Troy Resources Gold Production at Karouni Slowly Recovering After Suspension

As previously announced by Troy Resources, mining and processing at Karouni gold mine was suspended on 10 October 2019 following an order from the Guyana Ministry of Labour due to a fatal accident on site. Mining was restarted in early January 2020 and processing in late January 2020.

Cash Costs and All-in-Sustaining-Costs (AISC) were not reported for December 2019 given that the mine and mill were closed for the majority of the December Quarter.

In the March Quarter, AISC are from February and March gold production only as January costs relate entirely to capital pre-stripping of the Hicks 4 pit and processing not commencing until late in January.

During the quarter, 2,299,511 tonnes of material were mined, against a budget of 1,979,000 tonnes, for an increase of +16% to budget. 117,827 tonnes of ore were mined at an average grade of 2.15 g/t Au.

Total mining volumes were sourced from the Hicks 4 Pit as all ore mining activity was focused on this pit. During the Quarter, 128,977 tonnes of ore were processed, reflecting largely two months of production.

The tonnage milled was made up of the Hicks 4 ore supplemented with mineralised waste for the mine production short fall. The mineralised waste milled for the quarter was 41,000 tonnes at 0.60 g/t which
resulted in a diluted milled grade of 1.38 g/t Au.

Gold production was 5,620 ounces, an eight-fold increase over December 2019 Quarter (683 ounces).

As at 31 March 2020, stockpiles of ROM and crushed ore encompassed 9,164 tonnes at an average grade of 1.47 g/t Au for 433 ounces.
Gold recovery for the quarter was 95.7%.
During the Quarter, the Company’s C1 operating costs (for February and March only) were US$1,508/oz. All-in-Sustaining-Costs for the March 2020 Quarter (excluding January) were US$1,744/oz.

The comparatively high production cost for the March Quarter is directly related to the phase of mining in Hicks 4 being predominately waste stripping and hence lower ounces. It is expected that once the production phase of mining in Hicks 4 commences and other pits are included in the mine schedule, production ounces will improve this metric considerably.
Gold sold for the quarter was 2,712 ounces for total sales revenue of US$4.3 million.

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