As gold becomes harder to find and more expensive to produce, junior and mid-tier companies will need to look beyond Australia’s borders to find viable and profitable deposits, Troy Resources chairman John Dow said yesterday.
Speaking with MINING DAILY at an intimate lunch briefing before making a presentation at the Sydney Mining Club today, Dow said that finding quality gold deposits, “is more challenging than people think.”
Much of the cheaper, easy to find deposits have already been found, he said.
“You have got to go where the gold is.”
It is this belief that has taken Troy far afield in establishing new gold projects to augment its flagship Sandstone operation in Western Australia, which is set to close in this year’s June quarter.
“There are new discoveries to be made in West Africa and South America,” Dow said.
Troy’s primary focus in the immediate future is its Casposo gold and silver deposit in Argentina, which the company acquired in March last year.
The new mine is the company’s third South American operation, adding to the Sertao and Andorinhas mines in Brazil.
Casposo has reached a number of milestones recently, including halving projected development costs to around $45 million and successfully moving the processing plant from Cobar NSW to the project site.
The company said it remains on track for plant commissioning and first production in the September quarter this year.
Dow said that while a number of factors have to be taken into account when exploring and mining in relatively undeveloped parts of the world, such as political risk, differing business practices and inadequate infrastructure, a quality deposit like Casposo will outweigh these concerns.
There is a higher risk, but also a higher reward, he said.
“It is worth all of the added hassle.”