Troy Resources NL
ASX : TRY
TSX : TRY

Troy Resources NL

March 15, 2011 01:16 ET

Troy Resources NL: High Grade Drill Intercept

HIGHLIGHTS

- Preliminary results for Hole CA-11-295: From 344.0m to 357.2m: 13.2m at 8.37g/t Au and 1300.98g/t Ag or 26.95g/t Au_eq

- First high grade intercept in the Inca Vein outside the existing Resource and on the southeast of the second post mineral dyke extending the area of known mineralisation

PERTH, WESTERN AUSTRALIA--(Marketwire - March 15, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Troy Resources NL ("Troy") (TSX:TRY)(ASX:TRY) is pleased to announce the preliminary results for hole CA-11-295 which includes 13.2m from 344.0m to 357.2m: at 8.37 g/t Au and 1300.98 g/t Ag.

On 6 January, 2011 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.

To date 15 holes (5,076.7m) have been completed with assays received for 13 holes and drilling is ongoing. The best result received to date is an intercept of the Inca Vein from Hole CA-11-295 that yielded 13.2m at 8.37g/t Au and 1300.98g/t Ag (26.95g/t Au_eq at 1 Au : 70 Ag) from 344.0m downhole. This intercept is located southeast of the second rhyolite dyke and outside the current Resource model. The current drilling has confirmed that both Inca Vein and the SE Extension Vein are mineralised and continue to the southeast beyond the second rhyolite dyke which represents potential extensions to the underground Resource but additional drilling is required and planned.

Note 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 report and reflected the differences in gold and silver metallurgical recoveries and the gold and silver prices assumed at that time. Because the silver price has appreciated more than the gold price, a calculation using gold at US$1420/oz and silver at US$35/oz would give an in-situ gold equivalent grade of 40.43g/t Au_eq (before metallurgical recoveries are considered).

The current drill program is designed to try and test at least two vein targets with each hole. Hole CA-11-282 yielded a down dip intercept of B Vein of 3.4m at 7.34g/t Au_eq from 146.5m downhole. Hole CA-11-283 produced the best intercept of the SE Extension Vein 2.1m at 2.90g/t Au_eq from 120.1m downhole (see Figure 1: Drill Collar Plan; Figure 2: Hole CA-11-295 Cross section; Figure 3: Generalised Longitudinal Section with 2011 Drilling Pierce Points and Intercepts; and Table 1 for a complete list of gold, silver and Au_eq results).

Commenting on the news Troy's CEO, Paul Benson said: "This is a very significant and exciting result for Troy as it is the first 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.

"Casposo is a low-sulphidation epithermal deposit. These types of deposits are structurally complex and require significant drilling. As has been seen at similar deposits of this style, such as Newcrest's Gosowong or Goldcorp's Cerro Negro, it often takes years of exploration before the high grade veins are discovered. We have many drill targets on the Casposo and Castaño Nuevo properties and are confident we will add to the existing Reserves and extend the mine life past the current planned 6 years. It is actually a surprise however that we have had such a good result just a couple of months into the exploration program.

"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 of around US$1420/oz for gold and US$35/oz for silver would give a gold equivalent in-situ grade of 40.43g/t Au_eq".

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.

ABN 33 006 243 750

To view Figure 1: 2011 Drilling Kamila Zone Geology and Collars, please visit the following link: http://media3.marketwire.com/docs/try315r_fig_1.pdf

To view Figure 2: CA-11-289 & CA-11-295 Preliminary Cross-Section, please visit the following link: http://media3.marketwire.com/docs/try315r_fig_2.pdf

To view Figure 3: Generalised Longitudinal Section with 2011 Drilling Pierce Points and Intercepts, please visit the following link: http://media3.marketwire.com/docs/try315r_fig_3.pdf

To view TABLE 1: Significant Results 2011 Kamila SE Drilling, please visit the following link: http://media3.marketwire.com/docs/try315r_results_table.pdf

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