With the gold price rallying to record highs, gold explorer and miner TRX Gold is progressing its flagship Buckreef gold project, in Tanzania, by optimising the mine’s existing 2 000 t/d plant to increase throughput and recovery rates.

The newly expanded mill was fully commissioned at the end of the 2024 financial year.

The processing plant has averaged 1 938 t/d of mill throughput following full plant commissioning, reaching a maximum of 2 016 t/d – a 149% increase over that achieved in the third quarter of 2024.

Following completion of the expanded plant, fourth-quarter production in 2024 increased by 25%, to 5 767 oz, over the previous quarter, mainly as a result of the increase in throughput.

As part of an initial phase of the plant expansion project, TRX completed the construction of a new crushing circuit during the third quarter of 2024.

The fully commissioned crushing system has been consistently achieving an average of 2 324 t/d of crushed material, reaching a maximum of 3 302 t/d.

The new crushing plant, combined with the old crushing circuit, is rated to process between 3 600 t/d to 4 800 t/d of ore at full capacity.

This new circuit is expected to drive increased throughput and demonstrates the company’s overall design philosophy of simplicity, redundancy and durability, making it a key component to support future growth.

The company is also evaluating a potential plant expansion to significantly enhance processing capacity while refining its mine plan by prioritising higher-grade mining blocks.

Expansion, Deeper Digging

To support the efficiency and expansion efforts, TRX is also launching a stripping campaign during the first half of this year, in the southern part of the Buckreef pit; this will ensure more efficient resource extraction and access to high-grade ore blocks that were previously inaccessible.

Buckreef, according to the company, is a low-risk, high-margin, openpit gold mining operation, bearing production expansion potential with ongoing exploration and brownfield drilling to increase the project’s mineral resource.

TRX is producing gold at its 1 000 t/d processing plant because of two successful mill expansions in 2022 and 2023.

The Tanzanian mining sector – the fourth largest gold-producing sector in Africa – is “well-positioned for continued growth”, CEO Stephen Mullowney tells Mining Weekly.

While a potential plant expansion at Buckreef would substantially increase gold production, the company is also looking to unlock deeper gold resources and extend the mine’s life by evaluating a medium- and long-term underground mining scenario to capitalise on the orebody’s vertical structure.

“The company also has an active exploration programme, which has led to high-grade discoveries in the Stamford Bridge and Anfield zones. These findings have the potential to further enhance Buckreef’s value and strengthen Tanzania’s gold mining sector,” adds Mullowney.

In January, the company announced results from ongoing drilling at Stamford, with drillhole intercepts continuing to confirm a “bridge”, or an interpreted mineralised shear zone, trending 70º east-northeast, indicating a potential extension over 1 km.

In particular, drillhole BMDD321 intercepted the mineralised shear zone further to the north-east, 25 m along strike.

The Stamford Bridge zone is a potentially significant shear zone and geologically similar to the Buckreef Main zone.

“The Stamford Bridge shear zone keeps delivering,” he enthuses, adding that this initial exploration work is paying off thus far, encouraging the company to launch a ground geophysical survey over the next few weeks, which is expected to support targeted drilling.

The Buckreef project comprises the Buckreef, Bingwa, Tembo, Eastern Porphyry and Buziba prospects, while encompassing the main mineralised zone of Buckreef South, Buckreef Main and Buckreef North.

Challenges, Solutions

One of the primary challenges in mining is opening new ore blocks while managing the costs associated with their development, says Mullowney, adding that TRX Gold is addressing this by strategically balancing its mining operations to optimise costs and productivity.

He also highlights another challenge – the disconnect between record-high gold prices and the underperformance of small gold mining equities.

To counter this, TRX is actively engaging with institutional investors, family offices and high-net-worth individuals to strengthen market visibility and investor confidence.

Nonetheless, while the company plans to increase Buckreef’s gold production to more than 100 000 oz/y, Mullowney says major industry players, including Barrick Gold and AngloGold Ashanti, are also expected to sustain their current production levels, “reinforcing Tanzania’s role as a key gold-producing region”.

Geopolitical uncertainty and declining yields have, thus far, been key drivers of a rising gold price for the year.

“In addition, ongoing tariff concerns have further heightened market volatility, increasing investor demand for safe-haven assets. As a result, gold has remained a preferred hedge against economic uncertainty, reinforcing its strategic importance in the global financial landscape,” Mullowney adds.

In 2024, TRX Gold concluded a strong fiscal year, reporting $41.2-million in revenue and producing 19 389 oz of gold.