TRX News Today: TRX Gold's Cutting-Edge Technology Boosts Output and Prolongs Mine Operations

TRX Gold Corporation (TSX: TRX) is moving forward with an accelerated expansion of its processing facility at the Buckreef Gold Project in Tanzania, with the goal of increasing daily throughput to over 3,000 tons and surpassing the annual gold output of 62,000 ounces projected in its May 2025 Preliminary Economic Assessment (PEA), as reported by

. The company revealed it will implement a dual-circuit setup: a sulphide circuit handling more than 3,000 TPD and a 1,000 TPD circuit for oxide, transition, and tailings, with a total capital investment of $30 million, consistent with PEA estimates in . CEO Stephen Mullowney highlighted that the expansion, which will be financed through internal cash generation over 18 to 24 months, is advancing ahead of plan and within budget, according to Stocktitan. The development involves staged enhancements, including a nearly finished pre-leach thickener and flotation contracts expected by late 2025, aiming for full integration by fiscal year 2027, Stocktitan noted.

This expansion utilizes cutting-edge methods like ultra-fine grinding and high-purity oxygen injection to concentrate 87–90% of gold into just 15% of the processed material, improving recovery rates, as detailed by . These technological upgrades are set to increase throughput and help maintain steady production costs, aligning with TRX Gold’s plan to generate strong cash flow and support additional exploration, Stocktitan reported. The Buckreef Gold Project, which contains 10.8 million tonnes of measured and indicated resources at an average grade of 2.57 grams per tonne gold, stands to gain from the expanded capacity, potentially lengthening mine life and increasing reserves, according to .

Market analysts have reacted favorably, with H.C. Wainwright & Co. raising its price target for TRX Gold to $1.20 from $1.10, marking a 9.09% increase and suggesting a 122.18% potential gain from the current price of $0.54, according to . The firm reiterated its "Buy" recommendation, citing the company’s operational achievements and better recovery outlook, as . Likewise, Fintel analysts pointed to an average price target upside of 126.62%, with a put/call ratio of 0.04, indicating strong bullish sentiment, according to . These upgrades come after TRX Gold’s recent track record of increasing processing capacity from 360 TPD to 2,000 TPD since 2021, showcasing its ability to deliver on expansion plans, Stocktitan observed.

Major risks include the timing of equipment deliveries and meeting recovery rate goals within the allocated budget, but the company’s phased strategy and reliance on internal funding help minimize external risks, Stocktitan noted. Since its first gold pour in 2021 and three previous expansions, TRX Gold’s commitment to ESG practices and active stakeholder engagement in Tanzania have further enhanced its operational stability, according to .