BUENOS AIRES - Construction could get under way on the Casposo gold/silver project, in Argentina's San Juan province, by the end of this year, Troy Resources CEO Paul Benson said this week, on a visit to the site.
Troy has just acquired the project from Intrepid Mines, which put the project on hold in October 2008, due to the impact of the financial crisis.
Benson and Troy director Ken Nilsson met on Friday with Argentina's National Mining Secretary, Jorge Mayoral, and indicated that the mine could be in production by the end of 2010.
Another well-received piece of news was the fact that the team of employees who were working on the project will continue to do so as Troy employees.
"It is not the company's policy to hire many expatriates, which is why most of the workers will be local," Benson said.
Nilsson will be in charge of the construction.
Troy paid $20-million for the project, with $2-million remaining to be paid on the sixth month anniversary of first production.
The company funded the acquisition from cash reserves.
"Our focus now will be to develop a new fast track and low capital cost plan for the development of the deposit," Benson said.
"We expect to be able to update the market on the new development plan in the September quarter.
"Troy is always seeking opportunities, and as Intrepid was ready to sell the project, we saw this as convenient, because it was the sort of deposit we were looking for, he told San Juan-based newspaper Huarpe.
Casposo will be Troy's third mine in South America. In 2002, the company acquired its first mine, Sert„o, and achieved first production at the mine just 14 months later.
In November 2006, Andorinhas, Troy's second Brazilian operation, was acquired, and first production followed 16 months later.
The company has said it plans to fast track Casposo in a similar way, and may lower costs and speed up development by using some or all of the gold plant it has in storage in New South Wales.
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