Karouni Project - (Troy 100%)

Introduction

The Karouni Project (formally known as the West Omai Project) is centred at 5º37’N and 59º05’W in the central-northern portion of Guyana.  The Project lies approximately 180km south-southwest of Georgetown.  The Karouni Project covers an aggregate area of 113,581 hectares; comprising granted small, medium and large scale tenements west of the Essequibo River

The Karouni Project is dominated by gently undulating terrain at elevations ranging from 50m to 100m above sea level.  The area is drained by a dendritic network of moderately incised small streams and creeks.  The Project area is veneered entirely by tropical lowland forest with the canopy height ranging from approximately 20m to 50m.  Aside from logging tracks, the forest cover has essentially been preserved by very selective logging practices.

Tenements
The Karouni Project tenements cover an aggregate area of 270,706 acres (113,581ha), granting the holders the right to explore for gold or gold and diamonds. The tenements have been acquired by either direct grant to the Company (25,990 acres/10,517ha) or by contractual agreements with tenement holders (254,668 acres/103,064ha). Apart from the Kaburi Agreement (29,143 acres/11,794ha), which provides for the Company to earn a 90% interest, all other vendor agreements provide the Company with the right to obtain an ultimate interest of 100%.

The Karouni Project comprises a single (large scale) mining licence, 94 (small scale) claim licences, 220 (medium scale) prospecting and mining permits, and 6 (large scale) Prospecting Licences. All licences, permits and claims are granted for either gold or gold and diamonds.

Property Geology
Although partially obscured by a veneer of Tertiary to Holocene sedimentary cover, the basement geology of the Karouni Project is dominated by west-northwest trending greenstone belts of the Palaeoproterozoic Barama-Mazaruni Supergroup, interspersed with extensive granitoid batholiths also of Trans-Amazonian age.

The northern tenements straddle the northeast limb of an interpreted shallowly plunging, northwest trending anticline (see Figure below).  The core of the anticline is occupied by relatively undeformed syntectonic granitoids, notably granodiorite and monzonite, around which is wrapped greenstone stratigraphy.  The greenstones locally comprise a basal succession of high magnesian basalts, tholeiitic basalts and andesites, which are locally intruded by a felsic to intermediate porphyry, overlain by a succession of intermediate volcanoclastics and sediments, incorporating more persistent carbonaceous shale horizons.  This stratigraphy reasonably is consistent with that recorded at the Omai Mine, 35km to the southeast.

The greenstone succession is variously metamorphosed to upper greenschist facies, increasing to amphibolite facies along the granite contact. The basement is intruded by a series of northeast trending dolerite dykes of the Avanero Suite, one of which intersects mineralisation associated with the Hicks Zone immediately east of Blackwater Creek.

Much of the southwest portion of the northern tenement block, which incorporates the Hicks, Eldorado and Whitehall (Kaburi) mineralised zones, is veneered by Tertiary to Holocene sediments.  The lower cover sequence mantling the basement is less persistent and comprises a cream coloured, poorly sorted, oligomictic conglomerate of angular quartz fragments cemented by quartzose sand or arkose.  This conglomerate is un-named, but is presumed to be of Tertiary age.  It is mildly silica indurated and frequently strongly mineralised with gold where proximal to basement mineralisation.  Where exposed, the unit appears to be up to 8m in thickness.

The basal conglomerate is overlain by more persistent cover of the Corentyne Group, more specifically, the Pleistocene to Oligocene White Sand (or Berbice) Formation.  As the name suggests, the White Sand Formation comprises distinctively unconsolidated clean white sand of littoral or shallow marine origin that veneers much of the coastal plain of Guyana.  The unmineralised White Sand Formation ranges up to 40m in thickness and obscures much of the basement geology.

All surface “bedrock” in the area is typically altered to saprolite to depths of several metres to several tens of metres (see Photo below).  The stratigraphy is locally overlain by unconsolidated marine and deltaic sands plus clays of the Cretaceous-Tertiary Berbice Formation.

   


Mineralisation

Primary gold mineralisation is exposed at several localities within the Karouni Project, the most notable being the Hicks, Smarts and Larken Zones along the northern extremity of the Project (see Figures below).  Here the White Sand Formation cover has been removed by erosion to expose the underlying mineralised Palaeoproterozoic Greenstone successions of the Trans-Amazonian Barama-Mazaruni Group.  Extensive superficial cover of White Sand Formation within the central and south portions of the project tenements masks the basement lithology and would conceal any gold mineralisation.  The acquisition and evaluation of airborne geophysical data has however indicated that the Barama-Mazaruni Greenstone Belts and associated syntectonic intrusives persist at shallow depth beneath this cover.

 

Karouni Project Geophysics

Hicks Deposit
The Hicks Deposit is the southernmost deposit defined to date along Omai – Hicks – Smarts – Whitehall (Kaburi) Corridor.  Gold is hosted by a northwest trending, sub-vertical to steeply southwest dipping shear zone some 2,900m in strike length and up to 60m wide in places with average grade mineralisation of approximately 2g/t gold. Gold mineralisation at the Hicks Deposit is hosted by a northwest trending, sub-vertical to steeply southwest dipping shear zone some 2,500m in strike length and up to 60m wide in places. 

The shear has developed within basalts and andesites comprising the footwall greenstone succession along the northeast limb of a shallowly northwest plunging anticline.  Auriferous mineralisation is also noted at the contacts of porphyry-granite intrusives.  The shear is comprised of semi-continuous zones of quartz lenses and quartz-carbonate veining or brecciating.

Numerous, moderately well-defined gold-rich lenses, up to 15m wide, occur within the shear and are characterized by anomalous quartz veining, quartz flooding, shearing; chloritization, seritisation and pyritisation.  Visible gold and the majority of gold values typically occur within and along margins of quartz veins, in silicified granitic dykes, and in adjacent, pyritic, often sheared meta-andesite.  Pyrite is common at up to 3% by volume, with local, trace amounts of molybdenite, galena and sphalerite, associated with auriferous quartz veins.  Mineralisation is variously accompanied by silica-sericite-chlorite-carbonate-pyrite-tourmaline alteration, while fuchsite is developed within porphyry intrusives in contact with high magnesian basalts and along shear zones.

In general, the northwest trending mineralised shear has developed within a steeply inclined sequence of metamorphosed andesitic to basaltic volcanics, adjacent to the northwest margin of the Eldorado (granodiorite) Batholith.  The volcanic stratigraphy is cut by a multiple series of andesitic to felsic intrusive phases that precede and post-date the introduction of gold.

Smarts Deposit
The Smarts Deposit was discovered in January 2011 when Azimuth used RC drilling to follow-up earlier encouraging trench results around the local workings known as ‘Smarts Pit’.  The prospect is located 4km to the northwest of the Hicks Zone.  Gold is hosted by a northwest trending, sub-vertical to steeply southwest dipping shear zone, that has been observed in drill holes for some 2,800m of strike length and up to 200m wide in places with average grade mineralisation of approximately 4g/t gold - 5g/t gold.

Exploration has identified extensive gold mineralisation at the Smarts Deposit.  Gold is hosted by a northwest trending, sub-vertical to steeply southwest dipping shear zone 2,800m in strike length and up to 60m wide.  The shear zone has developed within basalts and andesites comprising the footwall greenstone succession along the northeast limb of a shallowly northwest plunging anticline.  Auriferous mineralisation is also noted at the contacts of porphyry-granite intrusives.  The shear zone is comprised of semi-continuous zones of quartz lenses and quartz-carbonate veining or brecciation.  

Numerous, moderately well-defined gold-rich lenses, up to 15m wide, occur within the shear zone and are characterized by anomalous quartz veining, quartz flooding, shearing, chloritization, seritisation and pyritisation. 

Visible gold and the majority of gold values typically occur within and along margins of quartz veins, in silicified granitic dykes, and in adjacent, pyritic, often sheared meta-andesite.  Pyrite is common at up to 3% by volume associated with auriferous quartz veins.  Mineralisation is variously accompanied by silica-sericite-chlorite-carbonate-pyrite-tourmaline alteration.  In general, the northwest trending mineralised shear zone has developed within a steeply inclined sequence of metamorphosed andesitic to basaltic volcanics, adjacent to the northwest margin of the Eldorado (granodiorite) Batholith.  The volcanic stratigraphy is cut by a multiple series of andesitic to felsic intrusive phases that precede and post-date the introduction of gold.

Exploration Activities year 2016/17:

KAROUNI (TROY 100% THROUGH TROY RESOURCES GUYANA INC.)

During the year, the exploration team has drill tested six key NW-SE and E-W striking regional structural corridors, such as Gem Creek, Smarts-Hicks-Whitehall, Saint Lucia, Saints, Dominica and the de Grasse corridor. The drilling tested five of the top 10 Brownfields targets including Mirror, Dominica, Goldstar, Norby and Hicks SE. In addition, an independent geophysical consultant re-worked existing IP data and generated 13 IP focussed targets/drill holes. Five of the thirteen holes were drilled.

The completed regional exploration and near mine drilling totalled 33,817m for 409 RC drill holes.

Successful brownfields drilling was undertaken along the Gem Creek Shear with 15+ ore grade intercepts in the Goldstar prospect providing the potential for an economic gold occurrence over a 10km strike extension in the Karouni tenement holdings. The Goldstar prospect is 5km to the NNE from the Karouni plant site along the Gem Creek Shear and gold mineralisation has been confirmed over 2km of strike length. The area holds some intensive historical alluvial working and saprolite excavations.

Regional brownfields RC drilling totalled 308 holes for 25,246m for the year.

REGIONAL BROWNFIELDS EXPLORATION

Goldstar Target

Following up the high prospectivity, identified with use of mapping and hand held XRF, the first drilling completed by Troy yielded success with 15+ ore grade intercepts consistent over a minimum of three, approx. 240m spaced lines. The gold intercepts at the Goldstar prospect are in three distinct areas with up to 1.1km of strike length. The mineralisation appears in 2 types, the first is at the contact of strained MgO Basalt with Mafic unit and intensive quartz veining and the second style in felsic porphyries with pyrite alteration. Both types at Goldstar are very similar to the Smarts and Hicks deposit and incorporated in the sheared MgO corridor.

Some of the best intercepts in Goldstar are:-

  •     13m at 2.05g/t gold from 58m, incl. 7m at 3.31g/t gold from 60m
  •     6m at 1.90g/t gold from 26m, incl. 3m at 3.08g/t gold from 26m
  •     3m at 4.35g/t gold from 37m
  •     16m at 1.01g/t gold from 31m, incl. 4m at 2.64g/t gold from 42m
  •     16m at 1.27g/t gold from 59m, incl. 2m at 5.29g/t gold from 65m
  •     6m at 1.90g/t gold from 87m, incl. 1m at 9.19g/t gold from 87m

At the Goldstar Prospect, a total of 137 RC drill holes were drilled for 11,515m. A feasibility study on size and grade is underway. The next exploration step will be diamond drilling to collect more structural data and an understanding of the mineralisation style and orientation.

Dominica Target
The Dominica target is located about three kilometres to the NNW from the Karouni plant site and covers the E-W striking Dominica Shear Zone. Magnetic data clearly shows that the Dominica structure attenuates the main NW-SE stratigraphy. The intersecting points between the two structures have potential for mineralized felsic intrusives. Along the structure, several felsic intrusive and saprolite workings were mapped. The drilling tested 4 km of strike of the structure with four wide spaced drill lines and intersected mainly sediments, shales, felsic porphyry and mafic rocks. Quartz veining and pyrite alteration confirms the early E-W structures are path ways for fluids.

The best intercepts are:-

  •     1m at 5.29g/t gold from 53m
  •     1m at 2.6g/t gold from 4m
  •     3m at 1.35g/t gold from 73m


At the Dominica Prospect, a total of 50 RC drill holes were drilled for 4,586m.

Norby Target

During the year, 42 RC drill holes for 3,634m were completed at the Norby Prospect. The Norby prospect is located about 1.1km to the north from the Karouni plant site and covers a section of the Larken – Norby – Gibbs Shear, which is a parallel structure to the main Smarts - Hicks Shear. The drilled area is partly sand covered with a maximum cover thickness of 19m. The drilling at Norby successfully intersected a weak shear zone with felsic porphyry intrusion, associated with strong quartz veining, disseminated pyrite and carbonate alteration. The south east Norby drilling is close to an historic mining area and intersected black shales, greywackes and mafics.

The results show some anomalous intercepts where the structure was interpreted and along lithological boundaries:-

  •     4m at 2.19g/t gold from 17m
  •     3m at 1.33g/t gold from 45m
  •     1m at 1.60g/t gold from 52m
  •     2m at 1.13g/t gold from 42m
  •     2m at 1.03g/t gold from 66m
  •     1m at 1.05g/t gold from 42m
  •     3m at 0.97g/t gold from 96m

Hicks SE Target

At the SE extension of the Smarts-Hicks-Shear, a wide spaced drilling programme of 53 RC drill holes totalling 3,571m was completed. The Hicks SE prospect is located about nine kilometres to the SE of the Karouni plant along the known mineralised Smarts-Hicks-Shear. The drilled area is 5.5km to the SE of the Hicks Stage 3 pit. The drilling intersected the hanging and footwall sediments and a high MgO mafic unit similar to Smarts. In the MgO unit the shear is weakly developed and traces of carbonate and weak pyrite alteration were encountered. The results show no significant gold intercepts.

Mirror Target

The conceptual Mirror target on the other side of the Karouni Granite has been tested with one single line for 24 RC drill holes for 1,682m. The intersected cover sequence of sand and clay is in average 20-25m in thickness. The drilling of bedrock intersected a main sequence of volcanic derived sediments and minor basalt and felsic intrusive. The drilling confirmed the presence of the Saints Shear with weak carbonate alteration. No significant Gold intercepts were returned to date.

Hicks Infill and Near Mine Exploration

An infill drilling programme in the area between Hicks 1 and Hicks 2 has confirmed the presence of mineralisation. As a result, it is possible that these pits may be joined into a single pit and an updated pit design is being generated.

The best assay intercepts are:-

  •     7m at 21.80g/t gold from 74m (including 4m at 37.38g/t gold from 74m)
  •     12m at 10.4g/t gold from 44m
  •     37m at 5.43g/t gold from 8m (including 5m at 15.24g/t gold from 8m)
  •     30m at 3.84g/t gold from 12m
  •     10m at 3.48g/t gold from 100m
  •     7m at 3.88g/t gold from 21m

Near mine exploration was completed for Hicks 0 and Hicks 3. At Hicks 0, which is about 300m to the NW of the Hicks 1 pit, drilling confirmed mineralisation from approx. 25m below surface down to 100m. The deep drilling in Hicks 3 Pit confirmed mineralisation for at least another 70m below the current pit design. The drilling on the SE extension of Hicks 3 did not deliver any significant extension of the ore body.


Significant assay intercepts are:-

  •     42m at 3.07g/t gold from 16m (including 1m at 21.8g/t gold from 26m)
  •     26m at 1.45g/t gold from 19m
  •     16m at 1.81g/t gold from 41m
  •     9m at 1.77g/t gold from 3m
  •     12m at 1.6g/t gold from 54m


For the year, near mine and Hicks infill RC drilling totalled 96 holes for 7,961m.


 
A new, detailed geological model for the Hicks Prospect was completed by the exploration team and handed over to the mining department for the re-design of existing Resource model and wireframes.
 

Six near mine RC drill holes at the NW end of the Smarts pit for 434m were drilled. The drilling confirms the continuation of the Smarts-Hicks Shear and mineralisation. The cover sequence is about 20m in thickness.

The best intercepts are:-

  •     4m at 4.13g/t gold from 51m
  •     1m at 5.89g/t gold from 66m
  •     6m at 1.84g/t gold from 31m
  •     6m at 2.12g/t gold from 56m


The five IP focused drill holes totalled 610m and confirmed the IP anomaly to be, stratigraphy. No significant gold intercepts were returned.

Smarts Grade Control Drilling

During the financial year, a total of 272 angled RC grade control holes for 9,462m were drilled in the Smarts Stage 1, Stage 3 and Stage 4 Pit. The holes were designed to better understand the ore body and provide additional data for use in mine planning and ore block delineation.

Whole rock geochemistry analysis for Smarts samples has confirmed that the majority of the central mafic is composed of three types of basalts and dolerites. The main and minor shears develop in the high MgO Basalt whereas the high Titanium Dolerite is the preferred host rock for extensional veins with strong alteration halos and high grade gold mineralisation.   
 
An updated geological model for the Smarts deposit was prepared which allows a revision of the Resource and grade control models.

At Smarts Stage 1 a total of 139 RC grade control holes for a total of 4,525m were drilled. The drilling confirms three high Titanium Dolerites and two sediment units juxtaposed against one another with smaller and wider sheared MgO Basalts surrounding dolerites and sediments.
A summary of highest grade intercepts are:-

  •     2m at 47.26g/t gold from 18m
  •     5m at 17.82g/t gold from 8m
  •     4m at 12.36g/t gold from 24m
  •     19m at 11.17g/t gold from 9m
  •     5m at 8.71g/t gold from 4m
  •     4m at 6.30g/t gold from 0m
  •     9m at 4.77g/t gold from 39m
  •     26m at 4.22g/t gold from 10m
  •     14m at 2.56g/t gold from 6m


A 10m by 5m drill pattern in Smarts Stage 3 resulted in 70 RC grade control holes drilled for a total of 2,501m. The drilling was designed to better define the mineralisation between the 40m and 10m RL. A wide high Titanium Dolerite with intense quartz veining and strong pyrite alteration, surrounded by sheared high MgO basalt confirmed the high grade nature of the orebody in Stage 3. The N-S oriented quartz veins are constrained by the NW-SE oriented Shear zones. Within the high Titanium Dolerite the quartz vein density varies, but overall the drilling confirms the consistency of the ore body in Smarts Stage 3.

Higher grade downhole intercepts include:-

  •     5m at 23.31g/t gold from 11m
  •     5m at 21.35g/t gold from 30m
  •     5m at 22.10g/t gold from 4m
  •     10m at 19.62g/t gold from 4m
  •     11m at 17.67g/t gold from 0m
  •     5m at 16.77g/t gold from 43m
  •     5m at 15.37g/t gold from 43m
  •     5m at 15.30g/t gold from 4m
  •     6m at 15.11g/t gold from 18m
  •     6m at 13.32g/t gold from 2m
  •     6m at 13.09g/t gold from 27m
  •     10m at 12.38g/t gold from 0m
  •     14m at 11.54g/t gold from 34m
  •     12m at 10.95g/t gold from 9m
  •     9m at 10.81g/t gold from 1m
  •     20m at 10.71g/t gold from 23m
  •     15m at 10.67g/t gold from 1m
  •     5m at 10.66g/t gold from 0m
  •     10m at 10.61g/t gold from 0m
  •     9m at 10.50g/t gold from 2m
  •     24m at 10.43g/t gold from 5m
  •     7m at 10.19g/t gold from 1m


  

Drilling in Smarts 4 yielded 45 RC holes for a total of 2,261m. The drilling confirmed the position of the main Shear and intersected a series of N-S Quartz veins with moderate pyrite alteration. With the geological knowledge it is believed that the higher grade intercepts are in the central mafic unit with high Titanium Dolerites, but it is harder to distinguish in the saprolite.

Assay result highlights include:

  •     5m at 11.26g/t gold from 13m
  •     5m at 9.34g/t gold from 17m
  •     7m at 5.05g/t gold from 0m
  •     7m at 4.76g/t gold from 21m
  •     9m at 3.86g/t gold from 33m
  •     9m at 3.12g/t gold from 0m
  •     8m at 2.78g/t gold from 36m
  •     9m at 2.72g/t gold from 3m
  •     7m at 2.66g/t gold from 19m