PERTH, WESTERN AUSTRALIA--(Marketwire - June 7, 2011) - Troy Resources Ltd. (News - Market indicators)(ASX:TRY) -
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HIGHLIGHTS
- Casposo gold-silver mine officially opened by Governor of San Juan Province and Chairman of Troy Resources.
- Troy declares a 4c per share fully franked interim dividend.
- Casposo April gold production of 4,414oz of Au at a cash cost of US$232/oz Au net of silver credits priced at US$35/oz Ag.
- With a realised gold price of $1481/oz in April the mine had a pre-tax margin of over US$1200/oz gold.
Troy Resources NL is pleased to announce the Casposo gold and silver mine in San Juan Province in Argentina was officially opened on May 27. The opening ceremony was attended by the Governor of San Juan Province Ing. Jose Luis Gioja, dignitaries from the Argentine Federal, San Juan Provincial and Calingasta local governments, the full Board of Directors of Troy Resources and over 400 invited guests from the local community.
In recognition of the official opening and the continued ramp up in gold and silver production at the mine, the Company has declared a A$0.04 per share Fully Franked Interim Cash Dividend. The Record Date will be Friday June 17, 2011 and the Payment Date will be June 29, 2011.
CEO Paul Benson said the opening was an excellent opportunity to acknowledge and celebrate the hard work of all the people involved in Casposo's development from a geological discovery to an operating mine.
"The declaration of a dividend is a clear signal of the Board's confidence in the Company's performance as Casposo, our new flagship gold-silver mine continues to ramp up throughput."
"Casposo is already a very low cost mine - producing 4,414 oz of gold in April at a cash cost of just US$232/oz Au net of silver credits. In April we realised a gold price of US$1481 and thus had a pre-tax margin of over US$1200/oz. A four-day plant shut is planned in June to modify identified bottlenecks in the plant, following which we expect to reach budget throughput of 1,100 tpd, which will further reduce unit costs," he said.
The ramp up in the plant throughput continued during April, averaging approximately 550 tonnes per day (tpd), compared to 360 tpd in March. In May, throughput continued to increase averaging around 600 tpd with a peak of 910 tonnes in a single day.
April's production of 4,414oz compares to 2,465oz of gold at a unit cash cost of US$477/oz in March. Silver produced for the month of April totalled 60,862 oz. Using co-product costing the mine produced 5,935/oz gold-equivalent in April at a cash cost of US$531/oz Au_eq.
Casposo produces a gold/silver doré which is transported to Toronto for refining, resulting in a delay of about six weeks between gold production and receipt of the proceeds from sale. Because of this, Troy has only recently begun to receive proceeds from March production. At current prices the value of doré in process at the Toronto refinery approximates US$9.2 million.
The Company has drawn $30m from its debt facility with some $5m remaining undrawn. With regular receipt of sales revenue, the project is now generating excess cash and the first repatriation of cash to Australia is expected in June. At current production levels Casposo is expected to continue to generate excess cash and Troy will have no need to draw additional funds from its debt facility.
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This report contains forward-looking statements. These forward-looking statements reflect management's current beliefs based on information currently available to management and are based on what management believes to be reasonable assumptions. A number of factors could cause actual results, performance, or achievements to differ materially from the results expressed or implied in the forward-looking statements. Such factors include, among others, future prices of gold, the actual results of current production, development and/or exploration activities, changes in project parameters as plans continue to be refined, variations in ore grade or recovery rates, plant and/or equipment failure, delays in obtaining governmental approvals or in the commencement of operations.
ABOUT TROY RESOURCES
Troy Resources (News - Market indicators)(ASX:TRY) is a dividend-paying junior gold producer, with a clear growth strategy. The Company has two producing gold operations; Andorinhas Mine in Para State, Brazil and the Casposo gold and silver mine, in San Juan province, Argentina.
Troy has an experienced Board and management team with a track record of successful, fast-track mine development and low-cost operations.
Troy has an annual exploration budget in excess of $8 million and a proven track record in exploration discoveries and strategic acquisitions.
With the development of Casposo, Troy is entering a renewed growth phase which will again lift the Company's annual gold production above 100,000 ounces of gold per annum.
The Company maintains a robust balance sheet and forecasts continued strong cash flow from its current assets. Troy's gold production is unhedged; allowing its shareholders access to the full benefit of current and future gold price upside.
With the development of the Casposo project in Argentina, Troy is positioned to continue its path of strong growth and profitable operations. The Company is on track to achieve its vision of becoming a highly profitable mid-tier gold producer with a portfolio of quality long-life assets.
Troy is a responsible corporate citizen, committed to the best practice of health and safety, environmental stewardship and social responsibility.
ABN 33 006 243 750