Troy Resources Casposo mine in Argentina.
Troy Resources' Casposo mine in Argentina.

UPDATE 2.40pm: Shares in Troy Resources were lower after the gold miner reported a series of rockfalls at its Casposo mine in Argentina.

Troy said the rockfall would increase the ratio of waste to ore, thereby lowering the grade drawn from the stopes and delay the mining of high grade ore.

The company said it was reviewing its mine plan for Casposo, with the help of a specialist rock mechanics expert, to minimise the risk of such an incident re-occurring in the high grade zones.

However it said it was too early to determine whether the incident would affect full-year production guidance for 2015.

The company said it had also brought forward a six-day maintenance shutdown of its mill at Casposo from July to June.

"These two issues will result in the June quarter production being lower than planned at around 27,000 ounces gold equivalent," Troy said in a statement.

The company also announced this morning it had received environment permission to mine the Coruja open pit deposit at its other project, Andorinhas in Brazil.

"Without Coruja, Andorinhas would have closed early in the second half of calendar 2014," the company said.

Troy now expects Andorinhas to continue through to the end of 2015 and produce about 27,000-30,000 ounces that year.

"We expect to mobilise a contract mining fleet in late June with first Coruja ore entering the mill feed in the September quarter," the company said.

Troy shares closed down four cents, or 4.12 per cent, at 93 cents after touching an intraday low of 92 cents.

The West Australian

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