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- After a weak December quarter, Troy Resources bounced back with 7,333 ounces of gold production during the March quarter.
- The Hicks 4 and Spearpoint mines are being used to supply the materials for processing at the mills.
- The shares of the Company climbed ~3% on excellent production figures for the quarter.
South America focused gold miner Troy Resources Limited (ASX:TRY) has shared the production update from its Karouni Project for the March quarter. The Company produced 7,333 ounces of gold during the reporting period at an average ore grade of 1.45 g/t.
Troy, back in 2013, had acquired Azimuth Resources Limited, which was operating the Karouni Project in Guyana. After the acquisition, Troy boosted the exploration and development work on the project, and it was in 2015 that the first commercial gold was produced.
March quarter production figures Data Source: Company update 13 April 2021
Production at Karouni was badly hit during the December quarter. Bad weather, fire at the spare shop and some operational bottlenecks marred the gold production during the last quarter. Troy was able to extract 4,195 ounces of gold.
To ramp up the production, Troy launched an investigation to identify the operational loopholes and rectified them. As a result, production began to normalise from the beginning of this year and for the March quarter, production surged by 75%.
Troy’s mining operations are proceeding in Phases 1 & 2 of the Hicks 4 and Spearpoint mine. Low-grade stockpiled materials are also being used as feedstock to make up for any shortages of the stripped material.
Troy reported that the processing plants are operating at normal levels and are yet to achieve designed throughput levels.
Karouni Project Targets Overview (Source: ASX Update, 29 January 2021)
The Karouni Project in Guyana, South America lies in the mostly unexplored Greenstone terrain. The project has a Mineral Resource of 16 Mt @ 2.0g/t Au for 1,0007 koz. Ore Reserves of the project stand at 1.1 Mt @2.1g/t Au for 77 koz.
The project has greenfield as well as brownfield potential, with current production coming from the brownfield prospects only. The Company is actively exploring and developing the greenfield potential of the project.
Share Price Movement
The bolstered quarter on quarter production data lifted the share price ~3% today. TRY was trading at A$0.072 around 11:00 AM (AEDT) today with a market cap of A$53.02 million.