TRX Gold Corporation (NYSE American: TRX) announced plans to expand its Buckreef Gold Project processing capacity beyond original estimates outlined in its May 2025 Preliminary Economic Assessment.

The company reported gold recovery rates of 89% to 92% from recent metallurgical testing, above the 88% rate assumed in the PEA. The results led TRX Gold to specify a Semi Autogenous Grind and Ball mill combination capable of processing 3,500+ tonnes per day, exceeding the PEA's 3,000 tpd assumption.

TRX Gold commenced tendering for the SAG mill with orders expected in Q3 2026 and completion targeted for Q2 2027. The existing 2,000 tpd processing plant will continue operating alongside the new facility after upgrades are completed by Q4 2026.

Capital costs for the expanded plant and upgrades are estimated at $45 million to $50 million, representing an increase of $10 million to $15 million above initial PEA estimates. The higher costs reflect increased processing capacity, circuit decoupling, and a larger tailings storage facility.

The company initiated a revision of its life-of-mine plan during Q2 2026, citing the increased processing capacity and gold prices above the PEA's $1,900 per ounce assumption. Preliminary analysis indicates potential for an expanded third cutback at the Main Pit, which could extend open-pit operations and defer underground mining commencement.

TRX Gold hired P&E Mining Consultants Inc. to update the PEA, with completion expected in Q4 2026. The expanded processing capacity is expected to increase average annual gold production above the 62,000 ounces originally projected in the May 2025 PEA.

Chief Executive Officer Stephen Mullowney stated the company is positioned to execute the expansion using internally generated cash flow, citing a strengthened balance sheet and minimal debt.