13/04/2021 - 17:49

Troy steadies the ship at South American gold mine

13/04/2021 - 17:49

Bookmark

Save articles for future reference.

Troy Resources appears to have steadied its gold production to “normal levels” at the Karouni gold mine in Guyana, South America. The news comes after setbacks last year revolving around the coronavirus pandemic, higher-than-average rainfall and a shortage of mechanical supplies. The Perth-based company managed to eke out 7,333 ounces of production in the recently completed March quarter compared with 4,195 ounces for the preceding quarter.

Troy Resources appears to have steadied its gold production to “normal levels” at the Karouni gold mine in Guyana, South America. The news comes after setbacks last year revolving around the coronavirus pandemic, higher-than-average rainfall and a shortage of mechanical supplies. The Perth-based company managed to eke out 7,333 ounces of production in the recently completed March quarter compared with 4,195 ounces for the preceding quarter.

Troy says it has been sourcing ore from the Hicks 4 phase one and two and Spearpoint open pits, whilst stockpiled lower-grade material has also been used on occasions to make up the processing plant feed.

A total of 185,010 tonnes of ore was mined for the three-month period grading an average 1.45 grams per tonne gold and 200,682 dry tonnes were treated.

Last month the company reported a stack of high-grade gold intersections from the additional, final four deep diamond holes of a resource definition and geotechnical drilling program at its Smarts Underground gold deposit area, which is nestled between its Smarts open pits at Karouni.

Among an impressive bunch of drill hits, stand-out intercepts from Smarts Underground included 3 metres grading an average 17.35 g/t gold from 176m, 5m at 14.14 g/t from 232m, 3m at 9.92 g/t from 240m, 5m at 12.6 g/t from 95m, and 4m at 9.9 g/t from 318.5m.

They follow prior bonanza diamond drill hits at Smarts Underground that went 11m at an eye-watering 131.93 g/t gold from 223m including 4m at 352.78 g/t from 224m, 13m at 13.74 g/t from 273m, and 14m at 8.39 g/t from 248m.

Karouni has been operating on relatively low remaining ore reserves of less than 80,000 ounces of gold. The Smarts and Hicks open-pittable deposits predominantly speak for the bulk of the latest published reserves.

The company released a measured, indicated and inferred resource estimate for Smarts Underground last year of 3 million tonnes of ore at an average grade of 3 grams per tonne for 287,600 ounces of contained gold.

Troy says the four extra diamond drill holes at Smarts Underground had been requested by the consultant undertaking the resource and reserve mapping work for the company.

They were sought for the purposes of both increasing confidence in the revised Smarts Underground resource model and investigating the continuity of mineralisation between the modelled Smarts 2 and 3 ore shoots.

According to the company, the additional resource definition drilling undertaken has demonstrated the continuation of mineralisation in the gap between the Smarts 3 open-cut mine and Smarts Underground.

Assay results are currently being incorporated into the updated resource model.

The $54 million market-capped company says it will shortly be in a position to deliver an upgraded mineral resource and maiden ore reserve estimate for the Smarts Underground deposit together with key economic parameters.

Troy says it envisages the new numbers, expected to be announced in the current quarter, are “likely to materially extend the mine life” of the Karouni operation.

 

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options