Tanzanian Royalty Exploration (TRE) has signed a joint venture agreement Tanzanian federal government to develop the Buckreef gold mine project.
The Buckreef project consists of 15 licences and is located about 115km south-west of the gold-rich Mwanza region near Lake Victoria, Tanzania.
TRE holds a 55% stake in the project and the remaining stake is held by the state-run State Mining Corporation of Tanzania.
Currently, the mine covers an area of 4km2 and will be expanded to about 20km2 to construct a fully fledged mine.
The Buckreef gold mine project has inferred resources of 826,000oz of gold, according to TRE.
Tanzania acting minerals commissioner Ally Samaje told Reuters that the redevelopment of the Buckreef gold mine will cost around $280m.