Inclement weather forces indefinite delay of Troy, AGM underground mining

Troy Resources and Zijin Mining Group have both reported that the commencement of underground gold mining at their repective  Region Seven operations , have been delayed due to inclement weather conditions in recent months.

Both companies are reporting that the delay is indefinite and they are currently gauging the weather forecast before moving forward.

In response to questions posed by this newspaper, the Australian gold mining corporation explained that with the risk of underground mining increased due to the rainy conditions, in the interest of safety and best practice it wanted to ensure everything is thoroughly reviewed and planned before implementation.

Access roads to the mining sites at Kaburi have also been flooded. “Flooding affected operations not only in access to the mining pits and areas but also all road access to the project area was halted as the Sherima and Omai Crossings were both either under water or the roadways were impassable. Road access with reduced capacity has resumed at the Sherima crossing,” Troy Resources said.

Meanwhile, Aurora Gold Mine (AGM) Director of Corporate Office, Compliance, and Government Relations Peter Benny told Stabroek News that the company was expected to commence mining during this month. It was explained that while all preliminary approvals are in place, due to the weather conditions and the company being in the final stages of geotechnical reviews and plans, it is unable to say if the project remains on schedule for the October commissioning. However, he too, said that weather conditions have led to many push backs. The Director responded in the negative when asked about new start-up dates and said that the company will have to weigh its options before resuming plans for underground mining.

Troy has already received the necessary permits to commence infrastructure works and is working closely with the Guyana Geology and Mines Commission (GGMC) and other government departments to assist in the formulation of a set of mining regulations for underground mining operations in Guyana. “The current preferred mine plan involves bulk mining of the deposit to maximize gold production. A two-stage development approach is currently preferred to minimise capital expenditure requirements. This will see initial development of a relatively short drive of approximately 800 metres to the first ore zone of approximately 30,000 ounces, revenue from the sale of which will be used to fund further development,” the company disclosed. In October 2020, the company announced that it had ‘struck gold’ with a bonanza discovery of a vein at its Smarts underground mining project at its Karouni mining site, in Region Seven, showing 131.93 grammes of gold per tonne of ore (g/t Au).