Name of the Project
Buckreef gold project.

Location
The project is located in the Geita district, in the Lake Victoria greenstone belt, in central Tanzania.

Project Owner/s
Tanzanian Gold Corporation and its joint venture (JV) partner, the State Mining Company (Stamico).

Stamic, which is 100%-owned by the Tanzania government, owns a 45% nondilutable equity interest in Buckreef Gold Company, which wholly owns the project.

Project Description
The project has proven and probable reserves of 19-million tonnes grading 1.54 g/t of gold.

A prefeasibility study (PFS) has determined that the mineral reserves can support a 1.5-million-tonne-a-year mine for 16 years.

Ore material will be mined from the four openpits and then sent for processing at a plant at Buckreef, which is designed to achieve gold recovery of 92.3%, and 85% for the oxides and sulphides material over the life of the project.

Over the estimated life-of-mine, about 822 000 oz of gold are expected to be produced.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated after-tax net present value, at a 5% discount rate, of $130.96-million and an internal rate of return of 74%, with a payback of four years.

Capital Expenditure
The project’s estimated initial capital outlay for the earthmoving equipment, processing plant and related infrastructure will be $76.5-million, including a 15% contingency.

Planned Start /End Date
Construction of the plant ended on May 28, 2020.

Latest Developments
Tanzanian Gold and Stamico have submitted an updated mine plan for the Buckreef gold project to the country’s Mining Commission.

In a statement on January 8, Tanzanian Gold said changing circumstances had necessitated an updated mine plan, including reviewing the mining licence area to accommodate artisanal mining on certain concessions, and the separation of the oxide and sulphide mine processing plants for metallurgical considerations.

As part of the submission to the mining commission, Buckreef Gold Company intends to relinquish certain concessions, since this has no impact on the Buckreef concession and mineral resources of just over two-million ounces.

The updated mine plan, once approved, will replace the mine plan submitted to the Mining Commission in 2017 as part of the renewal of the project's special mining licence.

The company has also reviewed the Buckreef JV agreement with Stamico to bring its terms in line with recent changes in the Tanzanian mining laws and to modernise the working arrangement between the parties.

The parties have identified and agreed to amendments  – which have been submitted to the relevant government authorities for further processes – to the JV agreement.

Key Contracts and Suppliers
Virimai Projects (PFS); Coreworthy and Stamico (drilling programme); PricewaterhouseCoopers (project finance); and SGS Canada Lakefield (metallurgical testing).

Contact Details for Project Information
Tanzanian Royalty Exploration Corporation, email investors@tanzanianroyalty.com.