Troy Resources NL
ASX : TRY
TSX : TRY

Troy Resources NL

July 28, 2009 22:45 ET

Troy Resources NL: Significant (32%) Increase in Casposo Indicated Mineral Resource, San Juan Province, Argentina

PERTH, WESTERN AUSTRALIA--(Marketwire - July 28, 2009) -

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Highlights

- Troy has completed an update of the Casposo Mineral Resource incorporating the latest drilling completed by previous owners, Intrepid Mines Limited, and updating the commodity price assumptions. This resulted in a 32% increase in contained gold equivalent Indicated Resource ounces (602,500 Gold-equivalent Au_eq ounces).

Troy Resources NL ("Troy") (TSX:TRY)(ASX:TRY) is pleased to announce that the updated Indicated Mineral Resource for the Casposo Project in San Juan Province in Argentina is 2,369,000t grading 5.4g/t (grams per tonne) gold and 201.7g/t silver for 602,500 (Gold-equivalent Au_eq) contained ounces (See Table 1 and Figure 1).

This Indicated Resource Update is an increase of 147,600oz (ounces) Au_eq in the Casposo Project Indicated Mineral Resources consisting of 76,400oz gold and 6.3Moz (Million ounces) silver. Indicated Resources for the project are now 414,600oz gold and 15.3Moz silver at an average grade of 7.9g/t Au_eq.

In June, work commenced on updating the Casposo Resource Estimate using drill results from Intrepid Mines Limited's 2008 diamond drilling program that were not included in the 2008 AMEC International (Chile) S.A. Consulting NI 43-101 Technical report of July 2008 prepared on behalf of Intrepid Mines Limited. Drilling during 2008 totaled 13,062m in 61 diamond drill holes. None of this drilling has been included in earlier Mineral Resource Estimates.

Mineral Resources attributed to an open pit were constrained within a Whittle pit optimisation using a gold price of US$1,000/oz and a silver price of US$15/oz. Open pit operating costs of US$31.56/t and mill recovery of 93.7% were used and all royalties were included. Indicated Mineral Resources attributed to an open pit are reported at a cut-off grade of 0.8g/t Au_eq. These Indicated Mineral Resources comprising of the Aztec Vein, Inca Vein, B Vein and Mercado Vein, are estimated at 1,918,000t grading 6.1g/t gold and 187.1g/t silver (8.4g/t Au_eq).

Indicated Mineral Resources attributed to an underground were those mineral resources that are not contained within the Whittle pit optimisation. These Indicated Mineral Resources are reported at a cut-off grade of 2.0g/t Au_eq. The Indicated Mineral Resources attributed to an underground comprising of the Aztec Vein, Inca Vein, B Vein and Mercado Vein are estimated at 451,000t grading 2.5g/t gold and 264.0g/t silver (5.7g/t Au_eq).



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TABLE 1A: CASPOSO MINERAL RESOURCE Estimate - Troy 2009
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Cut-off Gold Gold g/t
Cate- g/t g/t Gold Silver Au_eq Gold Silver
Project gory (Au_eq) Tonnes Au_eq (g/t) (g/t) ounces ounces ounces
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0.8g/t
and
Indic- 2.0g/t
Casposo ated Au_eq 2,369,000 7.9 5.4 201.7 602,500 414,600 15,366,000
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0.8g/t
and
Inf- 2.0g/t
erred Au_eq 261,000 6.7 3.6 255.1 56,200 30,000 2,140,900
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Cut-off grades reflect the marginal cost of ore production from potential open pit and underground mining scenarios.

Gold equivalence is calculated by the formula:

Au_eq g/t equals Au g/t + (Ag g/t / 81.82)

The gold : silver ratio of 1:81.82 is calculated using metal prices of US$915/oz and US$13/oz for gold and silver respectively. These prices are the average London PM fix for the six months to June 30th, 2009. Processing recoveries of 93.7% for gold and 80.6% for silver are also used. The formula for calculating the gold : silver ratio is:

(915 / 13) x (0.937 / 0.806) equals 81.82

Grade was estimated into the model by ID2 interpolation. Search distances were determined from variography and high grade outliers were cut where appropriate.
Only diamond drilling was used in the grade estimation.

Current exploration will focus on near-surface open cut resource targets at Casposo that include Julieta, Cerro Norte, B vein Southeast Mercado-Kamila Gap, Kamila SE Extension (SEXT) - see Figure 2. In addition, all of the known mineralised zones remain open at depth and will require further diamond drilling.

A NI 43-101 Technical report is being compiled detailing the new Resource Estimate and will be posted on SEDAR and on the Troy Website within 45 days.

Commenting on the results Troy's CEO, Paul Benson, said: "This increase in the Indicated Resource justifies our enthusiasm for the Casposo project. The value in a project like this is driven by increasing the ounces produced and minimising the capital to build the project and this is the first step. We expect to release our revised capital estimate in early August and any reduction compared to the current budget is value delivered to shareholders.

The increase in the Mineral Resource we are reporting today has been generated simply by including the results from the last program of drilling undertaken by Intrepid and updating price assumptions. We are of the view that the leases are very prospective and our initial exploration will focus on near surface, potential open-pit targets. Later we will move our attention to testing the main mineralised zones which remain open at depth."

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 Casposo project, including a description of quality assurance programs, quality control measures, the geology, samples collection and testing procedures in respect of 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 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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TABLE 1B: CASPOSO MINERAL RESOURCE ESTIMATE (BY VEIN) - TROY RESOURCES
July 28, 2009
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Cut-
off
g/t Gold Sil-
Au_ _eq Gold ver Gold-eq Gold Silver
Location Category eq Tonnes g/t g/t g/t ounces ounces ounces
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Mineral Resources Constrained by Whittle Pit Shell - Open Pit
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Aztec Indicated 0.8 648,000 9.8 8.0 147.5 204,800 167,200 3,073,100
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Inca Indicated 0.8 500,000 12.9 8.1 393.1 208,100 130,900 6,320,000
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B vein Indicated 0.8 498,000 5.2 4.2 75.2 82,600 67,800 1,204,400
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Mercado Indicated 0.8 272,000 2.8 1.5 107.6 24,300 12,800 940,600
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SEXT Indicated 0.8 0 0.0 0.0 0.0 0 0 0
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Aztec Inferred 0.8 0 0.0 0.0 0.0 0 0 0
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Inca Inferred 0.8 34,000 19.4 14.3 421.8 21,200 15,600 461,100
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B vein Inferred 0.8 1,000 2.2 1.9 17.5 100 100 600
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Mercado Inferred 0.8 14,000 3.2 1.8 108.1 1,400 800 48,600
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SEXT Inferred 0.8 80,000 2.4 1.3 94.7 6,200 3,200 243,700
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Mineral Resources Outside the Whittle Pit Shell - Underground
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Aztec Indicated 2.0 113,000 5.8 2.5 274.4 21,100 8,900 996,900
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Inca Indicated 2.0 244,000 6.2 2.4 312.4 48,900 19,000 2,450,500
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B vein Indicated 2.0 70,000 4.4 2.8 128.4 9,900 6,300 288,900
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Mercado Indicated 2.0 24,000 3.6 2.2 118.7 2,800 1,700 91,600
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SEXT Indicated 2.0 0 0.0 0.0 0.0 0 0 0
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Aztec Inferred 2.0 3,000 6.7 1.4 438.2 700 100 42,300
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Inca Inferred 2.0 53,000 10.8 3.7 579.2 18,400 6,300 987,000
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B vein Inferred 2.0 5,000 3.2 1.0 176.7 500 200 28,400
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Mercado Inferred 2.0 0 0.0 0.0 0.0 0 0 0
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SEXT Inferred 2.0 71,000 3.4 1.6 144.2 7,700 3,700 329,200
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MINERAL RESOURCES SUMMARY
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Cut-
off
g/t Gold Sil-
Au_ _eq Gold ver Gold-eq Gold Silver
Location Category eq Tonnes g/t g/t g/t ounces ounces ounces
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Mineral Resources Constrained by Whittle Pit Shell - Open Pit
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Casposo Indicated 0.8 1,918,000 8.4 6.1 187.1 519,800 378,700 11,538,100
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Inferred 0.8 129,000 7.0 4.8 181.8 28,900 19,700 754,000
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Underground Mineral Resources Outside the Whittle Pit Shell - Underground
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Casposo Indicated 2.0 451,000 5.7 2.5 264.0 82,700 35,900 3,827,900
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Inferred 2.0 132,000 6.4 2.4 327 27,300 10,300 1,386,900
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To view Figures 1 and 2 accompanying this press release, please click on the following link: http://media3.marketwire.com/docs/try728.jpg

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