Trx Gold Corporation · AMEX:TRX
Trx Gold — Tanzanian Gold — Investor Presentation (May 2021)
24 slides from Trx Gold's investor presentation, May 2021
Slide 1: Corporate Presentation
Corporate Presentation May 2021
Slide 2: Cautionary Note
Tanzanian Gold Corporation (“Tanzanian Gold” or the “Company”), has taken all reasonable care in producing and publishing information contained in this Cautionary presentation. Tanzanian Gold does not warrant or make any representations regarding the use, validity, accuracy, completeness or reliabil
Slide 3: Investment Proposition
Emerging Gold Producer with Substantial Growth Potential Investment Proposition • World-class assets located in Lake Victoria Greenstone Belt Proven • Adjacent to Anglogold Ashanti's Geita mine and Barrick’s Mining Belt Bulyanhulu mine (which has recently restarted operations) • M&I mineral resource
Slide 4: Refreshed & New Management Team
Refreshed & New Management Team Experienced Stephen Mullowney – CEO Michael P. Leonard – CFO Andrew Cheatle – COO • Former Partner & Managing Director at • Distinguished career in the gold industry • 30+ years of global mining experience Leadership PricewaterhouseCoopers LLP (PwC) with broad, progre
Slide 5: Capital Structure
Capital Financial Snapshot1 Share Ownership Structure Tickers NYSE:TRX, TSX:TNX Management, Friends & Family, Share Price (May 21, 2021) US$0.53 (C$0.62) 15% 15%15 52-Week Range US$0.50-US$1.91 (C$0.61-C$2.12) % Basic SharesOutstanding 254.9 M Options 7.4 M 70% Warrants 23.7 M 85 % Market Capitaliza
Slide 6: Superior Liquidity vs. Peer Group
Superior TanGold Exhibits Significant Trading Volume Liquidity vs. Trading Volume (millions) Peer Group 5.43 Substantially higher (~6x) than that of its next closest peer 2.38 0.90 0.80 0.79 0.69 0.62 0.58 0.48 0.45 0.45 0.32 0.28 0.24 0.15 0.16 0.21 0.13 Tanzanian Marathon Sabina Skeena Ascot Orla
Slide 7: Located in Prolific Lake Victoria Greenstone Belt
Located in Lake Victoria Greenstone Belt: Home to World Class Mines, Including Geita (AngloGold - Ashanti) and Bulyanhulu (Barrick) Prolific Lake Victoria Greenstone Belt NYSE:TRX/TSX:TNX tangoldcorp.com 7
Slide 8: Buckreef Open Pit
Buckreef Mining & Stripping Has Commenced – View to the South Open Pit February 3rd, 2021 - Buckreef Shear Zone Has Been Exposed NYSE:TRX/TSX:TNX tangoldcorp.com 8
Slide 9: De-Risking via Fully Permitted Oxide Plant Expansion
De-risking via Fully Permitted Oxide Plant Expansion to 40 tph (~1,000 tpd) Oxide Test Plant De-Risking 5 tph Test De-Risk Operations Confirm Flowsheet Expanded Oxide Plant Plant 15,000 – 20,000 Au/y Start mining Retention times, reagent consumption Plant production ramp-up Grind-leach tests & grind
Slide 10: Potential Upgrade and Expansion of Resources & Reserves
Potential Upgrade and Expansion of Resources & Reserves Buckreef Property • 1,200+ m of continuous • Several surface targets Opportunities mineralization at Buckreef • Expansion for possible additional Targeting Inferred Increase Open for • oxide mineral resources MR, Exploration New Buckreef Main Z
Slide 11: Buckreef Main Zone with 2018 PFS Pit Shell
Buckreef Significant Potential to Upgrade Resources & Reserves (incl. Underground) Main Zone with 2018 PFS Pit Shell Open at Depth, to the Northeast and South NYSE:TRX/TSX:TNX tangoldcorp.com 11
Slide 12: Introducing Buckreef West
Buckreef Introducing Buckreef West - Potential Upgrade and Expansion of Resources West Open at Depth and Along Strike Significant Drill Density in Main Zone, Buckreef West Just Starting NYSE:TRX/TSX:TNX tangoldcorp.com 12
Slide 13: Sulphide Mine Feasibility Study has Started
Sulphide Mine Feasibility Study has Feasibility Work Started: Metallurgical Work and Site Layout Started 2018 PFS Summary (USD$1,300 oz. Au) • Three diamond drill core samples taken from Buckreef deposit, Description Amount Positive the following intercepts and gold recovery rates were observed: Ini
Slide 14: Resembles Wahgnion, Buzwagi and Geita
Resembles Buckreef similar to Wahgnion, Buzwagi and Geita Other African Deposit Type Mining/Recovery Methods M&I Resource M&I Grade Stripping Ratio Annual Production Operations (Gold) (Gold) (Gold) Shear zone hosted Mining: Open pit 2.04 Moz 1.77 g/t TBD 2 TBD 3 deposit in mafic Buckreef basalts/dol
Slide 15: New Management Achievements in First Days
New New Management Achievements in First 100 Days Management Completed Initial Metallurgical Tests De-risking 1 • SGS has recommended standard flowsheet of crush/grind/flotation/cyanidation to recover the gold in sulphides Buckreef Partnership with Reputable Technical Consultant for Project Developm
Slide 16: Continued Execution on Business Plan – Next Days
New Continued Execution on Business Plan – Next 100 Days Management Oxide Test Plant Expansion De-risking 1 • Complete economic feasibility and required regulations to expand 5tph test plant to 15 tph test plant, which would Buckreef operate concurrently with expansion of oxide operations to 40 tph
Slide 17: Undervalued vs. Peers
Undervalued Trading at Discount to Peer Group on both P/NAV and EV/M&I multiples vs. Peers P/NAV 0.95x 0.80x Peer Average: 0.55x 0.65x 0.58x 0.50x 0.46x 0.39x 0.35x 0.27x Bluestone Tanzanian Rio2 Sabina Skeena Orezone Ascot Marathon Orla Gold EV/M&I $207 $168 Peer Average: $94 $116 $90 $67 $73 $50 $
Slide 18: Significant Re-rate Potential
Significant Re- As Management Advances Buckreef, TanGold’s Multiple Can Expand ~7x rate Potential Average EV / M&I $430 ~2x Higher $274 ~5x Higher $53 Tanzanian Gold Pre-commercial / Ramp-up1 Single Asset Producers2 Sources: Company f ilings, Capital IQ. Market data as of May 21, 2021. Currency is U
Slide 19: Buckreef Stands Out vs. Peers
Buckreef Positioned in the Higher Grade Lower Cost Quadrant vs. Peers Stands Out vs. Peers Buckreef initiatives to further decreaseoperating costs: • Drilling to optimize grade • Examine viability of steeper pit slopes (lower stripping ratio) • Consider higher throughput for economies of scale Notes
Slide 20: ESG: Key Focus
ESG: Key Environment Focus • Low carbon footprint by maximizing grid power and minimizing diesel usage • All sites and suppliers to be certified by International Cyanide Management Code • Dry stack tailing will minimize environmental risks Social • 45% ownership by Tanzania through STAMICO • Grantin
Slide 21: Safety is Our Top Priority
Safety is Our TanGold had Zero Lost Time Injuries, Zero Medical Aid Incidents, and Zero COVID -19 Cases in Q2/21 Top Priority • Daily COVID-19 briefing • Mandatory wearing of masks for all personnel • Formation of a and contractors Health/COVID-19 team under Senior Health • Reduced seating density i
Slide 22: New Management is Now Accelerating Buckreef
New Expand Oxide Production, Complete Sulphide Feasibility Study & Continue Exploration Management is Now Accelerating 2014 2020 Buckreef M&I: 23.1 MT @ 1.52 g/t Au for • M&I: 35.88MT @ 1.77g/t for 1.13 Moz 2.0 Moz Inferred: 8.7 MT @ 1.34 g/t Au • First Oxide Gold Pour for 0.34 Moz 2021+ • Expand an
Slide 23: Investor Relations
Investor Relations Investor Relations Manager: Michael Martin Email: m.martin@tangoldcorp.com | Phone: 1-860-248-0999 | Website: www.tangoldcorp.com
Slide 24: M&I Gold Resources for the Buckreef Shear Zone
M&I Mineral Resources for the Buckreef Shear Zone more than Doubled in 2020 Buckreef Shear Zone NI 43-101 Resource Estimate for the Buckreef Shear Zone Resources (June 2020 - 0.4 g/t Au cut-off)1 2.50 M&I Gold Resources (mm oz) 2.00 1.50 1.77 g/t 1.00 1.54 g/t 1.53 g/t 0.50 1.97 g/t 0.00 2011 2014 2