Trx Gold Corporation · AMEX:TRX
Trx Gold — Tanzanian Gold — IPO Roadshow (August 2020)
43 slides from Trx Gold's IPO roadshow presentation, Aug 11, 2020
Slide 1: Management Discussion and Analysis – Restatement Notice
As a result of the restatement, the Company’s reported net loss was decreased by $1,300,000 for the nine month period ended May 31, 2020 to a loss of $11,692,526 Management Discussion and Analysis May 31, 2020 The following Management’s Discussion and Analysis (“MD&A”) of the financial condition and
Slide 2: Highlights – Year Ended August 31, 2019 and Nine Months Ended May 31, 2020
Management Discussion and Analysis May 31, 2020 Highlights – for the year ended August 31, 2019 and nine month period ended May 31, 2020 Financial: · Subsequent to May 31, 2020 the Company settled USD$3,758,813 of principal amount of outstanding gold loans through the issuance of 13,831,467 shares.
Slide 3: Highlights – Financing and Operational (continued)
Management Discussion and Analysis May 31, 2020 On January 16, 2019, the Company completed the sale of 3,924,386 common shares at a price of US $0.23 per common share, raising an aggregate of $1,172,798 (US $885,734) in a registered direct offering. Share issue costs amounted to $103,591 for net pro
Slide 4: Operational Highlights – Buckreef Process Plant
Management Discussion and Analysis May 31, 2020 · Based on the long list of additional metallurgical test-work (as per submissions in the RFPs) still to be conducted on the Buckreef oxide ore, management opted to fabricate, install and operate a 5TPH CIL process plant as a prelude to the main 15tph
Slide 5: License Holdings Portfolio and Liabilities
Management Discussion and Analysis May 31, 2020 · The list of Company’s license holdings portfolio now comprises 32 Active & 101 Forfeited licenses. The Active licenses are made up as follows: Tancan-3 , Buckreef-14 & Tanzam2000-17 split into three main categories as Retain (21) , JV (1) & Discard (
Slide 6: Funds Available and Going Concern
Management Discussion and Analysis May 31, 2020 C$ (000) Funds available August 31, 2019 3,389 Net proceeds from convertible loans and gold bullion loans 5,613 Repayment of convertible loan (283) Net proceeds from private placements, net of issue cost 4,634 Mineral property expenditures including li
Slide 7: COVID-19 and Selected Financial Information
Management Discussion and Analysis May 31, 2020 · The outbreak of COVID-19 has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of no
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 – Foreign Exchange, Interest Accretion, Derivative
Management Discussion and Analysis May 31, 2020 $8,600 in 2019 to $11,762. Travel and accommodation expense for the three month period also increased due to increased travel to site given the current exploration program. For the nine month period ended May 31, 2020, the foreign exchange loss was $90
Slide 10: Legal Proceedings – Crede Litigation
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 11: Legal Proceedings – Crede Warrants Exercised
which was subsequently denied. In February and May of 2020, Crede exercised its remaining 3,517,857 series B Warrants and the Company issued 5,434,896 common shares, in the aggregate, to them. After these exerxises, Crede no longer has outstanding Warrants. On May 10, 2018, we filed a complaint in t
Slide 12: Related Party Transactions and Key Management Remuneration
Management Discussion and Analysis May 31, 2020 As at May 31, 2020, the Company has a receivable of $67,119 (August 31, 2019 - $45,368) from an organization associated with the Company’s President and former CEO and current director and from current officers and directors. The Company also has a rec
Slide 13: Omnibus Plan and Critical Accounting Estimates
Management Discussion and Analysis May 31, 2020 For more particulars about the Omnibus Plan we refer you to the Company’s Management Information Circular dated June 26, 2019 or the copy of the Omnibus Plan included with the Form 20-F Annual Report. The Omnibus Plan replaces all previous equity compe
Slide 14: Critical Accounting Policies – Mineral Properties
Management Discussion and Analysis May 31, 2020 Critical accounting policies Mineral Properties All direct costs related to the acquisition and exploration and development of specific properties are capitalized as incurred. If a property is brought into production, these costs will be amortized agai
Slide 15: Impairment of Long-lived Assets
Management Discussion and Analysis May 31, 2020 Impairment of Long-lived Assets At each date of the statement of financial position, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is an indication that those assets have suffered an impairmen
Slide 16: Fair Value Estimates and Hierarchy
Management Discussion and Analysis May 31, 2020 Fair value estimates are made at a specific point in time, based on relevant market information and information about financial instruments. These estimates are subject to and involve uncertainties and matters of significant judgment, therefore cannot
Slide 17: COVID-19 Risks
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 18: Exploration and Development Overview
Management Discussion and Analysis May 31, 2020 upgrade drilling as stated in the June 26, 2018 NI43-101 pre-feasibility report have resulted in the compilation of an NI43-101 compliant Updated Mineral Resource report statement that is currently under review by the British Columbia Securities Commis
Slide 19: Exploration Summary
Management Discussion and Analysis May 31, 2020 standalone project. Brief descriptions of PL holdings and financial obligation status for each respective project area are summarized in the sections below. Actual fieldwork was mainly concentrated on the Buckreef Project during the reporting period. E
Slide 20: Buckreef Project
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 across Smiths Sound, via tarred national road and t
Slide 21: Mine Pit Design
Management Discussion and Analysis May 31, 2020 The following work on mining and process plant operations was completed up to 31 st May 2020: Mine Pit Design v The oxide ore starter pit was designed by in-house mining engineer to match the updated 3D topography (Figure 1). v Mining in the oxide ore
Slide 22: Oxide Ore Starter Pit Material Classes
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 23: 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 24: 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 25: Management Discussion and Analysis
Management Discussion and Analysis May 31, 2020
Slide 26: Mine Operational Challenges and Mineral Processing
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 27: Processing Plant Commissioning
Management Discussion and Analysis May 31, 2020 v Certification by GCLA also achieved during the reporting period. v Chemicals reagents procured as the first fill reagents for the process plant Crushing Circuit v Crushing units were set into final positions. v All the crushing plant motors were test
Slide 28: Exploration and Resource Extension Drilling
Management Discussion and Analysis May 31, 2020 · Persistent rains during the reporting period delayed welding and most electrical works. · Delayed response by Chief Government Chemist on the issue chemical warehouse inspection and certification has delayed purchasing of the chemical reagents and th
Slide 29: 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:
Slide 30: Table 5: Sampling Stats Q3 2020
Management Discussion and Analysis May 31, 2020 Table 5: Sampling Stats-: Q3 2020
Slide 31: Assay Commentary and Mineral Resource Statement
· 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 32: Buckreef Shear Zone Mineral Resources
· 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.
Slide 33: Combined Resources and Mineral Reserve Statement
Management Discussion and Analysis May 31, 2020 · The overall mineral resource figures for the other three prospects remain the same as previously published since there was no new exploration work conducted on those prospects. · The combined total mineral resources (Measured & Indicated) for the Buc
Slide 34: Reserve Depletion and 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.
Slide 35: Buziba and Itetemia Projects
Management Discussion and Analysis May 31, 2020 The Buziba Project comprises a single prospecting license (PL6545/2010) located some 25km east of the Buckreef project in the Geita district (see Figure, overleaf). The project area can be accessed from Buckreef via unpaved and poorly maintained gravel
Slide 36: Luhala and License Holding Status
Management Discussion and Analysis May 31, 2020 The Corporation was mainly focused on bringing the Buckreef project into production such the planned selection of a consultant to commence a preliminary feasibility study at the Luhala gold project has been deferred to a later date and once funds are a
Slide 37: 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 38: Historical PLs – Forfeited Portfolio
Management Discussion and Analysis May 31, 2020 The Company still has not received any information back from the Government on its request to review the proposed land compensation for villagers affected by the expanded Buckreef Special Mining Lease area. Historical PLs License Holding and Status: Fo
Slide 39: Summary of License Liabilities
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 40: All Project PL Portfolio Status and Liabilities
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 41: 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 42: Internal Controls and Additional Information
Management Discussion and Analysis May 31, 2020 The Company intends to take steps to enhance and improve the design of its ICFR; however during the fiscal period ended May 31, 2020, the Company has not been able to remediate the material weaknesses identified above. Further, proposed changes to addr
Slide 43: Forward-Looking Information
Management Discussion and Analysis May 31, 2020 be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.