TRX Gold Corporation announced positive results from a Preliminary Economic Assessment (PEA) for the expansion of its Buckreef Gold Project in Tanzania. The PEA outlines an average annual production of 62,000 ounces over a 17.6-year mine life, with peak production reaching 94,000 ounces in year 5.
The assessment projects a pre-tax Net Present Value (NPV) of $1.2 billion and an after-tax NPV of $766 million, based on a gold price of $3,000 per ounce. Cash costs are estimated at $1,024 per ounce of gold, with all-in sustaining costs (AISC) at $1,206 per ounce.
The PEA evaluates an expansion and upgrade of the existing process plant to 3,000 tonnes per day (tpd) and a transition from open pit to underground mining over the next 2-3 years. The estimated growth capital expenditure of $89 million over four years is expected to be predominantly self-funded through operating cash flow.
The updated Mineral Resource Estimate, effective April 15, 2025, includes Measured and Indicated Mineral Resources of 10.8 million tonnes at 2.57 g/t gold (893,000 oz) and Inferred Mineral Resources of 9.1 million tonnes at 2.47 g/t gold (726,000 oz). The PEA does not fully incorporate new exploration discoveries like the Anfield Zone or the full potential of the Stamford Bridge Zone.
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