The Buckreef Project

The Company is focused on the Buckreef Project located in the Geita District of the Geita Region south of Lake Victoria, approximately 110 km southwest of the city of Mwanza, Tanzania. See map below. The Buckreef Project area can be accessed by ferry across Smiths Sound, via a tarred national road and, thereafter, via well maintained unpaved regional roads. The Buckreef Project comprises five prospects, namely Buckreef, Bingwa, Tembo, Eastern Porphyry and Buziba. The Buckreef Project itself encompasses three main mineralized zones: Buckreef South, Buckreef Main and Buckreef North. The Buckreef Project is fully licensed for mining and the extraction of gold.

Greenstone Belt Map

Maps

The Buckreef Project Mineral Resources currently stand at (0.4g/t cut-off) (see Press Release June 24th, 2020):

Measured

Indicated

Inferred

Total M+I

Tonnes

Grade

Content Au

Tonnes

Grade

Content Au

Tonnes

Grade

Content Au

Tonnes

Grade

Content Au

(Mt)

(g/t)

(oz)

(Mt)

(g/t)

(oz)

(Mt)

(g/t)

(oz)

(Mt)

(g/t)

(oz)

19.98

1.99

1,281,160

15.89

1.48

755,120

17.82

1.11

635,540

35.88

1.77

2,036,280

Mineral Reserves remained as of the 2018 Pre-Feasibility Study (see Press Release July 30, 2020) and the Company is undertaking a Feasibility Study (updating the 2020 Mineral Resources in the process) to update the Mineral Reserves.

Buckreef Reserves Tonnes Grade In Situ Gold Content
(Mt) Au (g/t) Kg Oz
Proven-Stockpile 119,726 1.86 223 7,160
Proven 9,352,183 1.72 16,092 517,358
Probable 9,730,764 1.36 13,265 426,492
Mineral Reserves 19,202,673 1.54 29,580 951,010

1) Mineral reserves is inclusive of Mineral Reserve shapes, mining recovery, mining dilution and open pit preproduction development costs. Mineral Reserve estimate includes dilution.

2) Mineral reserve was estimated using N143-101F compliant Standards on Mineral Resources and Reserves, Definitions.

3) Contained metal may differ due to rounding

Figure 1: Location of Buckreef Licences on Lake Victoria Greenstone Belt

Location of Buckreef Licences

Oxide Production: Test Plant, Mine Development and Operations

The Company continues to operate the 5 tph oxide material test plant at the Buckreef Project. In doing so, valuable information and analysis of oxide material characteristics continue to gathered and resultant improvements to processes are implemented, especially with respect to gold recovery. Further, the 5 tph test-plant is also being used to provide data on: tailings characteristics, including dry stack tailings options, grade control, materials movement and reconciliation processes. Finally, TanGold along with Stamico are evaluating a potential expansion of the test plant to 15 tph prior to construction of the 40 tph oxide plant.

The following work on mining, process test-plant operations and exploration at Buckreef was completed during this reporting period up to February 28, 2021:

  • The test-plant continues to operate seven days a week with two 12-hour shifts per day (Figure 3). Buckreef continues to utilize contract mining for all mining operations.
  • Key performance metrics for the period were:
    1. Oxide mineral reserves mined – 16,436 tonnes at 1.80 g/t containing 952 oz of gold;
    2. Waste mined – 96,056 tonnes, including pre strip material;
    3. Total oxide mineral reserves mined – 49,436 tonnes at 2.03 g/t containing 3,233 oz of gold (since start of test production);
    4. Total waste mined to date – 425,295 tonnes, including pre strip material;
    5. On ROMPAD (Main Zone) totals at end of period – 24,522 tonnes at 1.33 g/t containing 844 oz of gold;
    6. Also on to ROMPAD (historical from South Zone) – 119,674 tonnes @ 1.19 g/t containing 4,579 oz of gold;
    7. 8,350 tonnes @ 2.34 g/t was crushed and 8,490 tonnes (dry) was milled with an average grade of 2.21 g/t;
    8. Six smelting batches delivered a total of 9,774.1 grams gold dore (91.0% purity) for pure gold production of 285.9 troy ounces (produced in the quarter); and
    9. Starter pit mining operations progressed well, and intermittent storm water has been well handled. (Figure 2).

Operationally, the oxide test plant continues to be a substantial success on several levels. First, operation of the plant, to date, proves the viability of the Buckreef Project to produce gold, and therefore, provides a considerable de-risking of the mine building at Buckreef. A number of important tests have been conducted providing data for the operation and confirming the flowsheet for expansion of the oxide material processing plant to produce 15,000 oz - 20,000 oz of gold production per year. Additionally, the plant has been used to train and develop a crew that will be ready to operate the larger oxide plant when it comes online. Start- up and operation of the test plant has provided months of experience in: (i) understanding the metallurgical behaviour of oxide deposit; (ii) areas of mining and earth moving; (iii) stockpile management; (iv) grade blending control; (v) equipment and materials procurement; (vi) local content regulations; and (vii) security. The Company continues to work with SGS Lakefield, to examine recovery improvements and tailings characteristics.

Figure 2: Buckreef Gold Mine Oxide Mineral Reserve Starter Pit: View to the Southwest (February 3rd, 2021)

Buckreef Gold Mine Oxide Mineral Reserve

Figure 3: Buckreef Gold Mine Oxide Test Plant (January 21st, 2021) – Co Acting general Manager & Processing Manager, Gaston Mujwahuzi Explains Aspects of the Test Program to TanGold CEO, Stephen Mullowney

Buckreef Gold Mine Oxide

Exploration & Mineral Resource Extension Drilling (December 1st, 2020 – February 28th, 2021)

The Company concluded the drilling programme on Buckreef West during the reported period completing four diamond drillholes. The drilling program was a follow up to continue exploration of the Buckreef West shear zone, close to the surface delineated in historical RC drill programs. The last four holes are located in the southern end and confirm a southern extension of the mineralised shear structure (Figure 5).

Buckreef Main Zone Deep Drilling Results and Interpretation

‘Deep’ drilling was completed in Q4 of the previous year. Results to date evidence a vertically extensive shear zone. Analysis of core logging and sampling results is ongoing to interpret additional exploration targets. The significant mineralized intercepts from the Main Zone are as shown in the Figure 4. It is evident that 2-3 high grade shoots exist (dipping to the south) and that the deposit remains open in all directions. The Company will provide a further update in the future.

Figure 4: Long Section of Buckreef Main Zone (View to the West) Showing 1m Composite Values and 2018 PFS Pit Outline

Long Section of Buckreef Main Zone

Buckreef West Gold Zone Near Surface – Open at Depth & to the South

Buckreef West Drilling and Assay Results

Highlights include

  • Shallow Depth: All reported intercepts are at shallow depth on a well-defined structure which is interpreted as a splay off the Buckreef Main Zone.
  • Open at Depth and Along Strike: Over 400m of strike length has been drilled to date and the deposit remains open at depth and along strike in both directions. 
  • Select Intercepts: o Hole BWDD017 intersected 4.57m @ 6.4 g/t Au from 44.9m 
    • Hole BWDD015, on the same line as Hole BWDD017, had two intersections: (i) 2.18m @ 1.24 g/t Au from 86.9m and (ii) 2.49m @1.3 g/t Au from 105.1m;
    • Hole BWDD012 intersected 5.57m @ 4.95 g/t Au from 98.4m and 4.0m @ 2.19 g/t Au from 92.0m;
    • Hole BWDD013, on the same line as Hole BWDD012 intersected 1.5m @ 2.2 g/t Au from 59.5m; 
    • BWDD0018 intersected 7.0m @ 2.03 g/t Au from 44.0m and 3.85m @ 2.86 g/t from 56.0m; and 
    • BWDD0031 intersected 2.5m @ 7.29 g/t Au from 46.1m.