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Tanzanian Royalty's update decreases value of Buckreef to US$131M from US$243M


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Tanzanian Royalty's update decreases value of Buckreef to US$131M from US$243M

Tanzanian Royalty Exploration Corp. on July 30 posted an amended pre-feasibility study for its majority-owned Buckreef gold project in Tanzania, after a review of its May 2017 technical report resulting from queries from the Ontario Securities Commission.

The new study outlined a 16-year operation producing an average 51,000 ounces of gold per year, or a total of 822,000 ounces, with cash costs averaging US$735/oz.

Proven and probable reserves are estimated to contain 950,000 ounces of gold within 19.2 million tonnes of ore grading 1.54 g/t of gold, decreasing from the 1.1 million ounces defined in 2017.

The after-tax net present value of Buckreef is estimated at US$131 million, using a 5% discount rate, with a 74% internal rate of return and a four-year payback period. The previous study defined an NPV of US$243 million using the same discount rate with a 53.7% internal rate of return.

Initial CapEx is expected to come in at US$76.5 million with sustaining costs of US$23 million over the life of the mine for a total of US$99.5 million, increasing from US$59.6 million estimated previously.

Tanzanian Royalty is planning to progress to a feasibility study and conduct further drilling designed to upgrade inferred resources and better define mineralization at depth.