Gold Mining in Tanzania
Tanzania is the 3rd largest gold producer in Africa after Ghana and South Africa, and accounts for 1.3% of the total global gold production in 2021. Tanzania’s gold reserves are estimated at about 45 million ounces and Tanzania’s annual gold production stands at around 50t per year.
Gold exploration is mostly centered on the greenstone belts around Lake Victoria, where several large deposits have been discovered and are being developed. TRX Gold’s Buckreef Project is located in the Geita District of the Geita Region, south of Lake Victoria, approximately 110 km southwest of the city of Mwanza, Tanzania. Buckreef is situated about 45 km to the west of Barrick Gold’s Bulyanhulu gold mine and nearly 35 km south from AngloGold Ashanti’s flagship Geita mine in north-central Tanzania.
Regional Infrastructure
Because of the surrounding region’s long history in gold mining, all of the necessary infrastructure that is crucial to a mining operation is found at site. The Buckreef Project area can be accessed by ferry across Smiths Sound, via a tarred national road and, thereafter, via well maintained unpaved regional roads. Furthermore, the Buckreef Gold Project runs almost entirely on hydro-electricity, being connected to the local electric grid, making it a sustainability-focused project.
Buckreef Gold Overview
The Buckreef Project comprises five prospects, namely Buckreef, Bingwa, Tembo, Eastern Porphyry and Buziba. The Buckreef Project itself encompasses three main mineralized zones: Buckreef South, Buckreef Main and Buckreef North. The Buckreef Gold Project is fully licensed for mining and the extraction of gold. Buckreef Gold includes an established open pit operation and 2,000 tonnes per day process plant with upside potential demonstrated in the April 2025 Preliminary Economic Assessment (the “PEA”). The PEA outlines average gold production of 62,000 oz per annum over 17.6 years, and US$701 million pre-tax NPV5% at average life of mine gold price of US$2,296/oz. The project hosts a Measured and Indicated Mineral Resource of 10.8 million tonnes (“MT”) at 2.57 grams per tonne (“g/t”) gold containing 893,000 ounces (“oz”) of gold and an Inferred Mineral Resource of 9.1 MT at 2.47 g/t gold for 726,000 oz of gold. The leadership team is focused on creating both near-term and long-term shareholder value by increasing gold production to generate positive cash flow to fund the expansion as outlined in the PEA and grow Mineral Resources through exploration. TRX Gold’s actions are led by the highest environmental, social and corporate governance (“ESG”) standards, evidenced by the relationships and programs that the Company has developed during its nearly two decades of presence in the Geita Region, Tanzania.
