Tanzanian Gold changes name to TRX

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Tanzanian Gold Corp. [TNX-TSX, TRX-NYSE American], a company that is now generating its first revenue from gold production in Tanzania, is changing its name to TRX Gold Corp., a move that will take effect at the market open on May 27, 2022.

However, the company’s common shares will continue to trade on the Toronto Stock Exchange under the symbol TNX and on the New York Stock Exchange under the current TRX symbol.

On May 25, 2022, the shares closed at 42 cents and currently trade in a 52-week range of 75 cents and 35 cents.

Tanzanian Gold, along with its joint venture partner the state mining company STAMICO, is building a significant gold project at Buckreef in Tanzania that is based on an expanded mineral resource base and the treatment of mineable mineral reserves in two stand alone plants.

“We are in the process of resetting the long-term vision for the Buckreef Gold project with the goal of a much larger project than was originally envisioned in the 2018 PFS (pre-feasibility study),” said Tanzanian Gold CEO Stephen Mullowney.

STAMICO, which is 100%-owned by the United Republic of Tanzania, owns a 45% non-dilutable equity interest in Buckreef Gold Co., the company that owns the project.

The Buckreef Gold Mine was an underground mine operated by the Tanzanian State during the 1980s.

The project is located in north-central Tanzania, immediately south of Lake Victoria and 110 kilometres southwest of Mwanza. The project area consists of the dormant Buckreef Gold Mine and four prospects with known mineralization: Buckreef, Buziba, Tembo and Bingwa.

The second quarter of 2022 was a significant milestone for Tanzanian Gold as it recorded revenue for the first time in its history, a significant gross profit margin, a low cash-cost of US$796 an ounce and positive operating cash flow. These results were achieved on the back of just 1,812 ounces of gold sold.

The company said this demonstrates the immense opportunity for the Buckreef Gold Project to generate significant revenues and cash flow as it continues to develop.

Having successfully ramped up the first 360 tonne per day mill installation to nameplate capacity, the company continues to expect production of 750-800 ounces of gold per month at an average cash cost of US$725-US$825 per ounce.

This rate of production will continue until the larger 1,000 tonne-per-day oxide processing plant is completed in the third quarter of 2022, driving production to 15,000-20,000 ounces of gold annually.

“We have also started advancing the technical work for the much larger sulphide development project with the goal of exceeding all the metrics as outlined in the 2018 pre-feasibility study, particularly yearly annual production,” said Mullowney.

Buckreef hosts a measured and indicated mineral resources now stand at 36 million tonnes at 1.77 g/t gold or 2.03 million ounces. On top of that is an inferred resource of 17.8 million tonnes at 1.11 g/t gold or 635,540 ounces.

The company said it is actively investigating and assessing multiple exploration targets on its property.


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