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Aussie mining firm set to pour first gold bar mid-2015
– urges suppliers to take opportunities
Government and Australian-owned gold-mining outfit, Troy Resources Limited, signed a key
Ready for the next phase: Troy Resources’ Ken Nilsson, shakes hands with Natural Resources Minister, Robert Persaud, after the signing yesterday. Looking on are President Donald Ramotar and GGMC Chairman, Clinton Williams.
mineral agreement yesterday, overcoming one of the last hurdles before operations begin around the middle of next year.
The company is targeting more than 90,000 ounces of gold annually, estimating that the medium-scale mine life will be at least for seven years.
The agreement sets out the operating parameters for the company, including the arrangements for royalties and taxes. It also defines the responsibilities of both parties.
Following the signing of the agreement at Office of the President, Troy Resources said that the agreement reduces uncertainty for all parties, bringing transparency, confirming commitments and acknowledging the desire to work together with the Government in the task of providing for a better investment climate and to move the country forward.
The Karouni Project, located west of the Omai area, in Region Seven, currently employs approximately 200 people. With construction to kick in shortly, it is projected that as many as 500 persons will be employed, including contractors and service personnel.
“The Karouni Project marks the first entry into Guyana by Troy Resources Limited through its wholly owned subsidiary, Troy Guyana Inc. Troy’s other projects are located in Para State in Brazil and San Juan State in Argentina. All are focused on gold with the addition of silver in Argentina.”
So far, the Aussie company is committed to around US$43M with a further $27M required to complete construction.
“Major purchases and service contracts have been entered into with local service providers and manufacturers as well as other Caribbean manufacturers. The economic impact in Guyana from TRGI’s project is significant and if one considers flow on effects into the community through salaries, wages, taxes, local purchases of goods and services it will be far reaching even for a medium size operation like Karouni.”
Troy, urging for local suppliers to come on board, said it remains committed to sourcing goods and services locally, but availability and quality will play a big role.
An overhead shot of Troy’s Karouni Project campsite in West Omai, Region 7.
President Donald Ramotar, who was present at the signing which included Natural Resources Minister, Robert Persaud, and Troy’s Executive Director Project Development, Ken Nilsson, noted that the signing was significant since it demonstrates growing investors’ confidence.
He, too, noted the spin-off effect from the investments by Troy, which included wages and supplies.
The President urged for investment in other areas of the mining sector, including a gold refinery and in jewelry making.
Minister Persaud noted that “this is an agreement that all Guyanese will be proud of” and one that is designed to bring maximum benefits to the country.
Also there yesterday was Chairman of the Guyana Geology and Mines Commission (GGMC), Clinton Williams, who said that gold mining has had significant impact on the economy, raking in 50 percent of foreign exchange earnings last year.
He lauded the investment by Troy which will come at a time when prices have fallen.
According to Troy Resources yesterday, the long term benefit from the transfer of technology and skills is another area in which the company is committed. “It (Troy) has already formed a close association with the training arm of GGMC and the Linden Technical School to assist in raising the skill level of local operators and furthering this important part of operations. We expect this initiative will significantly increase the crop of trained mining personnel available in Guyana going forward.”
Already, the company has constructed a registered all-weather air field at the project site and is currently continuing with road upgrades on the roadway from Linden to the project site.
Despite the fall in gold prices last year from over US$1,800 per ounce to over US$1,200, there is still high interest in the sector.
Canadian-owned, Guyana Goldfields, another big investor in the sector, is also in full-swing to bring its Aurora project, in Region Seven, into full operations by next year. That project will become the first large-scale operations in the country following the closure of Omai Gold Mines, in Region Seven, a few years ago.
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