Troy Resources NL

Troy Resources NL

July 30, 2009 21:17 ET

Troy Resources NL: New Inferred Resource-Two Mile Hill Prospect Sandstone Western Australia

PERTH, WESTERN AUSTRALIA--(Marketwire - July 30, 2009) - Troy Resources NL (TSX:TRY)(ASX:TRY) -



- An Inferred Mineral Resource of 10,541,000t grading 1.3g/t (grams per tonne) gold for 452,000oz contained gold has been estimated for the Two Mile Hill tonalite gold mineralisation


Commenting on the results Troy's CEO, Paul Benson, said: "At over 450,000 oz this is a significant resource and although low-grade, the geometry of the intrusive is such that it could be amenable to low-cost high-tonnage mining methods. However, it's the recent discovery of high-grade gold mineralisation in the adjacent Banded Iron Formation (BIF), announced on July 16th, but not included in this resource number, that makes this really interesting.

We are currently planning a Phase 3 exploration program to test the extent of the high-grade BIF mineralisation. If we can prove up sufficient high-grade it's easy to see a concept where a decline is mined through the tonalite to access the BIF horizon. With an existing operation and workforce, a permitted site and development in mineralised tonalite, the tonnage required to make a viable operation is significantly less than for a standalone greenfields operation.

Sandstone has never had much more than 3 years forecast mine life ahead of it, yet it is about to mark its 10th anniversary as a Troy operation. It's been an outstanding performer for the company and obviously we're hoping that Two Mile Hill can play a part in extending production well into the next decade. All going well we should be in a position to evaluate the Phase 3 results early in the December quarter".

Troy Resources NL ("Troy") is pleased to announce that an updated Inferred Resource Estimate for the Two Mile Hill tonalite hosted disseminated and sheeted vein style gold mineralisation. This Inferred Mineral Resource is estimated at 10,541,000t grading 1.3g/t (grams per tonne) gold for 452,000oz contained gold (using a 0.5g/t gold cut-off) (See Table 1 and Figure 1).

Troy has completed two Reverse Circulation/Diamond Core drilling programs (10 holes/3607.3m) at the Two Mile Hill Prospect in the Sandstone Mine area of Western Australia.

The drilling targeted the Two Mile Hill tonalite intrusive which is about 220m (North - South) by 70m (East - West) and tested the tonalite hosted gold mineralisation to a vertical depth of about 500m below surface.

The mineralisation is wholly contained with an intrusive tonalite body. The tonalite which is pervasively silicified and contains disseminated pyrite, hosts a series of narrow, shallow dipping gold bearing quartz veins with minor amounts of base metal sulphides.

This represents a significant increase to the current resource at Two Mile Hill: as reported in the NI-43101 Technical Report of June 2007 as:

Indicated: 487,000t @ 1.64g/t 25,700oz
Inferred: 102,000t @ 2.63g/t 8,600oz

The new diamond drilling has significantly changed the scale and geological interpretation of the deposit. Additional drilling will be required to upgrade and extend the resource.

Diamond drilling intersected high grade mineralisation in an adjacent Banded Iron Formation (BIF); see ASX announcement of July 16th 2009. This BIF horizon will be the focus of future exploratory drilling in the second half of 2009 and represents an excellent exploration target for high grade extensions.

In the early 1990's mining by Herald Resources was focussed on the oxidised portion of the tonalite with about 93,400t @ 1.5g/t containing 4,000oz being mined via open cut mining methods. The ore was treated at the nearby Sandstone processing facility.

The tonalite body was modelled in three dimensions based on surface outcrop mapping and drillhole logging.

Grade interpolation is ordinary krieging with a top cut of 20g/t gold applied. A block size of 10m x 20m x 10m was used reflecting the nominal drill spacing of 40m in a north - south direction.

The resource has been categorised as inferred due to the early stage of exploration.

To date there has been no metallurgical testwork completed and no economic parameters, other than a cut-off grade, have been applied to the resource estimate. The reporting cut-off grade of 0.5g/t has been selected as this would represent a possible cut-off grade for a potential bulk mining scenario (See Table 2).

A grade-tonnage curve is also attached so that the distribution of grade within the tonalite body can be better understood (See Table 3).

A NI-43101 Technical report is being compiled detailing the new Resource Estimate and will be posted on SEDAR and on the Troy Website within 45 days.

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 quality assurance programs, 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 Project, Western Australia" dated June 2007 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.

Cut-off grade Tonnes Grade g/t Contained ounces
0.5g/t 10,541,000 1.3 452,000

Cut-off grade Tonnes Grade g/t Contained ounces
0.1 15,910,000 1.0 502,000
0.2 14,520,000 1.1 495,000
0.5 10,540,000 1.3 452,000
0.8 6,680,000 1.7 370,000
1 4,870,000 2.0 319,000
1.5 2,530,000 2.8 227,000
2 1,710,000 3.3 183,000
2.5 1,150,000 3.9 143,000

To view Table 3 and Figure 1 accompanying this press release, please click on the following link:

ABN 33 006 243 750

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