Tanzanian Royalty Exploration Corp. will start a 30,000-meter, three-phase drilling program at its Buckreef gold project in Tanzania upon approval by the mining commission.
The company said Jan. 10 that it awarded the contract to Stamico and CoreworthyDrilling to complete the first phase with 4,500 meters of infill drilling planned to upgrade existing inferred ounces within the proposed open pit.
The contractors are scheduled to mobilize at the site by Jan. 25, and drilling is expected to last about 45 days.
The second phase will continue to delineate and test the extent of the deep contact, while the third phase will be based on information from the first two phases.
The company added that even though the program does not require significant financing, it is raising capital for the second and third drilling phases.
The company posted an amended pre-feasibility study for the project in July 2018, decreasing its after-tax net present value to US$131 million from US$243 million, using a 5% discount rate. The change followed a review of its May 2017 technical report resulting from queries from the Ontario Securities Commission.