PRESS RELEASE
18 August 2009
Updated Mineral Reserves and
Resources - Troy's
Largest Inventory Yet
Highlights
96%
increase in Gold Reserves from 275,700oz (June 30th 2008) to
539,500oz
60%
increase in Measured and Indicated Gold Resources from 556,100oz (June 30th
2008) to 893,400oz
240%
increase in Inferred Gold Resources from 186,000oz (June 30th 2008)
to 648,400oz
In
addition to the Gold Reserves and Resources, Troy
has Silver Reserves of 6.7moz and Indicated Silver Resources of 15.4moz
This
is the largest inventory of Gold Reserves and Resources in Troy's
history and demonstrates significant growth potential
PERTH, Western Australia:
Growing junior producer, Troy Resources NL ("Troy") (TSX/ASX: TRY)
today announced its updated Mineral Resources and Reserves statement; with a
significant year on year increase of 96% in Gold Reserves, a 60% increase in
Measured and Indicated Resources and a 240% increase in Inferred Gold
Resources.
Paul Benson, Troy Resources' CEO
confirmed the updated Reserve and Resource inventory is the largest ever
reported in the Company's history and demonstrates significant growth
potential.
"Today's update includes the
recently announced Inferred Resource at the Two Mile Hill Prospect
at Sandstone in Western
Australia and the updated Casposo
Project Resource in Argentina;
however this is the first time we have shown the cumulative impact on our
Reserve and Resource position.
"This is the largest gold and
silver inventory in the Company's history; resulting from successful greenfields exploration at Sandstone, exploration drilling
at Andorinhas and the acquisition of Casposo.
"Importantly, although we have
updated and increased the Mineral Resource at Casposo,
we haven't yet updated the Mining Reserve at that project.
"These increases have put Troy
in a strong growth position with development of the Casposo
Project commencing in the September quarter 2009. Drilling at Sandstone
aimed at identifying higher grade BIF hosted Resources at the Two Mile Hill
Prospect will also commence during the current quarter.
"With excellent potential on
all three of our sites, Troy
has built a precious metals inventory that will allow the Company to continue
to grow and achieve its vision of becoming a profitable mid tier
producer," Mr Benson said.
A summary of the 2009 statement is
shown in Table 1.
|
Table 1 - Resource and Reserve
Summary
|
|
Category
|
Tonnes
|
Grade
g/t
|
Ounces
|
|
Gold Mineral Reserves
|
|
Proven
|
582,000
|
1.4
|
26,400
|
|
Probable
|
2,742,000
|
5.8
|
513,100
|
|
TOTAL
|
3,324,000
|
5.0
|
539,500
|
|
Silver Mineral Reserves
|
|
Probable
|
1,734,000
|
120.0
|
6,695,500
|
|
TOTAL
|
1,734,000
|
120.0
|
6,695,500
|
|
Gold Mineral Resources
|
|
Measured
|
582,000
|
1.4
|
26,400
|
|
Indicated
|
6,250,000
|
4.3
|
867,000
|
|
Inferred
|
13,358,000
|
1.5
|
648,400
|
|
Silver Mineral Resources
|
|
Indicated
|
2,369,000
|
201.7
|
15,363,000
|
|
Inferred
|
261,000
|
255.1
|
2,141,000
|
Sandstone, WA
Exploration drilling programs at Sandstone
resulted in the significant discovery of the Two Mile Hill tonalite mineralisation that added 452,000 ounces of
gold to the Resource inventory (ASX announcement July 31st 2009). In
addition, drilling is also targeting extensions to the adjacent high grade
Banded Iron Formation ("BIF") hosted mineralisation that has yet to
be included in the Resource statement.
Casposo, Argentina
Troy
acquired the Casposo Project from
Intrepid Mines Limited in March 2009. Immediately following the acquisition, Troy
commenced an update to the Mineral Resource using drilling data that had not
been previously used (ASX announcement July 29th 2009). Notably, although Troy
has updated the Casposo Mineral Resource, with a 32%
increase in the contained equivalent gold, it has yet to update the Mineral
Reserve. As such the Mineral Reserve data presented in this report is the
estimate produced in 2008 based on the smaller 2008 Mineral Resource.
Andorinhas, Brazil
In Brazil,
Mineral Reserves at Andorinhas decreased due
to production depletion but a positive reconciliation was achieved from block
model to production. Development on the M2 Lode has delineated high
grade ore outside of the current Reserve limits. On-ore development and
planned underground drilling during the coming year targeted on potential
Resource additions will focus on extensions of the known mineralised lodes (Melechete, M2 and Arame).
Figures 1 and 2 illustrate the
growth in Resources and Reserves since the last statement in 2008.
Figure
1: Mineral Reserves comparison 2008 and 2009
Figure 2: Mineral Resource comparison 2008 and
2009
Table 2 outlines the model to
production reconciliation for Mineral Reserves during the 12 months to June 30th
2009. A
negative reconciliation at Andorinhas was due to
stockpile survey errors inherent in carrying such large stockpiles. Both the Mam?o underground and Lord Nelson
pit returned positive reconciliations.
|
Table 2: Gold Production
Reconciliation 2008/09
|
|
Andorinhas - Lagoa Seca Pit
|
Tonnes
|
Gold
Grade
g/t
|
Ounces
|
|
Reserve
and stocks - June 30, 2008
|
420,537
|
2.88
|
38,892
|
|
Mined
2008-09
|
215,641
|
3.28
|
22,740
|
|
Processed
2008-09
|
178,851
|
3.91
|
22,458
|
|
Stocks
- June 30, 2008
|
215,382
|
2.21
|
15,304
|
|
Adjustments
|
-26,304
|
1.34
|
-1,130
|
|
Reserve
- June 30, 2008
|
0
|
0.00
|
0
|
|
Andorinhas
- Mamao Underground
|
Tonnes
|
Gold
Grade
g/t
|
Ounces
|
|
Reserve
- June 30, 2008
|
747,237
|
8.67
|
208,351
|
|
Mined
2008-09
|
34,910
|
9.35
|
10,494
|
|
Processed
2008-09
|
34,910
|
9.35
|
10,494
|
|
Stocks
- June 30, 2009
|
0
|
0.00
|
0
|
|
Adjustments
|
2,553
|
22.72
|
1,865
|
|
Reserve
- June 30, 2009
|
714,880
|
8.69
|
199,722
|
|
Sandstone - Lord Nelson Cutback
|
Tonnes
|
Gold
Grade
g/t
|
Ounces
|
|
Reserve
|
313,522
|
2.72
|
27,418
|
|
Mined
2008-09
|
37,761
|
1.66
|
2,015
|
|
Processed
2008-09
|
19,634
|
1.14
|
720
|
|
Stocks
- June 30, 2009
|
32,960
|
1.52
|
1,612
|
|
Adjustments
|
32,072
|
0.50
|
514
|
|
Reserve
- June 30, 2009
|
293,000
|
2.70
|
25,600
|
A more detailed breakdown of the
Resources and Reserves is contained in Table 3.
|
Table 3: Troy
Resources NL - Mineral Resources and Reserves
August 10, 2009
|
|
Gold Mineral Reserves
|
|
Country
|
Project
|
Deposit
|
Category
|
Tonnes
|
Gold grade g/t
|
Gold ounces
|
|
Argentina
|
Casposo
|
Kamila/Mercado
|
Probable
|
1,734,000
|
5.2
|
287,600
|
|
Brazil
|
Andorinhas
|
Mamao
underground
|
Probable
|
715,000
|
8.7
|
199,800
|
|
|
|
Lagoa Seca stockpiles
|
Proven
|
215,000
|
2.2
|
15,300
|
|
Australia
|
Sandstone
|
Lord
Nelson pit
|
Probable
|
293,000
|
2.7
|
25,600
|
|
|
|
Lord
Nelson stockpiles
|
Proven
|
33,000
|
1.5
|
1,600
|
|
|
|
Lord
Henry stockpiles
|
Proven
|
334,000
|
0.9
|
9,500
|
|
|
|
Total Proven
|
582,000
|
1.4
|
26,400
|
|
|
|
Total Probable
|
2,742,000
|
5.8
|
513,100
|
|
|
TOTAL
MINERAL RESERVES GOLD
|
3,324,000
|
5.0
|
539,500
|
|
|
|
|
|
|
|
|
|
Silver Mineral Reserves
|
|
Country
|
Project
|
Deposit
|
Category
|
Tonnes
|
Silver grade g/t
|
Silver ounces
|
|
Argentina
|
Casposo
|
Kamila/Mercado
|
Probable
|
1,734,000
|
120.0
|
6,695,500
|
|
|
TOTAL
MINERAL RESERVES SILVER
|
1,734,000
|
120.0
|
6,695,500
|
|
|
|
|
|
|
|
|
|
Gold Mineral Resources
(inclusive of Mineral Reserves)
|
|
Country
|
Project
|
Deposit
|
Category
|
Tonnes
|
Gold grade g/t
|
Gold ounces
|
|
Argentina
|
Casposo
|
Kamila/Mercado
|
Indicated
|
2,369,000
|
5.4
|
414,600
|
|
|
|
|
Inferred
|
261,000
|
3.6
|
30,000
|
|
Brazil
|
Andorinhas
|
Mamao
|
Indicated
|
783,000
|
9.9
|
249,700
|
|
|
|
|
Inferred
|
82,000
|
6.4
|
16,700
|
|
|
|
Lagoa Seca
|
Measured
|
215,000
|
2.2
|
15,300
|
|
|
|
Lagoa Seca West
|
Indicated
|
577,000
|
2.2
|
40,400
|
|
|
|
|
Inferred
|
171,000
|
1.3
|
7,000
|
|
|
|
Luiza
|
Inferred
|
258,000
|
2.5
|
20,300
|
|
Australia
|
Sandstone
|
Lord
Nelson
|
Measured
|
33,000
|
1.5
|
1,600
|
|
|
|
|
Indicated
|
1,019,000
|
2.2
|
72,700
|
|
|
|
|
Inferred
|
84,000
|
1.8
|
4,900
|
|
|
|
Lord
Henry
|
Measured
|
334,000
|
0.9
|
9,500
|
|
|
|
|
Indicated
|
987,000
|
1.9
|
58,700
|
|
|
|
|
Inferred
|
39,000
|
1.7
|
2,100
|
|
|
|
Two
Mile Hill
|
Inferred
|
10,541,000
|
1.3
|
452,100
|
|
|
|
Sandstone
other
|
Indicated
|
515,000
|
1.9
|
30,900
|
|
|
|
Sandstone
other
|
Inferred
|
1,922,000
|
1.9
|
115,300
|
|
Total Mineral Resources Gold
|
Measured
|
582,000
|
1.4
|
26,400
|
|
|
|
|
Indicated
|
6,250,000
|
4.3
|
867,000
|
|
|
|
|
Inferred
|
13,358,000
|
1.5
|
648,400
|
|
|
|
|
|
|
|
|
|
Silver Mineral Resources
(inclusive of Mineral Reserves)
|
|
Country
|
Project
|
Deposit
|
Category
|
Tonnes
|
Silver grade g/t
|
Silver ounces
|
|
Argentina
|
Casposo
|
Kamila/Mercado
|
Indicated
|
2,369,000
|
201.7
|
15,363,000
|
|
|
|
|
Inferred
|
261,000
|
255.1
|
2,141,000
|
|
Total Mineral Resources Silver
|
Indicated
|
2,369,000
|
201.7
|
15,363,000
|
|
|
|
|
Inferred
|
261,000
|
255.1
|
2,141,000
|
Notes to Table 3
?
Cut-off grades for reporting mineral resources are applied as follows:
Casposo- 0.8g/t Aueq and 2.0g/t Aueq
Mam?o underground- 2.0g/t Au
Lagoa Seca West- 0.8g/t Au
Luiza- 0.8g/t Au
Lord Nelson - 0.5g/t Au
Lord Henry- 0.8g/t Au
Two Mile
Hill- 0.5g/t Au
Sandstone- 1.0g/t Au
Cut-off grades for reporting
mineral reserves are as follows:
Mam?o underground- 4.5g/t Au
Casposo-
Open Pit 1.56g/t Aueq, Underground 3.5g/t Aueq
Lord Nelson Open Pit- 1.1g/t Au
Casposo Mineral
Resources have been constrained by an optimized pit shell using a gold price of
US$1000/oz and silver price of US$15/oz. Resources within the pit shell have
been reported at a cut-off grade of 0.8g/t Aueq.
Mineral Resources outside the pit shell have been reported at a cut-off grade
of 2.0g/t Aueq
Casposo Mineral
Reserves have been estimated using a gold price of US$690/oz and silver price
of US$11.80/oz
Gold equivalency at Casposo for Mineral
Resources has been calculated by the formula Aueq =
Au g/t + (Ag g/t ? 81.82). The gold: silver ratio of
81.82 has been determined using metal prices of US$915/oz for gold and US$13/oz
for silver and processing recoveries of 93.7% for gold and 80.6% for silver.
For Mineral Reserve estimation the gold: silver ratio used was 70.56 due to
different metal prices being used.
The Lord Nelson open pit Mineral Reserve was estimated using a gold
price of A$1,100/oz.
The Mam?o underground
Mineral Reserve was estimated using a gold price of US$580/oz.
Proven Reserves and Measured Resources represent stockpiled ore at the
mine site and/or processing plant.
Sandstone other Resources include several, small, non-material resources
that are located within the Sandstone Project. These Resources are currently
under investigation for their potential to provide short-term mill feed to the
Sandstone processing facility.
Mineral Resources are reported inclusive of Mineral Reserves. Mineral
Resources that are not Mineral Reserves do not have demonstrated economic
viability.
Technical reports in compliance with
NI 43-101 for Sandstone and Casposo are being
compiled detailing the new resource estimates and will be posted on SEDAR and
on the Troy Website when complete.
Troy's
Andorinhas Iron Ore Resources and Reserves remain
unchanged since last reported.
Mineral
Reserves and Resources - Iron Ore, as of August 10th
2009:
|
Mineral
Reserves - Iron Ore
|
|
Deposit
|
Reporting
cut-off
(% Fe)
|
Tonnes
|
Fe %
|
Al2O3
%
|
SiO2
%
|
P
%
|
LOI
|
|
BRAZIL
|
|
Andorinhas
- Abacaxi
|
|
Probable
|
No cutoff
|
2,118,000
|
63.1
|
4.7
|
2.7
|
0.048
|
1.4
|
|
Andorinhas
- Estrela
|
|
Probable
|
No cutoff
|
692,000
|
64.9
|
1.9
|
4.8
|
0.023
|
1.0
|
|
TOTAL
|
|
2,810,000
|
63.6
|
3.9
|
3.2
|
0.042
|
1.3
|
|
Mineral
Resources - Iron Ore
(inclusive of Mineral Reserves)
|
|
Deposit
|
Reporting
cut-off
(% Fe)
|
Tonnes
|
Fe %
|
Al2O3%
|
SiO2
%
|
P
%
|
LOI
|
|
BRAZIL
|
|
Andorinhas
- Abacaxi
|
|
Indicated
|
No cutoff
|
4,898,200
|
50.7
|
8.5
|
7.7
|
0.065
|
4.1
|
|
Andorinhas
- Estrela
|
|
Indicated
|
No cutoff
|
1,593,900
|
51.2
|
6.0
|
8.1
|
0.04
|
2.8
|
|
TOTAL
|
|
6,495,000
|
50.8
|
7.9
|
7.8
|
0.06
|
3.8
|
Details of the Andorinhas
Iron Ore Project can be found in the technical report "Andorinhas
Iron Project, Para State, Brazil
- September 2008". The report was lodged on Troy's
corporate profile on the SEDAR website on October 22nd 2008.
ENDS
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 member 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 "competent person" as
defined in the 2004 edition of the
"Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves". 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 in respect of the Company's
projects 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 news release contains
"forward-looking statements" and "forward-looking
information", based on assumptions and judgements of management regarding
future events and results. Such "forward-looking statements"
and "forward-looking information which may include, but are not limited to
statements with respect to the expected development of the Casposo
and Two Mile Hill projects. Often, but not always, forward-looking
information can be identified by the use of words such as "plans",
"expects", "is expected", "is expecting",
"budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "believes", or
variations (including negative variations) of such words and phrases, or state
that certain actions, events or results "may", "could",
"would", "might", or "will" be taken, occur or be
achieved. The purpose of forward-looking information is to provide the
reader with information about management's expectations and plans. Readers
are cautioned that forward-looking information involves known and unknown
risks, uncertainties and other factors which may cause the actual results,
performance or achievements of Troy
and/or its subsidiaries to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking
information. Such factors include, among others, future prices of gold
and silver, 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, the possibility of cost overruns, as well as those factors
disclosed in the Company's filed documents. There can be no assurance
that the development of the Casposo and Two Mile Hill
projects will proceed as planned or that they will be successfully completed
within expected time limits and budgets or that, when completed, the mines will
operate as anticipated or that expected production levels will be achieved.
For further information
please contact:
Mr. Paul
Benson
Annette Ellis / Warrick Hazeldine
Chief Executive
Officer
Media Relations
Troy
Resources
Purple Communications
T: (618) 9481
1277
T: (618) 6314 6300
E: troy@troyres.com.au
E: aellis@purplecom.com.au
About
Troy Resources
Troy Resources (TSX,
ASX: TRY) is a dividend-paying junior gold producer, with a clear growth
strategy. The Company has two producing gold operations; at Sandstone in
Western Australia and the Andorinhas Mine in Para
State, Brazil and a gold-silver development project, Casposo,
in San Juan province, Argentina.
Troy has an experienced Board and management team with a portfolio of
successful, fast-track mine development and low-cost operations.
Troy has an annual exploration budget of $5 million and a proven track
record in exploration discoveries and strategic acquisitions.
Troy is currently focused on developing its Casposo
Project, which it acquired in May 2009. With the acquisition
and 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 its current assets are forecast to continue to
generate strong cash flow. Troy's
gold production is unhedged; allowing its
shareholders access to the full benefit of current and future gold price
upside.
With the recent Casposo acquisition, Troy
is positioned to continue its path of strong growth and profitable operations
and is well 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 practices of
health and safety, environmental stewardship and social responsibility.
Project Locations
