You will never explore alone!

CEO Stephen Mullowney on TRX Gold’s future

Conveyor belt moving ore from the crusher at the Buckreef Gold mine. CREDIT: TRX GOLD

Last October, TRX Gold announced its best drill result ever, intersecting 5.48 g/t gold over 35.5 metres at the Buckreef Gold project in Tanzania. The company also announced the discovery of a promising new gold mineralization shear zone, named “Stamford Bridge zone,” at which the drill results are revealing geological characteristics and mineral alterations that are similar to that at Buckreef’s main zone.

“The Stamford Bridge zone is an exceptional discovery, resulting in the most significant mineralization identified within Buckreef Gold’s drill history,” said TRX Gold’s CEO Stephen Mullowney (SM).

After the announcement, I had the opportunity to discuss the company’s recent successes with Mr. Mullowney.

Being an English Premier League (EPL) fan myself, I noticed the naming of exploration sites such as Anfield and Stamford Bridge after EPL stadiums in England, so I asked what the story was behind that. Mullowney explained that many of TRX Gold’s employees at site follow “football” and cheer for these same teams. It is a bit of fun and a form of team building if you will! It inspired the title of this article: “You will never explore alone!”

CMJ: As a conversation starter, let’s talk a bit about history: Can you please talk to us about the history of TRX Gold, your background, and how you became CEO? 

SM: Working at PWC as partner in the mining M&A department, I worked as a consultant to many mining companies on transactions, balance sheet clean-ups, and all matters of sort. I came across TRX Gold and its Buckreef Gold project, then named, Tanzanian Gold Corp., and really liked what I was seeing in terms of the project, the deposit, and believed that I could make a positive contribution to improving operations and the balance sheet, and really getting the project off the ground. I introduced myself to the founder and then the CEO, James Sinclair, and the rest is history. I was invited to join TRX Gold at the helm and then formed the team of executives and board of directors that you see in place today. In three short years, this refreshed team has taken Buckreef Gold from an exploration company to a junior gold producer, with two million ounces in mineral resources and with tremendous potential for future production and discovery growth.

CMJ: Can you please explain the reason for the recent change of the ticker symbol in TSX in 2023? 

SM: The ticker symbol in the U.S. on the NYSE-American was already TRX. It was a strategic decision, and one to facilitate marketing and awareness, to change our name to TRX Gold, and at the same time, change our Canadian ticker symbol on the Toronto Stock Exchange to TRX.

CMJ: Can you please walk us through the current portfolio and activities at the Buckreef Gold project in Tanzania? 

SM: We are growing the Buckreef Gold project in Tanzania in a low-risk, phased approach, consisting of a low-risk, high-margin open pit gold mining operation and more than two million oz. of gold in measured and indicated mineral resources (at the 16 km2 property). Our company completed its third mill expansion in July 2024 and expects to increase its annual gold production guidance for 2025.

CMJ: What is your growth strategy and the status of the plant expansion? 

SM: The strategy is simple: We utilize the positive cash flow from operations to reinvest back into growth activities that are value-accretive to our shareholders. This is achieved by increasing the milling capacity to increase annual gold production and by drilling to uncover more ounces in the ground. It can also, if value accretive, be for M&A opportunities. The company is debt-free and has not had to raise equity since 2021. This is unique for a junior miner in development.

CMJ: How does Tanzania fare as a mining jurisdiction? How do you compare it to other jurisdictions in Africa, especially West Africa?

SM: Tanzania is in the East part of Africa. It benefits greatly from a mature mining sector, with many Tier 1 gold producers operating some of their most important projects in the country for the last few decades. In fact, Barrick’s Bulyanhulu’s gold mine is about 40 km east of us, and about the same distance to the north of Buckreef is Anglo Gold Ashanti’s Geita mine. These are what we would call “elephant” sized operations. Because of this maturity, the country benefits from mature infrastructure, skilled labour force, and available mining related materials, contractors, and builders. Everything we need to grow, build, and operate can be found in the country, which reduces waiting times and cost versus if we had to rely on a foreign supply chain. The country welcomes foreign investment, demonstrated by the approximate US$2 billion of mining investment in the country in the last two years or so, primarily from either M&A transactions in the sector or newer projects (deposits) being developed (thanks to the increasing price pf gold). Mining makes up about 10% of the country’s GDP.

CMJ: How does TRX Gold interact with local community in Tanzania as part of the company’s social responsibility? 

SM: We have been in the country for at least a decade now, so our relationships in the country are very good. We know and understand the people, the politicians, the mining ministries, and the local communities. This makes for a very strong foundation. Along with our JV partner, the State Mining Company, we partner every year on social well-being and community projects for the improvement and sustainability of the communities that surround us and where 100% of our employees and contractors and their families live (up to 600 and counting employees and contractors working at Buckreef Gold). We set aside a budget to work on projects such as building or improving schools, healthcare facilities, social programs such as skills training, and programs of sort. On site, employees benefit from ongoing health and safety training, skills training, and from time to time we host students for apprenticeships.

CMJ: Finally, how does the future look like for TRX Gold?  

SM: The future is very bright. TRX Gold is a unique investment opportunity. We have and will continue to grow in a low risk, phased manner, whereby we will continue to create shareholder value with a focus on non-dilution. Near term catalysts or drivers will be an increase in annual gold production expected for fiscal 2025 and exploration and brownfield drill results, especially from the newly discovered Stamford Bridge zone. Additionally, the price of gold is at an all-time high, with growing public opinion that it will continue to rise. For a low-cost, high-margin project like ours, the future is bright indeed!