet
from expanding near-term production to 15,000 - 20,000 oz. of gold
per year from the processing oxides upon approval of an expanded
oxide plant;
- Advancing the Final Feasibility
Study for a stand-alone sulphide treating plant that is
substantially larger than previously modelled, targeting annual
gold production of 150,000 to 175,000 oz.; and
- Continuing with a drilling program
to further test the potential of its Mineral Resource base by: (i)
drilling at deeper levels; (ii) drilling new oxide targets; (iii)
infill drilling to upgrade Mineral Resources currently in the
Inferred category; and (iv) a step-out drilling program in the
Northeast Extension.
Respectfully Submitted,
James E. SinclairExecutive Chairman &
Stephen R. MullowneyCEOFor further information, please contact
Michael Martin, Investor Relations, m.martin@tangoldcorp.com.com,
860-248-0999, or visit the Company website at
www.tangoldcorp.com
The Toronto Stock Exchange and NYSE American
have not reviewed and do not accept responsibility for the adequacy
or accuracy of this release.
U.S. Investors are urged to consider closely the
disclosure in our SEC filings. You can review and obtain copies of
these filings from the SEC's website at
http://www.sec.gov/edgar.shtml
This news release contains certain
forward-looking statements and forward-looking information. All
statements, other than statements of historical fact, included
herein are forward-looking statements and forward-looking
information that involve various risks and uncertainties. There can
be no assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause
actual results to differ materially from the Company's expectations
are disclosed in the Company's documents filed from time-to-time
with the British Columbia, Alberta and Ontario provincial
securities regulatory authorities.
Certain information presented in this release
may constitute “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements, include, but are not limited to, that
Buckreef’s updated mine plan and amendments to the JV Agreement
will be approved, and are based on numerous assumptions, and
involve known and unknown risks, uncertainties and other factors,
including risks inherent in mineral exploration and development,
which may cause the actual results, performance, or achievements of
the Company to be materially different from any projected future
results, performance, or achievements expressed or implied by such
forward-looking statements. Investors are referred to our
description of the risk factors affecting the Company, as contained
in our SEC filings, including our annual report on Form 20-F and
Form 6-K, for more information concerning these risks,
uncertainties, and other factors.
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