TRY - Troy Resources

[barney]

This part of the announcement was particularly interesting:868 grams per tonne

Gold Stock of the future …… Good Production … Low AISC …….

Few stale Bulls exiting on todays news …. time to start accumulating on the dips perhaps

 

[greggles]

Some additional drilling results from TRY's Ohio Creek Prospect were released on Friday. Here are the highlights from that announcement:

The Phase 1 RC drilling campaign at Ohio Creek has now been completed with 39 holes drilled in total to depths of between 70 and 140 metres. The assay results from 30 out of the 39 holes drilled are still outstanding and the company says they will be announced as soon as they are available.

The Phase 2 RC drilling campaign at Ohio Creek has already commenced with 14 holes already drilled out of a total of 23 planned to depths of between 75 and 120 metres.

Looks like there should be plenty of news flow for TRY in the coming months. It would be nice to see it crack that pesky resistance at 17c.

 

[barney]

TRY is one of my picks in the 2019 Stock picking Comp.

They had a small downgrade in Ounces produced for the year followed by a Cap Raise right on Xmas at 10.5 cents so the SP had a big gap down.

Starting to look a bit more stable again around the 11.5 cent area plus the POG is also looking healthier.

Lots to like about the Co but a bit of water to flow under this bridge yet.

 

[greggles]

More drilling results announced from the Ohio Creek Prospect on Tuesday.

The 564.45 g/t result from the trenching program is a surprise.

 

[barney]

This looks like the break for TRY ….

POG + solid Production numbers for the year. 10 cents should be the low/support level now.

 

[greggles]

This looks like the break for TRY ….

POG + solid Production numbers for the year. 10 cents should be the low/support level now.

Agree barney, TRY has been beaten down for too long.

However, they need to get a move on with that Ohio Creek Prospect to firm up some reserves. I don't think there's much doubt that there's quite a bit of gold beneath the surface. They just need to get drilling. Some more good results will boost the share price, especially with the gold price in AUD at an all-time high.

The latest results released in the July 2019 update look very good.

TRY doing well today, up 14.3% to 12c on solid volume.

 

[So_Cynical]

Agree barney, TRY has been beaten down for too long.

Somehow i doubt they will ever see $2.75 again - was a great company, i made a motza with Troy back in the day.

 

[barney]

i made a motza with Troy back in the day.

Your shout then …..

I see they have wiped $25 million off the debt in less than 2 years. Market Cap of around $60 million with about $7 million under the bed.

So conservatively, assuming Gold remains solid, they could bank $50 million over the next 4 years even if nothing much changes. That small market cap should re-rate substantially.

If the POG goes even sillier, a lot of these smaller Goldie Producers could really jump over the next couple of years. (don't hold unfortunately)

 

[notting]

Somehow i doubt they will ever see $2.75 again - was a great company, i made a motza with Troy back in the day.

A bit difficult after doing this - In Sept 2016
Equity RaisingTroy is undertaking an equity raising at A$0.36per share (OfferPrice) to raise up to approximately A$40.7million through the issue of up to approximately 113million new Troy shares (New Shares), comprising:

Then this shocker just before paying off it's debt which it could have covered with gold. -
89 million shares placed at 8.5 cents per share,raising $7.57 million before costs, with M&G Investments emerging as the Company’s largest shareholder with approximately 12.6% Unbelievable betrayal of existing ordinary shareholders. They should be sued out of that deal to the substantial investors and board should be sacked.

 

[barney]

In Sept 2016 Equity RaisingTroy is undertaking an equity raising at A$0.36per share
89 million shares placed at 8.5 cents per share,raising $7.57 million before costs, with M&G investments

Looking back at the chart, I'm surprised they were able to raise that money at 36 cents … The SP was almost in free fall, and continued falling after.

The last cap raise to M&G does look a bit like money for the boys. They have paid off nearly all the debt however, so all subterfuge aside, the SP should do better from here on. Not much solace for those who did their shirts a couple of years back of course.

 

[greggles]

The future of Troy Resources depends on how much gold is under the ground at the Ohio Creek Prospect and how much per ounce it is going to take to get it out.

From the beginning this prospect has been pushed as "exciting" (see first announcement from September last year) and it has returned some great drilling results. It is also quite large in size:

Drilling at Ohio Creek commenced in October 2018 and within a relatively short period of time, the Company has identified a gold-mineralised corridor of approximately 950 metres length which is open in all directions.

The July 2019 Ohio Creek Update indicates that all test work and geotechnical and hydrological works, along with development of the haul road from Ohio Creek to the Karouni Mill is scheduled to be completed by the end of October.

The same announcement also stated:

The Company is currently awaiting assay results of more than 2,000 samples delivered to the laboratory in Georgetown, Guyana. Results will be released as they are received.

So there should be quite a bit of news flow in the next few months.

 

[barney]

The future of Troy Resources depends on how much gold is under the ground at the Ohio Creek Prospect and how much per ounce it is going to take to get it out.
So there should be quite a bit of news flow in the next few months.

Yep ….

I appreciate @notting 's assessment, and Shareholders who suffered back then would be rightly jaded …

But given the current state of things in the world and the POG etc, … coupled with the "money for the boys" cap raise with M&G …

I think TRY looks a good value BUY/Accumulate on any retracements (suitable price action withstanding)

If they fail from here, they basically deserve to fail

 

[greggles]

Some further drilling results announced on Tuesday from Ohio Creek and an extension to the Hicks Prospects.

Drilling to the immediate north-west of the Hicks 1 Pit has revealed some near surface high grade mineralisation over a strike length of approximately 450 metres which remains open.

At Ohio Creek drilling in the possible Test Pit Area is essentially complete with some significant new intersections at depth, including:

The maiden Mineral Resources Estimate at Ohio Creek and an updated Mineral Resources Estimate at the Hicks 1 Extension are due any day now.

 

[greggles]

TRY announced on Tuesday that the final payment of US$1.792 million to Investec Bank plc has been paid and as a result the company is now debt free.

Today, after a couple of months of consolidation between 10c and 12c, TRY pushes through to 12.5c on increasing volume.

News on the way?

 

[barney]

TRY announced on Tuesday that the final payment of US$1.792 million to Investec Bank plc has been paid and as a result the company is now debt free.

Positive news!! Price action/ Volume reflects that positivity.

 

[barney]

TRY still in Voluntary suspension since the fatality at Karouni Mine early October. Company has asked for a further extension till 20th Dec.

Meanwhile results announced yesterday …

• Significant new intersections include:
 17 m @ 149.14 g/t Au from 34 m including ⇒ 4 m @ 623.17 g/t Au from 37m

That is a seriously rich vein

 

[greggles]

TRY still in Voluntary suspension since the fatality at Karouni Mine early October. Company has asked for a further extension till 20th Dec.

It's a shame but it sounds like it's getting really messy.

On 18 November, with the expiry of the six-week permitted stand down period fast approaching, the Company took the decision to retrench just over 200 workers.

[..]

The Company is now looking at sources of finance for working capital to fund the restarting of the Karouni operations.

In relation to the Smarts 3 cutback, as advised in the announcement of 15 October 2019, the Company has encountered further wall stability issues. These issues were, in part, related to the high rainfall received during the last wet season. It had been Troy’s intention to finish the cutback and complete mining of ore before the next wet season commenced to minimise potential loss of access from further slippages. With the current delay in mining activities, it is now very unlikely that Troy will be able to complete the remaining cutback and then the ore mining before the onset of the next wet season.

[..]

As a consequence of the shutdown, the Company has expended significant funds over the past six weeks on both care and maintenance activities and paying trade creditors.

Therefore, the Company has assessed that it needs to source additional funding to enable it to operate through the start-up process.

[..]

There has been a significant amount of misinformation circulating within the Guyana press and on local social media. Statements are being reported from all manner of people, many of which are entirely without basis.

Very unfortunate indeed. I hope it is all resolved soon. The need for more cash is not what shareholders wanted to hear I'm sure.

Meanwhile results announced yesterday …

• Significant new intersections include:
 17 m @ 149.14 g/t Au from 34 m including ⇒ 4 m @ 623.17 g/t Au from 37m

That is a seriously rich vein

17m @ 149.14 g/t Au is simply incredible. 150 grams is more than 5 ounces.

I hope there's more of that underneath the ground at Ohio Creek. Sounds like it might be TRY's last hope after all the drama and controversy in recent months.

This is a little worrying though:

As shareholders would be aware, Troy, having fulfilled all the requirements for the grant of a title permit to undertake mining Ohio Creek some time ago, has been eagerly waiting the grant of the relevant permit.

 

[greggles]

Troy Resources recommenced trading on 23 December, and it looks like the short term damage has been limited. It has found support at 9c and is slowing climbing back up. Currently at 9.7c and not far from resistance at 10c, which it will need to push through convincingly to stay above.

A few quick points:

1. Funding: 40 million FPO shares have been issued at a price of 10c per share. The placement was made to TRY's two largest shareholders, M&G plc and Ruffer LLP, both of whom participated for 20 million shares each raising a total of $4 million before costs.

2. Mining Operations: The Board has formally approved the recommencement of operations at the Karouni Gold Mine. The restart of operations will begin immediately but progressively, initially with the employment of personnel involved in mining activities and later, after approximately two weeks, personnel involved in the processing area.

3. Ohio Creek: TRY need to drill the hell out this prospect as quickly as possible. With the gold price surging and the previous results being spectacular, they need to get more drilling results out as quickly as possible to restore confidence in the company's future. Ohio Creek is going to be a make or break deal for TRY.

 

[barney]

1. Funding: 40 million FPO shares have been issued at a price of 10c per share.

That has to be a positive sign surely …. Higher than average Volume last few days as well …. 9 cents looks the new Low for the time being??

Accumulating between 8-10 cents is probably a punt but if things get sorted, it could be a lucrative punt down the track a bit …. Tempted

 

[greggles]

Some great drilling results announced today from the Smarts and Goldstar Prospects.

TRY finished the day up 6.9% to 9.3c with an intraday high of 9.5c.

The diamond drilling campaign at Smarts is continuing with five of eight holes having been completed. The Company also recently commenced an infill reverse circulation drilling campaign at the Goldstar Prospect.

No word yet as to when further drilling results are expected, but they can't be too far away.