Troy Resources NL

Troy Resources NL

November 04, 2005 02:26 ET

Troy Boosts Production as New Mine Comes On Line and Exploration Success Continues in Brazil

WEST PERTH, WESTERN AUSTRALIA--(CCNMatthews - Nov. 4, 2005) - Low cost Australian gold miner Troy Resources NL (ASX:TRY)(FWB:TRW) lifted its production profile in the first quarter of the new financial year as its new Sandstone mine in Western Australia came on line to boost the Company's first quarter gold production to almost 30,000 ounces.

The 100% owned Sandstone mine treated 127,166 tonnes of ore at 3.48g/t gold to produce 13,202 ounces at a cash cost of A$229 an ounce with production being sourced from low grade stockpile for seven weeks and the new Lord Nelson mine for only five weeks.

The West Australian production came on top of the 22,900 ounces of gold produced at the Sertao project in Brazil in which Troy has a 70% interest. Production from this mine was at the remarkably low cost of US$105 per ounce.

"The company is now firing on all cylinders and we are now well on target to produce more than 100,000 ounces in the current financial year," said Mr John Jones, Executive Chairman of Troy Resources.

"The new mine will provide a strong boost to cash flow and profits this year. The Company has never been in a stronger financial position with A$30 million in cash reserves."

"We are debt free and unhedged which means we are well equipped to pursue growth through exploration and/or acquisition," he said.

Mr Jones said that another major highlight of the first quarter report for the Company was the outstanding exploration success Troy had enjoyed at its strong regional position in the Faina greenstone belt surrounding
the Sertao mine.

"We have now identified more than 18 targets and the results starting to flow from our strong exploration thrust in this area are outstanding," he said.

Troy reported to the Australian Stock Exchange this week that drilling at the Xupe project in the area had returned intersections of nine metres at 7.61g/t and 8.7 metres at 4.76g/t gold.

The nearby Jardin South prospect had returned intersects of 39m at 3.45g/t gold and 20m at 2.73g/t gold.

"These are outstanding results in anyone's language and illustrate the enormous potential of the area we are operating in and where we are continuing to increase the ground under our control," said Mr Jones.

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