Barrick Gold Corp. returns to Guyana, joins Troy Resources
The Barrick Gold Corporation, a global mining company, has returned to Guyana and will be targeting land near the Karouni mining site in Region Seven (Cuyuni- Mazaruni) through a new joint venture agreement with Australian mining company, Troy Resources.
Barrick previously withdrew from a joint venture with Alicanto Minerals, after spending US $1.7 million on exploration at the Arakaka gold project in Guyana.
According to a report published by the West Australian, a daily newspaper in Australia, Barrick will now be targeting tier-one gold finds in the southern part of Troy’s ground, including around the Potaro prospect. Troy Resources, on the other hand, will continue to explore and develop in the north.
The West Australian reported that Barrick has tipped US $1.2 million into Troy Resources for a 4.9 per cent stake in the company. And, it was reported that the company will primarily focus on exploring an area referred to as the “Potaro”, a new target under sand cover some 25 kilometers away from the Karouni gold plant.
Karouni was acquired by Tory resources in 2013 and since 2017 it has, reportedly, produced more than 150,000 ounces of gold from the Smarts and Hicks open pits.
Meanwhile, the Potaro target, which was identified by Troy Resources as a must-have target approximately two years ago, is considered highly prospective for gold. The Potaro River and local tributaries have been heavily mined for alluvial gold.
Importantly, the Australian newspaper reported that Barrick can earn up to 51 per cent of Karouni by completing exploration milestones and a pre-feasibility study, or “PFS”. And, it can earn an extra 19 per cent interest in the joint venture by completing a feasibility study.
Additionally, it was noted that if a decision is made to proceed with development and the construction of a mine, Troy has the option to require Barrick to provide Troy’s share of the financing for the project for a further 10 per cent ownership interest.
Barrick will, however, be the operator of the joint venture project and will receive a management fee of 5 per centof all expenditure incurred.
Chief Executive Officer of Barrick, Mark Bristow was quoted as saying: “We look forward to combining Barrick’s technical and financial resources with Troy’s established in-country team and knowledge, to advance exploration over the project tenements with the aim to deliver new world class gold discoveries.”
Meanwhile, it was noted that Troy Resources retains 100 per cent of its northern exploration tenements around its Smarts open pit and proposed underground mine, recently granted approvals by the Guyana Geology & Mines Commission (GGMC).
This northern area also includes highly prospective and underexplored targets such as Upper Itaki, Gem Creek and Kaburi Hills.
In a recent statement, CEO of Troy Resources, Ken Nilsson said that the underground gold mining project could start around October, this year. The initial work was planned to start around July, but has been postponed.