TRX Gold will deliver plant expansion on time and on budget

TORONTO, Sept. 12, 2022 (GLOBE NEWSWIRE) — TRX Gold Corporation (TSX: TNX) (NYSE American: TRX) (the “Company” or “TRX Gold”) is pleased to report preliminary gold production from the fourth quarter and full year 2022 and an update on the status of the 1,000+ tonne per day (“tpd”) oxide plant expansion at Buckreef Gold.

The Company reported Q4 2022 gold production of 3,619 ounces, beating previous production guidance of 750-800 ounces of gold per month, as well as preliminary Q4 2022 sales of 3,363 ounces of gold, two new records for the Company. Based on the year 2022, the Company reported production of 8,874 ounces of gold and sales of 8,598 ounces of gold.

The average market price for gold in the fourth quarter of 2022 (June – August 2022) was US$1,778 per ounce and based on the full year 2022 (September 2021 – August 2022) was $1,825 US per ounce.

Preliminary gold production in Q4 2022 was higher than in Q3 2022 due to the processing of higher grade ore and increased throughput at the processing plant of 360 tonnes per day (“tpd”) ) which operated at full rated capacity throughout the quarter.

The Company is also pleased to provide an update on the construction progress of the 1,000+ tpd oxide plant expansion at its Buckreef gold project, which continues to progress on schedule and within budget. To date, the phased commissioning of the 1,000+ tpd mill has begun and the two new ball mills and the new crushed ore bin have been “commissioned dry” (i.e. say that the ball mills are connected and spinning). Second, the new crushed ore bin is operational and feeding the existing ball mill, while also being ready to feed the two new ball mills. The company remains on track to complete full commissioning of processing over 1,000 tpd in the coming weeks.

Image: Buckreef gold oxide plant expansion nears completion at over 1,000 tpd.

This planned Buckreef Gold Project plant expansion was first announced on October 28, 2021, less than 12 months ago, at a capital cost of US$4 million, which remains within the limits of the budget. Earthworks started in April this year, and thanks to the hard work of TRX Gold’s local workforce, local suppliers and consultants, the company was able to limit any budget overruns. possible and overcome the supply chain issues affecting so many miners waiting for equipment and materials. In addition, the work progressed without any loss of time due to injuries or any negative impact on the environment.

“We are currently in the process of completing construction and will begin full go-live shortly, as expected in the market. Approximately one month after go-live will be spent accelerating throughput. We expect to achieve a steady state production of 1,000 tpd in November I couldn’t be happier with our team in Tanzania, once again they have allowed us to demonstrate to the market that Buckreef is a low risk, growth oriented project , with great metallurgy and high yields,” says Andrew Cheatle, TRX Gold COO.

This is the second plant capacity upgrade undertaken by TRX in the past 12 months. The company recently commissioned a first oxide plant expansion to 360 tpd in February 2022 and following this announced a landmark quarter of gold production and financial results on July 14, in which, among other things, TRX recorded a gross margin of 73%.

“The next few months will be an exciting time for TRX shareholders as we continue to ramp up gold production at Buckreef. As this expansion uses the same equipment as the first (expansion) and we process the same oxide ore with excellent recovery rates, we expect financial metrics to continue to be very attractive,” said 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, expansion and the construction of its plant of more than 1,000 tpd. , the estimate of mineral resources, the ability to develop value-creating activities, recoveries, subsequent project testing, the success, scope and viability of mining operations, the timing and amount of estimated future production and capital expenditure.

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.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c581eb1c-2d72-4fcf-a52e-7bc6d6f9f91b