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Guyana orders Troy Resources to shutter Karouni gold mine after worker death

Authorities in Guyana ordered Troy Resources Ltd. to halt operations at the Karouni gold mine after a worker died due to an embankment collapse at the property's Hicks 1 extension trench.

The ban covered all mining areas, including the Smarts 3 and Larkin pits, according to an Oct. 15 news release.

While obeying the order, Troy questioned the Ministry of Social Protection's decision, which the company said was inconsistent with normal protocols and was based on false and misleading information. Troy added that the ban was ordered prior to the release of the results of a joint investigation launched by the authorities and the company.

Troy said stockpiles have been exhausted and negligible quantities of ore for processing remained when the ban was imposed. The company has temporarily laid off employees aside from security personnel and workers involved in the shutdown. The ASX-listed company also suspended its shares from trading until there is clarity on the resumption of operations.

Troy said it is hoping to meet with authorities to discuss the issue and is committed to its employees' health and safety.