TRX Gold Corporation announced that metallurgical test work at its Buckreef Gold Project has produced recovery rates between 89 % and 92 %, surpassing the 88 % recovery rate assumed in the 2025 Preliminary Economic Assessment (PEA).
The improved recovery was achieved through optimized flotation, fine grinding, and intensive leach circuits, giving the company a clearer understanding of the deposit: "The continued positive metallurgical results and recently improved recovery rates at our operations have provided us with a much better understanding of the deposit."
In response, TRX Gold will expand the processing plant from the originally planned 3,000 t pd to a 3,500 t pd SAG/ball mill configuration. SAG mill orders are expected in Q3 2026, with initial completion projected for Q2 2027, while upgrades to the existing 2,000 t pd plant are targeted for completion by Q4 2026.
The capital cost for the expansion and upgrades is now estimated at $45 million to $50 million, $10 million to $15 million above the PEA estimate. The higher cost reflects the increased processing capacity, circuit decoupling, and a larger tailings storage facility.
With the higher throughput and recovery, average annual gold production is expected to exceed the 62,000 oz per annum forecasted in the 2025 PEA, extending the mine’s life and potentially enabling a third cutback at the Main Pit. The revised plan also incorporates higher gold prices, improving the project’s economics.
Management emphasized that the company is positioned to execute the expansion using internally generated cash flow, citing a strengthened balance sheet and minimal debt: "The company is positioned to execute the expansion using internally generated cash flow, citing a strengthened balance sheet and minimal debt."
Investors responded positively to the announcement, reflecting confidence in the improved project economics and the company’s ability to fund the expansion internally.
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