Troy Resources NL
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TSX : TRY

Troy Resources NL

April 27, 2011 09:00 ET

Troy Resources NL: Follow-up Drilling at Kamila SE Extension Zone Produces Further High Grade Inca Vein Gold and Silver Intercepts

PERTH, WESTERN AUSTRALIA--(Marketwire - April 27, 2011) - Troy Resources NL (TSX:TRY)(ASX:TRY) -

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  • Final assay results for Hole CA-11-295: 14.70m at 7.79g/t gold and 1,292g/t silver or 26.24g/t Au_eq from 342.50m
  • Subsequent follow-up drilling has yielded the following Inca Vein intercepts:
  • Hole CA-11-297; 1.90m at 6.36g/t gold and 1,470g/t silver or 27.35g/t Au_eq from 270.6m, including 0.80m at 14.23g/t gold and 3,379g/t silver or 62.50g/t Au_eq from 271.7m
  • Hole CA-11-300; 1.35m at 3.46g/t gold and 2,266g/t silver or 35.82g/t Au_eq from 306.4m; and 5.40m at 8.18g/t gold and 2,607g/t silver or 45.43g/t Au_eq from 311.0m, including 1.0m at 39.17g/t gold and 10,837g/t silver or 193.98g/t Au_eq from 306.4m
  • These new intercepts are located outside the existing Mineral Resource and Mining Reserve and southeast of the second post mineral rhyolite dyke within the Kamila SE Target that represents an extension the known mineralisation

Troy Resources NL ("Troy") is pleased to announce assay results for follow-up drilling completed at the Kamila SE Target outside the existing NI43-101 Mineral Resource and Mining Reserve on the southeast of the second post mineral dyke.

Commenting on the news Troy's CEO, Paul Benson said: "These are very significant and exciting results for Troy as these intercepts support the CA-11-295 high grade intercept outside of the current Reserves and Resources in the Kamila South East Extension. Being less than 500m laterally from the existing Kamila underground Reserves, the areas could be easily accessed by underground development. The focus of future drilling will be to define the high grade vein zones along strike and at depth.

"This high grade zone is particularly exciting given that it is close to existing planned underground development. If we are able to prove up a minable Reserve here, in addition to extending the mine life, it would potentially enable us to reschedule underground mining to offset the drop in grades that currently are scheduled in the third year of production.

"It is important to point out that we use the same price parameters (1 Au: 70 Ag) to calculate the "gold equivalent grade" as we used in the 2009 NI43-101 report to be consistent with our current Reserve statement. Because the silver price has risen proportionately more than the gold price since that date, the silver is more significant. Using current prices for gold and for silver would give a significantly higher gold equivalent grade."

Troy commenced drilling on the extensions of the main veins that comprise the Kamila Deposit. The purpose of the current program is to test the known veins (Inca Vein, B Vein Aztec Vein and SE Extension Vein) at depth and along strike through a series of infill and step-out extensional drill holes within the structurally complex northwest southeast corridor that hosts the Kamila and Mercado Deposits.

On March 15, 2011 Troy announced preliminary results for CA-11-295 and final assays have confirmed the interval as 14.70m at 7.79g/t gold and 1,292g/t silver or 26.24g/t Au_eq from 342.50m that includes 14.2m from 343.0m to 357.2m: at 8.04 g/t gold and 1,333 g/t silver. Since the early March drilling of Hole CA-11-295, follow-up drilling has focussed on delineating the Inca Vein southeast of the second dyke at the Kamila SE Target (see Figure 1 and Figure 2).

An additional 8 holes (3,175.4m) have been drilled and all holes have intersected the Inca Vein. Significant new Inca Vein assay results include; Hole CA-11-297; 1.90m at 6.36g/t gold and 1,470g/t silver or 27.35g/t Au_eq from 270.6m, including 0.80m at 14.23g/t gold and 3,379g/t silver or 62.50g/t Au_eq from 271.7m, Hole CA-11-300; 306.4m to 307.15m: 1.35m at 35.82g/t Au_eq; and 311.0m to 316.40m: 5.40m at 45.43g/t Au_eq (see Table 1).

These intercepts are all located southeast of the second rhyolite dyke and outside the current Mining Reserve. The current drilling has confirmed that both Inca Vein and the Southeast Extension Vein are mineralised and continue to the southeast which represents potential extensions to the underground Resource but additional drilling is required and planned.

Results to date have been very encouraging with a potential new zone of mineralisation suggested from the drilling completed to date at Kamila SE Extension Target. New high grade mineralisation associated with variable vein widths has been encountered. To date the drilling density is insufficient to clearly define orientation and/or delineate the extent of the zone. Additional drilling is required and is in progress.

Summaries of the new intercepts follow below:

Hole CA-11-295:

  • The Inca Vein and splays were drilled from 334.00m to 359.20m downhole. The section from 343.00m to 359.20m comprised of quartz–adularia vein, with banded and, colloform textures, often brecciated with lattices textures, "ginguro" bands and patches as aggregates of electrum, silver sulfosalts and common sulphide minerals as pyrite and minor chalcopyrite. Assays reported included; from 342.50m, 14.70m at 26.24g/t Au_eq including from 347.00m, 8.0m at 34.18g/t Au_eq and a narrower higher grade section from 351.00m, 4.0m at 42.42g/t Au_eq.
  • Best individual interval 352.0m to 353.0m: 1.0m at 30.55g/t gold and 2,834g/t silver for 1.0m at 71.04g/t Au_eq. From 358.00m to 359.20m; a splay of Inca Vein was cut and comprised of banded-brecciated vein with 1.20m at 0.6g/t gold and 185g/t silver or 3.31g/t Au_eq from 358.0m (see Table 1).

Hole CA-11-297:

  • Inca Vein intercepted from 270.60m to 286.50m and includes: 270.60m to 271.70m: Minor fractured fragments of vein into andesite, scarce quartz veining. 271.70m to 272.50m: Brecciated banded quartz-adularia vein, pervasive argillic altered lithic fragments.
  • Significant assays reported include; 1.90m at 6.36g/t gold and 1,470g/t silver or 27.35g/t Au_eq from 270.6m, including 0.80m at 14.23g/t gold and 3,379g/t silver or 62.50g/t Au_eq from 271.7m (see Table 1).

Hole CA-11-300:

  • The Inca Vein was intercepted between 306.40m to 307.15m and the vein consisted of a brecciated quartz vein with native silver and silver sulfosalts.
  • 307.15m to 311.0m: interval consists of a zone of pervasive argillic altered andesite with quartz vein fragments and strong stockworks. Between 311.0m to 316.4m: the interval consisted of brecciated quartz vein with black matrix of silver sulfosalts and native silver.
  • Significant assays reported include; 1.35m at 3.46g/t gold and 2,266g/t silver or 35.82g/t Au_eq from 306.4m; and 5.40m at 8.18g/t gold and 2,607g/t silver or 45.43g/t Au_eq from 311.0m, including 1.0m at 39.17g/t gold and 10,837g/t silver or 193.98g/t Au_eq from 306.4m (see Table 1).

Hole CA-11-301 (45º/ -75 / 505.40m):

  • 435.20m to 439.65m: 4.45m quartz vein with cockade textures
  • 439.65m to 447.35m: 7.70m quartz vein with breccia textures and local quartz replacement of adularia
  • 447.35m to 499.40m: Stockworks zone hosted by propylitic andesitic tuff including a massive quartz vein with local cockade and lattice bladed texture from 453.70m to 458.70m and quartz-adularia vein with breccia with minor massive and banded textures from 464.10m to 465.60m.
  • Significant assays reported include; 2.10m at 2.54g/t gold and 652g/t silver or 11.87g/t Au_eq from 445.25m, including 1.05m at 3.17g/t gold and 1,070g/t silver or 18.46g/t Au_eq (see Table 1).

Hole CA-11-303 (45º/ -67 / 368.30m):

  • 328.20m to 331.25m: 3.05m quartz vein with breccia, local massive texture and minor banding. Galena and chalcopyrite occur at the top of the interval.
  • 331.25m to 332.50m: Fault zone with quartz veinlets and breccia
  • 332.50m to 343.90m: 11m stockworks hosted by propylitic andesitic tuff. Quartz veins with local brecciated textures. From 334.25m massive, replacement and brecciated texture with adularia noted at the top of the interval with euhedral galena noted.
  • Significant assays reported include; 1.0m at 1.43g/t gold and 123g/t silver or 3.19g/t Au_eq from 328.4m (see Table 1).

It should be noted that the gold equivalent calculation assumes a conversion of 70 to 1 for silver to "gold equivalent", which was the basis for the 2009 NI43-101 Reserve and Resources Technical Report and reflected the differences in gold and silver metallurgical recoveries and the gold and silver prices assumed at that time.

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 Fellow 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 "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 Company's Casposo Project in Argentina, including a description of Troy's quality assurance program, quality control measures, the geology, samples collection and testing procedures in respect of the Casposo project please refer to the technical reports filed Casposo Project, San Juan Province Argentina dated August 1st, 2009 which is available under the Company's profile at 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.

ABN 33 006 243 750

To view Figures 1 and 2, please click on the following link: http://media3.marketwire.com/docs/try426a.pdf

To view Table 1, please click on the following link: http://media3.marketwire.com/docs/try426b.pdf

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