Troy Resources NL

Troy Resources NL

August 04, 2009 21:16 ET

Troy Resources NL: 47% Reduction in Casposo Project Capital Cost

PERTH, WESTERN AUSTRALIA--(Marketwire - Aug. 4, 2009) - Troy Resources NL (TSX:TRY)(ASX:TRY) -



- Project capital cost of US$45 million to first production for the Casposo gold-silver project in San Juan Province, Argentina

- 47% or US$41 million reduction on the previous published estimate

- First gold production forecast in the September quarter, 2010

Growing junior gold producer, Troy Resources NL ("Troy") today announced a revised estimated capital cost of US$45 million to develop its Casposo Gold Project in San Juan Province Argentina to first production by the September quarter 2010. The revised estimate represents a 47% or US$41million reduction on the previously announced estimate.

The capital savings were realised from:

- Utilisation of existing near-new plant, currently in storage in Cobar, NSW

- In-house project management resulting in a significant decrease in costs over using an EPCM contractor

Commenting at Diggers & Dealers on the capital revision, Troy's CEO, Paul Benson, said: "This is a very important milestone for Troy. We acquired Casposo because we believed there was good potential to grow the resource and because we were confident that Troy could develop the project for significantly less cost than previously estimated.

Our release on 29 July 2009, announcing a 32% increase in the Mineral Resource to 602,500 Gold-equivalent Au_eq ounces, was the first step in growing the resource base. Today's announcement confirms our view that Troy can build the project at a lower cost and fast-track its development to production.

Throughout its history Troy has created value for its shareholders by delivering projects quickly, efficiently and at low cost. Casposo is the next chapter of that story. Our first exploration drilling will start in October which we hope will allow us to continue to grow the resource".

In addition to the current capital estimate of US$45 million, which is the capital to first gold production, two additional capital items remain unchanged from the earlier published estimates. These are:

- US$14.5 million contribution for the construction of local power infrastructure and

- US$12.8 million for ongoing capital, the majority of which is for the development of the underground mine towards the end of the mine life.

First gold production at Casposo is forecast in the September quarter of 2010.

Information of a scientific or technical nature in this report was prepared under the supervision of Mr. Keith Ross Troy's Australian Operations Manager, 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. Ross 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. Ross has reviewed and approved the information contained in this report. For further information regarding the Casposo project please refer to the technical report entitled Troy Resources NL: Casposo Project, Argentina" dated June 2009, which is available under the Company's profile at

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.

To view PROJECT LOCATIONS please click on the following link:


Troy Resources (TSX:TRY)(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.

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 practice of health and safety, environmental stewardship and social responsibility.

ABN 33 006 243 750

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