TRX Gold is pushing ahead with a major expansion of its Buckreef Gold Project in Tanzania, aiming to boost processing capacity and explore new targets. CEO Stephen Mullowney detailed plans to add a 3,500-ton-per-day plant alongside the existing 2,000-ton-per-day facility, bringing total capacity to about 5,500 tons per day. The company has already completed three prior expansions, all self-funded through free cash flow generated since its initial capital raise over five years ago.
The company released a preliminary economic assessment (PEA) in May 2025, projecting annual production of 62,000 ounces over an 18-year mine life. The updated study, expected by the end of the year or early next year, will reflect the larger capacity of the expanded operation. The prior PEA estimated a net asset value of nearly $2 billion at a gold price of $4,000 per ounce, with projected cash costs of $1,000 per ounce and all-in sustaining costs of $1,200 per ounce.
Currently, Buckreef has 1.5 million ounces of gold in measured, indicated, and inferred resources, with an average grade of 2.5 grams per ton. The operation is producing around 30,000 ounces annually and has generated approximately $80 million in last-12-month EBITDA. Mullowney emphasized that increased production, not just gold price gains, has driven the company’s growth. The focus remains on expanding EBITDA, net asset value, and the resource base.
TRX Gold is also ramping up exploration efforts, with four or five drill rigs active or soon to arrive. The Stamford Bridge and Anfield zones have shown promising results, including a 200 gram-meter intercept at Stamford Bridge, the company’s best drill-hole result to date. The project operates in Tanzania’s Lake Victoria region, benefiting from established infrastructure and access to the national power grid.
The company has no debt and holds between $27 million and $30 million in cash as it executes its expansion program. TRX Gold is listed in New York and Toronto under the ticker TRX.