Troy Resources today signed a mineral agreement with the Guyana Government for the Karouni gold mine being developed by the Australian company.
The photo in this news item shows the airstrip constructed by the company. The company’s press release follows.
(Georgetown 2014/10/18) – Today signifies another important step in the progress of Troy Resources Guyana Inc. (TRGI or Company) development of the Karouni project following signing of a partnership agreement with the Guyana Government referred to as the “Minerals Agreement.” The Minerals Agreement sets the operating parameters for the Company and also defines the responsibilities of both parties.
The Minerals Agreement reduces uncertainty for all parties, it is transparent, confirms commitments and acknowledges the desire to work together with the Government in the task of providing for a better investment climate and to move the Country towards a better tomorrow.
The Company is pleased to have signed this agreement and looks forward to furthering its relationship with the Government of Guyana for the mutual benefit of all stake holders. Troy remains committed to its investment in Guyana and is continuing to advance the Karouni project, with an estimated start date of mid-2015.
The Karouni project currently employs approximately 200 people in various disciplines and a substantial increase is expected over the coming month in anticipation of the increase in construction activities. It is projected that at steady state the number of employees at the project will settle to around 500 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.
The total investment committed to date is approximately US$43 million with a further $27 million 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. This spin off effect is however always going to be directly proportionate to the number of transactions that can be successfully undertaken in country. While the Company remains committed to sourcing goods and services locally, it can only do so if these are available and up to standard.
President of Guyana, Donald Ramotar said that the signing of the mineral agreement is very significant and shows continued confidence in the Guyanese economy. He welcomed Troy’s initiative to buy from Guyanese wherever possible and urged the company to accelerate construction and move forward its timeline for an earlier start of operation. The Minister of Natural Resources and the Environment, Robert Persaud, who signed on behalf of the Government of Guyana, noted that “this is an agreement that all Guyanese will be proud of.” It is designed to bring maximum benefits to the country and the government is confident, given Troy’s excellent track record, the company will be a good partner and deliver an investment that will make Guyanese proud.
The long term benefit from the transfer of technology and skills is another area in which the Company is committed. It 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.
To date the Company has constructed a registered all weather airport at the project site and is currently continuing with road upgrades on the roadway from Linden to the Project site. Troy is committed to follow best practice in the industry and intends to work towards an ISO 14001 Environmental accreditation similar to the Casposo project in Argentina.
