Join our daily newsletter At The Bell to receive exclusive market insights
- Gold production at Troy Resources’ (TRY) Karouni Project in Guyana continues to improve following issues encountered in the December 2020 quarter
- Location problems with drill collars reduced the program by about 800 metres
- However, Troy is now reconciling well on an ongoing basis, indicating all issues have been resolved
- The company produced 4776 ounces of gold at Karouni in the first two months of this year, representing a 13.8 cent increase on 4195 ounces for the entire December 2020 quarter
- The result is attributed to processing more than 138,000 tones at an average head grade of 1.16 grams per tonne gold and an average recovery of 92.1 per cent
- Gold production is forecast to exceed 2200 ounces per month until at least the end of June 2021
- Assay results from completed drilling activities at Karouni’s Smarts Underground and Goldstar prospects are being incorporated into the resource model and will be announced in the coming weeks
- Troy Resources shares are up 4.41 per cent, trading at 7.1 cents each
Production levels are returning to normal at Troy Resources’ (TRY) Karouni Gold Project in Guyana after issues arose during the December 2020 quarter.
Troy, a small to midsize gold producer with a history of developing and operating mines in Australia and South America, began infill reverse circulation drilling at Karouni’s Goldstar prospect in December 2020.
However, location problems with drill collars reduced the program by about 800 metres.
The company, which is now reconciling well on an ongoing basis, says improved production at the site is indicative that the issues have been resolved.
Demonstrating the improvements, Troy produced 2113 ounces of gold at Karouni in January (around 70 ounces per day) and 2653 ounces (around 95 ounces per day) in February this year.
The two-month result, totalling 4776 ounces, represents a 13.8 cent increase on the 4195 ounces produced at Karouni for the entire December 2020 quarter.
Troy attributes the achievement to processing 138,026 tonnes at an average head grade of 1.16 grams per tonne gold and an average recovery of 92.1 per cent.
With improvements across mining and processing activities at Karouni, Troy expects the project’s monthly production will exceed 2200 ounces until at least the end of June 2021, considered the effective break-even of the project.
With the tailings dam lift close to completion, it is likely the project’s mining operations could be sustained until the end of 2023.
Smarts Underground
Troy has also completed resource and geotechnical diamond drilling at the Smarts Underground prospect within the Karouni Project.
Geotechnical work on underground development has demonstrated a good to very good rock characteristic, making it suitable for underground mining.
The company has received final assay results, including many encouraging mineralised intersections, which it will announce separately in the coming weeks.
Troy is reviewing the prospect’s design and scheduling parameters and required underground support systems.
The review, once completed, will enable Troy to upgrade mineral resources and announce a maiden ore reserve at the prospect, likely to materially extend Karouni’s mine life.
Goldstar
In developments at Karouni’s Goldstar prospect, Troy Resources has completed infill reverse circulation drilling.
Assay results from the campaign are being incorporated into the site’s resource model and will be announced shortly.
Orebody modelling and optimisation at Goldstar will also be completed soon, as will its design phase for mining.
The haul road connecting Goldstar to the Karouni mill is 95 per cent completed.
Troy Resources shares are up 4.41 per cent, trading at 7.1 cents at 2:27 pm AEDT.
