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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (37475)	5/21/2009 9:18:40 PM
From: LoneClone	Read Replies (1) \| Respond to of 193921

Troy will decide on plant for Casposo in two months miningweekly.com By: Francisca Pouiller 20th May 2009 BUENOS AIRES – Junior gold producer Troy Resources plans to decide in the next couple of months whether it will build a new plant at its Casposo gold/silver project, in Argentina, or if a processing plant the company has in storage could be suitable for the project. Troy has just acquired Casposo, located in the province of San Juan, from Intrepid Mines, which put the project on hold in October 2008, due to a lack of funds. “We hope to utilise a gold processing plant we have in storage in Australia, which would not only significantly reduce capital but it would also reduce the time to first production as we will not have to wait for long lead time items which would be the case if we ordered a new plant,” CEO Paul Benson told Mining Weekly Online. The company is undertaking metallurgical test work, and hopes to be able to make a final decision on the flow sheet, and the suitability of the plant in storage, within two months. “From that point, our focus will be on commencing and completing the project construction as quickly as possible,” he said. Troy only plans to announce project capital costs and outline its development schedule during the September quarter, but, earlier this month, Benson indicated that construction is expected to get under way by the end of this year. The company was attracted to the project because the small, but high-grade deposit - which means development costs must be kept as low as possible - is well-matched to Troy's operational and project development strengths, he said. “Troy has a track record of building gold mines quickly and at low cost and we believe we will be able to do the same again at Casposo," Benson said. “We expect Casposo to be a low cost producer for many years.” The company has had “very positive and supportive” meetings with all government officials and good relationships with the local communities. A condition of the acquisition was that Intrepid's Argentinean-based team transferred with the project, which has provided continuity in the project development, as well as in relationships with the relevant communities, Benson commented. Casposo will be Troy's third mine in South America.