- Troy declares a fully franked cash dividend of 6 cents
- Casposo produces 7,210 oz gold at a cash cost of
US$103/oz net of silver credits in October.
- New step-out ore grade drill intercepts along the
structural corridor to the south east of the recently released
new Kamila Extension Resource.
- At Andorinhas high grade ore mined in the Arame
Lode, outside of existing Reserves.
- Troy repatriates A$4.1m to Australia under
new Argentinean currency regulations.
The directors of Troy Resources NL (TSX:TRY)(News
indicators) ("Troy" or the
"Company") are pleased to announce a second and final
fully franked cash dividend of A$0.06 per share for the financial year
ended 30 June 2011.
The record date for entitlement to the dividend is Thursday December
15, 2011 with payment to be made on Friday, January 6, 2012. This
declaration is in addition to the interim dividend of 4.0 Australian cents
per share that was paid on 29 June 2011.
The dividend reflects the strong financial performance during the 2011
financial year where the Company recorded a profit after tax of A$14.6m
and the Directors' confidence in the Company's growing gold production
Commenting on the dividend announcement, Troy's Chairman, David Dix,
said: "Troy's Directors are very pleased to announce a fully
franked final cash dividend of 6 cents per share to be paid in January
2012. With the 4 cents per share interim dividend paid in June this year,
the Company will have paid shareholders 10 cents per share in fully
franked cash dividends in relation to the 2011 financial
"This is the 12th
dividend paid by the Company over the last 12 years, in what we
believe is a unique track record amongst our peers."
Commenting on the Company's performance, Troy's CEO, Paul Benson, said:
"With Casposo reaching nameplate throughput, the site's pre-tax
cash margins in October were in excess of US$1,600 per ounce of gold net
of silver credits. With the commissioning of the new regional power
infrastructure and the connection of the mine site to grid power in
December we expect costs to further reduce (see Photo 1).
"In addition to returning cash to shareholders via dividends,
the Company is also investing heavily in exploration. We have
budgeted $15m in FY2012 to continue testing numerous drill targets at
Casposo this financial year, with the aim of adding further to our
Resource and Reserve base. Pleasingly step-out drilling along strike to
the southeast from the new Kamila Southeast - Inca 2 Zone Resource has
intersected ore grade mineralisation including one intercept of 4.05m at
27.35 g/t Au_Eq. So far we only have three holes along the margin of a
post mineral dyke. We will continue to test this new zone as part the
current step-out diamond drill program.
"Andorinhas also continues to perform well. In addition to
investing in a new underground drill rig to test the depth potential of
the Melechete Lode, the team on site have had success accessing ore grade
mineralisation in the Arame Lode. What is particularly interesting is
Arame mineralisation is currently classified as Inferred Resource and is
not included in Reserves. An exploration sill drive on the 1040m level has
already defined 66m of strike length with mineralised veins averaging
1.08m at 11g/t gold. Drilling will test the lode down to the 1020m level
which, if successful, would support the establishment of a trial hand held
shrinkage stope within the Arame Lode. These types of initiatives have the
potential to extend the mine life past the current planned
"Considering the high level of commentary around the changes to
the rules in Argentina regarding the repatriation of export revenues, it
is worth noting Troy successfully repatriated A$4.1m from Argentina to
Australia over the last two weeks. As noted before, the new rules simply
bring the mining and oil industries in line with other industries within
Argentina and are similar to those in place in Brazil where Troy has been
operating profitably for nearly a decade."
Casposo continues to improve operationally and in October produced
7,210oz of gold at a unit cash cost of US$103/oz net of (108,073 oz)
silver credits. November production will be down on this due to
maintenance shuts but December should benefit from the connection of the
mine to grid power which will significantly reduce power costs.
Step-out drilling along the main mineralised corridor at Casposo has
commenced following the completion of infill drilling of the Kamila
Southeast - Inca 2 Zone (see Figure 1, Figure 2 and Table 1). This
drilling has hit ore grade mineralisation adjacent to a post mineral dyke.
The mineralised intercepts include:
- CA-11-361: 4.05m grading 26.03g/t gold and 93g/t silver
or 27.35g/t Au_Eq from 369.75m Including: 1.85m
grading 54.44g/t gold and 181g/t silver or 57.02/t Au_Eq
- CA-11-363: 2.60m at 7.56g/t gold and 52g/t silver
or 8.31g/t Au_Eq from 344.50m &
1.05m at 12.29g/t gold and 46g/t silver or 12.95g/t Au_Eq
Step-out drilling will continue along strike through the remainder of
the financial year.
Andorinhas continues to perform well producing 4,340oz gold in October
at a cash cost of US$528/oz. Current Reserves at Andorinhas will support
mining into FY2015 but the company is confident it will be able to extend
the mine life (see Figure 3). We have recently acquired a new Boart
Longyear LM75 underground drill rig which will allow us to test for depth
extensions of the main Melechete ore body over the coming 8 months.
Additionally, taking advantage of its current close proximity to the
main Melechete decline, an exploration drive was made into the Arame Lode
which is currently only classified as an Inferred Resource (see Figure 4).
To date, only limited, wide spaced drilling has been undertaken in the
Arame Lode with variable results. Mining is progressing on the 1040m level
and so far 66m has been mined with channel sample across the mineralised
vein averaging 1.08m at 11g/t gold. Our current plan is to complete a
number of short holes to test the 1020m level. If sufficiently
encouraging, access will be made and a trial shrinkage stope will be
established to mine this mineralisation currently outside of Reserves
As announced on 12 August 2011, the Company recently introduced a
dividend re-investment plan whereby shareholders can re-invest their
dividends as additional shares in the Company, calculated at a 5% discount
to the market value as defined in the plan rules. The plan rules are
available on the Company website at www.troyres.com.au.
To update election and/or enrolment under the plan, shareholders can
contact the Company's share registry, Computershare; or if applicable,
their nominee in the relevant Australian or Canadian
Australian registered holders can contact Computershare on 1300 850 505
(from within Australia) or +613 9415 4000
(International); or visit www.investorcentre.com which
will require first time visitors to the site to enter their SRN/HIN and
Australian postcode; or country name for International shareholders.
Elections can also be made at www.computershare.com.au/easyupdate/try.
Canadian registered shareholders can contact Computershare's National
Customer Contact Centre on +1 800 564 6253 or by
To view the photo and Figures 1-4 that accompany this release,
please visit: http://media3.marketwire.com/docs/try-1123-figures.pdf.
The potential additional production referred to in Figure 3 is not
based on current Mineral Reserves. It should therefore be considered
to be conceptual in nature. Economic considerations have not yet been
applied to the Resources in these areas so as to enable them to be
categorized as Mineral Reserves. There can be no assurance that the
production volumes shown will be realized and it is uncertain whether
further work will result in the Resources in these areas being converted
to a Mineral Reserve.
To view the table associated with this release, please visit:
Competent Person's Statement
Geological information in this Report has been compiled by Troy's Vice
President Exploration & Business Development, Peter Doyle, who:
- Is a full time employee of Troy Resources NL
- Has sufficient experience which is relevant to the type of deposit
under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2004 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'
- Is a Fellow of the Australasian Institute of Mining and Metallurgy
- Has consented in writing to the inclusion of this data
Information of a scientific or technical nature in this report was
prepared under the supervision of Peter J. Doyle, Vice President
Exploration and Business Development of Troy, a "qualified person" under
National Instrument 43-101 - "Standards of Disclosure for Mineral
Projects", a Fellow of the Australasian Institute of Mining and
Metallurgy. Mr. Doyle has sufficient experience, which is relevant to the
style of mineralisation and type of deposit under consideration, and to
the activity he is undertaking, to qualify as a "qualified person" as
defined in "National Instrument 43-101 - Standards of Disclosure for
Mineral Projects". Mr Doyle has reviewed and approved the information
contained in this report. For further information regarding the
Company's projects in Brazil, Australia and Argentina, including a
description of Troy's quality assurance program, quality control measures,
the geology, samples collection and testing procedures please refer to the
technical reports filed which are available under the Company's profile at
www.sedar.com or on the Company's
This report contains forward-looking statements including those
relating to expected increases in production and reductions in
costs. 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 (TSX:TRY)(News
indicators) 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 $15 million and a
proven track record in exploration discoveries and strategic
Following the development of the Casposo project in Argentina, Troy has
entered a renewed growth phase which will again lift the Company's annual
gold production above 100,000 ounces of gold per annum.
The Company is well positioned to continue its path of strong growth
and profitable operations, and on track to achieve its vision of becoming
a highly profitable mid-tier gold producer with a portfolio of quality
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.
Troy is a responsible corporate citizen, committed to the best practice
of health and safety, environmental stewardship and social
ABN 33 006 243