TRX News Today: TRX Gold's Advanced Tech Drives Production Surge and Extended Mine Life

TRX Gold Corporation (TSX: TRX) is accelerating its processing plant expansion at the Buckreef Gold Project in Tanzania, aiming to boost throughput beyond 3,000 tons per day (TPD) and elevate annual gold production above the 62,000-ounce benchmark outlined in its May 2025 Preliminary Economic Assessment (PEA), according to a Stocktitan article. The company announced plans to integrate a dual-circuit system: a 3,000+ TPD sulphide circuit and a 1,000 TPD oxide/transition/tailings circuit, with the total capital cost estimated at $30 million, aligned with PEA projections in a Yahoo Finance report. CEO Stephen Mullowney emphasized that the expansion, funded by internal cash flow over 18–24 months, is progressing ahead of schedule and remains on budget, the Stocktitan article added. The project includes phased upgrades, with the pre-leach thickener nearing completion and flotation contracts set for late 2025, targeting full operational integration by fiscal 2027, the Stocktitan piece notes.

The expansion leverages advanced technologies, such as ultra-fine grinding and high-purity oxygen injection, to concentrate 87–90% of gold into 15% of the processed mass, enhancing recovery rates, as reported by Yahoo Finance. These improvements are expected to drive higher throughput and stabilize production costs, supporting TRX Gold's strategy to generate positive cash flow and fund further exploration, the Stocktitan article states. The Buckreef Gold Project, which hosts 10.8 million tonnes of measured and indicated resources at 2.57 grams per tonne gold, is positioned to benefit from the increased capacity and potentially extend mine life and expand reserves, per Yahoo Finance.

Analysts have responded positively, with H.C. Wainwright & Co. upgrading TRX Gold's price target to $1.20 from $1.10, reflecting a 9.09% increase and a 122.18% implied upside from the current price of $0.54, according to GuruFocus. The firm maintained its "Buy" rating, citing the company's operational progress and improved recovery projections, Futunn reported. Similarly, Fintel analysts highlighted a 126.62% average price target upside, with the stock's put/call ratio at 0.04, signaling bullish sentiment, according to Nasdaq. These upgrades follow TRX Gold's recent history of expanding processing capacity from 360 TPD to 2,000 TPD since 2021, demonstrating its execution capability, the Stocktitan article observes.

Key risks include equipment delivery schedules and achieving targeted recovery rates within the budget, but the company's phased approach and internal financing reduce external dependency, the Stocktitan piece notes. With the first gold pour in 2021 and three prior expansions under its belt, TRX Gold's focus on ESG standards and stakeholder engagement in Tanzania further strengthens its operational resilience, Yahoo Finance reported.