BUENOS AIRES, June 22 (Reuters) - Casposo, an Argentine mine operated by Australia’s Troy Resources TRY.V, will begin to produce gold and silver next year after an $87 million investment in the project, an executive from the company told Reuters on Monday.
Construction at the mine in San Juan Province, some 785 miles (1,265 km) northwest of Buenos Aires, should be complete this year and the mine will employ at least 200 people when it is operational.
“What we have said is that we could start the construction before the end of the year, now I quite clearly see we are probably going to do it faster than that,” Ken Nilsson, operations director for Troy Resources said in an interview in Buenos Aires.
“And the planning (for production) is for 12 months after starting the construction but again I’m hoping to do it quicker than that. My personal target is the beginning of July (of 2010),” he said.
Casposo is expected to produce some 60,000 ounces of gold and silver in its first year and 80,000 ounces per year in the rest of its five-year projected life.
Troy Resources acquired Casposo from Intrepid Mines IXN.TO in May. The mid-sized miner, formed in 1987, also has two mines in Brazil and plans to continue investing in South America.
“We have been looking at other projects in Argentina for a number of years but they are not for sale. But we keep looking and this year and in following years we would spend a lot of money on exploration, particularly around the mine site,” Nilsson said.
He said the company’s Sandstone mine in Australia will stop producing in the next 12 to 18 months, so getting Casposo up and running soon is important.
Reporting by Karina Grazina; Translated by Fiona Ortiz; Editing by David Gregorio