PERTH, WESTERN AUSTRALIA--(Marketwire - May 19, 2011) - Troy Resources NL (News - Market indicators)(ASX:TRY) -
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Troy Resources NL ("Troy") is pleased to announce preliminary assay results from hole CA-11-306 recently completed as a step-out hole from the high grade CA-11-295 Inca Vein Intercept (14.70m at 26.24 g/t Au_eq from 342.5m) reported in late April 2011.
The new hole intercepted the Inca Vein about 100m southeast of the 295 intercept. CA-11-306 yielded an mineralised intercept of 5.9m interval grading 15.80g/t gold & 2610g/t silver or 53.09g/t Au_eq from 308.5m downhole including a peak interval of 1.05m grading 52.0g/t gold and 7210g/t silver or 155.0g/t Au_eq from 308.50m downhole.
The new intercept has added 100m strike length to the Kamila Southeast Zone and confirmed the high grade gold and silver values associated with the Inca Vein within the zone (see Photo 1, Figure 1, Figure 2 and Table 1). The zone remains open along strike as well as up-dip and downdip.
CA-11-306: Inca Vein Summary:
- 308.50m to 309.55m: brecciate banded quartz vein with fine hair black sulphides - chalcopyrite - pyrite veinlets and clusters.
- 310.75m to 312.70m: Banded and Ginguro textured quartz vein with chalcopyrite - pyrite – black sulphides – sulfosalts and silver clusters.
- 313.30m to 314.40m: Brecciated and banded quartz vein with black sulphides vein.
- 325.30m to 325.90m: Brecciated quartz – calcite vein.
Step-out and infill drilling is continuing with one Diamond core drill rig. Up-dip and downdip holes on the CA-11-306 section are planned.
Current plans call for the addition of an additional rig during the next quarter that will focus on infill drilling of the Inca Vein within the Kamila Southeast Target Zone. The existing rig will continue step-outs along strike to test the remainder of the structure to the southeast.
Commenting on the exploration results Troy's CEO Paul Benson said: "This is a very encouraging result as we are seeing high grade in a 100m step out along strike from the high grade CA-11-295 intercept we released in April. This is increasing our confidence that we will ultimately be able to add to our Reserve and Resource inventory. What we have seen so far justifies bringing an additional Diamond drill rig to site to focus on infill drilling with the aim of lifting the block to Resource status this year. This will also allow us to use the existing rig to continue to step-out further along strike to test the remainder of the structure to the southeast of the current drilling. The smaller Diamond rig on site will continue to focus on drilling Julieta, Castaño Nuevo and the numerous outcropping veins on site."
"Obviously any additions to the Reserve will lead to an extension of the current mine life of 6 years. The Inca Vein within the Kamila Southeast Zone is strategically significant in that any delineated Resources and Reserves would be located close to the existing planned underground development. If a significant mineralised zone is delineated we will determine if rescheduling the underground mine development is justified to access this high grade material earlier in the mine life thus offsetting the drop in mined grades forecast in years 3 and 4 of the current mine plan."
"It is a characteristic of the Kamila ore body that the silver to gold ratio increases with depth. In addition to high gold grades this intercept has bonanza silver grades. Using the parameters assumed in the 2010 NI 43-101 Report that took into account the then assumptions on price and metallurgical recovery this equates to a grade of 54g/t Au_equivalent. This is conservative but allows direct comparison to the existing Reserve and Resource grades. However, using recent prices of US$1500/oz Au and US$35/oz Ag, but keeping the same assumptions for metallurgical recovery, this would translate to a gold equivalent grade of 68g/t."
To view Photo 1 and Figures 1 - 2 please visit the following link: http://media3.marketwire.com/docs/try19_Im.pdf
To view Table 1 please visit the following link: http://media3.marketwire.com/docs/tr19_T01.pdf
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 member 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 website.
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.
PROJECT LOCATIONS:
To view map please visit the following link: http://media3.marketwire.com/docs/try19_M.pdf
