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Summary
- With gold prices trading at record highs, the environment is ideal for gold sector players to flourish and grow.
- Troy’s gold resource currently demonstrates 986,000oz with gigantic exploration potential for further gold deposits at the company-owned land holding.
- In June quarterly update, Troy confirmed spectacular exploration results from its Smarts and Goldstar Prospect located at its flagship Karouni Project
- The company recorded AU$8.7 million cash and equivalents (including gold inventories) at the end of June quarter.
The Gold's glitter is shining brighter with gold prices scaling new records in this pandemic driven market. Gold has traditionally been a preferred choice of investment during market volatility by market participants. The commodity has been proving extremely rewarding to its investors with a return of ~27.2% YTD, as on 19 August 2020. The rise in prices is also acting as a boon for gold sector players that are at an advantage of recording increased topline performance, as the commodity price remains high.
Source: Eikon EODHD/Others
On that backdrop, let us discuss Troy Resources Limited (ASX: TRY), a junior explorer in the gold mining industry with promising gold producing assets based out of South America.
Founded in 1984, Troy Resources positions itself as a small to mid-size gold producing company, which has built a reliable reputation for fast-track mine development with low-cost services and strategic acquisitions.
Since its inception, the Company has developed five operations in 12 years. At present, Troy’s entire mining operations are based out of Guyana, South America with 849km² land package over the Guiana Shield, part of a highly prospective Proterozoic Greenstone belt.
The Karouni Gold Mine, with many promising deposits, is the flagship project of the company and was acquired from Azimuth Resources in July 2013. The Company fast-tracked the development of Karouni Projects and recorded first gold production in November 2015 with FY 2017 as the first full year of production.
June Quarter Update
The Company recorded a gold production of 7,235 ounces in June quarter and recorded revenue of US$14.9 million by selling 8,656 ounces of Gold. At the end of June quarter, cash and equivalents including gold inventories, was recorded as AU$ 8.7 million.
During the June quarter, 2,606,733 tonnes of material was mined with 154,861 tonnes of ore at an average mined grade of 1.49 g/t Au. Total mining volumes were sourced mainly from the Hicks 4 Pit, as most ore mining activity was focused on this pit. Modest volumes were also mined at the Larken and Ohio Creek Prospects.
Also Read: Troy Resources’ Exploration in High Spirits with Glittering Bonanza at Karouni gold Project
Now that we have a brief insight into the Company, let’s dig deeper to know more about the company’s current projects.
Troy’s exploration tenements
Troy’s exploration tenements located at the Karouni Region include three interpreted major structural corridors, the Smarts-Hicks Shear Zone, the Goldstar Shear Zone and the Tallman Shear Zone, all 2nd order splays of the regional Makaba- Kuribrong Shear zone, which extends from French Guiana over Surinam into Venezuela.
The Smarts – Hicks Shear zone
The Smarts and Hicks deposits are structural controlled, and shear hosted deposits within the ductile MgO basalt with abundant Quartz Carbonate veining and Gold. The Hicks deposit boasts of strong gold mineralisation related to the Felsic porphyries. Additional gold deposits are also located along the strike of the Smarts- Hicks Shear such as the Spearpoint and Whitehall. More potential prospects such as Sing Link and NW blocks towards the NW are hidden under the sand cover.
The gold mining company began an eight-hole diamond drilling campaign at Smarts Underground targeting mineralisation beneath the Smarts Pits where the company had previously delineated a Mineral Resource (all categories) of 3 million tonnes at 3.0 g/t Au at a 1 g/t Au cut-off for approximately 290,000 ounces.
The Company has closed the first phase of its drilling of Smarts prospects that covers holes SDD183 to SDD187. The second stage of the drilling campaign, consisting of the addition of a minimum of three holes, is expected to commence soon with completion expected in September.
Kalkine Image (Data Source: TRY ASX Updates)
The Goldstar Shear Zone
The Goldstar shear is NNW positioned with respect to the Smarts Hicks shear towards the NE. The Shear showcases intensive quartz carbonate veining, ductile MgO Basalt and innumerous alluvial and saprolite workings. The Goldstar prospect comprises an inferred Resource of 26,000oz gold that was identified during the first pass drilling. Additional drilling is ongoing to identify more resources. The Gem Creek asset, which is NNW of Goldstar along strike, embodies settings similar to Smarts Deposits with high MgO Basalt identified with close proximity to a granitic batholith. Gold mineralisation has been found based on intensive alluvial workings with geochemical sampling defined discrete anomalies.
Kalkine Image (Data Source: TRY ASX Updates)
The Tallman Shear Zone
The Tallman Shear corridor is positioned NE and is subparallel to the Smart – Hicks Shear zone. The Ohio Creek prospect at the Tallman corridor demonstrated considerable gold mineralisation. The unit is part of the youngest sequence in the Karouni camp. The prospect has enabled Troy to add 2.226 million tonnes grading 1.9g/t gold for 134,300 gold ounces to its books.
Source: Company Website
The Company’s Greenfield Exploration works cover prospects including Gem Creek, Upper Itaki and Kaburi Hills and brownfield exploration comprises the Ohio creek. Near mine drilling comprises Spearpoint Prospect, Larken Prospect, and Hicks 1 Extension deposits
Stock Performance
On 20 August 2020, TRY closed the day's trading at AUD 0.120 with a market capitalisation of A$79.01 million.
