- Troy has re-entered Hicks 4 Phases 1 & 2 and completed mining at Hicks 4 Phase 3. The mining at Hicks 4 Phases 1 & 2 is anticipated to mine high-grade gold ores against the phase 3 pit.
- The insurance claims for the Karouni store fires have been accepted and are anticipated to be finalised in the due course
- The coronavirus outbreak in Guyana and at the mine site drew efficient measures from the management despite the operational challenges.
Gold producer Troy Resources Limited (ASX:TRY) announced the commencement of mining operations at Hicks 4 Phases 1 & 2 which will contribute towards the majority of the gold production in the upcoming 9 months.
The Hicks 4 Phases 1 & 2 has historically produced more gold than the estimations by the grade control model. Ever since the beginning of mining at the Hicks 4 Phase 3 in July / August, the phase of the pit has produced almost half the gold than expected by the grade control model. The re-entering into the Hicks 4 Phases 1 & 2 may enhance the average ore grade in the upcoming months.
Karouni Gold Mine – An Ace in TRY’s Arsenal
Along with the gold mining and processing operations, Troy has been galloping ahead on the back of exploration opportunities at Smarts Underground, Goldstar, Hicks Deeps, Ohio Creek East, Gem Creek and Upper Itaki within the Karouni gold project.
Despite the mobility restrictions and the outbreak of coronavirus, Troy Resources continued the operations at Karouni producing 6,334 ounces of gold in the September quarter. In an effort to extend the life of mine, the company has been exploring the highly prospective targets. Recently, Troy released the assay results from the recent diamond drilling at the Smarts Underground prospect.
However, the board at the gold miner has decided to withdraw the gold production guidance of 35-40,000 ounces at US$1,500 - $1,550/ ounce. The announcement was made in the light of various factors impacting the operational performance at the Karouni mining operations.
The Karouni mining operations have registered over 23 confirmed positive cases of COVID-19 infections. Despite the effective measures by the company to minimise the impacts, the mining productivity has taken a hit due to the isolation of many of the employees. Due to the restrictions earlier, the expats were not able to return to Guyana and the mine site. Guyana continues to register a large number of cases of coronavirus infection and is further anticipated to impact the mining operations.
Insurance Claims Accepted after September fire
The gold producer added that the Karouni mill was facing a shortage of chemical reagents because of a fire breakout at Karouni site in September. The processing plant remains operational, albeit at reduced levels due to the shortages. Troy had already applied for the insurance claims which have been accepted and are waiting to be finalised.
TRY closed at A$0.084 a share on 25 November 2020, with a market capitalisation of A$73.2 million.