TRX Gold Commissions Expands Buckreef Gold Plant – Resource World Magazine

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Throughput capacity tripled from current levels

TRX Gold Corporation (TSX:TNX) (US NYSE:TRX) (the “Company” or “TRX Gold”) is pleased to announce that Buckreef Gold’s 1,000+ ton per day (“tpd”) oxide grinding circuit has been commissioned and is currently ramping up its production. This plant expansion ― from its original 360 tpd capacity ― was planned less than 12 months ago at a capital cost of US$4 million.

The first ore has been fed into the expanded processing plant and the team is ramping up throughput over the next month in order to reach design capacity by the end of October. When operating at design capacity in excess of 1,000 tpd, the operation is expected to produce an average of 15,000 to 20,000 ounces of gold per year over the life of the oxide mine plan. Approximately 10% of Buckreef Gold’s total mineral resources consist of oxide mineral resources.

The Buckreef Gold project has been transformed into a low-cost, high-margin operation enabling the execution of TRX Gold’s growth-oriented business strategy. The Company’s objective is to use current gold production to fund value-creating activities, such as mineral resource development, exploration and future processing plant expansion.

Image: The expanded Buckreef plant in the foreground, with the 360 ​​tpd plant in the background

The Company would like to thank its local employees, government, consultants and vendors for their efficiency and dedication to this project, which enabled the Company to deliver this project on time and on budget.

“This is another important milestone at Buckreef Gold. We are very proud of the dedication and hard work of our Tanzanian colleagues. Over the past 18 months, we have grown the Buckreef Gold project from a negative cash flow test plant to a high margin, cash flow positive operation that continues to have near term expansion opportunities. term. explains Stephen Mullowney, CEO of TRX Gold.

About TRX Gold Corporation

TRX Gold is rapidly advancing the Buckreef Gold project. Anchored by a Mineral Resource published in May 2020, the project currently hosts a NI 43-101 Measured and Indicated Mineral Resource of 35.88 MT at 1.77 g/t gold containing 2,036,280 oz of gold and a inferred mineral of 17.8 MT at 1.11 g/t gold for 635,540 ounces of gold. The management team is focused on creating short and long-term shareholder value by increasing gold production to generate positive cash flow. The positive cash flow will be used for exploration drilling with the aim of increasing the current gold resource base and advancing the sulphide ore project which accounts for 90% of the current gold resource. TRX Gold’s actions are driven by the highest ESG standards, as evidenced by the relationships and programs the company has developed over its nearly two decades of presence in the Geita region of Tanzania.

Investors

Christina Lalli

Vice President, Investor Relations

TRX Gold Corporation

+1-438-399-8665

[email protected]

www.TRXgold.com

Forward-looking statements

This press release contains certain forward-looking statements as defined in applicable securities laws. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”, “hopes”, “intends”, “estimated”, “potential”, ” possible” and similar expressions. , or statements that events, conditions, or results “will”, “could”, “could”, or “should” occur or be achieved. Forward-looking statements relate to future events or future performance and reflect TRX Gold management’s expectations or beliefs regarding future events and include, but are not limited to, statements regarding production at anticipated levels, operating of its 1,000+ tpd plant at nameplate capacity, operate at low cost with high margins, fund accretive activities, expansion, mineral resource estimation, ability to develop value-creating activities, recoveries, subsequent project testing, success, scope and viability of mining operations, timing and estimated amount of future production and capital expenditures.

Although TRX Gold believes that the expectations expressed in these forward-looking statements are based on reasonable assumptions, these statements are not guarantees of future performance. Actual achievements of TRX Gold or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors. These risks, uncertainties and factors include general business, legal, economic, competitive, political, regulatory and social uncertainties; actual results of exploration activities and economic evaluations; exchange rate fluctuations; cost changes; future prices of gold and other minerals; mining method, production profile and mine plan; delays in exploration, development and construction activities; changes in governmental laws and regulations; the ability to obtain financing on acceptable terms and in a timely manner or not at all; title deed competitions; employee relations and shortages of qualified personnel and contractors; the speculative nature and risks inherent in exploration, development and mining activities. These risks are discussed in the reports that TRX Gold files with the SEC. You may view and obtain copies of these filings on the SEC’s website at http://www.sec.gov/edgar.shtml.

The information contained in this press release speaks as of the date of the press release and TRX Gold undertakes no obligation to update this information.

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