I am just an armchair investor, there are some folks here who have a much better understanding of details in mining.
What's said about the lab: Probably true but take it with a grain of salt.
We are not talking about high grade (that would be 3, 4 or 5 g/t) but super high or bonanza grades. The lab has to make sure if there is 50 g/t in the sample they get the grade right. From a mining perspective it does not matter if you have 50 g/t or 100 g/t. Those grades tell you one thing: nugget effect at work and a complex ore body. And once you get to the modelling phase you will apply a top-cut on grades anyway. Troy is a small company with excellent guys and they have a relatively small plant that benefits from high average grades. So everything right to mine such a deposit. If OC turns out to be what it seems to be no doubt Troy will be a multibagger, but that is more a results of the crazy low valuation. What you really want to see in mining (deposits suited for the majors) is large scale consistent tonnage. Troy could have that potential if Goldstar is consistent in grade. Strike length there is kilometers but needs crazy amounts of infill drilling and a much larger plant (current Troy plant is 1mtpa and can be upgraded using the same mill to 60 or 70% more. More than that would require a second ball mill). There are one or two targets at Gem Creek that have the same potential as Goldstar has. So OC is the right treatment for Troy's current problems, but I bet there is much more to come.
TRY Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
