Australian mining company initiates multibillion gold project

Gold ProjectGeorgetown: A multibillion gold project being initiated by Australian mining company Troy Resources Guyana Inc. will create some 600 jobs as a US$5 million ball mill arrived at the OMAI Wharf, Linden recently.

The company advances with its US$86.8 million gold project at Karouni, Cuyuni-Mazaruni. A ball mill is a type of grinder used to grind materials into extremely fine powder for use in mineral dressing processes, paints, pyrotechnics, ceramics and selective laser sintering.

The Australian exploration and mining company will be developing an area west of Omai with the anticipation of raking in an annual production of 90,000 ounces of gold over a seven-year period. Production, however, in the first 12 months is projected at 102,000 ounces of gold with production commencing between December 2014 to February 2015.

Chief Executive Officer (CEO) and Project Director for Troy Guyana Inc Ken Nilsson disclosed that during the construction phase of the project, close to 600 persons will be employed, but said once operations commence, approximately 300 persons will gain permanent employment. This figure is expected to grow over the seven-year period.

Troy Resources was driven here due to Guyana’s favourable climate, Nilsson explained, noting that Troy Resources Guyana Inc bought Azimuth Resources, the owner of Australian Company Pharsalus Gold Inc after it became cash-strapped.

Nevertheless, the company remains grateful to its predecessor which has laid the groundwork, investing approximately US$55 million into to the development of the West Omai Gold Project.

Now with the Australian company moving to develop the Karouni Project, the Project Director said major emphasis is being placed on building good relationships with citizens of Guyana, the business community and the Government of Guyana.

Troy Resources Limited has been in operation since 1987. However, it was during the period 1998-2004 that it operated the Conishman Gold Mine in Australia and the Bulchina Gold Mine (1999-2004). In 2006, it expanded operation to South America, operating gold mines in Brazil and Argentina. After acquiring Azimuth Resources (West Omai Project) in 2013, it moved to purchase the ball mill for the Karouni Project in November 2013.

The Preliminary Economic Assessment (PEA) and the Scoping Study on the Karouni Project was released in January 2014 before the release of the PEA Technical Report in March. Once in operation, it is expected to provide tertiary scholarships for a minimum of six full-time students at the University of Guyana in disciplines of Geology, Civil Engineering/Surveying and Environmental Management. Troy Resources Guyana will also be working closely with the Guyana Mining School and Training Centre Inc to facilitate specialist mining, minerals processing and trades training programmes for new entrants to the mining industry.