Name of the Project
Buckreef gold project expansion.

Location
Tanzania.

Project Owner/s
TRX Gold holds 55% of Buckreef Gold, with Tanzania’s State Mining Corporation holding 45%.

Project Description
The April 2025 preliminary economic assessment (PEA) outlines an expansion and upgrade of the existing process plant, and a transition from openpit to underground mining. TRX Gold has since started revising the life-of-mine plan to reflect higher planned processing capacity and gold prices, with preliminary analysis indicating that an expanded openpit could extend openpit operations and defer the start of underground mining in the Main Zone.

Production over the 17.6-year life-of-mine (LoM) is expected to average about 62 000 oz/y of gold with peak production of 94 000 oz/y of gold in Year 5. Under the PEA, underground production starts in Year 3; however, the timing is being reassessed as part of the revised mine plan. TRX Gold expects the increased processing capacity to support average gold production of more than the 62 000 oz/y envisaged in the PEA.

Under the PEA, the underground mine will use a contractor. The initial development of the two portals in the Main Zone will start in Year 3, with stoping production starting in Year 4 and ramp-up to the targeted 1.08-million tonnes a year in Year 5. 

The underground mining method will be longhole, with longitudinal retreat stopes measuring 3 m to 13 m wide. 
The existing facility includes two three-stage crushing trains, four closed-circuit ball mills and 11 carbon-in-leach (CIL) tanks, as well as full elution, electrowinning and carbon reactivation circuits for gold doré production.

The PEA envisages a two-phase expansion.

Under the PEA, Phase 1 will lift capacity to 636 738 t/y for the first two years, adding a flotation circuit, a regrind mill, concentrate and tailings thickeners (16.5 m each), two additional CIL tanks and a 4 t/d elution circuit, alongside upgrades to pumps, screens, reagents and water systems.

TRX Gold’s accelerated expansion comprises a new 3 500 t/d semiautogenous grinding (SAG)/ball-mill circuit that will operate alongside the upgraded existing 2 000 t/d plant. The resulting combined processing capacity will be materially higher than the 3 000 t/d assumed in the PEA.

The PEA assumes an overall gold recovery of 88%. Metallurgical testwork reported in the third quarter of 2026 had achieved recoveries of 89% to 92% and led TRX Gold's specifying the 3 500 t/d SAG/ball-mill combination.

Potential Job Creation
Not disclosed.

Net Present Value/Internal Rate of Return
The PEA indicates a pretax net present value (NPV), at a 5% discount rate, of $1.879-billion and an after-tax NPV of $1.239-billion at a gold price of $4 000/oz. Under the consensus-price case, the PEA indicates a pretax NPV of $701-million and an after-tax NPV of $442-million. There is no quoted internal rate of return.

Capital Expenditure
$89-million will be invested over the next four-year period comprising $55-million in capital for the underground expansion; $30-million for process improvements, process plant throughput expansion and camp upgrades; and $3-million for tailings facility upgrades. 

LoM growth capital is estimated at $175-million and is primarily for underground development. 

Over the 12 months ended May 31, 2026, TRX Gold invested $46.4-million at Buckreef Gold comprising $27.1-million in capital assets and $19.3-million in working capital.

Planned Start/End Date
Completion of the new 3 500 t/d SAG/ball-mill circuit is expected within 12 to 18 months of July 2026.

Latest Developments
During the third quarter of 2026, work continued on the existing 2 000 t/d processing plant. Upgrades included a preleach thickener, improved agitators and interstage screens, an Aachen reactor, an oxygen plant, an apron feeder and a belt magnet. The upgrades were at various stages of completion and already improved plant performance, with average throughput reaching 1 690 t/d and recovery improving to 84.9% during the quarter.

Further, a letter of award for the new 3 500 t/d SAG/ball-mill circuit was initiated, the final contract was executed in early fourth quarter 2026 and initial downpayments were made. Completion is expected over the following 12 to 18 months. The existing upgraded plant will continue operating alongside the new circuit.

TRX Gold is revising the life-of-mine plan to account for the increased processing capacity. Preliminary work indicates the potential for a larger openpit, which could extend openpit operations and defer Main Zone underground mining. The company is also evaluating an earlier underground start at Stamford Bridge and accelerated mining at the Eastern Porphyry.

Key Contracts, Suppliers and Consultants
P&E Mining Consultants Inc (PEA update); and D.E.N.M. Engineering Ltd (PEA input).

Contact Details for Project Information
TRX Gold, tel +1 437 224 5241 or email ir@trxgold.com.