Photo via Kitco News


Tanzanian Gold (TSX:TNX) (NYSE:TRX) announced Wednesday the commencement of the commissioning phase of the new expanded processing plant at its Buckreef gold project in Tanzania by 360 tonnes per day.

During October, Buckreef said it had completed construction of the 360 tpd processing plant expansion, while continuing to operate the 120 tpd processing plant subsequent to concluding the test period, which achieved a 90% gold recovery rate. The existing 120 tpd processing plant has been integrated into the new processing plant circuit.

The company added that expanded throughput expected to increase production to 750-800 ounces of gold per month upon final commissioning and prior to construction of the 1,000+ tpd processing plant.

"The increased processing capacity is expected to allow us to advance the mine plan and increase near-term production in a cost-effective and efficient manner. The increased anticipated cash flow from the new larger plant will enable us to speed up the advancement of Buckreef Gold, including exploration at the Buckreef Main Zone, Buckreef West and Anfield Zone," the company said in its statement.

Buckreef noted it will continue with plans to advance a 1,000+ tpd operation while simultaneously operating the 360 tpd operation. The 1,000+ tpd operation is expected to be capable of producing 15,000 - 20,000 ounces of gold per year based on the initial mine plan and grade profile. - Vladimir Basov, Kitco News