Country Overview


  • Archaeological evidence indicates that the wandering Amerindians migrated to South America from the Caribbean and lived along many of the continent’s coastal lands, including present-day Guyana.
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(Troy 100% through Troy Resources Guyana Inc.)


On 21 January 2014, the Company announced results of the PEA for development of the Karouni project (Project). The PEA considers a combination of two open cut and one underground mine feeding a conventional carbon-in-leach gold plant with a nominal capacity of 750,000tpa. The PEA assumes a total of 5.2 million tonnes of material will be processed with an average grade of 4.13g/t with recovered gold production of 633,000 ounces over a 7 year mine life.

Highlights from the PEA*, assuming a gold price for the base case of US$1250/oz, are as follows (all figures in US$ unless otherwise stated):

  • Seven year mine life with annual average gold production of 90,000 ounces, with production in the first 12 months of 102,000 ounces gold.
  • Conventional CIL plant augmented with gravity gold recovery treating a nominal 750,000tpa configured to allow easy low cost expansion at a later date.
  • A Production Target of approximately 5.2 million tonnes of material to be processed with an average grade of 4.13g/t. The sources in terms of tonnes are: Smarts Open Cut (42%), Hicks Open Cut (25%) and Smarts Underground (33%).
  • In terms of contained gold, the sources are: Smarts Open Cut (45%), Hicks Open Cut (15%) and Smarts Underground (40%).
  • The Smarts pit would produce 2,175,000 tonnes of plant feed at 4.5g/t, have a mining strip ratio of 9.9:1 and be mined to a depth of 140m.
  • The Hicks pit would produce 1,300,000 tonnes of plant feed at 2.4g/t, have a mining strip ratio of 5.5:1 and be mined to a maximum depth of 90m.
  • The Smarts underground would produce 1,713,000 tonnes of plant feed at a grade of 5.0g/t and extend for a vertical depth of 400m below natural surface.
  • Initial capital of $86.8 million (including pre-production mining costs of $9.3 million and contingency of $7.0 million) and sustaining capital over the life of mine of $8.6 million.
  • Underground development costs of $21.6 million and underground mining fleet $10.3 million (including contingency).
  • Assumed metallurgical recovery of 92%.
  • LOM average C1 Cash Costs (excluding royalties) of $653/oz.
  • LOM All in Cash Costs of $805/oz.
  • After tax payback of 1.8 years.
  • After tax NPV at 6% of $101.5 million.
  • After tax IRR of 44.2%.

* The results of the PEA, including the Production Targets reflected in this announcement are preliminary in nature and are based on Indicated Mineral Resources (being 45% of the Production Target) and Inferred Mineral Resources (being 55% of the Production Target).  The PEA is based on low-level technical and economic assessments, which are insufficient to: (i) support estimation of Mineral Reserves or to provide assurance of an economic development case at this stage, or (ii) provide certainty that the conclusions of the PEA will be realised. There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realised. In particular, Inferred Mineral Resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be classified as Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The Company has concluded that it has a reasonable basis for providing the forward looking statements. The detailed reasons for that conclusion are outlined in the Company’s announcement dated 21 January 2014.


The estimated capital cost to construct and commission the Project and inclusive of the open pit mining fleet is US$77.5 million, including a contingency of US$7.0 million. A further US$9.3 million is required for pre-production mining, including waste pre-strip and building a high grade stockpile ahead of treatment through the processing plant. Sustaining capital over the life of mine is estimated at US$8.6 million, US$10.3 million (including contingency) is assumed for the underground mining fleet to be acquired in Year 3 of the mine life and a further US$21.6 million for underground development. These costs include all procurement, delivery and construction direct and indirect costs. The estimates are based on the PEA design and are considered to have an accuracy of +20 to -30%.

Read more: Karouni



(Troy 30% through Austral Gold Limited (ASX: AGD) (Manager) 70%)


In March 2016, the Company reached agreement for the sale of its interest in the Casposo operation in Argentina with Austral Gold Limited (Austral).

The Company sold a 70% interest in Casposo and Austral has an option to acquire the remaining 30% over a three year period commencing in December 2018 for a total consideration of US$7 million. Should the silver price be in excess of US$16/oz. at the time each option is exercised, the exercise price will be increased depending upon the actual silver price at the time.

The Company's is free carried in relation to an initial US$10 million capital investment plan for Casposo.


(Troy 100% through Reinarda Mineração Ltda)


The Andorinhas Mine is located in the state of Pará in northern Brazil approximately 45km from the town of Rio Maria and 17km from the town of Floresta do Araguaia and approximately 310km from the town of Marabá.

Mamao Mine Aerial

The current numbers of employees totals 280, of these 53 reside in Floresta do Araguaia and 227 in Rio Maria. Contractors, employ an additional 195 people.

Reinarda Staff

Read more: Andorinhas