Tanzanian Gold provides update on Buckreef Project
Tanzanian Gold's board provide shareholders with a guide to the progress that the Buckreef Project has made since the company acquired it. This guide is based on the 43-101 Standard of Reporting. Regulators in Canada require that on any significant matter related to mining, listed companies must follow National Instrument 43-101. Disclosures covered by NI 43-101 include news releases of mineral exploration results, reporting of resources and reserves, technical studies, various levels of feasibility studies, presentations, oral comments, and websites. The company said, "Various authorities have stated that it takes at least 10 years for a mining project to move from exploration to completion of a Final Feasibility Study and Environmental Impact Study, both of which are generally required for government permits, financing and developing comprehensive construction plans. The Company firmly believes that, as illustrated by this guide to NI 43-101, the Buckreef Project has made significant advances. In June 2018, the Company published a comprehensive Pre-Feasibility Study. The authors of this study concluded that the Buckreef Project "is likely to be technically and economically feasible". Highlights of that study, which was done at a gold price of $1,300 per oz are: an after-tax US$ NPV discounted at 5% of $131 million; an IRR of 74%; a capital payback period of 4 years; and an average LOM cash cost of US$ 735 per oz. The Buckreef Project is now one step away from a Final Feasibility Study. Despite the attractive metrics arising from the Pre-Feasibility Study, the Company decided to see if the Buckreef Project can be made bigger and better; and to start to collect the technical data to move the project to the Final Feasibility Stage. To date, the Buckreef Project has; Drilled over 10,000m using at times three drill machines operating 24 hours per day, Developed a geology-resource model of the entire Buckreef Mineralized Zone using technologically advanced data-mine software that will be used for future resource and reserve estimates,Initiated a comprehensive metallurgical review and test data based on a plant that is two times larger than the plant in the Pre-Feasibility Study, and Initiated a rock stress test program to determine the possibility of mining underground below the pit bottom. It is the Company's intention to make a Conceptual Study that incorporates all the new drilling results from the 2019 drill program as well as the data arising from the metallurgical and rock stress tests. This Conceptual Study will most likely be based on a larger open pit than that in the Pre-Feasibility Study and an underground mine that can access resources below the pit bottom. This Study will assist the Company to determine the key parameters of a Final Feasibility Study of the Buckreef Project..."