Tanzanian Gold

Website: www.tangoldcorp.com
Primary ticker: TSX:TNX, NYSE:TRX
Stage of development: Exploration, Development, Production
Commodity: Gold
Project to promote: Buckreef Gold Project
Project location: Tanzania

Live financials

Cash: CAD$4.3M
Debt: CAD$9.987M

Major shareholders:
Management Ownership – / %

Tanzanian Gold Corporation (TRX: NYSE) is building a world class gold mine at the Buckreef Project in Tanzania. An ongoing drill program along the continuously mineralized 1.2km long Buckreef Shear Zone has, to date, more than doubled the size of measured and indicated resources to 2.3 million ounces. NI 43-101 compliant exploration targets contain the potential to add another 2 million ounces to Measured, Indicated and Inferred categories. The mineralization is still open along strike and down dip.

TRX is rapidly advancing on three value-creating tracks, simultaneously:

  1. Gold production from an oxide processing plant to begin by the end of June, to operate as a stand alone plant, separately and concurrently with the larger sulphide operation. Construction of the first expansion, which will more than triple gold production, is scheduled to start in Q4 and be complete midQ2 2021
  1. The Company is accelerating completion of a final feasibility study that will be based on a larger plant to process the sulphide ores that lie under the oxides. The company has initiated metallurgical testing at Lakefield to confirm a conceptual flow sheet for the larger plant to process the sulphide ores. It is anticipated that the design criteria for this plant will be to process three times more ore than the plant that was the basis of the June 26 2018 Pre-Feasibility Study. At this rate, the Company believes that the plant could produce 150,000 to 170,000 ounces of gold per year.
  1. In order to evaluate the potential of an underground mining operation that could be phased in from ramps in the open pit to access mineralization 200m to 300m below the pit bottom the Company has completed a Level 1 stope design. In view of the encouraging results from the Level 1 study, the Company will be moving the design of to Level 2 in the near future. In parallel to this, The Company has now begun Phase III Ultra-Deep drilling. This drilling will evaluate the potential at even deeper levels. Drill holes in this program are expected to be 800 to 1200 meters in length and explore to roughly 700 meters below surface to test the down dip potential of the Buckreef Shear Zone.

Management Profile

Mr. Sinclair provides Tanzanian Gold Corporation with the strategy for its corporate growth, providing the leadership necessary for the Company to now complete an evolution from grass roots exploration, to advanced development, to significant gold producers.
Mr. Sinclair became Chairman and CEO of Tanzanian Gold Corporation (formerly Tanzanian Royalty Exploration), in April 2002.

Mr. Sinclair, a recognized precious metals expert, began his long business history with Tanzania in 1989. His Company, Sutton Resources of which he was the Chairman, was responsible for the development of the Bulyanhulu Mine, sold to Barrick in 1999 and since become one of the world’s most prominent gold mines.


What is your rationale for attending 121 Mining Investment?

To increase our profile with quality institutional investors. Exploration and development work done over the past 16 months has been transformational for Tanzanian Gold Corporation, allowing the company to present investors with a special opportunity founded o the best fundamental position the company has ever known.


What recent news would you like to highlight to investors attending?

We would highlight the last three News Releases by the company:
March 17, 2020. The company announced the results of the 2019 drilling campaign which more than doubled the estimated Mineral Resource in the Measured + Indicated categories for the Buckreef Shear Zone to 2.3 million contained ounces of gold.
April 9, 2020. Tanzanian Gold provides additional updates on its Buckreef Project. This included a review of progress toward first gold production from a stand-alone oxide mining and processing operation to begin by the end of June 2020.
April 24 2020. The company announced SGS-Lakefield testing focused on a flow sheet for the design of a much larger sulphide plant than previously modelled in the 2018 Pre-Feasibility Study. The Company believes the plant could produce in the range of 150,000 to 175,000 ounces of gold per year.


What are your key goals for the next 3, 6 and 12 months?

3 Months:

To continue forward on three tracks mentioned in the company profile.

6 Months:

Gold production from an oxide processing plant to begin by the end of June. Construction of the first expansion, which will more than triple gold production, is scheduled to start in Q4 and be complete midQ2 2021. After operating at this rate for several years this plant will be further expanded by approximately 60-70%. The timing of the final expansion of the oxide plant is in part due to the expansion of the Buckreef open pit. It is anticipated that the stand-alone oxide plant will operate continuously to the end of the mine life.

12 Months:

To move toward to Final Feasibility, project finance, and construction for the Buckreef open pit mine, and larger sulphide processing plant discussed in our recent release of April 24, 2020.


What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

The continuing and diverse challenges of building a mine in the current environment of markets, economics and emerging jurisdiction.


What do you think makes your company such a compelling investment?

Established high-value asset with untapped blue-sky potential.

Analyst Insight – provided by Independent Investment Research

Tanzanian Gold Corporation is a TSX-listed company that’s focused on its Buckreef Gold Mine Re-Development Project in Tanzania.

The Buckreef Project is located in north-central Tanzania and consists of the dormant Buckreef Gold Mine and four prospects with known mineralization. The Buckreef Gold Mine was an underground mine operated by the Tanzanian State during the late 1980s. Apart from the state, several previous owners of the project undertook numerous exploration programs.

TRX is rapidly advancing on three value-creating tracks, simultaneously:

Firstly, gold production from an oxide processing plant to begin by the end of June, to operate as a stand-alone plant, separately and concurrently with the larger sulphide operation. Construction of the first expansion, which will more than triple gold production, is scheduled to start during Q4 and be complete mid-Q2 2021.

Secondly, the company is accelerating completion of a final feasibility study that will be based on a larger plant to process the sulphide ores that lie under the oxides. The company has initiated metallurgical testing at Lakefield to confirm a conceptual flow sheet for the larger plant to process the sulphide ores. It is anticipated that the design criteria for this plant will be to process three times more ore than the plant that was the basis of the 2018 Pre-Feasibility Study. At this rate, the company believes that the plant could produce 150,000 to 170,000 ounces of gold per year.

Finally, in order to evaluate the potential of an underground mining operation that could be phased in from ramps in the open-pit to access mineralization 200m to 300m below the pit bottom, the company has completed a Level 1 stope design. In view of the encouraging results from the Level 1 study, the company will be moving the design to Level 2 in the near future. In parallel to this, the company has now begun Phase III Ultra-Deep drilling. This drilling will evaluate the potential at even deeper levels. Drill holes in this program are expected to be 800 to 1200 metres in length and explore to roughly 700 meters below surface to test the down dip potential of the Buckreef Shear Zone.