Troy Resources Acquires $1.1-Billion in Equipment for Gold Mine in Guyana

Gold producer Troy Resources Limited (ASX:TRY) (TSX:TRY) has purchased $1.1 billion in mining equipment for its Karouni Gold mine in Guyana. The acquisition will aid the Australian-based company in commencing production of the $87 million project by next year.

The mining equipment, which is manufactured in South Korea by Doosan and sold by Farm Supplies, will include 12 Doosan DA40 trucks and three Doosan DX 500 excavators. The purchase will also include training for its Guyanese operators and technicians in the operating and maintenance of the equipment.

“With funding in place and all major long lead items ordered, the Company is confident that Karouni will be the first of the new large gold mines coming into production in Guyana over coming years,” said Troy Resources Managing Director Paul Benson.

Troy Resources is currently preparing for the construction phase of The Karouni project, setting up a ball mill, mine operations, employee housing and other infrastructure. Once in production, the mine is expected to produce 90,000 ounces of gold a year and a total of 633,000 ounces during its life time.

According to Benson, the Karouni project will benefit the Guyana Government and locals by generating employment and local infrastructure.

“Karouni will have a major beneficial impact on the economy of Guyana through the creation of jobs and payments of taxes and royalties. In particular, we would like to acknowledge the very strong support received to date from the Government of Guyana and the different agencies and look forward to their continued assistance in bringing the mine into early production."

Once in production, the mine is expected to employ roughly 300 workers.

The construction phase of the project is slated to be completed mid 2015 with production commencing in February 2015.