2004 – AusIMM METPLANT, Perth WA

Abstract:

Troy Resources NL acquired a 70% interest in the Mina Sertão gold project in Goias
State, Brazil, in 2001 following a successful bid for the highly competitive international
tender of a tenement package put out by Western Mining Corporation (WMC).

The Sertão deposit is located on cleared grazing land 380 kms west of Brasilia and is
30% owned by Amazonia Mineracao Ltda, a private Brazilian company. It is a small
high-grade open-pittable orebody with a measured and indicated resource of 108,000
tonnes at a grade of 49.7 g/t for 172,500 ounces using a 2.0 g/t cut off.

Troy undertook the project management and development of the project while Amazonia
managed the exploration activities and provided other services as required.

The project development involved drilling metallurgical test holes, scouring the world to
locate an available and suitable second-hand plant, and arranging shipping to and
reconstruction in Brazil.

The contracting strategy used by Troy was unusual in that Troy managed the subcontractors
and consultants themselves including the engineering, procurement, construction and commissioning.

Entry into a country where the language and culture was significantly different as well as obtaining
the necessary government approvals, including environmental and import permits, were all challenges for the
management team. The tropical environment and logistics also had to be contended with.

The plant has some novel aspects including very high gold loadings, a DETOX circuit,
and tailings filtration because a conventional tailings dam was not practical.

Lessons were learned and the project has been both profitable and successful for Troy
and Amazonia. In addition, the project has created jobs, delivered royalties and brought
new skills into an area where previously there was little mining activity.

Read the paper here