en.Wedoany.com Report, TRX Gold Corporation (TSX: TNX; NYSE: TRX) is actively advancing production growth at its Buckreef Gold Mine in Tanzania, producing 7,453 ounces of gold in the quarter ended February 28th, a 13% increase quarter-over-quarter. The company plans to expand the mine's daily processing capacity from 2,000 tonnes to over 3,000 tonnes to build on its record quarterly performance.
Located approximately 110 km southwest of Mwanza, the company is achieving economies of scale by expanding the existing plant. Stephen Mullowney, CEO of TRX Gold, stated that as plant capacity increases, costs per ounce are expected to decline again. The company sold approximately 7,400 ounces of gold at an average price of $4,682 per ounce during the quarter, ending with a cash balance of $25 million.
The expansion project is being executed in-house by TRX Gold and aims to optimize ore grades and recovery rates. Upon completion of the plant expansion, it will directly support the continued development of the main pit and surrounding areas. The company is concurrently revising its mine plan, which is based on last year's Preliminary Economic Assessment (PEA) that outlined a target of 62,000 ounces of average annual production over a 17.6-year mine life.
Despite the clear expansion plans, the company is hedging risks through diversified exploration. Currently, TRX Gold is drilling over 10 targets, including a new area called Stamford Bridge located approximately 250 meters from the main pit. This initiative aims to build a new resource base for future production growth.
According to the revised plan, the company expects to achieve cost optimization with larger-scale plant operations. The PEA indicated a mine cash cost of $1,024 per ounce and an all-in sustaining cost (AISC) of $1,206 per ounce. The new plan is expected to further improve these financial metrics.
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