Aussie miner to open Guyana’s second largest gold mine

Aussie miner to open Guyana’s second largest gold mine

Primary and secondary crusher at the Karouni gold project in Guyana. (Image courtesy of Troy Resources)

Australia's Troy Resources (ASX, TSX: TRY) will begin gold extraction at its Karouni gold project, located in the disputed Essequibo region, administered by Guyana but claimed by Venezuela.

In it quarterly report for the period ended in September, published Friday, the company said the mine is expected to produce up to 100,000 ounces of the precious metal a year.

Troy Resources has invested about $100 million in the project, which will be the second-largest gold mine operating in western Guyana after the Aurora mine began operations in September.

Despite the positive news, investors were not moved to bid up Troy's stock price. The company closed down on Friday on the ASX, slipping almost 4.5% to 32 cents a share, at a market cap of about A$97million.

Gold is Guyana's main export and generated nearly $1 billion in revenue in 2013. But earnings have dropped recently because of weaker gold prices.