Troy Resources NL

Troy Resources NL

June 15, 2008 23:49 ET

Operations Update: Troy Board Visits the New Andorinhas Gold Mine in Brazil and Ratifies Budget of $9 Million for Gold and Iron Ore Exploration in the Region

PERTH, WESTERN AUSTRALIA--(Marketwire - June 15, 2008) - Troy Resources NL ("Troy") (TSX:TRY)(ASX:TRY) -


The members of Troy's Board of Directors visited the Company's new Andorinhas gold mine in Brazil on June 6th through 9th and approved an exploration budget of over A$9 million. The key focus of exploration will be to rapidly test soil anomalies and advance drill targets identified by the Brazilian Exploration Team with the ultimate objective of proving up additional reserves and resources to extend the mine life from the initial 5 years. With four drill rigs on site, resource definition work can be achieved quickly on any exploration success.

The Andorinhas gold operations, including the plant, open cut and under ground mines were visited. The gold plant is running at the name plate capacity of 30 tonnes per hour being fed ore from the well established Lagao Seca open cut. Development of the underground mine is progressing well. The decline has advanced over 100m and with the delivery of the new electro-hydraulic twin boom jumbo and LHD loaders this will accelerate. It is expected that the high grade underground ore should commence feeding the plant by the end of the calendar year.

Directors also visited the iron ore resources located on the Andorinhas leases. Management are well advanced with the Concept Study for the commercial development of the iron ore. A resource estimate and 43-101 report are expected to be released in the 3rd quarter of this year. Testing to date indicates the ore to be of direct shipping ("DSO") quality hematite with significant market interest from the iron works in the nearby industrial city of Maraba.

Troy's CEO Paul Benson said, "The team on the ground have done a great job getting the gold mine into production quickly and for very low capital cost. The plant is at design capacity and gold production will reach full output when the high grade underground ore is introduced into the ore stream. The Andorinhas area is highly prospective and with numerous drill targets we are confident we will be able to extend the mine life past the initial 5 year plan."

"Perhaps the most exciting aspect of the visit was to see the progress on the evaluation of the iron ore resource. At this stage we expect an initial project producing 500,000 to 1 mtpa of high grade iron ore will be viable, subject to finalisation of the Concept Study and receiving all the requisite government approvals. This is now the major focus and it is hoped to be able to put an investment proposal to the Board as soon as the Concept Study is complete. The great thing about this project is the material is free digging and would be trucked to the nearby market in Maraba and thus capital will be kept to a minimum. At this stage we expect initial capital to be less than US$5m and, subject to permitting, production could commence in calendar 2009."

Troy is also able to confirm that the Sandstone Gold Project in Western Australia operates with diesel powered electricity and thus is not directly affected by the recent Apache gas supply failure.

The securities referred to herein have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States or to a U.S. person absent registration or an applicable exemption from registration.

Caution Regarding Forward Looking Statements: 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. In particular, there can be no assurance that economic mineralization will be established at the Andorinhas Iron Ore Project or that an iron ore mine will be developed and brought into production.

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