Troy Resources NL
ASX : TRY
TSX : TRY

Troy Resources NL

October 08, 2009 22:45 ET

Troy Resources NL: Casposo Project Update

PERTH, WESTERN AUSTRALIA--(Marketwire - Oct. 8, 2009) - Troy Resources NL ("Troy") (TSX:TRY)(ASX:TRY) -

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HIGHLIGHTS

  • Site excavation and pre-construction site preparation completed
  • Government approval secured to commence plant construction
  • Concrete work underway – leach tanks 30% complete
  • On site access roadwork completed
  • Site fencing completed
  • Project well supported by local community and Argentinean Government
  • Transport of stored plant components from NSW on schedule to arrive at Zarate Port in December 2009
  • Brownfields exploration of near-mine targets ongoing

Growing junior gold producer, Troy Resources NL is pleased to update the market on the progress of its Casposo gold-silver project (Casposo) in San Juan province, Argentina.

Troy's Chairman, John Dow reiterated Casposo's significance to the continued delivery of value to its shareholders.

"Casposo is the cornerstone of the Company's near term growth plans. When the project comes online, Troy will again be producing more than 100 000 ounces per annum, bringing us closer to our vision of becoming a profitable mid-tier gold producer.

"The project remains on schedule and within budget, with site work progressing rapidly. It is very exciting to see the transformation from an exploration camp to a producing mine. Already the size and scope of the infrastructure is evident.

"It's all coming together very nicely under the management of Troy's Executive Director Ken Nilsson. Ken has a proven track record as a mine builder, and we remain confident in our ability to build and commission Casposo safely, quickly and at low cost.

"The Board continues to work through the funding for Casposo, and is confident in meeting forecast first production in the September quarter of 2010, provided that project funding is finalised before the end of the calendar year."

SITE WORKS

Significant progress has been made on the project site works since the project was approved by the Board on 6 August 2009:

  • During September the process plant site was excavated, compacted and Government approval secured for plant construction.
  • Concrete work for the leach section is well underway, with three tank rings completed. Contracts have been signed for concrete work for all main tanks plus the major buildings and mill foundation.
  • The planned site office and service areas have been levelled and compacted.
  • The access road from the ROM pad area at the crusher to the bottom of mine access ramp has been completed and widening of the bore field access road is underway to allow excavation of a pipeline trench.
  • Site fencing has been completed, with the access road from the fence line to plant site re-aligned and completed.
  • Tank construction contracts have been issued and construction of the first six leach tanks is 30% complete.

COMMUNITY AND STAKEHOLDER RELATIONS

A general information meeting in Calingasta with community leaders and the general public was very well supported and attended, attracting more than 300 people. To date 30 full and part time jobs have been created with a beneficial impact in the surrounding community. The site also hosted a visit by the Australian Ambassador to Argentina, John Richardson and the State Secretary of Mines, Felipe Saavedra on 18 September 2009.

TRANSPORT OF PLANT EX NSW

Troy's strategy is to relocate significant portions of the gold processing plant it holds in storage in Australia to form the core of the Casposo facility. The use of existing, near-new plant components contributed significantly to a 47% reduction in the revised capital development budget for Casposo, as announced on 5 August 2009. Additional plant, both new and refurbished, is also being sourced. The majority of the plant has been transported to Newcastle and is being prepared for shipping to Argentina in November, to arrive at the Argentinean Port of Zarate in December 2009.

OTHER ACTIVITIES

The appointment of a mining contractor is progressing as planned. A scope of service has been finalised and communicated for tender. When the mining contractor is appointed, an updated mining reserve will be calculated; which we aim to complete and announce to the market by the end of the calendar year.

BROWNFIELDS EXPLORATION

Troy's first brownfields exploration of the Casposo property commenced in June 2009 with detailed geological mapping, trenching, and channel sampling of the Cerro Norte and Maya Targets. This work will be continued at the Juileta, Mercado NW and Panzon targets.

Drill collar selection is nearing completion for the Kamila SE and Kamila-Mercado Gap Targets with road and drill pad construction due to commence this month. Drilling is planned for the Kamila SE, Kamila-Mercado Gap, Juileta and Cerro Norte Targets. Drill collar selection for the Maya Target is dependent on pending assay results from the current sampling.

To view the photos and project locations accompanying this press release, please click on the following link: http://media3.marketwire.com/docs/try108.pdf

ADDITIONAL INFORMATION

For additional information we invite investors to visit our website and in particular our new Webcast tab: www.try.com.au/default.aspx?MenuID=49.

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 project 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.

ABOUT TROY RESOURCES

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 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, is debt-free 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 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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