Troy Resources NL

Troy Resources NL

December 22, 2006 00:32 ET

Troy Acquires 19.5% Stake in Canadian Listed Comaplex Minerals Corp.

WEST PERTH, WESTERN AUSTRALIA--(CCNMatthews - Dec. 22, 2006) - Australian gold miner Troy Resources NL (ASX:TRY)(FRANKFURT:TRW)("Troy") advises that today it has agreed to purchase a 19.5% equity stake in Comaplex Minerals Corp. ("Comaplex") from Gold Fields Limited ("Gold Fields") which is valued at about A$ 27 million.

Troy will purchase 7,628,571 Comaplex shares for a cash payment of C$ 16,274,285 and the issue of 3,250,000 Troy shares to Gold Fields.

Comaplex is a junior resource company listed on the Toronto Stock Exchange and holds a 78% interest in the Meliadine West gold project and 50% in the Meliadine East gold project both located in Nunavut Territory of Canada. A NI43-101 resource estimate completed by Snowden Mining Industry Consultants ("Snowden") resulted in 2,980,000oz attributable resource ounces to Comaplex.

Snowden completed a preliminary mine planning and cost estimation study on the main Tirganiaq Deposit (within Meliadine West) using a US$450/oz gold price, and classified the resource based on cut-off and relative level. Above a 9,900m level (i.e. 150m from surface) it was thought that an open pit operation was likely and a cut-off grade of 2.5g/t was used. Below the 9,900m level bulk underground mining is expected and a cut off grade of 6.5g/t was used. The Snowden classified resource for the Tirganiaq Deposit is given in the table below.

Tiriganiaq Classified Resource (Snowden Jan 2006)
Above 9,900m (c/o 2.5g/t) Below 9,900m (c/o 6.5g/t)
Tonnes Grade Ounces Tonnes Grade Ounces
(Kt) (g/t) (Koz) (Kt) (g/t) (Koz)
Measured and
Indicated 4,200 7.5 1,009 507 11.3 184

Inferred 3,244 4.1 432 3,188 10.9 1,120
Total 7,444 6.0 1,441 3,695 11.0 1,304

The projects are well located being just 24km inland of the town of Rankin Inlet on the northwest coast of Hudson Bay, Canada.

Earlier this month Resource Capital Fund ("RCF") acquired the minority joint venture interests in the Meliadine Projects from Cumberland Resources Ltd. RCF is a resource-focused private equity fund based in Perth, Australia and Denver, USA.

"Troy is pleased to be able to participate in Comaplex and its large and prospective Meliadine gold project. We look forward to seeing the project move to development in the medium term," said Tommy McKeith CEO of Troy.

The Canadian investment is the second major expansion move overseas in the past month by Troy who recently reached agreement to acquire the Andorinhas gold project in Brazil from Agincourt Resources Ltd for US$ 10.14 million cash.

The Company announced at its recent annual general meeting that after recording a record full year profit of A$ 16.1 million and payment of its seventh consecutive dividend distribution it had A$ 62 million in cash and equivalents as at 30 September 2006.

ABN 33 006 243 750

Contact Information

  • Troy Resources NL
    J L C Jones
    (61 8) 9481 1277
    Troy Resources NL
    TD McKeith
    Chief Executive Officer
    (61 8) 9481 1277
    (61 8) 9321 8237 (FAX)