Troy Resources looking to buy gold ore after mining out primary pits - Management

Troy Resources looking to buy gold ore after mining out primary pits – Management

May 21, 2021 News

Kaieteur News– Australian-owned Troy Resources Inc. says that as the company faces temporary closure later in the year as a result of the depleted ore being obtained from its primary mining pits, it is currently exploring purchasing the feedstock for its mill from third party miners.
The information was disclosed by the company on Monday, when it provided shareholders with an update to say the primary source of ore delivered to the mill over the last 15 months has been the Hicks 4 open cut pit, while in recent months a modest contribution also came from the Spearpoint open cut pit.
These pits, the company said, are likely to be exhausted by mid-June or early July 2021.

The massive processing plant set up by Troy Resources at Karouni

“The remaining volumes of ore in both pits,” it noted, “are somewhat lower than had previously been expected with a recent internal review of the calculation of model versus actual grade control data identifying a relatively modest unfavourable discrepancy.”
The company stated that in the interim, Troy is exploring the availability of third-party ore for toll treating or other opportunities and said, “there is nothing further that can be reported at this stage.”
It reported that gold production for the month of April was 2,140 ounces while the production forecast for the months of May and June are 2,400 and 1,909 ounces.
The company said that its production rate is on track to realise at the end of June 2021, an average 2,200 ounces per month for the year.
As it relates to the cessation of operations, the company said that the pending pit exhaustion slated for mid-year coupled with the timing of first ore from Smarts Underground not being likely until later in year at the earliest, there will be a period where no mill feed will be available for the Karouni mill.
Troy Resources said it anticipates that ore processing activities will cease at Karouni in August or September 2021. At that time, the Karouni mill will be put on Care and Maintenance and that the company “will use this opportunity to rejuvenate worn equipment as well as implement various modifications, which will be beneficial once processing recommences.”
The company in a public missive yesterday, sought to provide clarity with regard to its declared intentions to say the need for goods and services will gradually diminish during this time until operations resume and get back to full capacity.
As such, it was outlined too that in the interim, exploration would continue with drilling to be resumed shortly, in addition to other activities necessary to meet commitments to suppliers and others by ensuring that there is available funding.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News