Source: optimarc, Shutterstock
- Troy produced 10,529oz of gold during the half-year period, with an increase of 48% in the stripping of materials on project.
- The company is exploring greenfield as well as brownfield prospects to increase the gold mineralisation on the project and update the Mineral Reserve Estimates.
- Troy has laid down its operational target to achieve the planned operational performance and positive cash flow from its underground as well as open pits in the next 12 months.
Troy Resources Limited (ASX:TRY) is engaged in exploration and production on the Karouni Gold Project, located in Guyana, South America. The Company managed to extract 10,529 ounces of gold from the project during the half-year period ending on 31 December 2020.
Karouni Project Targets Overview (Source: ASX Update, 29 January 2021)
During the December quarter only, 23 of its employees were tested positive for COVID-19 and were shifted to isolation facilities for treatment and recovery. Troy faced a shortage of employees along with the non-availability of trucks and other mining vehicles to carry on the operations at full scale. Heavy rainfall stalled the operations and affected the overall production of the period.
Troy, due to its robust operational management, amidst all the operational hindrances, was successful in the stripping of 3.373 Mt of material, 48% higher than the previous corresponding period (pcp). The mine grade declined to 1.12g/t from 2.0g/t during the pcp.
The revenue from the gold sales for the six–month period stood at A$27,185,000. Troy sold 10,368 ozs of gold and realised an average price of US$1,890/oz. The revenue grew by 2% with respect to 1H of FY19. The higher average gold prices during 2020 bolstered the realised revenue higher than the previous years.
Troy has launched a full-scale brownfield and greenfield along with infill drilling campaign to upgrade the Mineral Resource Estimate (MRE) of the project.
Exploration Activities on the Project
Five diamond holes were drilled on the Smarts Underground (Smarts UG) during the December quarter. The drilling program was designed for resource definition and geotechnical assessment. Three holes out of five were used for geotechnical purpose, while rest of the two holes for resource definition. A total depth of 1,259m was drilled.
Significant mineralisation was observed in both resource definition holes. For testing the mechanical and structural rock properties, the geotechnical holes were drilled. The geotechnical holes did not returned any significant mineralisation.
Troy has planned and announced to update the MRE and Ore Reserve during Q2 of 2021
Geotechnical holes (Image Source: ASX Update, 29 January 2021)
Smarts NW- Infill Drilling
Reverse Circulation or RC drilling program was undertaken by Troy on the prospect during the December quarter. The main objective of the program was to test the mineralisation extension on the prospect. A total of eight holes were drilled, and all of them confirmed the mineralisation and intersected the shear zone.
Hole locations and intersection results at Smart NW (Image Source: ASX Update, 29 January 2021)
Goldstar – Resource Definition
Troy went full throttle for exploration operation at Goldstar. Trenching operations, diamond drilling, and RC drilling were executed on the prospect during the December quarter. Fifty-one holes were drilled under the RC drilling program, and all intersected the expected geology.
Through diamond drilling, 3 holes were drilled to test the down-dip mineralisation. Six trenches were excavated to test the surface expressions of mineralisation. Wide intercepts with low-grade mineralisation were identified in the trenching operation .
Troy will upgrade the Mineral Resource of Goldstar in March 2021.
Honey Camp West – Greenfield Exploration
Field mapping and auger soil sampling were conducted at the Honey Camp West prospect during the last quarter. The mapping work was intended to identify structural orientations of lithologies and mineralisation controls.
A follow-up RC drilling is being planned for the prospect.
Share Price: Troy closed the day trade at A$0.068 with a gain of 1.5% on Friday. TRY has a market capitalisation of A$50.75 million as of 12 March 2021.