Trx Gold Corporation · AMEX:TRX
Trx Gold — Tanzanian Gold — IPO Roadshow (July 2020)
47 slides from Trx Gold's IPO roadshow presentation, Jul 16, 2020
Slide 1: Management Discussion and Analysis – Highlights
Management Discussion and Analysis May 31, 2020 The following Management’s Discussion and Analysis (“MD&A”) of the financial condition and results of operations for Tanzanian Royalty Exploration Corporation (the “Company”) should be read in conjunction with the unaudited interim condensed consolidat
Slide 2: Financial Highlights (continued)
Management Discussion and Analysis May 31, 2020 · On April 18, 2019, the Company completed the sale of 606,165 common shares at US $0.58 per share raising US $350,000 in the aggregate with three investors in a registered direct offering. · On March 4, 2019, the Company completed the sale of 625,557
Slide 3: Operational Highlights
Management Discussion and Analysis May 31, 2020 Operational: · A new team that constitutes the in-house mining crew was engaged in order to supervise and direct the mining activities by consultant firm, FEMA. · The start-up TSF design was completed and subsequently incorporated into the Environmenta
Slide 4: Deep Drilling and Mining Update
Management Discussion and Analysis May 31, 2020 · The Company continued with its Phase 3 deep drilling program targeting down dip and strike extensions of the Buckreef Main zone at elevations up to 700m below the current pit bottom. A combined total of 2 3891.32m (RC pre-collar: 479m & Core tailing:
Slide 5: Overall Performance
Management Discussion and Analysis May 31, 2020 Overall Performance As at May 31, 2020, the Company had current assets of $2,542,516, compared to $4,135,316 on August 31, 2019. The increase is mainly due to inflows from proceeds of convertible loans issued of $5,612,589 (2019 - $1,596,401), inflows
Slide 6: Going Concern and Funding
Management Discussion and Analysis May 31, 2020 Based on the Company’s current funding sources and taking into account the working capital position and capital requirements at May 31, 2020, these factors indicate the existence of a material uncertainty that raises substantial doubt about the Company
Slide 7: Selected Financial Information
Management Discussion and Analysis May 31, 2020 operations of the Company in future periods. It is management’s assumption that the Company will continue to operate as a going concern. These trends may limit the Company’s ability to discover and develop an economically viable mineral deposit. Select
Slide 8: Results of Operations – Consulting and Directors' Fees
Management Discussion and Analysis May 31, 2020 Consulting fees for the nine month period ended May 31, 2020 were $1,010,819, compared to $684,540 in the comparable nine month period ended May 31, 2019. Consulting expenses were higher in the current year due to additional work and consulting work at
Slide 9: Results of Operations – Travel, Foreign Exchange, Interest
Management Discussion and Analysis May 31, 2020 For the nine month period ended May 31, 2020, travel and accommodation expense were higher at $80,710 compared to $23,266 in 2019. Travel and accommodation expense increased due to increased travel to site given the current exploration program. For the
Slide 10: Liquidity and Going Concern
Management Discussion and Analysis May 31, 2020 Based on the Company’s current funding sources and taking into account the working capital position and capital requirements at May 31, 2020, these factors indicate the existence of a material uncertainty that raises substantial doubt about the Company
Slide 11: Legal Proceedings – Crede CG III
On January 19, 2018, Crede CG III, LTD (“Crede”) filed suit against the Company in the Supreme Court of the State of New York, County of New York, claiming, among other things, breach of contract for failure to allow Crede to exercise 1,300,000 Series A Warrants to acquire 3,100,751 common shares. T
Slide 12: Transactions with Related Parties
Management Discussion and Analysis May 31, 2020 Transactions with Related Parties Related parties include the Board of Directors and officers, close family members and enterprises that are controlled by these individuals as well as certain consultants performing similar functions. (a) Tanzanian Gold
Slide 13: Remuneration of Directors and Key Management
Management Discussion and Analysis May 31, 2020 (b) Remuneration of Directors and key management personnel (being the Company’s Chief Executive Officer, Chief Financial Officer and Chief Operating Officer) of the Company was as follows: Nine months ended May 31, 2020 2019 Fees, salaries and benefits
Slide 14: Omnibus Plan and Critical Accounting Estimates
Management Discussion and Analysis May 31, 2020 Subject to adjustments as provided for under the Omnibus Plan, the maximum number of shares issuable pursuant to Omnibus Plan Awards outstanding at any time under the Plan shall not exceed 10% of the aggregate number of common shares outstanding from t
Slide 15: Critical Accounting Estimates and Policies
Management Discussion and Analysis May 31, 2020 Estimate of Share Based Payments, Warrant Liability, Embedded Derivatives Associated Assumptions The Company recorded share based payments based on an estimate of the fair value on the grant date of share based payments issued and reviews its foreign c
Slide 16: Mineral Properties Accounting Policy
Management Discussion and Analysis May 31, 2020 Capitalized mineral property exploration costs are those directly attributable costs related to the search for, and evaluation of mineral resources that are incurred after the Company has obtained legal rights to explore a mineral property and before t
Slide 17: Financial Instruments
Management Discussion and Analysis May 31, 2020 recognition of the asset retirement obligation, the carrying amount of the liability is increased for the passage of time and adjusted for changes to the current market ‐ based discount rate, amount or timing of the underlying cash flows needed to sett
Slide 18: Financial Instrument Risk Exposures
Management Discussion and Analysis May 31, 2020 A summary of the Company's risk exposures as they relate to financial instruments are reflected below: Credit Risk Credit risk is the risk of an unexpected loss if a third party to a financial instrument fails to meet its contractual obligations. The C
Slide 19: COVID-19
COVID-19 In particular, the Company wishes to highlight that it continues to face risks related to COVID-19, which could continue to significantly disrupt its operations and may materially and adversely affect its business and financial conditions. In December 2019, a novel strain of the coronavirus
Slide 20: Outlook
Management Discussion and Analysis May 31, 2020 Outlook The Company’s Board of Directors has revised the strategic objective of the Company is to develop the Buckreef Project based on the conceptual production plan as published in the NI43-101 compliant Mining Feasibility Report (June 2018). The rev
Slide 21: License Status and Target Projects
Management Discussion and Analysis May 31, 2020 Mines as a show of good faith while negotiations for the re-instatement of the mining license as well as access with the Ministry of Natural Resources and Tourism continue. Based on the Management’s adoption and implementation of the recommendations fr
Slide 22: Mineral Properties and Deferred Exploration Costs
Buckreef Kigosi Tetemia Tuhala (a) ) ) @) Total Balance, September 1, 2018 $ 28,137,335 $ 12,490,641 $ 5,948,261 $ 3,336,617 $ 49,912,854 Exploration expenditures Camp, field supplies and travel 186,634 = = - 186,634 License fees and exploration and field overhead 829,148 45,945 - 2,733 877,826 Geol
Slide 23: Buckreef Project – Mine Development and Operations
Management Discussion and Analysis May 31, 2020 Bu ckreef Project Mine Development and Operations The Buckreef Project is in the Geita District of the Geita Region south of Lake Victoria, some 110km southwest of the city of Mwanza (see Figure, overleaf). The project area can be accessed by ferry acr
Slide 24: Starter Pit Material Classification
v The in-pit material based on the grade control-drilling model to be mined was categorised into four (4) different classes based on au-content grades as shown in Table 1 below. v Total waste material (grades <0.3g/t Au) worked out as 862,032t while ROMPAD ore grade material (>0.3g/t Au) is 419,988t
Slide 25: Table 1: Oxide Ore Starter Pit Mineral Reserves
Management Discussion and Analysis May 31, 2020 Table 1: Buckreef Gold Mine: Oxide Ore Starter Pit Mineral Reserves
Slide 26: Mine Activities and Mine Production
v After applying an estimated 5% ore loss due to dilution and other factors, total mineable ounces is estimated at ~33,020 ounces. Mine Activities & Mine Production v A baseline surface topography map showing the start-up footprint of starter pit, ROM pad, top soil dump and waste rock dump completed
Slide 27: Table 2: Starter Pit Oxide Ore Inventory
Management Discussion and Analysis May 31, 2020 Table 2: Buckreef Gold Mine: Main Starter Pit Oxide Ore Inventory (as of 31 st May 2020)
Slide 28: Mineral Processing and Operational Challenges
v Process plant feed is scheduled to commence in mid-June 2020 once all operational permits for the TSF facility have been received from the Ministry of Mines and/or Ministry of Water and Irrigation. Mine Operational Challenges v Persistent rains during the reporting period was a major delay (wet &
Slide 29: Chemical Reagents/Storage/Permitting
Management Discussion and Analysis May 31, 2020 Chemical Reagents/Storage/Permitting v Housekeeping to renovate and clean up the old chemical storage warehouse was completed. v An application for the renewal of the Buckreef Chemical usage permit was submitted to the Government Laboratory Agency (Chi
Slide 30: Tailings Storage Facility Permits
Management Discussion and Analysis May 31, 2020 v Permits to commence construction received from both Ministries. v Renovations and excavations on ex-heap leach Pads 4 and 3 to enhance tailings freeboard and containment volume completed. v The HDPE liners to guard against accidental seepage was purc
Slide 31: Table 4: Drilling Stats Q3 2020
Management Discussion and Analysis May 31, 2020 Table 4: Drilling Stats-: Q3 2020
Slide 32: Sampling & Assay Results
Sampling & Assay Results A combined total of samples were generated and submitted to analytical labs in Mwanza during the reporting period as summarized in the table below: Table 5: Sampling Stats-: Q3 2020
Slide 33: Laboratories and Assay Observations
· Mintech laboratory continues to be the primary laboratory while SGS-Mwanza is used for umpire checks. · Though no assay results were published during the quarter, the initial assay results from the northeast extension zone show wide low-grade mineralization envelopes at depth related to specific g
Slide 34: Mineral Resource Statement
Management Discussion and Analysis May 31, 2020 Mineral Resource Statement · An updated mineral resource statement was published by TANGOLD on the 17 th of March 2020. · A detailed NI43-101 compliant updated Independent Technical Mineral Resource report was completed and filed in June 2020. The upda
Slide 35: Resource and Reserve Statement Update
· The Buckreef shear zone hosted mineral resources (Measured & Indicated) as updated now stands at 35.88Mt @ 1.77 g/t with ~ 2.04Moz of contained gold, up from a 2018 estimate of 21.99Mt @ 1.54g/t with 1.09Moz of contained gold. · The overall mineral resource figures for the other three prospects re
Slide 36: Table 7: Mineral Reserve Estimate
Management Discussion and Analysis May 31, 2020 Table 7: Buckreef Gold Project Mineral Reserve Estimate as of 31 st May 2020 (Source Virimai Projects, 2018)
Slide 37: Buziba Project
· Depletion of the oxide ore reserve component from the Buckreef shear zone will be conducted in the next reporting period. Buziba Project During the reporting period, no fieldwork was conducted in the project area. The Buziba Project comprises a single prospecting license (PL6545/2010) located some
Slide 38: Itetemia Project
Management Discussion and Analysis May 31, 2020 Itetemia Project During the reporting period, no fieldwork was conducted in the project area. The Itetemia gold deposit includes the mineral resources of the Golden Horseshoe Reef (“ GHR ”), and is an advanced stage exploration project focusing on the
Slide 39: Luhala Project
Management Discussion and Analysis May 31, 2020 Luhala Project During the reporting period, no fieldwork was conducted in the project area. The Luhala Project is an advanced stage exploration project focusing on the development of the Luhala gold deposit which consists of five anomalous hilltops. Th
Slide 40: Table 9: Active PL Portfolio Status
Management Discussion and Analysis May 31, 2020 Table 9: TanGold Corporation Gold Projects Active PL Portfolio Status – License Status and Liabilities as of 31 st May 2020
Slide 41: Active PL Annual Fee Liabilities
As of 31st May 2020, cumulative annual fees liabilities for all Active PLs by respective projects now totals US$ 85,578 comprised as follows: · Outstanding Annual Fees (+ penalties)-: US$ 2,772; · Renewal Application Fees-: US$nil; · Processing Fees-: US$nil and · Upcoming June Annual Fees-: US$ 82,
Slide 42: Table 10: Forfeited PL Portfolio Status
Management Discussion and Analysis May 31, 2020 Table 10: TanGold Corporation Gold Projects Forfeited PL Portfolio Status – Liabilities as of 31 st May 2020
Slide 43: Forfeited PL Liabilities Summary
As of 31st May 2020, cumulative outstanding annual fees liabilities for the remaining forfeited PLs by respective projects now totals US$ 249,240. Summary As of 31st May 2020, and based on the continuing streamlining of the PL-holdings exercise, all outstanding, current and future financial liabilit
Slide 44: Table 10: All Project PL Portfolio Status
Management Discussion and Analysis May 31, 2020 Table 10: TRX All Project PL Portfolio Status – License Status and Liabilities as of 31 st May 2020
Slide 45: Risk Factors
Risk Factors The Company is subject to a number of extraneous risk factors over which it has no control. These factors are common to most exploration companies and include, among others: project ownership and exploration risk, depressed equity markets and related financing risk, commodity price risk
Slide 46: Disclosure Controls and Procedures
Management Discussion and Analysis May 31, 2020 The Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) are responsible for design and effectiveness of disclosure controls and procedures (“DC&P”) and the design of internal control over financial reporting (“ICFR”) to provid
Slide 47: Cautionary Note Regarding Forward-Looking Statements
Management Discussion and Analysis May 31, 2020 Cautionary Note Regarding Forward-Looking Statements Except for statements of historical fact relating to the Company, certain information contained in this MD&A constitutes “forward-looking information” under Canadian securities legislation. Forward-l