TRX Gold (TSX: TNX; NYSE: TRX) is trying to turn a record quarter at Buckreef into a lasting lift in output as higher grades, better recoveries and a plant expansion raise expectations at its Tanzanian mine.
At Buckreef, about 110 km southwest of Mwanza near Lake Victoria, TRX is expanding its 2,000-tonne-per-day plant to more than 3,000 tonnes. The company produced 7,453 oz. gold in the quarter ended Feb. 28, up 13% from the previous quarter. It sold about 7,400 oz. at an average gold price of $4,682 (C$6,520) per oz. and finished with $25 million in cash.
“I expect cost actually on a per ounce basis will start to decline again,” CEO Stephen Mullowney told The Northern Miner video host Devan Murugan this month at the PDAC conference in Toronto. “We’re going to be higher than that in our plant capacity, so I expect economies of scale to come through in a larger plant.”
Last year’s preliminary economic assessment outlined average annual production of 62,000 oz. over 17.6 years at life-of-mine cash costs of $1,024 per oz. and all-in sustaining costs of $1,206. TRX is now revising that plan while drilling more than 10 targets including Stamford Bridge, a new zone about 250 metres from the main pit.
Watch the full interview below:
Be the first to comment on "PDAC Video: TRX Gold targets more gold, lower costs"