PERTH (miningweekly.com) – Gold miner Troy Resources on Tuesday reported a 16% year-on-year decline in gold production during the first quarter of its 2014 financial, with output falling to 27 924 oz of gold equivalent.

This was compared with the 33 389 oz produced in the three months to September 2012. However, gold production for the September quarter compared favourably to the 27 808 oz produced in the three months to June.

The decline in gold production was the result of lower production from both the Casposo and Andorinhas mines, Troy explained.

The Casposo mine, in Argentina, delivered 20 116 oz of gold equivalent during the quarter under review, compared with the 23 414 oz delivered in the previous corresponding period.

Production in the September quarter was on par with the 20 324 oz delivered in the three months to June.

During the quarter under review, the Casposo mine became more dependent on underground ore, requiring less feedstock from the Kamila openpit mine, and resulting in a 13.5% decrease in tonnage, compared with the June quarter.

Mining at the smaller, low-grade Mercado openpit mine would start later in 2014.

At the Andorinhas mine, in Brazil, Perseus produced 7 807 oz of gold equivalent, compared with the 9 975 oz produced in the previous corresponding period. Production during the September quarter was also relatively on par with June quarter production of 7 484 oz.

ASX- and TSX-listed Perseus noted that underground production at Andorinhas was marginally down on the June quarter, while tonnes treated were also down by 8% on the previous quarter, following increased downtime owing to power outages.

Troy CEO Paul Benson described the company’s performance as “solid”, highlighting improvements at the underground operation at Casposo, following the change from contractor to owner miner.

“We expect grade to the Casposo mill to steadily increase over the coming quarters as increased tonnage of higher grade ore is delivered from the underground,” he said.

Benson noted that the company was now focused on fast-tracking the development of the West Omai project, in Guyana, which Troy acquired through the acquisition of gold explorer Azimuth Resources.

“During the quarter, we completed the first stage of resource conversion, converting 44% of the inferred resource at Smarts to indicated status, with further conversion expected to continue over the coming two quarters.

“We have also commenced the permitting process and are well advanced in our review of suitable plant for project development.”

The scoping study on the West Omai project was also due in the December quarter.