TRX Gold Files $701M PEA for Buckreef Underground Expansion

TRX Gold Corporation has filed a Preliminary Economic Assessment (PEA) for its Buckreef Gold Project in Tanzania, outlining an expansion plan that includes upgrading the processing plant to 3,000 tonnes per day and transitioning from open-pit to underground mining within the next two to three years. The PEA projects an average annual gold production of 62,000 ounces over 17.6 years, increasing to over 80,000 ounces annually during the first five years of underground operations. The base case pre-tax Net Present Value (NPV) at a 5% discount rate is estimated at $701 million, with potential upside to $1.18 billion under higher gold price scenarios. The expansion requires $89 million in growth capital over four years, which the company expects to finance through internally generated cash flow, avoiding upfront external financing. Life-of-mine cash costs are projected at $1,024 per ounce, with all-in sustaining costs averaging $1,206 per ounce. TRX Gold's strategic use of existing infrastructure enables a swift transition to underground mining, supporting a robust economic outlook for the project.