- Troy Resources reported lower than expected gold production at 6,334 ounces due to lesser mine production and mill head grade.
- Expat management is returning to Karouni mine site following the easing of lockdown measures in Guyana. However, Troy remains committed to the health and safety of its employees, contractor and community.
- High grade gold intersections at Smarts Underground, average gold grades up to 13.74 g/t Au for a single drill hole SD188.
Iconic gold explorer, Troy Resources Limited (ASX:TRY) released its activity report for the quarter ending on 30 September 2020 outlining the robust operational performance at the flagship Karouni gold operations in Guyana.
Operational Performance of Karouni Gold Operations
Troy Resources reported gold production of 6,334 ounces, lower than the anticipated volumes due to low mine production and lower mill feed grade. The mill throughput totalled 200,814 tonnes during the Quarter, which is in line with the target production.
Source: Quarterly Production and Costs Summary, Troy Resources Quarterly Report dated 2 November 2020
During the September Quarter, 1,344,705 tonnes of material were mined, registering a decline of ~48% against the previous quarter. The mill head grade reduced to 1.03 g/t Au against 1.14 g/t Au in the June quarter. The low mill feed grade is attributed to higher tonnage of mineralised waste at 0.56 g/t Au which was processed at the beneficiation plant. This substantially reduced the average mill feed grade and the gold output.
The C1 operating costs and the All-In Sustaining cost stood at US$1,610 and US$1,908 respectively, for an ounce of gold during the September quarter. During the quarter, Troy announced the mineral reserve and resource. The company documented 1+ million oz gold as Mineral Resource with reserves of 72,200 Oz gold as on 30 June 2020 at Troy’s Karouni gold operations in the Guiana Shield.
Karouni Mineral Reserve and Resource as of 30 June 2020
Source: Troy Resources September Quarter Report dated 30 September 2020
Pandemic Effect and Troy’s Response
The mining operations were impacted due to the extension of the wet season and the restricted mobility due to the stringent lockdown measures by the Guyanese Government. Subsequent to the quarter, the frontline expat management is now returning to the Karouni operations following the opening up of borders by the government.
Following the quarter, one of the employees who had been sent for referral, tested positive for the COVID-19 virus. The proactive effort from the gold miner restricted the transmission of the virus. All employees were tested for COVIFD-19 virus, and the infected employees were transferred to Guyana for further testing, treatment and isolation. The production has been impacted due to this in October, but the mining operation did continue at a lower production rate.
The border control restrictions are being eased in a phased manner with the resumption of repatriation flights to and from the US during September 2020. Troy Resources is committed to safeguarding the health and safety of its employees and contractor at Karouni mine site and continues to monitor the virus situation on a daily basis.
Resource Definition Diamond drilling at the Smarts Underground Project
Drilling at the Smarts Underground project resumed in September following the heavy rainy season which continued beyond the September quarter. The campaign has been designed to infill gaps at depth at the Smarts Underground and to assess the density of the high-grade quartz veins.
Source: Latest drilling program at Smarts Underground, Troy Resources ASX Update 6 October 2020
The drilling program observed the anticipated lithologies with abundant quartz veining and several shears. Usually, the quartz veins display visible gold. Several NS veins display coarse visible gold.
The Smarts Underground prospect has been mapped over a strike length of 350 metres with a depth of ~350 metres. Following the success of the recent infill drilling program, Troy Resources has planned a further drilling program of further 9 holes to test the strike extensions to the north-west.
- Potaro-Kuribrong – A stream sediment program was conducted at the prospect. The program was halted due to high stream levels and was later postponed until the dry season. Additionally, a simple air core drill program has been planned to test the soil below the sand cover.
- Gem Creek – During the quarter, the scanning of the multi-element geochemistry program was concluded. The results from the program together with the drill results have been reviewed, and further drilling program has been planned.
- Honey Camp West – During the quarter, an exploration program commenced on the Smarts-Hicks corridor, 12 kilometres from Karouni. The exploration program included mapping and sampling, and first pass field work has returned some prospective results from the rock samples. Several rock samples contained visible gold with the assay results for the samples yet to be released.
As on 30 September 2020, Troy Resources had total liquidity of A$6.56 million which included cash of A$1.23 million and gold inventories of A$5.33 million.
Troy Resources closed at A$0.115 a share on 3 November 2020 at 11:31 AM AEST, with a market capitalisation of A$84.18 million.