Troy Resources NL
ASX : TRY
TSX : TRY

Troy Resources NL

April 28, 2011 09:00 ET

Troy Resources NL: Julieta Drilling Update

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

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Diamond Drilling at Julieta Main Zone Yields 18.75m Grading 4.71g/t Gold and 31.68g/t Silver or 5.16g/t Au_eq from 60.35m Downhole including 8.45m at 9.18 g/t Gold and 60.46g/t Silver or 10.04g/t Au_eq.

HIGHLIGHTS

  • JU-11-33: 12.7m grading 4.54g/t gold and 18g/t silver or 4.80g/t Au_eq from 56.75m downhole including 2.0m at 6.73g/t gold and 37g/t silver or 7.25g/t Au_eq from 56.75m downhole and 1.8m grading 19.24g/t gold and 66g/t silver or 20.18g/t Au_eq from 61.6m downhole.
  • JU-11-34: 18.75m grading 4.71g/t gold and 32g/t silver or 5.16g/t Au_eq from 60.35m downhole including 8.45m at 9.18g/t gold and 61g/t silver or 10.04g/t Au_eq from 60.35m downhole and a narrow high grade interval of 0.65m grading 10.30g/t gold and 73g/t silver or 11.34g/t Au_eq from 73.85m downhole.

Troy Resources is pleased to announce the following:

In 2010, Reverse Circulation "RC" drilling produced two encouraging gold assays intervals on the Southern Vein system. These included; RC-10-38 with 8.0m at 6.96g/t Au_eq from 33.0m plus 5.0m at 3.55g/t Au_eq from 52.0m and 3.0m at 5.66g/t Au_eq from 81.0m; and RC-10-39 with 12.0m at 9.86g/t Au_eq from 44.0m and 3.0m at 6.65g/t Au_eq from 60.0m. These intercepts are open down dip/plunge. Diamond Core "DC" Drilling commenced at the Julieta Main Zone in March 2011 with the current program testing the area below the existing Resource. The objective of testing the possibility at depth for a change in vein mineralogy from calcite dominant to more silica dominate and a change in vein texture changes hopefully associated with an improvement in grade. This drilling is targeting the vein systems at depths between 40.0m – 80.0m below the existing drilling.

The first three 2011 DC drill holes were planned to test this potential northwest trending vein system: Holes JU-11-32 to JU-11-35 targeted the Southern Vein set at the Julieta Main Zone.

Significant assay intervals include:

JU-11-32; 0.65m at 2.85g/t au and 65.0g/t Ag or 3.78g/t Au_eq from 62.40m downhole.

JU-11-33;12.7m grading 4.54g/t gold and 18g/t silver or 4.80g/t Au_eq from 56.75m to 69.4m downhole including 2.0m at 6.73g/t gold and 37g/t silver or 7.25g/t Au_eq from 56.7m to 58.75m downhole and 1.8m grading 19.24g/t gold and 66g/t silver or 20.18g/t Au_eq from 61.6m to 63.4m downhole.

Additional mineralised intercepts in JU-11-33 include 1.96m at 1.96g/t gold and 7g/t silver or 2.06g/t Au_eq from 85.5m – 86.5m as well as 4.7m at 0.95g/t gold and 3g/t silver or 0.98g/t Au_eq from 94.5m to 99.2m downhole.

JU-11-34: 18.75m grading 4.71g/t gold and 32g/t silver or 5.16g/t Au_eq from 60.35m to 79.1m downhole including 8.45m at 9.18g/t gold and 60g/t silver or 10.04g/t Au_eq from 60.35m to 68.8m downhole and a narrow high grade interval of 0.65m grading 10.30g/t gold and 73g/t silver or 11.34g/t Au_eq from 73.85m to 74.5m downhole.

JU-11-35: 4.76m grading 4.24g/t gold and 43g/t silver or 4.85g/t Au_eq from 84.34m downhole and 4.68m at 2.54g/t gold and 29g/t silver or 2.96g/t Au_eq from 94.1m downhole.

The current program will include a test of the Northern Vein system at depth (see Figure 1, Figure 2, Figure 3 and Table 1).

Commenting on the news Troy's CEO, Paul Benson said: "These results are significant for Troy as we are seeing ore grade intercepts at Julieta. Although at depth, the topography at Julieta is such that this mineralisation could be accessed by a short adit from an adjacent valley and thus the hurdle for development in terms of minimum size is relatively low.

"The results are also strategically very important. Julieta lies at the other end of the property from the existing Reserves at Kamila. The Julieta Main Zone and Kamila Deposit are about 5kms apart on the main northwest - southeast trending fault structure that we know played a key role in the emplacement of the mineralisation.

"We obviously will need more drilling to delineate the Resource potential of the Main Zone at Julieta, but it does prove we now have ore grade intercepts at both ends of the main 5km northwest – southeast structural corridor at Casposo. We have identified and mapped in detail outcropping veins for 1km of this corridor immediately southeast of Julieta, known as the Julieta SE Target, that will be drill tested. Between Julieta SE and the mine area we have more than 4kms of the structure that is masked by a thin layer of younger volcaniclastic cover. Thus, even if mineralised veining does occur along the full strike length of the structure, it is impossible to identify with surface prospecting and mapping. We are currently planning detailed airborne magnetics to be followed by ground IP geophysical surveys to identify drill targets below the volcanic cover.

"The results are also important because they demonstrate what we have been saying about the need to systematically drill test veins at depth to identify the boiling zones - the "sweet spots" associated with higher grade gold and silver mineralisation. The Julieta veins have anomalous gold at surface and we have now seen higher grades and thicknesses at depth. This is significant because we have numerous outcropping veins with anomalous gold values reported from channel sampling with little or no drilling on the Casposo and Castaño Nuevo properties. All of these are targets that need to be ranked and systematically drilled."

Hole JU-11-32 (45º/ -65 / 149.45m):

62.4m to 63.0m: 60cm Calcite-quartz- breccia/cockade vein
63.0m to 68.5m: Rhyodacite with quartz-calcite stockworks propylitic altered
68.5m to 69.1m: 60cm Calcite-quartz breccia/cockade vein
69.1m to 112.0m: Rhyodacite with quartz-calcite stockworks propylitic altered

Hole JU-11-33 (45º/ -65 / 126.55m):

57.1m to 57.7m: 60cm Brecciated quartz-calcite vein (70% quartz)
57.7m to 74.0m: Strong stockworks zone in rhyodacite (veins up to 20cm), banded, associated with moderate argillic alteration.
74.0m to 76.5m: 2.5m: Brecciated and banded quartz calcite vein, 20% wallrock rhyodacite clasts
76.5m to 94.9m: Strong stockworks in Rhyodacite (20% vein content), thin veinlets increasing to crackle breccia in places, moderate silica altered.
94.9m to 96.3m: Strongly silicified and brecciated rhyodacite, moderately argilic altered with smectite clay fill.

Hole JU-11-34 (45º/ -65 / 117.2m):

59.35m to 67.8m: 8.5m colloform calcite-quartz vein, 60% calcite with strong lattice texture, 40% colloform textured quartz with rare ginguro bands
67.8m – 79.3m: Hydrothermal breccia zone, up to 30% rounded vein clasts in strongly argilic rhyodacite wallrock. 70cm banded silica vein at 73.8m.
79.3m – 83.7m: Trachyte dyke
83.7m – 110.4m: Rhyodacite with stockworks (5%), calcite filled crackle breccia zone at 84.0 – 87.2m.
110.4m – 117.2m: Rhyodacite with weak stockworks in places

Hole JU-11-35 (Vertical/ 144.15m):

84.34m – 84.8m: 46cm Banded silica and calcite lattice replacement vein
84.8m – 85.2m: Weakly brecciated silica altered rhyodacite
85.2m – 98.35m: 13.15m vein dominantly calcite lattice replacement, colloform banding in hangingwall and chalcedony breccia in footwall
98.35m – 98.5m: Rhyodacite, silica and argilic altered
98.5m – 98.73m: 23cm Brecciated quartz vein
98.73m – 102.45m: Trachyte dyke
102.45m – 138.4m: Stockworks and crackle breccia within rhyodacite

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.

To view Figures 1, 2 and 3, please click on the following link: http://media3.marketwire.com/docs/try427m.pdf

To view Table 1, please click on the following link: http://media3.marketwire.com/docs/try427t.pdf

ABN 33 006 243 750

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