Troy Resources NL

Troy Resources NL

August 28, 2011 22:06 ET

Troy Resources NL: Initial Resource Estimate Kamila Southeast Discovery at Casposo Project, San Juan Province, Argentina

PERTH, WESTERN AUSTRALIA--(Marketwire - Aug. 28, 2011) - Troy Resources NL (TSX:TRY)(ASX:TRY) -



  • Troy has completed an initial Mineral Resource Estimate incorporating 44 recently completed holes (25,681m) from the Kamila Southeast Discovery.
  • The initial Kamila Southeast Resource Estimate of 119,900oz Au_eq (Measured and Indicated – using 2.0g/t Au_eq cut-off) and 51,000oz Au_eq of Inferred Resource includes a "high grade" Measured and Indicated core zone (5g/t Au_eq cut-off) grading 6.6g/t gold, 796g/t silver or 18g/t Au_eq for 113,00oz Au_eq.
  • This represents a 19% increase in the Casposo Measured and Indicated Resource Inventory and more than doubles the contained gold equivalent ounces in the Underground Measured and Indicated Resource Inventory.

Troy Resources NL ("Troy") is pleased to announce an initial Resource Estimate of 119,900oz Au_eq of Measured and Indicated Resources and 51,000oz Au_eq of Inferred Resource (see Table 1a and Table 1b below) for the new Kamila Southeast Zone at the Casposo Project in San Juan Province in Argentina (To see Figure 1, Figure 2 and Figure 3 please visit the following link:

Table 1a: Kamila Southeast Resource Estimate
(Using 2g/t Au_eq Cut-off)
Resource Classification Tonnes Gold (g/t Au ) Silver (g/t Ag ) Gold Equivalent
Au_eq (g/t
) Contained Metal
(Au_eq oz
Measured 96,000 6.68 770 17.68 54,600
Indicated 161,000 4.43 572 12.61 65,300
Total Measured & Indicated 257,000 5.27 646 14.50 119,900
Inferred 226,000 3.00 281 7.01 51,000
Note: Discrepancies may occur due to rounding
Table 1b: Kamila Southeast Resource Estimate – High Grade Zone
(Above 5g/t Au_eq Cut-off)
Resource Classification Tonnes Gold (g/t Au ) Silver (g/t Ag ) Au_eq (ppm ) Contained
(Au_eq oz
Measured 87,500 7.24 832 19.13 53,500
Indicated 109,000 6.05 767 17.00 59,600
Total Measured & Indicated 196,000 6.58 796 17.95 113,100
Inferred 108,000 4.72 417 10.68 37,100
Note: Discrepancies may occur due to rounding

Commenting on the results Troy's CEO, Paul Benson, said: "This is a very exciting announcement. The new Measured and Indicated Resource at 257,000t and a grade of 14.50g/t Au_eq for a contained inventory of 119,900oz Au_eq represents a 19% increase in the sites M+I Resources and a near doubling of the underground inventory. Within this Resource there is a high grade zone above a 5g/t Au_eq cut-off of 196,000t at 17.95g/t Au_eq containing 113,100oz Au_eq in the Measured and Indicated categories.

"This is strategically extremely important for the Casposo operation as it should allow us to start the underground mine earlier than currently planned to access the high grade underground ore. This would allow us to avoid the drop in production in the current schedule in years 3 and 4 and maintain production above the 100,000oz Au_eq for longer and extend the mine life.

"It is worth noting that the gold equivalent estimates use the 70:1 ratio to convert silver to gold equivalent as used in our most recent NI43-101 report. If you use a ratio of 50:1, which is a closer estimate using today's metal prices, the total high grade Resource (M+I) above 5g/t cut-off would be 196,000t grading 22.49g/t Au_eq which represents an increase of about 25.3% in gold-equivalent ounces compared to the calculation at a 70:1 conversation factor.

"It is also important to remember that this Resource is just from testing the first 500m southeast along the Kamila structural corridor. We firmly believe there is good potential for additional ounces along the remaining kilometre of structure to the southeast that is untested and in the 4km gap between the Mercado and Julieta Resources to the northwest which also has not been drilled.

"We will keep the current two high productivity drill rigs in this area for the next 6 to 8 weeks to complete infill drilling. This will allow detailed mine planning to be completed and should enable us to convert some of the Resources that are currently in the Inferred category to Measured or Indicated. At this stage we expect to be able to produce a Mining Reserve for this block by early 2012. At that time we expect to update the entire Reserve and Resource and will take into account updated assumptions including the silver to gold conversion ratio. Once the infill drilling is complete we would look to use the rigs to recommence step out drilling to test the remainder of the southeast structure."

In January 2011 Diamond Core drilling commenced adjacent to the existing Kamila Resource and Reserve and in March the discovery Hole CA-11-295 was drilled and it yielded 14.70m at 7.79g/t gold and 1,292g/t silver or 26.24g/t Au_eq from 342.50m downhole.

The drilling was designed to test several of the known veins (Inca Vein and Southeast Extension Vein – "B" Vein) at depth and along strike through a series of infill and step-out extensional drill holes within the structurally complex northwest - southeast trending corridor that hosts the Kamila and Mercado Deposits.

Drilling comprised a series of southwest to northeast oriented holes planned to test B Vein/Southeast Extension Vein at shallow depths (+/- 100m) and the Inca Vein deeper in each hole (about 250m – 400m). A total of 25,681m have been drilled in 44 holes.

Drilling to date has tested only about 500m of the 1.5km long target southeast of the post mineral dyke.

The mineralisation encountered is the same style of low sulphidation epithermal vein hosted high grade gold and silver associated with the Inca Vein within the existing underground Kamila Mining Reserve. The veins are hosted within andesite and can occur as massive, banded or brecciated quartz veins with classic ginguro textures and fine grained black sulphides as well as minor amounts of pyrite-chalcopyrite, and native silver. Local minor quartz vein stockworks are common.

The Kamila Southeast Resource model was constrained by a detailed wireframe of the Low Sulphidation epithermal vein hosted mineralisation with intervals within the wireframe composited to 1m. Blocks in the model were interpolated by using an inverse distance cubed algorithm with the orientation of the search ellipsoid being adjusted to reflect the local orientation of the wireframe. The resource estimate was completed for Troy by Perth based Auralia Mining Consulting Group.

In terms of the Casposo Underground Measured and Indicated Resource Inventory, this new zone represents a 132% increase in the contained gold equivalent ounces as well as a 169% increase in terms of Underground Inferred Resources gold equivalent ounces (at 2g/t Au_eq cut-off).

On a total Casposo Project Resources basis the new discovery represents a 19% increase in Measured and Indicated Resource gold equivalent ounces.

A NI-43 101 Technical report is being compiled detailing the new Resource Estimate and will be posted on SEDAR and on the Troy Website.

Table 2: Kamila Southeast Resource Estimate Detailed Summary
(Using a Range of Au_eq Cut-offs)
Volume Tonnes Gold
(g/t Au)
(g/t Ag)
Gold Equivalent
(g/t Au_Eq)*
Contained Metal
(oz Au_eq)
10.00 Measured 25,000 69,000 8.45 960 22.16 49,200
5.00 32,000 87,000 7.24 832 19.13 53,500
2.50 35,000 95,000 6.77 781 17.92 54,700
2.00 36,000 96,000 6.68 770 17.68 54,600
1.25 39,000 104,000 6.22 720 16.50 55,200
0.70 40,000 107,000 6.05 701 16.06 55,200
0.50 40,000 108,000 5.97 693 15.88 55,100
0.00 43,000 115,000 5.63 653 14.96 55,300
10.00 Indicated 27,000 72,000 7.70 989 21.83 50,500
5.00 40,000 109,000 6.05 767 17.00 59,600
2.50 55,000 148,000 4.75 613 13.50 64,200
2.00 60,000 161,000 4.43 572 12.61 65,300
1.25 70,000 189,000 3.85 498 10.97 66,700
0.70 79,000 212,000 3.46 449 9.87 67,300
0.50 84,000 227,000 3.25 421 9.26 67,600
0.00 98,000 264,000 2.81 364 8.00 67,900
10.00 Inferred 16,000 44,000 7.22 637 16.33 23,100
5.00 40,000 108,000 4.72 417 10.68 37,100
2.50 79,000 213,000 3.12 294 7.31 50,100
2.00 84,000 226,000 3.00 281 7.01 50,900
1.25 94,000 255,000 2.73 258 6.41 52,600
0.70 98,000 264,000 2.65 250 6.21 52,700
0.50 100,000 270,000 2.59 245 6.09 52,900
0.00 128,000 346,000 2.03 193 4.78 53,200
* Au_eq grade calculated using gold to silver ratio of 1:70, as per May 2010 Current Casposo NI-43101 Technical Report. The gold equivalent cut-off was determined according to the parameters below:
  • Au Price US$933.33/oz
  • Ag Price US$15.50/oz
  • Au processing recovery 93.7%
  • Ag processing recovery 80.6%
Gold equivalency is determined by metal price and recovery factors.
Metal prices are the average prices assumed in the Casposo life of mine plan.
Processing recoveries were determined by metallurgical testwork carried out by independent consultants on diamond drill core from Casposo.
The equivalency is calculated by the formula:
Gold: Silver ratio = (gold price ÷ silver price) x (gold recovery ÷ silver recovery) = (933.33 ÷ 15.5) x (.937 ÷ .806) = 70.00
Gold equivalency is calculated by the formula: Au_eq g/t = Au g/t + (Ag g/t ÷ 70.00)
Note: Specific Gravity Estimated at 2.7.
Discrepancies may occur due to rounding

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 Casposo project, including a description of quality assurance programs, quality control measures, the geology, samples collection and testing procedures in respect of the Casposo project please refer to the technical reports entitled Troy Resources NL: Casposo Project, Argentina" dated June 2009 and May 2010, which is available under the Company's profile at

This report contains forward-looking statements including those relating to expected levels of production and the timing of an updated Mineral Reserve and Resource estimate. 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.


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 $15 million and a proven track record in exploration discoveries and strategic acquisitions.

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

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

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.

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

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