Since April 6, when the company had its first bucket at the oxide open pit, oxide ore has been stockpiled at a run-of-mine pad. Construction of the plant ended on May 28, and it is now being operated in two 12-hour shifts a day.

Tanzanian Gold recently completed a public tender for an increase in the treatment capacity of the oxide gold processing plant. The company is planning to start construction to increase the processing capacity of the oxide plant by approximately 200% in the fourth quarter of this year.

“We are now well positioned to increase the production of gold significantly … and to accelerate our final feasibility on bringing a second, much larger plant on-line to produce more gold from processing the sulphide ore,” executive chairman James E. Sinclair stated in a media release.

Buckreef was previously operated by the Tanzanian government as an underground mine during the 1980s. Since then, past owners including Iamgold (TSX: IMG) have undertaken extensive exploration programs in the area.

The project was acquired by Tanzanian Gold from the Tanzanian State Mining Company in December 2010. The project area comprises the dormant Buckreef gold mine and four prospects with known mineralization.

An ongoing drill program at Buckreef has more than doubled the size of measured and indicated resources to 2.036 million ounces, according to the company.

In early May, Tanzanian Gold announced that global consulting firm PwC will assist the company with the project’s financing.