In February, Troy Resources Limited produced 2,653 ounces of gold, up from 2,113 ounces in January, putting production for the first two months of 2021 at 4,766 ounces in comparison to 4,195 ounces for the last quarter of 2020.
The Australian gold miner has forecast that its monthly production is likely to exceed 2,200 ounces per month until at least the end of June 2021. If achieved, the company will see an effective break-even for the operation at its Karouni Mines.
The announcement was made in the company’s newsletter released on Monday.
According to the company, production seems to be improving and returning to normal levels. It explained that with production averaging 70 ounces per day back in January this year and 95 ounces per day in February, the gradual increase will enable it to improve production significantly.
“In consideration of all factors, Troy considers that it is reasonable to expect minimum production from now until the end of June 2021 of not less than 2,200 ounces per month, which is the effective operational breakeven of the Project,” the company stated.
The company added that it has been able to resolve challenges and is currently sourcing ore from the Hicks 4 Phases 1 & 2 and Spearpoint pits.
Troy said that it has conducted detailed work in a number of areas on the processing line. It was pointed out that the plant has been consistently performing at normal levels as there were some difficulties being faced.
Output levels have been somewhat difficult due to the current mix of ore with large clay content frequently causing blockages in the plant.
It was also pointed out that during maintenance work on the crushing circuit, low-grade material is incorporated to make up the feed. The company also stated that it is looking at changing screening in the plant as a way to keep the throughput rate at design levels
The report also informed that the tailings dam lift is nearing completion, but at the company’s current production rate, it will be sufficient to sustain mining operations at Karouni until the end of 2023. The dam design allows for one further lift going forward.
Troy closed its operations in October 2019 after an employee died at its Karouni mine site. It restarted its operations in January 2020 and was then affected by the COVID-19 pandemic. It did also experience financial difficulties which saw it entering into a gold loan facility of 5,200 ounces with Asian Investment Management Services Ltd (AIMS), a Malaysian based investment fund (Facility).
In October last year, Troy said it had ‘struck gold’ with a bonanza discovery of a vein at its Smarts underground mining project at its Karouni mining site showing 131.93 grams per tonne of gold
“The intersection of 11@ 131.93 g/t (grams per tonne) of Gold from 223m represents the highest product of metres x grams [grams per metres] from the Smarts prospect and is world-class by any standards,” the company had said in the announcement.
By contrast and prior to encountering major difficulties, Troy produced 58,118 ounces of gold in 2018 and 70,207 ounces in 2017.
