PERTH, WESTERN AUSTRALIA--(Marketwire - Oct. 3, 2011) - Troy Resources NL (TSX:TRY)(ASX:TRY) -
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Growing dividend paying gold producer, Troy Resources NLtoday announced that it had achieved nameplate throughput levels at its high-grade Casposo gold and silver mine in San Juan Province, Argentina.
Commenting on the results, Troy's CEO, Paul Benson said, "We are very pleased to have reached this milestone. Although it has taken us longer than planned, the team on site led by Ken Nilsson have done a tremendous job overcoming the initial project commissioning issues and then challenges thrown up by the worst winter in the region in 50 years."
"Over the last 3 weeks the plant has exceeded the nameplate capacity of 1100 tonnes per day (tpd) on 4 occasions and the 10 day moving average is running at over 1000 tpd. Importantly from a process control perspective, the daily variation is reducing and operations are much more stable. In September the site produced approximately 6,600oz of gold which is 50% more than the previous best month's production in April."
As previously announced to the market the Casposo operation in San Juan Province, Argentina, was impacted by freezing weather during the coldest winter in the region in 50 years. A series of cold fronts passed across the site from late June through mid-August with periods where maximum day time temperatures reached -9ºC and minimum night temperatures -18ºC and wind chill of an additional -10ºC.
Each freezing event brought production to a halt freezing pipes, pumps and filters and degrading the performance of chemicals used in the processing plant. The impact can be seen in the graph on the following page. With multiple closures and restricted operations the 10 day moving average of tonnes processed per day trended down for most of the period. The interruptions also had a negative impact on metallurgical recoveries during the quarter although these have also improved in the latter part of September as operations returned to normal.
As noted, with the onset of more normal weather patterns, the plant has been able to steadily increase throughput. Over the last 3 weeks daily throughput has exceeded the nameplate 1100 tonnes per day (tpd) on 4 occasions and the 10 day moving average is running over 1000 tpd. Work has commenced to modify the relevant parts of the plant to minimise the impact should similar freezing conditions reoccur in the future.
To see the graph associated with this release, please visit the following link: http://media3.marketwire.com/docs/try103i.pdf.
As shown in the table below, quarterly gold production was down slightly compared to the previous quarter however, the strong increase in Casposo's production can be seen in the month of September as throughput steadily increased and operating variability decreased. In September the site produced approximately 6,600oz of gold which is 50% more than the previous best month's production in April.
|)||September Quarter (estimate||)||June Quarter|
|Total Company Gold||7,333||6,684||9,950||23,970||26,294|
|Total Company Gold Equivalent||7,980||7,346||11,540||26,870||29,644|
The Casposo plant is still in the process of optimisation and it will not be possible to accurately assess ongoing operating costs until the plant has been operating consistently at or around nameplate capacity and the build-up of stores and ongoing consumables has reached a sustainable level. Standard operating and cash cost data will be published in the September quarterly report scheduled to be released to the market before October 28.
Casposo's September quarter unit costs are expected to be higher than the June quarter and what would be expected once stable production is achieved due to; lower gold production, additional costs incurred during this challenging weather environment, start up and testing costs, and with general inflationary pressures within Argentina. Power costs are expected to fall in the December quarter as the site moves from onsite diesel generated power to grid power.
This report contains forward-looking statements, statements, including those relating to expected production levels. These forward-looking statements reflect management's current beliefs based on information currently available to management and are based on what management believes to be reasonable assumptions. A number of factors could cause actual results, performance, or achievements to differ materially from the results expressed or implied in the forward looking statements. Such factors include, among others, future prices of gold, the actual results of current production, development and/or exploration activities, changes in project parameters as plans continue to be refined, variations in ore grade or recovery rates, plant and/or equipment failure, delays in obtaining governmental approvals or in the commencement of operations.
ABOUT TROY RESOURCES
Troy Resources (TSX:TRY)(ASX:TRY) is a dividend-paying junior gold producer, with a clear growth strategy. The Company has two producing gold operations; Andorinhas Mine in Para State, Brazil and the Casposo gold and silver mine, in San Juan province, Argentina.
Troy has an experienced Board and management team with a track record of successful, fast-track mine development and low-cost operations.
Troy has an annual exploration budget in excess of $15 million and a proven track record in exploration discoveries and strategic acquisitions.
With the development of the Casposo project, Troy has entered a renewed growth phase which will again lift the Company's annual gold production above 100,000 ounces of gold per annum.
The Company is positioned to continue its path of strong growth and profitable operations, and is on track to achieve its vision of becoming a highly profitable mid-tier gold producer with a portfolio of quality long-life assets.
The Company maintains a robust balance sheet and forecasts continued strong cash flow from its current assets. Troy's gold production is unhedged; allowing its shareholders access to the full benefit of current and future gold price upside.
Troy is a responsible corporate citizen, committed to the best practice of health and safety, environmental stewardship and social responsibility.
ABN 33 006 243 750
To view a map of project locations, please visit the following link: http://media3.marketwire.com/docs/try103m.pdf.