Australian miner Troy Resources is reporting third quarter gold output of 10,042 ounces and says it won’t restart operations at its Region Seven mine until it is satisfied it can do so with certainty.
Troy suspended operations on October 15 after what it said was a knee-jerk reaction by Minister in the Ministry of Social Protection Keith Scott who on October 10th ordered a cessation of all mining activities.
Scott had taken the action following the death of Ryan Taylor, a geologist on October 8th after a cave where he was working collapsed at its Karouni operation.
Troy in its October 15 statement had said that the cease order had come as a surprise to the Company since the ban included all mining areas rather than isolating the area where the incident occurred.
Hundreds of workers were let go by Troy following Scott’s cease order and Minister in the Ministry of Social Protection Amna Ally later reversed the cessation order.
Troy is however still cautious about resuming.
The third quarter 2019 gold production figure was the lowest in recent quarters, according to the company’s report. The output for the June 2019 quarter was 11,567 ounces, for the March, 2019 quarter 13,333 ounces and 14,227 for the quarter ended December, 2018.
Gold sold for the last quarter was also sharply down. The Troy figures showed that gold sold by the company amounted to 8,783 ounces compared to 12,545 ounces in the preceding quarter. For the quarter just ended, Troy’s All-In Sustaining Cost (AISC) was US$1,374 per ounce while the gold price realized was US$1,465 per ounce.
Commenting on the results, Troy’s Chief Executive Officer and Managing Director, Ken Nilsson, said:
“.. subsequent to the end of the quarter, Troy sadly recorded a fatality at its Karouni operation. Our deepest sympathy goes out to the family and friends of the deceased. All efforts are being made to assist the deceased’s family.
“Whilst the final investigation reports are still awaited from all the government authorities, the completed police investigation has not given rise to any adverse findings against the Company. It is noted that the fatality at Karouni is only the second involving an employee of the Company since it commenced activities in 1984, with the previous fatality occurring at its Brazilian processing operation in 2008.
“Unfortunately, the uncharacteristic and unusual reaction by a government department has caused the need to suspend mining and processing activities and stand down most of the work force. This situation will remain until Troy is satisfied that it can re-start operations with certainty, particularly since there appears to be certain elements engaging in misinformation and decision making based on rumours rather than facts”.
Nilsson added that despite particularly challenging operating conditions in July and August, the September quarter provided some encouraging events and results, in particular the repayment of the Investec debt facility.
Troy poured its first gold bar here in November of 2015.
