Australian gold mining company Troy Resources Guyana Inc (TRGI) and the Guyana government have signed the Mineral Agreement for the company’s Karouni project with the company looking to start production by mid-2015.
The terms of the Mineral Agreement were not disclosed and the company, in a statement, said the agreement reduces uncertainty for all parties, “it is transparent, confirms commitments and acknowledges the desire to work together with the government in the task of providing for a better investment climate and to move the country towards a better tomorrow.” The agreement sets the operating parameters for the company and also defines the responsibilities of both parties.
TRGI has proposed a medium-scale gold mine designed to produce up to 110,000 ounces of gold per annum based on an average overall recovery of 92% at the Black Water Creek, Kaburi Area, in Region Seven. The mine will be focused on the recovery of ore for processing from Smarts and Hicks gold deposits. The project components include an open cut mine, processing plant, tailings storage facility, mine site accommodation and additional infrastructure required to recover and to process ore for the recovery of gold.
TRGI said the total investment committed to date is approximately US$43 million with a further US$27 million required to complete construction. “Major purchases and service contracts have been entered into with local service providers and manufacturers as well as other Caribbean manufacturers. The economic impact in Guyana from TRGI’s project is significant and if one considers flow-on effects into the community through salaries, wages, taxes, local purchases of goods and services it will be far reaching even for a medium size operation like Karouni,” the company said.
“This spin-off effect is however always going to be directly proportionate to the number of transactions that can be successfully undertaken in country. While the company remains committed to sourcing goods and services locally, it can only do so if these are available and up to standard,” it added.
The statement reported President Donald Ramotar as saying that the signing of the mineral agreement is very significant and shows continued confidence in the Guyanese economy. He welcomed Troy’s initiative to buy from Guyanese wherever possible and urged the company to accelerate construction and move forward its timeline for an earlier start of operation. Minister of Natural Resources and the Environment Robert Persaud, who signed on behalf of the Government of Guyana, said, “this is an agreement that all Guyanese will be proud of,” according to the statement.
It is designed to bring maximum benefits to the country and the government is confident, given Troy’s excellent track record, the company will be a good partner and deliver an investment that will make Guyanese proud, he said.
The company said that to date, it has constructed a registered all-weather airport at the project site and is currently continuing with road upgrades on the roadway from Linden to the project site.
It said that the Karouni project currently employs approximately 200 people in various disciplines and a substantial increase is expected over the coming month in anticipation of the increase in construction activities. It is projected that at steady state, the number of employees at the project will settle to around 500 including contractors and service personnel.
The long-term benefit from the transfer of technology and skills is another area in which the company is committed. It has already formed a close association with the training arm of GGMC and the Linden Technical School to assist in raising the skill level of local operators and furthering this important part of operations. “We expect this initiative will significantly increase the crop of trained mining personnel available in Guyana going forward,” the statement said.
The Karouni project marks the first entry into Guyana by Troy Resources Limited through its wholly owned subsidiary, Troy Guyana Inc. Troy’s other projects are located in Para State in Brazil and San Juan State in Argentina. All are focused on gold with the addition of silver in Argentina, the statement noted.
The company said it is pleased to have signed the agreement and looks forward to furthering its relationship with the Government of Guyana for the mutual benefit of all stakeholders. Troy remains committed to its investment in Guyana and is continuing to advance the Karouni project, with an estimated start date of mid-2015, the statement said. It added that Troy is committed to follow best practice in the industry and intends to work towards an ISO 14001 Environmental accreditation similar to the Casposo project in Argentina.
