Troy Resources (ASX: TRY) has announced “outstanding” first-pass assay results from a maiden reverse circulation (RC) drilling campaign on the Ohio Creek prospect at its Karouni gold project in Guyana.
The junior gold producer just acquired the Ohio Creek prospect in September from a group of Guyanese nationals and recently commenced the 47-hole RC drilling program. Prior to this, only 1364m of diamond drilling had been undertaken in the 1990s.
To date, 23 RC holes have been drilled with assay results for 21 holes received.
Highlights included: 16m grading at 10.07 grams per tonne of gold from 2m, including 1m at 93.78g/t gold from 2m; and 9m at 40.52g/t gold from 89m, including 6m at 60.1g/t gold from 89m.
The tenements containing the Ohio Creek prospect lie about 10km from Troy’s operating Karouni gold mill and had been an acquisition target for the company as early as 2013.
Troy managing director Ken Nilsson said he could not have envisaged a more promising start to prospect’s evaluation.
“To have identified so early in the campaign so much mineralisation augurs well for our future endeavours at this location,” Nilsson said.
“Moreover, these results open up many kilometres of highly prospective untested strike in this general area,” he added.
This phase one drilling program is continuing along with ongoing interpretation of lithology, structures and mineralisation.
According to Troy, plans are currently being drawn for a phase two drilling campaign, which will likely immediately follow the completion of phase one.
Future drilling will target the mineralised trend with the aim of extending it along strike and at depth, as well as infilling current drill lines.
Further assay results from phase one will be reported as they are received, Troy stated.
Gold production exceeds forecast
In September quarter results released last week, Troy reported gold production reaching 18,991 ounces over the period.
This was slightly lower than the 19,510oz produced during the June quarter, although it still exceeded the company’s forecast given the wet conditions of the quarter.
Nilsson noted some issues with the crushing plant during the quarter but said the company planned to “upgrade the mill bearing system to improve reliability going forward”.
“The mining fleet has been upgraded by adding a further two trucks to make up for reliability issues with the older units, as well as an excavator to replace an old unit,” he said.
Last month, the company suffered a pit wall failure in one of the Karouni pits, Smarts 3, which was an area that was scheduled to be mined as part of a pit cutback in January. This will now be rescheduled.
“No ore has been lost but mining of ore containing approximately 3000 ounces of gold will be delayed until later in 2019,” Nilsson said.
Troy also continued its cost-cutting efforts during the quarter, including achieving a reduction in trucking costs, a restructuring of mine operations and processing, restructuring of the Georgetown office and relocating its Perth office to smaller premises.
By afternoon trade, Troy shares were sitting more than 21% up at $0.12.