Summary
- Troy holds a “camp scale” position on the regional structural corridor, offering a substantial opportunity for extending the economic life of the mining operations.
- Karouni gold operations holds a mineral resource of 16 Mt containing 3.3 g/t gold aggregating to 288 Koz.
- $15 million fund raised to fuel next leap of growth. 20,000-metre drilling program proposed at Gem Creek, Upper Itaki, Kaburi Hills, Ohio Creek East, Singh Link, and Whitehall.
The goldfields of Guyana are considered highly prospective and are sought-after by the industry major. The country, across the globe, hosts one of the few underexplored Greenstone terrains, which have been subjected to the restricted modern exploration techniques. The politically stable south American country has hospitable mining reforms and invites investment in the prolific geological ground.
Iconic gold explorer Troy Resources Limited (ASX:TRY) is strengthening gold footprint at Karouni gold prospect, 165 kilometres southwest of Georgetown in Guyana. Troy had acquired the premium gold asset from Azimuth Resources in 2013, following a CAD188-million merger.
Karouni gold project in the Guiana Shield Source: Troy Resources Presentation November 2020
The wholly -owned operating gold mine was developed by Troy for US$73 million and commenced its operations in 2016. The gold operation is located along the prolific Guyana Shield greenstone belt. The greenstone belt runs from Venezuela to French Guiana and hosts numerous shear-related gold deposits within the volcanic and sedimentary rocks, with an overall gold inventory of over 100 million ounces.
Troy holds a “camp scale” position on the regional structural corridor, offering a substantial opportunity for extending the economic life of the mining operations. Karouni operations registered a gold production of 23,580 ounces during FY2020 and progresses on the next leap of growth anticipated from the Smarts Underground.
Recently, Troy announced the completion of Hicks 4 Phase 3 and now continues mining on Hicks 4 Phases 1 & 2, which will contribute predominantly towards the gold production in the upcoming nine months. The Hicks 4 Phases 1 & 2 prospects have historically produced gold at a higher rate than the grade-control model.
Read: Troy Resources (ASX:TRY) commences mining at higher grade Hicks 4 Phases 1 & 2
The Karouni gold operations hold a mineral resource of 16 Mt containing 3.3 g/t gold aggregating to 288 Koz. The gold mine holds a mineral reserve of 1.1 million tonnes with a grade of 2.1 g/t gold containing 77 kilo ounces of gold.
Gold producer with strong equity structure
Recently, Troy raised $15 million (before costs in two tranches from the institutional and sophisticated investors via an equity placement of 125 million shares at an issue price of $15 million.
The fund raised will be used towards expanding the drilling program at Smarts Underground, where the drill hole SDD 189 recorded gold intersections of 11m @ 131.93g/t Au, 223 metres downhole.
Further, Troy Resources plans to test high-priority drill targets at the Gem Creek, Upper Itaki, Kaburi Hills, Ohio Creek East, Singh Link, and Whitehall through the 20,000-metre proposed drilling program.
Troy Resources closed at $0.086 a share on 4 December 2020,with a market capitalisation of $62.22 million.
Must Read: Troy Resources (ASX:TRY) aims to deepen its golden footprint with Karouni project
Disclaimer: All financial information pertains to Australian Dollar unless stated otherwise.
