TRX Gold Announces Robust Recovery Rates and Major Expansion at Buckreef Gold Project
TRX Gold Corporation, trading on the TSX and NYSE American under the symbol TRX, has released promising results from ongoing metallurgical test work at its Buckreef Gold Project in Tanzania. The company is now planning a processing plant expansion that significantly surpasses the scope outlined in its May 2025 Preliminary Economic Assessment (PEA).
Exceptional Recovery Rates Achieved
Recent metallurgical tests have demonstrated impressive gold recovery rates ranging between 89% and 92%. These results align with previous studies and exceed the 88% recovery rate assumed in the PEA. The comprehensive test work has provided valuable insights into optimal grind size for flotation and achievable mine feed, leading to the specification of a Semi Autogenous Grind (SAG) and Ball mill combination capable of processing over 3,500 tonnes per day (tpd). This represents a substantial increase from the PEA's assumption of 3,000 tpd.
Tendering for the SAG mill has already commenced, with orders expected to be placed in the third quarter of 2026. The initial estimated completion date for this critical component is set for the second quarter of 2027.
Significant Plant Upgrades and Expansion
The existing 2,000 tpd processing plant is currently undergoing substantial upgrades and will continue operating alongside the new 3,500+ tpd SAG mill facility. This combined capacity represents a significant enhancement over the 3,000 tpd capacity originally envisioned in the PEA.
Notable upgrades to the existing plant include:
- A new pre-leach thickener
- Upgraded agitators and interstage screens
- An Aachen reactor
- An oxygen plant
- An Adsorption, Desorption and Recovery (ADR) plant
- A new gold room
- An apron feeder and belt magnet
- A new tertiary crusher
These upgrades are currently in progress and are expected to be completed by the fourth quarter of 2026.
Strategic Mine Planning and Economic Enhancements
During the second quarter of 2026, TRX Gold initiated a revision of its life-of-mine plan in response to the increased processing capacity and current gold prices that substantially exceed the PEA's reserve estimate assumption of US$1,900 per ounce.
Preliminary analysis indicates potential for an expanded third cutback at the Main Pit, which could extend open-pit operations, defer the commencement of underground mining, and enhance total recoverable ounces at Buckreef Gold. This development is expected to improve the project's overall economics substantially.
The company is also evaluating the potential for an earlier start to underground mining at the Stamford Bridge orebody while accelerating mining of the expanded Eastern Porphyry pit. P&E Mining Consultants Inc. has been hired to update the PEA, with completion expected in the fourth quarter of 2026.
Increased Throughput and Capital Investment
Mine planning and scheduling as part of the updated PEA will incorporate throughput rates for both the new 3,500+ tpd plant and the upgraded 2,000 tpd processing plant, with the goal of maximizing overall throughput.
Capital costs for the total plant expansion and upgrades are now estimated at $45 to $50 million, reflecting the increased processing capacity, decoupling of the new circuit from the existing processing circuit, and construction of a much larger tailings storage facility (TSF). This represents an increase of approximately $10 to $15 million above initial PEA estimates, which were based on a smaller 3,000 tpd processing plant and smaller TSF.
The increased throughput from the expanded processing capacity is expected to boost average annual gold production beyond the 62,000 ounces originally anticipated in the May 2025 PEA, positioning TRX Gold for enhanced operational performance and financial returns from the Buckreef Gold Project.
