PERTH (miningweekly.com) – Dual-listed gold miner Troy Resources has set production records at its Casposo project, in Argentina, where it reported a 15.6% increase in quarterly gold production.

During the three months to March, ASX- and TSX-listed Troy produced 17 533 oz of gold and a record 710 178 oz of silver at the Casposo project, as ore grades increased.

At the Andorinhas mine, in Brazil, production also increased, with Troy producing 8 200 oz of gold during the quarter under review, compared with the 7 760 oz produced in the previous three months.

“This was a very important quarter for the company on a number of fronts,” said CEO Paul Benson on Monday.

“Operationally, we have seen the positive impact of high-grade ore from underground at Casposo, with a 22.3% increase in silver production. Gold production was up 15.6%, with a 47% reduction in all-in sustaining costs to $690/oz net of silver credits.”

Benson noted that Casposo also saw continued improvements in waste development productivity and a significant reduction in the cost of underground development.

However, he noted that despite the positive production results achieved during the quarter, there could be a risk to the company’s production guidance for the full year.

“It is too early to be precise, but due to a number of factors, including the slower-than-expected access to higher-grade underground ore, delays in receiving the air sparing system required to improve silver recoveries, and the deteriorating ratio of silver to gold price, there is a risk Casposo will come in just under 10% lower than original guidance, at around 110 000 oz gold equivalent for this financial year.”

He added, however, that the Andorinhas operation would be about 10% ahead of its original guidance, coming in at 32 000 oz for the full year.

Looking ahead, Benson stated that Troy would restart brownfield exploration at both Casposo and the Karouni mine, in Guyana, over the coming months.

During the quarter under review, Troy secured A$26.9-million through a share placement and a further A$5.3-million through a share purchase plan to finance the Karouni project.