Troy Resources NL

Troy Resources NL

August 04, 2008 00:35 ET

Troy Resources NL: Initial Diamond Drilling Confirms High Grade In-Situ Hematite Iron Ore at Andorinhas Project in Brazil

PERTH, WESTERN AUSTRALIA--(Marketwire - Aug. 4, 2008) - Troy Resources NL (TSX:TRY)(ASX:TRY) -



- All iron assay results have been received for the initial Diamond Core drilling of outcropping hematite iron ore at Abacaxi Target.

- The best iron assays included Hole FED006 69.2% Fe over 0.70m from 10.30 metres and Hole FED007 returned 66.7% Fe over 11.20 metres from 3.5 metres downhole;

- All seven short Diamond Core holes tested outcropping hematite mineralisation and all have holes intercepted massive hematite with true thickness ranging from 0.4m to 8.0m.

Troy Resources NL ("Troy") (TSX:TRY)(ASX:TRY), through its wholly owned Brazilian subsidiary Reinarda Mineracao Ltda, has received all results from its initial limited diamond core drilling of two zones of outcropping hematite mineralisation within the Abacaxi Target at its Andorinhas Iron Ore Project in Brazil (refer to previous release on July 25th 2008).

During the exploration for colluvial iron ore, outcropping hematite mineralisation was discovered and mapped. Diamond drilling has intersected hematite mineralisation with true widths up to 8 metres. The hematite mineralisation occurs within bands of altered Banded Iron Formation (BIFs) within the same sequence of metasediments (phyllites) and metabasalts that host the Mamao Gold Deposit and the Babacu Gold Prospect.

Significant assay intervals returned include (see Table 1, Figure 1 and Figure 2 below):

- 59.7% Fe over 5.25 metres from 2.20 metres downhole;

- 57.8% Fe over 8.70 metres from 2.00 metres downhole;

- 60.3% Fe over 3.05 metres from 1.70 metres downhole;

- 54.4% Fe over 4.35 metres from 2.00 metres downhole;

- 66.4% Fe over 1.40 metres from 4.60 metres downhole and 69.2% Fe over 0.70 metres from 10.30 metres downhole;

- 66.7% Fe over 11.20m downhole from 3.50 metres.

The drill program targeted areas of outcropping and sub-cropping hematite rich BIFs and has confirmed the presence of at least two hematite areas at Abacaxi West. Additional detailed mapping, sampling and follow-up drilling will be required to delineate the extent of this mineralisation and assess the resource potential. There is also potential to expand the in-situ iron to the east and west and this will be the focus of future exploration.

At Abacaxi West, geological mapping outlined a number of large to massive boulders of hematite ore which occur in close proximity to the outcropping hematite rich BIFs. These boulders, as well as the in-situ hematite mineralisation, have not been included in the colluvial resource that is currently being calculated but will add to the tonnage potential.

The in-situ iron ore targets are located within the colluvial iron ore resource area and in close proximity of the existing Troy gold operations at Andorinhas.

Troy CEO Paul Benson said, "Our initial focus has been on the colluvial iron ore and we are on track to finish the Resource calculation in this quarter. The drilling of the adjacent hematite BIF was to gain an understanding of the further potential on the leases. We will wait until we establish commercial production of the colluvial iron ore before we come back to fully test the hematite BIFs but it is clear that the hematite boulders and the hematite BIFs, which will not be included in the upcoming resource statement, add to the potential of the project."

A full copy of this announcement with location plans can be found on the Company's website at

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 mineralization 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.

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 and iron ore, 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.

There can be no assurance that Mineral Resources or Mineral Reserves will be established at the Andorinhas Iron Ore Project, or that an iron ore mine will be successfully or profitably established at Andorinhas.


Table #1: Andorinhas Project Diamond Drill Assay Summary Iron ore - Abacaxi

Depth Length %
Hole_ID East (m) North (m) Azimuth Dip (m) From To (m)(i) Fe

FED001 633905.92 9176938.92 N180 -60 91.70 2.20 7.45 5.25 59.7
degrees degrees
7.45 8.35 0.90 49.3
11.10 15.30 4.20 48.5
FED002 633905.91 9176939.75 N000 -90 41.05 2.00 10.70 8.70 57.8
degrees degrees
15.90 18.65 2.75 55.1
FED003 633856.52 9176925.51 N180 -60 99.40 1.70 4.75 3.05 60.3
degrees degrees
4.75 6.30 1.55 28.1
6.30 8.80 2.50 47.1
17.30 20.30 3.00 48.7
FED004 633856.22 9176926.50 N000 -90 34.70 2.00 6.35 4.35 54.4
degrees degrees
FED005 633827.08 9176903.33 N180 -60 96.50 6.30 6.70 0.40 57.3
degrees degrees
FED006 633877.04 9176768.21 N000 -90 48.40 3.20 4.60 1.40 66.4
degrees degrees
10.3 11.00 0.70 69.2
FED007 633808.01 9176794.29 N000 -90 50.30 3.50 14.70 11.20 66.7
degrees degrees
Includ- 3.50 8.70 5.20 66.6
and 8.70 11.80 3.10 66.9
and 11.80 14.70 2.90 66.6
(i)The column length represents downhole widths.

Core samples were cut with a diamond saw and then half cores were dispatched for assay.

Analytical Laboratory: SGS Geosol Laboratories - Rodovia MG 010, KM 24,5 - Bairro Angicos Vespasiano/MG - CEP 33200-000. Belo Horizonte MG Brazil

Analytical Techniques: M4-XRF: Fe, by fusion XRF Technique

ABN 33 006 243 750

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