Troy Resources NL

Troy Resources NL

December 20, 2009 22:18 ET

Troy Secures Right to Earn 100% Interest in the Castano Nuevo Low Sulphidation Epithermal Project Located 22km North of the Casposo Mine, San Juan Province, Argentina

PERTH, WESTERN AUSTRALIA--(Marketwire - Dec. 20, 2009) - Troy Resources NL ("Troy") (TSX:TRY)(ASX:TRY) -



- Troy secures deal to acquire the historic Castano Nuevo high grade, low sulphidation epithermal gold -silver vein project located 22km to the northeast of the Casposo Mine.

- Troy has entered into an earn-in option agreement with the owners of the Castano Nuevo Property whereby Troy can earn a 100% interest in the project through a series of staged cash payments and in-ground exploration expenditures totaling USD$1.1M over 4 years. The project is one of the best outcropping, low sulphidation epithermal vein occurrences in the Casposo District outside Troy's existing tenements and within trucking distance of the Casposo Mill.

Troy Resources NL ("Troy") is pleased to announce that it has entered into an earn-in option agreement with the owners of the Castano Nuevo Property whereby Troy can earn a 100% interest in the project through a series of staged cash payments and in-ground exploration expenditures totalling USD$1.1M over a 4 year period. Troy's first year commitment includes in-ground exploration expenditure of US$100,000 as well as cash payments totaling US$100,000.

Commenting on the deal Troy's CEO, Paul Benson, said: "This is an exciting and significant step as it is Troy's first exploration play in Argentina outside of the Casposo leases. Importantly, with its close proximity to Casposo, we can leverage our infrastructure and local knowledge to quickly assess the project's potential.

"With this deal we have secured the rights to explore and develop the Castano Nuevo Project which, in our view, represents one of the best outcropping low-sulphidation epithermal vein occurrences in the Casposo district outside our existing tenements. Being within trucking distance of our Casposo Mill, the project has potential as a satellite ore source to supplement our current Resource and Reserve inventory and extend the Casposo Life of Mine production.

"Exploration will commence in early 2010 with a detailed geological mapping and rock sampling program that will be followed by drilling later in the year".

The Castano Nuevo Property comprises a series outcropping, gold and silver bearing low sulphidation epithermal quartz-amethyst-adularia veins which were first discovered in 1885. This historic high grade gold-silver vein district is located 22km to the northeast; about 45km by road from Troy's Casposo plant site (see Figure 1).


During the late 1800s the Dios Protege, San Antonio, Andacollo, San Pedro and San Agustin Mines, were operated by the London Registered Rio Del Oro Mining Company. A 1914 Argentina government Census report noted that the site saw continuous production over a 20 year period through 1914 and in 1909, 2200 tons of ore were treated, which produced 62,693g of gold (2,106oz gold) and 381,222g of silver (12,256oz silver), giving an average of 28 gold grams (recovered) per ton.

The most recent exploration in the area was undertaken between 1997 and 2005 by two junior explorers. Both programs included geological mapping, rock sampling, geophysical surveys (magnetics and Induced Polarization) as well as limited shallow drilling.

Like Casposo to the south, the Castano Nuevo Project is situated within a northwest – southeast trending regional structural corridor. The low sulphidation vein system is genetically very similar to the Casposo Deposit (see Photos 1 and Photo 2).

At surface the veins, with the exception of the main historic producer (Dios Protege), are narrow ( less than 1.5m) and low grade (2g/t gold) but historic surface rock grab sampling has produced values of up to 30g/t gold and 50g/t silver. The veins form a north trending open fan pattern over strike lengths of up to 700m, with vein widths ranging from 1m up to 5m.

This vein system is hosted in propylitic altered and locally silicified andesite. The veins have been dated at 265Ma, which is about 15Ma younger than the Casposo veins.

An area of advanced argillic altered siliceous tuffs and hydrothermal milled breccias, with minor vuggy silica occur above the veins. This area is interpreted as a silicified cap "high level hot springs style alteration" that is broadly similar to the Rosarita Hill style alteration near Casposo. The current interpretation of the presence of the silicified cap suggests that the Castano Nuevo outcropping veins represent a high level expression of a low sulphidation epithermal system with good exploration potential.

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

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.

To view the maps and photos accompanying this release please click on the following link:

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