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Why has the Troy Resources share price blasted 23% higher today?

The Troy Resources Ltd (ASX: TRY) share price is rocketing higher today, after the miner released an exploration update regarding its gold project in Guyana. The Troy Resources share price is currently trading 23.81% higher up to 13 cents.

What does Troy Resources do?

Troy Resources is a small- to mid-size gold producer with a history of developing and operating mines in Australia and South America.

Troy has been operating in South America since 2002. In July 2013, the company acquired Azimuth Resources which had discovered and delineated the Karouni Project in Guyana. Troy Resources fast tracked development of Karouni, with first gold production occurring in November 2015.

Exploration update

This morning, Troy Resources provided the ASX with reports indicating strong gold finds at its Karouni project in Guyana. This comes after new tailwinds have been pushing gold prices closer to record highs.

Troy recently commenced an 8 hole diamond drilling campaign at Smarts Underground (one of its mines in Guyana) targeting mineralisation beneath the Smarts Pits. The first 4 drill holes demonstrated strong finds and this 5th hole demonstrates more of the same.

Some of the highlights from the results are:

  • 2 metres @ 31.38 grams per tonne (g/t Au) from 175 metres
  • 6 metres @ 8.12 g/t Au from 196 metres
  • 2 metres @ 26.38 g/t Au from 211 metres
  • 2 metres @ 15.68 g/t Au from 291 metres
  • 26 metres @ 3.58 g/t Au from 305 metres
  • 10 metres @ 10.69 g/t Au from 384 metres

The second stage of the drilling campaign, featuring an additional 3 holes (though this number may be increased), will commence shortly, with completion anticipated in September.

What now for the Troy Resources share price

As mentioned above, gold prices have been soaring recently, smashing through the US$2,000 an ounce target. With some reports suggesting that gold could continue its run, now is a good time to be a gold miner.

However, some experts have been arguing that gold may be just as likely to witness a painful correction, which wouldn’t bode well for the Troy Resources share price.

At the time of writing, the Troy Resources share price is up 8.33% on this time last year, and 44.44% year to date.

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Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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