Oxide mill expansion successfully ramped up

15th April 2022


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Gold producer Tanzanian Gold Corporation, referred to as TanGold, announced in February that the first phase of the oxide mill expansion of 360 t/d at the Buckreef Gold project is now fully commissioned, and production has successfully ramped up to design capacity.

TanGold also cited its highlights for January, announcing it had poured 764 oz of gold, a new monthly production record at Buckreef.

Notably, Buckreef processed total mill feed of 9 725 t at an average grade of 3.21 g/t, and achieved an average monthly processing plant use of 97%, with higher daily peak processing rates reaching between 15 t/h and 16.4 t/h.

Buckreef has also achieved record gold recovery of 91% and is on track to step up ore production rates over 1 000 t/d in the second and third quarter of 2022.

Additionally, Buckreef Gold has operated cash flow positive for the second consecutive month.

“The monthly production record of 764 oz is a great start and a significant milestone for Buckreef Gold,” says TanGold CEO Stephen Mullowney, adding that it is a testament to “all the hard work by the team on the ground”.

The proceeds from the sale of this expanded production are being used to fund value enhancing activities, including exploration in the Buckreef Main zone, Buckreef West, and the newly discovered Anfield zone, development of the over 1 000 t/d processing plant, and sulphide project development activities.

“Buckreef Gold has great momentum as we move forward in our exploration activities while at the same time increasing our production profile; there is an excitement at site,” he adds.

“The whole Buckreef Gold team has safely delivered this production milestone with great passion and purpose,” says TanGold COO Andrew Cheatle.

There has also been a sharp focus on local content. For example, the steel carbon-in-leach tanks were locally constructed using steel industry skills from Mwanza, on the shores of Lake Victoria.

“We now look forward to a similarly successful completion of the next phase: our production expansion to 1 000 t/d,” he adds.

Further, TanGold ​also announced that it had entered into a refining agreement with Switzerland-based gold refiner Agror Heraeus and had successfully completed its first export of dorè for refining in February 2022.

“We have also entered into a gold purchase and sale agreement with precious metals transaction specialists Auramet International, through which Buckreef Gold will, at its discretion, sell up to 100% of the gold produced from Buckreef Gold to Auramet at market rates.”

The initial contract is for a period of one year, with an option to extend for successive periods.

As part of its inaugural export of dorè, TanGold sold 200 oz of Buckreef Gold production to Auramet at market rates in February 2022.

Auramet is one of the largest precious metals merchants in the world with over $20-billion in yearly revenues. It provides a full range of services to all participants in the precious metals chain, from extraction and production to manufacturing and consumption.

Edited by Nadine James
Features Deputy Editor


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