TRX Gold drills 4.19 g/t gold over 106 metres at Buckreef, Tanzania

VANCOUVER – TRX Gold Corp. [TNX-TSX; TRX-NYSE American] reported positive assay results from its 19-hole metallurgical variability sampling program on the Buckreef gold main zone in Tanzania. The Buckreef Project comprises five prospects, namely Buckreef, Bingwa, Tembo, Eastern Porphyry and Buziba.

The results are positive and significant for the company as they continue to demonstrate continuity of mineralization down-dip and along strike of the deposit; and excellent width and grade of mineralization.

As part of the upcoming metallurgical variability study, using core from this program, the company will assess the amenability of the sulphide material to be processed through the existing processing plant, using its relatively simple flowsheet. In turn, this may have positive implications for potential plant expansions.

Highlights include Hole BMMT015 that intersected 28 metres grading at 10.68 g/t gold from 0 metres. Hole BMMT020 intersected 123 metres of 2.69 g/t gold from three metres. Hole BMMT009 intersected 121 metres grading at 2.96 g/t gold from three metres.

Hole BMMT022 intersected 106 metres grading at 4.19 g/t gold from 85 mettres and 77 metres grading at 3.09 g/t gold from 241 metres. Hole BMMT021 intersected 90 metres grading at 1.56 g/t gold from 139 metres. Sampled widths are not true widths. Of 19 holes drilled, 18 are reported, with the remaining hole unreported due to an incomplete intersection of the Main zone.

“The continuity of gold mineralization in the Main zone is clearly demonstrated by these metallurgical drill hole results – there is a great mine here!” noted Stephen Mullowney, CEO. “We have demonstrated over the past year our ability to mine and build an ore processing plant that is operating at 1,000-plus tpd [tonnes per day] with 90% gold recoveries. Our next phase will focus on a simple gold recovery circuit for the broader project – the two-million-plus-ounce measured and indicated mineral resource, and 0.6-million-ounce inferred mineral resource. These assay results provide Buckreef with excellent samples for broader deposit metallurgical testing as continuity is critical for a successful gold mining business. If the metallurgical variability study confirms that we can utilize the current straightforward flowsheet and existing processing plants for further expansions, we would really be off to the races!” Note: Sampled widths are not true widths. Of 19 holes drilled, 18 are reported, with the remaining hole unreported due to an incomplete intersection of the Main Zone.

TRX Gold will also be evaluating the existing processing plant flowsheet of: crushing,  grinding and carbon-in-leach, with primary grinding of P80 = ~75 microm. The operations have achieved gold recovery rates of ~90% since production began in October 2021, with over 100,000 tonnes being processed. SGS Canada Inc., as part of the initial metallurgical test work at their Lakefield, Ontario facility, achieved a comparable recovery rate for a similar flowsheet.

During the year, the company working with Ausenco, revised and elaborated the request for proposal process (for the metallurgical variability study), including studies for dry stack tailing parameters.

The 18 metallurgical holes reported (of 19 drilled) from Buckreef Gold are designed to intersect gold mineralization between current oxide ore mining and the deeper preliminary metallurgical drill holes in the sulphide deposit reported in 2021.

TRX Gold is rapidly advancing the Buckreef Gold Project. Anchored by a Mineral Resource published in May 2020, the project currently hosts an NI 43-101 Measured and Indicated Mineral Resource of 35.88 MT at 1.77 g/t gold containing 2,036,280 oz of gold and an Inferred Mineral Resource of 17.8 MT at 1.11g/t gold for 635,540 oz of gold. The leadership team is focused on creating both near-term and long-term shareholder value by increasing gold production to generate positive cash flow. The positive cash flow will be utilized for exploratory drilling with the goal of increasing the current gold Resource base and advancing the Sulphide Ore Project which represents 90% of current gold Resources.

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