CALGARY, ALBERTA--(Marketwired - March 25, 2015) - Troymet Exploration Corp. (News - Market indicators) ("Troymet" or the "Company") reports that New Gold Inc. (TSX:NGD) ("New Gold") has completed its committed expenditure of $1,500,000 on mineral exploration on the Key property in British Columbia. In December 2013, Troymet completed the sale of its 100% interest in the Key property to New Gold. As part of the transaction, New Gold committed to spend $1,500,000 on the Key property, with a minimum of $500,000 of expenditures on or before December 31, 2014, and the balance of $1,000,000 of expenditures on or before December 31, 2018.
Kieran Downes, President and CEO of Troymet, commented: "We view New Gold's decision to accelerate the expenditure schedule such that the entire, committed $1.5 million was spent in 2014 as extremely positive for the Key property. New Gold activities included a discovery of high grade porphyry-style mineralization three kilometres south of its main Blackwater deposit and within 1 kilometre of the Key property."
Troymet retains a 2% net smelter returns royalty ("NSR") on the Key property, of which half can be purchased by New Gold at any time for $2,000,000 cash, thereby reducing the NSR royalty to 1%.
The Key property adjoins the Blackwater gold-silver deposit which is currently in the permitting phase:
- Proven and Probable mineral reserves: 8.17 million ounces gold & 60.8 million ounces silver*
- Measured and Indicated mineral resources (exclusive of mineral reserves): 1.07 million ounces gold & 12.7 million ounces silver*
- Inferred mineral resources: 0.29 million ounces gold & 1.5 million ounces silver*
* http://www.newgold.com/investors/NewGoldNews/PressReleaseDetail/2015/New-Gold-Finishes-2014-Further-Solidifying-its-Low-Cost-Position-2015-Scheduled-to-Deliver-Production-Growth-In-Gold-Copper-and-Silver/default.aspx
Kieran Downes, P. Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical information provided in this release.
TROYMET EXPLORATION CORP.
Kieran Downes, Ph.D., P.Geo., President, CEO & Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
