Operating in Brazil comes with inherent risks; yes we’re talking about a nation on the rise, strong economic potential and a major boost in infrastructure that will raise the collective eyebrows of the international community. However, when mining a precious metal, one must heed caution. Many times, risks include corruption and political unrest. In some cases, you may just end up having your gold mine robbed.

Perth-based junior Troy Resources has unfortunately lost up to $2.23 million worth of gold in a robbery at its Andorinhas mine in Brazil, the company announced yesterday.

Security has been a consistent worry for Troy employees operating in the region. According to a Troy spokesman, in this instance a group of armed robbers took three employees hostage on the road leaving the mine before returning to the Andorinhas site where approximately 2,000 ounces of gold doré was taken.

The hostages were then released unharmed.

Troy chief executive Paul Benson called the robbery “disturbing” but was sure to put the event into perspective. “Most importantly, all of our employees were released unharmed,” he said. “The safety and welfare of our employees is our absolute highest priority.”

The company said that the loss is fully covered by insurance and the matter is being investigated
by local police. “We are co-operating with the relevant authorities and will update the market when we
receive a final report,” Benson said.

At a recent lunch presentation attended by MINING DAILY, Troy chairman John Dow admitted to journalists that operating in areas such as South America comes with inherent risks including corruption and political unrest.

He said that these factors are part of the business and need to be handled correctly. “It is worth the hassle,” he said. “You have got to go where the gold is.”