Initial gold production at Buckreef prospect in Mwanza which is jointly owned by State Mining Corporation and Tanzanian Royalty Exploration Corporation started mid last month.
In a statement, the company’s President and Chief Executive Officer, Mr James Sinclair, said while production takes shape, exploration will also continue. “On April 16, 2015, we initiated the process of production at our initial target on the Buckreef prospect. I cannot overstate the importance of this.
The transition from just an exploration firm also to a producing enterprise is one of those rare events in our industry of late,” Mr. Sinclair said in the statement. He further noted that the starting of initial production means that more work should be done to ensure that the prospect should soon operate at full capacity.
“In the days, weeks, and months ahead, we anticipate exploration and development of at least four upcoming projects at this same site before ultimately turning our focus to the much larger Buckreef main zone,” Sinclair pointed out.
The TREC President and CEO noted that careful forward-management of cash flow from one site serially to another should leave the company fiscally fit for its development, in future.
In addition to initiation of pad irrigation, Tanzanian Royalty is also providing the following additional updates on the company’s recent progress, “The runway at Buckreef was recently extended by 1,000 feet to accommodate twin-turbine fixed-wing aircraft, instead of the more conventional single-helicopter pad.”
This represents both a decrease in operating costs as well as an increase in transport efficiency. Finalization of the contract with the company’s air agent, for transportation of product from the Buckreef mine directly to Dar es Salaam, at which point it boards a Swiss air flight for its final leg to our designated refinery in Zurich, Switzerland, the statement revealed.
“Two other sites within the mining license area in the Buckreef property – Tembo and Bingwa – are now the focus for development in the reasonably near future.
At our first Buckreef operation, the company is deploying an older, slower, low-tech methodology,” Sinclair explained.
It is nevertheless expected to result in net extraction costs about 50 per cent of the higher-tech alternatives and, therefore, fully competitive in today’s challenging mining environment.
“The significance of this transition for our company cannot, and must not, be under-appreciated. Of course, we know there have been delays and setbacks along the road.
But we are in the depths of a bear-market in the gold sector which is not merely secular, but actually historic,” the statement concluded.
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