Troy Resources NL
ASX : TRY
TSX : TRY

Troy Resources NL

July 16, 2009 00:24 ET

Troy Resources NL: High Grade Results at Two Mile Hill Prospect, Sandstone Western Australia

WEST PERTH, WESTERN AUSTRALIA--(Marketwire - July 16, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Highlights

- Banded Iron Formation (BIF) hosted high grade gold mineralisation was intersected on both the eastern and western margins of the Two Mile Hill tonalite. The BIF is quartz veined and extensively replaced by pyrite. Gold intersections are as follows: TRCD735; 6.8m at 15.73g/t gold from 215.0m downhole including 3.4m at 30.36g/t gold from 216.4m and TRCD733; 25.9m at 16.56g/t gold from 240.1m including 3.5m at 20.24g/t gold from 243.0m and 13.7m grading 25.98g/t gold from 251.0m downhole.

- Tonalite hosted gold intercepts (calculated without using a cutoff or applying a top cut) include; TRCD727; 96.6m at 1.66g/t gold from 306.0m downhole; TRCD730; 205.5m at 1.14g/t gold from 94.0m downhole; TRCD731; 156.3m at 1.14g/t gold from 216.5m downhole; TRCD732; 353.3m grading 1.04g/t gold from 125.7m downhole; TRCD034; 158.6m at 0.83g/t gold from 200.3m downhole and TRCD735; 230.4m grading 1.62g/t gold from 243.1m downhole.

Troy Resources NL ("Troy") (TSX:TRY)(ASX:TRY) is pleased to advise that an 8 hole (2940m) follow-up drill program at Two Mile Hill has better delineated the intrusive hosted stockworks style gold mineralisation associated with the Two Mile Hill tonalite first identified by drilling in April - June 2008 (TDD034; 387.0m grading 1.57g/t gold and TRCD727; 96.6m at 1.66g/t gold from 306.0m downhole) and has identified a second higher grade style of gold mineralisation hosted within a Banded Iron Formation (BIF). The Two Mile Hill Prospect is located 2.7km northeast of the Sandstone Mill (see attached Drill Hole Cross-Sections and Location Plan).

All assays have now been received for the 8 hole drill program consisting of Reverse Circulation (RC) precollars and Diamond Core (DC) extensions totaling 2940m (780m in RC precollars; 2160m in DC extensions).

Holes were drilled on 40m sections over a 240m strike of the Two Mile Hill tonalite stock. All holes were orientated at an azimuth of 270 degrees (MGA) with variable declinations ranging from -55 degrees to -67 degrees. The maximum hole depth was 504m.

The drilling program targeted the north-south elongated gold bearing tonalite stock and contained gold bearing quartz veins and a banded iron formation (BIF) unit cut by the intrusive tonalite stock. The BIF unit cut by the stock dips to the northeast at about 30 degrees and varies in thickness from 25m to 50m.

The Two Mile Hill tonalite is a near vertical, late phase intrusive in the evolution of the Sandstone Greenstone Belt and cuts the local volcanic stratigraphy principally comprising basalt and BIF. The tonalite is pervasively altered with sericite and silica and contains variable amounts of disseminated pyrite. Gold occurs within the tonalite associated with pyrite and sheeted sets of quartz veins dipping at 15 degrees to the southeast. Individually the quartz veins vary from 1mm to 100mm thick with a few exceptions up to 700mm thick. Visible gold, often associated with galena, molybdenite, chalcopyrite and other sulphides, is common in the quartz veins.

The tonalite was intersected over a strike length of 240m however intersections of tonalite at both the southern and northern ends of the intrusive were restricted to small apophyses, giving the bulk of the tonalite a strike length of about 220m and an average width of 70m. Maximum vertical extent of the tonalite intersected to date was 425m.

Gold assays for the whole tonalite, from 6 holes in the recent drilling program and 2 holes drilled last year, average about 1.2g/t gold without applying a cutoff and not allowing for any top cut to the numerous narrow high grade intersections of gold bearing quartz veins.

BIF was intersected on both sides of the tonalite in close proximity to the tonalite in several holes. The two intersections in separate drill holes occur on the east side and on the west side of the tonalite. The BIF is highly quartz veined and extensively replaced by pyrite. These intersections contained high grade gold values as follows:

TRCD735: 6.8m at 15.73g/t gold from 215.0m

Including 3.4m at 30.36g/t gold from 216.4m

TRCD733: 25.9m at 16.56g/t gold from 240.1m

Including 3.5m at 20.24g/t gold from 243.0m

and 13.7m at 25.98g/t gold from 251.0m

A preliminary Resource estimate is underway for the tonalite hosted gold mineralisation and detailed structural and petrographic work has commenced to better understand the nature and controls related to the BIF hosted gold mineralisation.

Complete results for the tonalite and the BIF are compiled in Table 1 and displayed on Figure 1, Figure 2 and Figure 3.

To view Figure 1, Figure 2 and Figure 3 please click on the following link: http://media3.marketwire.com/docs/try716f1-3.pdf.

Paul Benson, Troy CEO said, "We have been waiting for these results to better understand the potential of this target on our Sandstone leases. It is still early days, but the BIF hosted mineralisation is a significant new development that represents a potential source of higher grade mineralisation. The Two Mile Hill tonalite looks like a reasonable tonnage, low grade resource. These high grade BIF intersections create a new target. Our aim now will be to develop a program to fully test the potential for more higher-grade mineralisation. This result is particularly pleasing, as the BIF contact with the tonalite was a conceptual target generated for testing by the Troy geologists."



Table 1: Two Mile Hill Significant Gold Intersections 2008 - 2009 Drilling
----------------------------------------------------------------------------
Azi-
muth
East- North- deg- Dip Geolo- Cutoff
ing ing AHD rees deg- From To Width Gold gical Gold
Hole ID m (MGA) m (MGA) mRL (MGA) rees m m m (i) g/t Unit g/t
----------------------------------------------------------------------------
TDD034
(2008) 723120 6892640 522 270 -78 63.0 79.0 16.0 2.79 Tonalite 0.2
including 63.0 68.0 5.0 7.76 Tonalite 1.0
119.0 143.0 24.0 1.04 Tonalite 0.2
including 130.0 134.0 4.0 4.11 Tonalite 1.0
177.0 318.0 141.0 2.30 Tonalite 0.2
including 130.0 134.0 4.0 4.11 Tonalite 1.0
and 209.0 221.0 12.0 9.05 Tonalite 1.0
and 268.0 271.0 3.0 13.51 Tonalite 1.0
and 304.0 309.0 5.0 3.82 Tonalite 1.0
321.0 371.0 50.0 2.71 Tonalite 0.2
including 336.0 340.0 4.0 27.66 Tonalite 1.0

374.0 385.0 11.0 1.13 Tonalite 0.2
414.0 418.0 4.0 3.21 Tonalite 1.0
----------------------------------------------------------------------------
TRCD727
(2008) 723258 6892560 521 270 -60 75.0 87.0 12.0 9.79 Saprolite 0.2
including 79.0 86.0 7.0 16.58 Saprolite 1.0
311.0 327.0 16.0 5.30 Tonalite 0.2
including 312.0 325.0 13.0 6.39 Tonalite 1.0
333.0 394.0 61.0 1.09 Tonalite 0.2
including 353.0 355.0 2.0 8.42 Tonalite 1.0
----------------------------------------------------------------------------
TRCD730
(2009) 723177 6892636 523 270 -60 122.5 128.0 5.5 3.34 Tonalite 0.2

130.6 140.0 9.4 1.73 Tonalite 0.2

145.0 161.0 16.0 2.86 Tonalite 0.2

200.0 221.0 21.0 2.98 Tonalite 0.2

including 205.9 209.0 3.1 17.11 Tonalite 1.0

260.0 263.4 3.4 10.03 Tonalite 0.2
----------------------------------------------------------------------------
TRCD731
(2009) 723164 6892596 519 270 -55 60.2 216.5 156.3 1.14 Tonalite 0.0

68.2 77.6 9.4 2.16 Tonalite 0.2

86.2 117.0 30.8 3.95 Tonalite 0.2
including 98.9 107.5 8.6 12.90 Tonalite 1.0
----------------------------------------------------------------------------
TRCD732
(2009) 723165 6892596 519 270 -67 24.0 30.0 6.0 1.66 Tonalite 0.2

210.0 238.0 28.0 1.07 Tonalite 0.2

251.0 375.0 124.0 1.65 Tonalite 0.2
including 277.0 279.0 2.0 8.95 Tonalite 1.0
and 361.5 371.0 9.5 6.23 Tonalite 1.0

406.0 422.0 16.0 2.12 Tonalite 0.2
including 412.5 417.0 4.5 5.76 Tonalite 1.0

433.0 446.0 14.0 1.24 Tonalite 0.2

449.0 465.0 16.0 1.03 Tonalite 0.2
----------------------------------------------------------------------------
TRCD733
(2009) 723170 6892560 519 270 -55 240.1 266.0 25.9 16.56 BIF 0.2
including 243.0 246.5 3.5 20.24 BIF 1.0
251.0 264.7 13.7 25.98 BIF 1.0
----------------------------------------------------------------------------
TRCD734
(2009) 723178 6892520 519 270 -65 232 298 66 1.13 Tonalite 0.2
including 241 244 3 6.13 Tonalite 1.0

335 357 22 1.54 Tonalite 0.2
including 341 346 5 5.48 Tonalite 1.0

370 381 11 1.133 Tonalite 0.2

385 409 24 0.98 Tonalite 0.2
----------------------------------------------------------------------------
TRCD735
(2009) 723189 6892480 518 270 -65 215.0 221.8 6.8 15.73 BIF 0.2
including 216.4 219.8 3.4 30.36 BIF 1.0

245.0 261.0 16.0 1.08 Tonalite 0.2

308.0 345.0 37.0 4.46 Tonalite 0.2

385.0 391.0 6.0 1.18 Tonalite 0.2

394.0 405.0 11.0 6.89 Tonalite 0.2
including 397.0 400.0 3.0 23.54 Tonalite 1.0

444.5 472.8 28.3 1.87 Tonalite 0.2
including 469.1 471.8 2.7 7.27 Tonalite 1.0
----------------------------------------------------------------------------
- Note: At a 0.2g/t gold cutoff, only intersections achieving a minimum 10m
width at 1g/t gold or averaging 10 grams times meters have been listed.
At a 1g/t gold cutoff only intersections achieving a minimum width of 2m
and a minimum average of 1 gram times meters have been listed.
- (i) denotes length is downhole length of drill core.
- All samples were prepared and assayed by SGS Mineral Services Laboratory
and Genalysis Laboratory Services Pty Ltd - INTERTEK Group Laboratory in
Perth, Western Australia using Method FAA505 being Fire Assay on a 50
gram charge with an AAS finish.


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 Sandstone project, including a description of Troy's quality assurance program, quality control measures, the geology, samples collection and testing procedures in respect of the Sandstone project please refer to the technical report entitled Troy Resources NL: Sandstone Gold project, Mid West Region Western Australia" dated June 2007, which is available under the Company's profile at www.sedar.com.

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.

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