Troy Resources NL
ASX : TRY
TSX : TRY

Troy Resources NL

May 02, 2011 09:00 ET

Troy Resources NL: Don David Acquisition

Troy Secures Right to Earn 100% Interest in Don David Property Adjacent to the Castano Project Located 22km North of the Casposo Mine, San Juan Province, Argentina

PERTH, WESTERN AUSTRALIA--(Marketwire - May 2, 2011) -Troy Resources NL ("Troy") (TSX:TRY)(ASX:TRY) -

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HIGHLIGHTS

  • Troy has signed an agreement to acquire a significant package of prospective ground adjacent to the historic Castaño Nuevo 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 Don David 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$1.15M over 4 years.

Troy Resources NL is pleased to announce that it has entered into an earn-in option agreement with the owners of the Don David 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$1.15M over a 4 year period. Troy's first year commitment includes in-ground exploration expenditure of US$50,000 as well as cash payments totalling US$25,000.

The Don David Property includes the Don David Tenement (File No. 181.845-b-1991) and the "San Juan" Tenement, (File No. 157-C-1947), located in the "Castaño Nuevo" area of the Department of Calingasta within San Juan Province, Argentina (see Figure 1). The property borders Troy's Existing Castaño Nuevo Property that encompasses the Castaño Nuevo Low Sulphidation Epithermal Vein System that was mined from the late 1890s through to 1915. Troy recently completed a program of shallow "First Pass" drilling on the Castaño Nuevo outcropping veins. The Don David JV ground hosts the potential southern strike extensions of the Dios Protégé and San Pedro Epithermal veins as well as a number of large alteration zone targets (see Figure 2).

To view figures 1, 2 and 3, please visit the following link: http://media3.marketwire.com/docs/try502i.pdf.

The Don David Property is underlain by similar geology to that mapped on the adjacent Castaño Nuevo JV. The property is underlain by a series volcanic to subvolcanic andesitic to dacitic rocks covered in places by Quaternary gravels in the eastern part of the property. The property consists of a main zone of advanced argillic (silica-clay–pyrite) alteration known as the "Central Zone" surrounded by propylitic altered andesites. The Central Zone as mapped by previous explorers consists of vuggy quartz and alunite and historic technical reports suggest this type alteration is often associated with high sulphidation epithermal gold systems and/or porphyry/intrusive systems. To the northwest and southwest of the Central Zone, two zones of intense fracturing and crackle brecciation have been mapped (known as North Breccia Zone and South Breccia Zone).

The Central Zone is a slightly elongated north–south oriented alteration (1500m long by 1000m wide) zone developed over a prominent dome-like low hill that is easily distinguished as a striking white to red color anomaly. The zone appears to be fault bounded with the color anomaly terminated sharply at the contact with the host propylitic altered andesites.

The Central Zone is composed of felsic tuffs with extensive silica–alunite alteration and patchy highly leached vuggy silica with hydrothermal breccias (see Figure 3).

The North Breccia is an oval shaped (800m long by 600m wide) zone comprised of shattered altered andesite with disseminated pyrite (5% up to 20%) and anomalous in gold arsenic and molybdenum.

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) followed by very limited shallow Reverse Circulation drill program. Historic exploration has been focused the Central Alteration Zone.

Exploration will commence shortly with an airborne magnetics and radiometrics survey followed by a detailed geological mapping and rock sampling program to define drill targets.

Commenting on the deal Troy's CEO, Paul Benson, said: "With this deal we have significantly increased our ground holding in the Castaño Nuevo area and secured the strike extensions of several of the known outcropping Castaño epithermal vein systems as well as acquiring a number of interesting altered zones with little recent exploration. All of these targets represent potential for satellite ore sources for our Casposo mill."

Geological information in this Report has been compiled by Troy's Vice President Exploration & Business Development, Peter Doyle, who:

  • Is a full time employee of Troy Resources NL
  • Has sufficient experience which is relevant to the type of deposit under consideration and to the activity which 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'
  • Is a member of the Australasian Institute of Mining and Metallurgy
  • Has consented in writing to the inclusion of this data

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 Fellow 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 "qualified person" as defined in "National Instrument 43-101 – Standards of Disclosure for Mineral Projects". Mr Doyle has reviewed and approved the information contained in this report. For further information regarding the Company's projects in Brazil, Australia and Argentina, including a description of Troy's quality assurance program, quality control measures, the geology, samples collection and testing procedures please refer to the technical reports filed which are available under the Company's profile at www.sedar.com or on the Company's website.

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.

ABOUT TROY RESOURCES

Troy Resources (TSX:TRY)(ASX:TRY) is a dividend-paying junior gold producer, with a clear growth strategy. The Company has two producing gold operations; Andorinhas Mine in Para State, Brazil and the Casposo gold and silver mine, in San Juan province, Argentina.

Troy has an experienced Board and management team with a track record of successful, fast-track mine development and low-cost operations.

Troy has an annual exploration budget in excess of $8 million and a proven track record in exploration discoveries and strategic acquisitions.

With the development of Casposo, Troy is entering a renewed growth phase which will again lift the Company's annual gold production above 100,000 ounces of gold per annum.

The Company maintains a robust balance sheet and forecasts continued strong cash flow from its current assets. Troy's gold production is unhedged; allowing its shareholders access to the full benefit of current and future gold price upside.

With the development of the Casposo project in Argentina, Troy is positioned to continue its path of strong growth and profitable operations. The Company is on track to achieve its vision of becoming a highly profitable mid-tier gold producer with a portfolio of quality long-life assets.

Troy is a responsible corporate citizen, committed to the best practice of health and safety, environmental stewardship and social responsibility.

To view a map of the project locations, please visit the following link: http://media3.marketwire.com/docs/try502m.pdf.

ABN 33 006 243 750

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