TRY 0.00% 3.0¢ troy resources limited

In relation to the Karouni LOM... In January 2014, TRY announced...

  1. 1,273 Posts.
    In relation to the Karouni LOM...

    In January 2014, TRY announced a 7 year LOM on Karouni.

    Since then, TRY reduced this to just 3 years pending further infill drilling to further define the resource.

    TRY is experiancing promising positive reconciliation through Karouni which is also significantly reducing the AISC.

    I believe it's resonable to suggest the updated LOM will be more than 7 years.

    I also believe the market is only just starting to wake up and recognise this fact.....

    Below is the January 2014 PEA results. Karouni has improved markably since then.

    http://www.troyresources.com.au/operations.html

    On 21 January 2014, the Company announced results of the PEA for development of the Karouni project (Project). The PEA considers a combination of two open cut and one underground mine feeding a conventional carbon-in-leach gold plant with a nominal capacity of 750,000tpa. The PEA assumes a total of 5.2 million tonnes of material will be processed with an average grade of 4.13g/t with recovered gold production of 633,000 ounces over a 7 year mine life.
    Highlights from the PEA*, assuming a gold price for the base case of US$1250/oz, are as follows (all figures in US$ unless otherwise stated):
    • Seven year mine life with annual average gold production of 90,000 ounces, with production in the first 12 months of 102,000 ounces gold.
    • Conventional CIL plant augmented with gravity gold recovery treating a nominal 750,000tpa configured to allow easy low cost expansion at a later date.
    • A Production Target of approximately 5.2 million tonnes of material to be processed with an average grade of 4.13g/t. The sources in terms of tonnes are: Smarts Open Cut (42%), Hicks Open Cut (25%) and Smarts Underground (33%).
    • In terms of contained gold, the sources are: Smarts Open Cut (45%), Hicks Open Cut (15%) and Smarts Underground (40%).
    • The Smarts pit would produce 2,175,000 tonnes of plant feed at 4.5g/t, have a mining strip ratio of 9.9:1 and be mined to a depth of 140m.
    • The Hicks pit would produce 1,300,000 tonnes of plant feed at 2.4g/t, have a mining strip ratio of 5.5:1 and be mined to a maximum depth of 90m.
    • The Smarts underground would produce 1,713,000 tonnes of plant feed at a grade of 5.0g/t and extend for a vertical depth of 400m below natural surface.
    • Initial capital of $86.8 million (including pre-production mining costs of $9.3 million and contingency of $7.0 million) and sustaining capital over the life of mine of $8.6 million.
    • Underground development costs of $21.6 million and underground mining fleet $10.3 million (including contingency).
    • Assumed metallurgical recovery of 92%.
    • LOM average C1 Cash Costs (excluding royalties) of $653/oz.
    • LOM All in Cash Costs of $805/oz.
    • After tax payback of 1.8 years.
    • After tax NPV at 6% of $101.5 million.
    • After tax IRR of 44.2%.
 
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