Name and Location
West Omai gold project, Guyana.

Client
Troy Resources.

Project Description
A preliminary economic assessment and scoping study on West Omai’s Smarts and Hicks deposits proposes a combination of two opencut mines and one underground mine feeding a carbon-in-leach (CIL) gold plant, with a nominal capacity of 750 000 t/y.

The study assumes a seven-year mine life, with average gold production of 90 000 oz/y and a conventional CIL plant, augmented with gravity gold recovery treating a nominal 750 000 t/y, configured to allow easy expansion at a later date.

The study assumes that a production target of 5.2-million tonnes of material will be processed, with an average grade of 4.13 g/t of gold.

The Smarts pit will produce 2.175-million tonnes of plant feed at 4.5 g/t, have a mining strip ratio of 9:9:1 and be mined to a depth of 140 m.

The Hicks pit will produce 1.3-million tonnes of plant feed at 2.4 g/t, have a strip ration of 5:5:1 and be mined to a depth of 90 m.

The Smarts underground pit will produce 1.713-million tonnes of plant feed at a grade of 5 g/t and extend to a vertical depth of 400 m below surface.

Value
Initial capital is estimated at $86.8-million, including preproduction mining costs of $9.3-million and contingency of $7-million, and sustaining capital over the life-of-mine of $8.6-million.

Underground development costs are estimated at $21.6-million and the underground mining fleet at $10.3-million, including contingency.

Duration
Production at the mine could start as early as the second half of 2015.

Latest Developments
In February, Troy announced a A$38-million capital raising to advance the development of its West Omai project.

The group planned to raise up to about A$28-million through an ordinary share placement of up to 22.29-million ordinary shares at A$1.25 a share, followed by a share purchase plan to raise up to an additional A$10-million.

This capital raising is part of the total financing package for West Omai. Troy is currently in discussions with Investec regarding a new debt facility that, if secured for the facility size currently contemplated, together with the funds to be raised by the placement, will complete the funding requirements for West Omai. Importantly, the capital raising should also enable Troy to restart brownfield exploration later this year at West Omai and Casposo.

The funds raised will be used for general earthworks at the West Omai site, including roads, camps, site preparation for processing facilities, offices, a tailings dam and other site infrastructure, as well as to progress project studies, buy plant equipment and conduct resource infill and infrastructure sterilisation drilling.

Meanwhile, Troy expects to complete a prefeasibility study (PFS) on the project in the June quarter of this year. Subject to favourable results of the PFS, securing permits and approvals, the assumptions included in the PEA, Investec providing a new facility for the amount currently contemplated and the placement being fully subscribed, Troy expects that production at the mine could start as early as the second half of the 2015 calendar year.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Troy Resources, tel +61 8 9481 1277, fax +61 8 9321 8237 or email troy@troyres.com.au.