Tanzanian Gold Corporation (TSX:TNX) (NYSE American:TRX) (TanGold
or the Company) (operating through its wholly owned subsidiary in
Tanzania) and its joint venture partner, The State Mining Company
(STAMICO), announces that it has received initial and highly
favourable metallurgical test results from the sulphide component
of the Buckreef Gold Mine (Buckreef) mineral resource.
SGS Canada Inc. (SGS) was retained to complete
initial metallurgical test work at their Lakefield facility on the
sulphide component of the mineral resource. SGS flowsheets will be
a cornerstone of the feasibility study and help prove the viability
of the project to financiers and stakeholders as Buckreef
progresses towards full operation. SGS has reviewed the information
in the press release.
The initial metallurgical test work is now
concluding. SGS has now been commissioned to undertake the
metallurgical variability phase for Buckreef.
Highlights
- Three diamond
drill core samples were taken from the fresh rock (‘sulphide’
mineral resource) of the Buckreef deposit for the purposes of
metallurgical test work. The following intercepts and gold recovery
rates were observed (see figure on the subsequent page):
- MC01:
0.54 g/t over 78.88m – 94.1%
- MC02:
19.4 g/t over 27.99m – 95.4%
- MC03:
1.71 g/t over 52.53m – 85.3%
- SGS have advised
that a flowsheet consisting of crush/grind and flotation followed
by regrinding of the rougher concentrate and cyanidation at site,
along with cyanidation of the flotation tailing is currently the
metallurgically optimal mill circuit. Dore will be produced at
site.
- Test work is
ongoing on the MC03 sample, for the purpose of improving the gold
recovery rate. The same test work can be applied to the MC01 and
MC02 samples.
- SGS have now
been commissioned to complete feasibility level metallurgical
testing that will focus on the first 5-7 years of production at
Buckreef.
Mr. Stephen Mullowney, CEO (TanGold) commented,
“the initial metallurgical results from a reputable and prestigious
organization (SGS Lakefield) have indicated that a well-known and
simple flowsheet for our large high-grade deposit and plant is most
likely. The initial recoveries are excellent, and I look forward
with confidence to the results of the variability testing."
Mr. Andrew Cheatle, COO (TanGold) added, “the
initial metallurgical recovery results are excellent and typical of
Archean shear zone type hosted gold deposits. These results also
firmly underscore our overall plan to have two plants with two
different flowsheets; one plant to treat gold bearing oxides and a
second plant to treat gold bearing sulphide or primary materials.
We look forward to continuing to work with SGS on the metallurgical
study.”
Further Details of Test
Work
In 2020, three diamond drill holes were
completed for the purposes of initial, modern era metallurgical
test work. Diamond drill hole details are tabulated below:
The Buckreef Main Metallurgy samples table can
be found
at https://www.globenewswire.com/NewsRoom/AttachmentNg/a11a04ab-4961-43a1-a73b-0ec3d0d17727
The samples were extracted as fresh drill core
samples from areas/zones with known lithologies from within the
current projects open pit limit. The samples were selected by
TanGold and confirmed by the SGS geological services group that
worked together doing the metallurgical sample selection. The
investigation included ore characterization, comminution,
mineralogy, head analyses, and potential for gold preg robbing, and
evaluated the amenability of the three samples to two primary
processing flowsheet options, that incorporate comminution
(crushing and grinding), gravity separation, flotation and
cyanidation unit operations. A high-level summary of the test work
is provided below:
- Bond ball mill
work index values were 18.3 and 18.5 in MC01 and MC02 respectively.
MC03 was slightly softer at 17.1. The hanging wall (HW) comp was at
17.1 and the foot wall (FW) was 18. All of these comminution
samples are classified as “Hard” when compared to the SGS
comminution database. All of these samples are somewhat softer than
the values indicated for Buckreef ore as seen in the historical
documentation.
- Gravity
separation testwork completed to date by SGS has indicated poor
gold recoveries, averaging just under 5%. This seems to conflict
somewhat with indications in the historical testwork records which
indicated potential gold recoveries of >30%.
- Direct cyanide
leaching of the gravity separation tailing indicated that
composites MC01 and MC02 yielded ~80% gold extraction at a grind
size of ~150 μm (P80). The softer material, MC03, yielded 72% gold
extraction at the same approximate grind size. Grinding
significantly finer, to ~75 μm (P80), resulted in 8-9% additional
gold extraction (to 88-89%) from MC01 and MC02 material. MC03 gold
extraction increased to 79% with the same reduction in leach feed
size. Tests were run over 48 hours and gold extraction had
more-or-less ceased after 24 hours, with only minor additional gold
extraction up to 48 hours retention time.
- Rougher
flotation tests were conducted on gravity tailing at grind size
P80’s of ~150, ~120 and ~90 μm. Mass pulls of ~13-20% were
observed. Sulphide recovery was very stable (97-98%) and showed no
impact from coarser/finer grinding. Gold recoveries improved only
slightly, in MC01 and MC02 tests, with finer grinding, from
~87-90%. MC03 gold recovery remained rather stable at ~90% across
the feed size test series.
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. Measured Mineral Resource now stands at 19.98MT
at 1.99g/t gold containing 1,281,161 ounces of gold and Indicated
Mineral Resource now stand at 15.89MT at 1.48g/t gold containing
755,119 ounces of gold for a combined tonnage of 35.88MT at 1.77g/t
gold containing 2,036,280 ounces of gold. The Buckreef Project also
contains an Inferred Mineral Resource of 17.8MT at 1.11g/t gold for
contained gold of 635,540 ounces of gold. The Company is actively
investigating and assessing multiple exploration targets on its
property. Please refer to the Company’s Updated Mineral Resources
Estimate for Buckreef Gold Project, dated May 15, 2020, for more
information.
Tanzanian Gold Corporation is advancing on three
value-creation tracks:
- Strengthening its balance sheet by
expanding near-term production to 15,000 - 20,000 oz. of gold per
year from the processing of oxide material from an expanded oxide
plant.
- Advancing the Final Feasibility
Study for a stand-alone sulphide treating plant that is
substantially larger than previously modelled and targeting
significant annual gold production.
- Continuing with a drilling program
to further test the potential of its property, Exploration Targets
and Mineral Resource base by: (i) identifying new prospects; (ii)
drilling new oxide/sulphide targets; (iii) infill drilling to
upgrade Mineral Resources currently in the Inferred category; and
(iv) a step-out drilling program in the Northeast Extension.
Andrew M. Cheatle, P.Geo. is the Company’s
Qualified Person as defined by the NI 43-101 who has verified the
data disclosed in this news release and has otherwise reviewed and
assumes responsibility for the technical content of this press
release.
About SGS
SGS is the world’s leading inspection,
verification, testing and certification company. They are
recognized as the global benchmark for quality and integrity. With
more than 89,000 employees, SGS operates a network of more than
2,600 offices and laboratories around the world. Bankable
flowsheets help prove the viability of a gold mining project to
financers and stakeholders. SGS has, in this regard, earned a
global reputation as a proven leader in the development of
transparent, bankable flowsheets for a wide range of mineral and
metal extraction operations.
For further information, please contact Michael Martin, Investor
Relations, m.martin@tangoldcorp.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
Forward-Looking StatementsThis
press release contains certain forward-looking statements as
defined in the applicable securities laws. All statements, other
than statements of historical facts, are forward-looking
statements. Forward-looking statements are frequently, but not
always, identified by words such as “expects”, “anticipates”,
“believes”, “hopes”, “intends”, “estimated”, “potential”,
“possible” and similar expressions, or statements that events,
conditions or results “will”, “may”, “could” or “should” occur or
be achieved. Forward-looking statements relate to future events or
future performance and reflect Tanzanian Gold management’s
expectations or beliefs regarding future events and include, but
are not limited to, statements with respect to the estimation of
mineral reserves and resources, recoveries, subsequent project
testing, success and viability of mining operations, the timing and
amount of estimated future production, and capital expenditure.
Although TanGold believes the expectations
expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of
future performance. The actual achievements of TanGold or other
future events or conditions may differ materially from those
reflected in the forward-looking statements due to a variety of
risks, uncertainties and other factors. These risks,
uncertainties and factors include general business, legal,
economic, competitive, political, regulatory and social
uncertainties; actual results of exploration activities and
economic evaluations; fluctuations in currency exchange rates;
changes in costs; future prices of gold and other minerals; mining
method, production profile and mine plan; delays in exploration,
development and construction activities; changes in government
legislation and regulation; the ability to obtain financing on
acceptable terms and in a timely manner or at all; contests over
title to properties; employee relations and shortages of skilled
personnel and contractors; the speculative nature of, and the risks
involved in, the exploration, development and mining business.
These risks are set forth under Item 3.D in Tanzanian Gold’s Form
20-F for the year ended August 31, 2020, as amended, as filed with
the SEC.
The information contained in this press release
is as of the date of the press release and TanGold assumes not duty
to update such information.
Note to U.S. Investors
US investors are advised that the mineral
resource and mineral reserve estimated disclosed in this press
release have been calculated pursuant to Canadian standards which
use terminology consistent with the requirements CRIRSCO reporting
standards. For its fiscal year ending August 31, 2021, and
thereafter, the Company will follow new SEC regulations which uses
a CRIRSCO based template for mineral resources and mineral
reserves, that includes definitions for inferred, indicated, and
measured mineral resources.
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