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Troy Resources (ASX:TRY) ticks all the boxes at its Karouni Gold project

Highlights

  • Troy Resources is a gold producer with a successful track record of producing gold in Australia and South America.
  • The Company is actively pursuing its gold production goal on its Guyanese gold project.
  • Troy is working on a dual strategy of increasing gold reserve and beefing up gold production on the project.

Guyana-focused gold explorer and developer Troy Resources Limited (ASX:TRY) enjoys a legacy of low-cost gold production in Australia and South America. Troy currently operates the Karouni Gold Project in Guyana. The tenement area has several mines with high-grade gold deposits.

The Company has actively pursued the mining of ores from some of the mines while most of them are under the development phase or exploration phase. The project holds significant upside potential for gold production.

Related read: Troy names new interim CEO; here’s what his top priorities look like

Troy Resources, TRY, Map, Gold project

Project location map (Image source: Company website)

Troy, through strategic acquisition of a high-potential tenement area around Karouni has increased its footprint in the region. To fund the exploration operations, the Company has entered into an agreement with one of the largest gold producers, Barrick Gold. Barrick, with its big wallet, will bring in more advanced technology and skill set to the project.

Troy is on a mission to create value for its shareholders through acquiring a highly profitable portfolio of assets. To achieve its strategic mission, Troy has formulated the following corporate strategy.

Troy Resources, TRY, Gold project

Data source: Company website

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

Karouni Gold Project

Troy has gained significant experience in operating in South America and is well versed in the geology and geography of the region. The Company has been active in the region since 2002. Troy acquired Azimuth Resources, the operator of the Karouni Project, in July 2013. Within two years of the acquisition, Troy drew its first gold from Karouni in November 2015, and the rest is now history.

Troy Resources, TRY, Gold project

Map showing Karouni Gold Project (Image source: Company update, 30 July 2021)

Troy is currently developing the Smarts Underground deposit on the project. It will become the primary source of mill feed as the previous mines run dry of high-grade gold after producing significant gold. Smart Underground holds an Ore Reserve of 1,082,000 tonnes for 89,400 oz of gold.

Related read: Troy follows aggressive exploration approach at Karouni amid gold bull run

Through strategic planning, Troy increased its footprint in the region. Apart from Karouni, the Company acquired significant tenements around the project, including Potaro and Kuribrong target. The Company, during the June quarter, announced the signing of an Earn-in Agreement with U.S-based Barrick Gold.

Through the Earn-in Agreement, the Company can keep its focus on the development of the Karouni Project, and at the same time, could work in partnership with Barrick to do extensive exploration on its tenement lying outside the current Karouni tenure area.

Barrick Gold will have 51% interest in exploration tenements and the fund received for the 51% share could be utilised for the development of Smarts Underground.

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

Bottom line

Troy Resources has a proven track record of significant gold production in Australia and South America. The Karouni Project is an advanced project with significant potential of gold still to be produced from several deposits on the tenure. The agreement with Barrick Gold will provide the required capital to accelerate the development of Smarts Underground to the production phase, and also utilise the fund to develop other high-potential prospects.

Shares of TRY have been put under a trading halt as per the request of the Company pertaining to an important announcement.  

Related read: What’s in the quiver of Troy Resources (ASX:TRY) after Smarts Underground breakthrough?

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