The Citizen Tanzania “New study shows gold reserves in Tanzania”

Johannesburg. An amended prefeasibility study (PFS) for Tanzania Royalty Exploration’s Buckreef gold mine project, in Tanzania, indicates that the project can support a 1.50 million-tonne-a-year mine for a period of 16 years.

About 822 000 ounces of gold is expected to be produced over the life of the mine.

The company this week filed for an amended PFS for the Buckreef gold mine project as a replacement to its technical report filed in May 2017. Ore will be mined from four openpits and then sent for processing at a plant located at Buckreef. The plant is designed to achieve gold recovery of 92.3 per cent and 85 per cent for the oxides and sulphides material, respectively, over the life of the project.

The PFS outlines that the project’s estimated initial capital outlay for the earthmoving equipment, processing plant and related infrastructure will be about $76.5 million, which includes a 15 per cent contingency with sustaining costs of $22.95 million over the life of the project.

The life-of-mine average cash operating cost is estimated at $735 per ounces of gold.

The after-tax project net present value is estimated at $130.96 million and the internal rate of return (IRR) at 74 per cent. The simple payback period for the project is estimated at four years. (miningweekly)