Sponsored

Troy Resources (ASX:TRY) gets approval for Smarts Underground, shares soar ~15%

Summary

  • Troy has received the nod for developing the Smarts Underground Mine on the flagship Karouni Project.
  • Going forward, Smarts Underground will become the source of mill feed at the Karouni Project.
  • The Company is working on a PFS for Smarts Underground, and results will be shared shortly.

In what will help Troy Resources Limited (ASX:TRY) revamp gold production on the flagship Karouni Project, the explorer has secured the approval for the development of Smarts Underground Mine.

The approval has been granted by the Guyana Geology & Mines Commission (GGMC) after careful scrutiny of Troy’s application. However, Troy still needs to submit all plans and reports for each phase of mine development. Smarts Underground will be the first-ever underground mining project to receive approval for development in Guyana. The GGMC did not have prior experience in underground mining approvals, and this is a first for both GGMC and Troy.

Illustration of underground mining (Copyright © 2021 Kalkine Media)

Recent update: Troy Resources (ASX:TRY) to Develop Smarts Underground as the Primary Source of Production

Troy enjoys good support from the government of Guyana and has already secured permits to commence infrastructure works.

Reports to be submitted by Troy to GGMC

  1. A geotechnical report up to the first phase or initial 800m drive to support the underground development works.
  2. A Pre-Feasibility Study (PFS) for Ore reserve declaration.
  3. CAPEX details of underground mine development
  4. Mine development schedules

Troy is working on all these reports on a war footing and will submit them to the Commission at the earliest.

Source: Company update, 23 June 2021

Smarts Underground

Going forward, the Smarts Underground Mine will be Troy’s primary source of mill feed on the Karouni Project. The prospect holds Mineral Resources of 3 Mt @ 3.3g/t Au for nearly 290,000 ounces of gold.

Read here: A golden March quarter for Troy Resources: Gold production up by 75%

Smarts Underground exhibits the potential to become the most valuable asset on the entire project as the drilling campaigns of 2020 and 2021 have resulted in significant gold intercepts and boosted the confidence in the prospect.

Map of Smarts Underground with drill hole locations (image source: Company update, 30 April 2021)

Also read: Troy Resources ramps up greenfield exploration to expand gold footprint at Karouni

Hicks 4 and Spearpoint are currently the main source of ores for the extraction and production of gold on the project. The latest estimation of ore grade has revealed that only one or two-month cut-off grade ore is left in the mines. Troy is working to replace the declining mines with Smarts Underground.

Troy is planning to develop the underground mine in two stages. In initial stage, Troy will develop a relatively short drive of nearly 800m to reach the first ore zone of 30,000 ounces. The strategy will minimise the initial CAPEX requirement, and on the later stage, the revenue generated from the initial production could be utilised for further development of the mine.

Good read: Troy Resources in high spirits with high-grade gold hits at Karouni

Buoyed by the approval, the shares of TRY soared ~15% today. TRY is trading at AU$0.039 with a market cap of AU$25.75 million as of 23 June 2021 (3:34 PM AEST).


Disclaimer
The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Ad

GET A FREE STOCK REPORT


Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.


   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK