Troy Resources NL
ASX : TRY
TSX : TRY

Troy Resources NL

June 21, 2011 08:33 ET

Troy Resources NL: Kamila Southeast Zone Drilling Continues to Deliver High Grade Results

PERTH, WESTERN AUSTRALIA--(Marketwire - June 21, 2011) -Troy Resources NL ("Troy") (TSX:TRY)(ASX:TRY) -

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  • Casposo: Step out drilling along strike and southeast of Kamila Reserve extends new, high-grade gold-silver mineralised zone.

    • Preliminary assays from Hole CA-11-313 produced a 15.95m interval grading 7.72g/t gold and 759.3g/t silver or 18.57g/t Au_eqfrom 319.0m downhole.

    • Final assays from Hole CA-11-307 produced a 2.70m interval grading 10.64g/t gold and 1244.7g/t silver or 28.42g/t Au_eqfrom 345.5m downhole.

  • Mineralised zone remains open along 1km strike, and up and down dip.

  • Infill drilling underway targeting Resource estimate in September quarter.

  • Exploration expenditure to double to more than $15M in FY2012.

Troy Resources NL ("Troy") is pleased to announce assay results (preliminary & final) for the Inca Vein from recently completed drilling at the Company's flagship Casposo gold and silver mine in San Juan, Argentina, confirming continuation of high grade gold-silver mineralised zone along strike and to the southeast of the existing Kamila Reserve.

The new holes include a series of step-outs from earlier reported gold–silver intercepts on the Inca Vein within the Kamila Southeast Extension Target. All recent holes intercepted the modelled Inca Vein surface as planned within the Kamila Southeast Target.

The new intercepts have added significantly to our understanding of the Kamila Southeast Target and confirm the high grade gold and silver values associated with the Inca Vein within the zone (see Figure 1, Figure 2 and Table 1).

Drilling to date has focussed on the 430m zone adjacent to the post mineral dyke. The zone remains open along strike for 1km as well as up and down dip.

Chief Executive Officer, Paul Benson said, "From the drilling to date we have identified a new high grade zone along strike and to the southeast of the existing Kamila Reserve."

"A third diamond drill rig has been mobilised to site to complete close space infill drilling within the Kamila Southeast Target. Our current objective is to complete the drilling required for a Resource estimate on this new zone in the September quarter and if the infill drilling is positive a Mining Reserve by the end of the calendar year."

"Our focus in the coming months will be to determine if we can prove up sufficient high grade material to justify commencing underground development earlier than currently planned."

"In addition to infill drilling at Kamila Southeast Zone, we will also continue to drill the remaining untested 1km strike on the Kamila structure to the southeast."

Mr Benson said the man-portable drill will continue to test the Julieta Resource at depth and will then be repositioned and sequentially test the highest ranked drill targets from the numerous outcropping veins to the northeast of the Kamila structural corridor as well as the Castaño Nuevo and Don David Joint Ventures 23km to the north.

"We are doubling our exploration spend in FY2012 to at least A$15m. In addition to a substantial drilling effort a detailed helicopter magnetics and radiometric survey is planned for the Casposo Property and the JV areas. Follow-up ground magnetics and Induced Polarization surveys will also be undertaken to assist in delineating covered drill targets."

HOLE SUMMARIES:

CA-11-313: (2439569E; 6547677N) / Up dip CA-11-307 Intercept / (45°/-58°/ 426.10m)

  • 15.95m at 7.72g/t gold and 759.3g/t silver or 18.57 g/t Au_eq from 319.0m Inca vein (Preliminary)

Including:

  • 3.5m at 26.64 g/t gold, 2421.1g/t silver or 61.22 g/t Au_eq from 322.4m and
  • 2.2m at 8.22 g/t gold, 1225.1 g/t silver or 26.15 g/t Au_eq from 329.3m
  • Best Individual interval:
    From 325.2 – 325.9m, 0.7m at 24.71 g/t gold, 5541.0 g/t silver or 103.87 g/t Au_eq

Brief description of the zone:

  • 322.45m to 325.90m: Brecciated quartz vein
  • 325.90m to 329.30m: Fault zone
  • 329.30m to 332.60m: Brecciated quartz vein
  • 332.60m to 336.10m: Brecciated quartz vein with strong stockworks veining
  • 334.10m to 334.95m: Banded, brecciated, colloform-crustiform texture vein
  • 336.10m to 363.90m: Andesitic tuff with minor quartz/calcite veinlets
  • 363.90m to 364.20m: Brecciated quartz vein with adularia
  • 364.20m to 426.10m: Andesitic tuff with minor quartz/calcite veinlets

CA-11-307 (2439569E; 6547677E) / (45º / -65º / 447.4m)

  • 2.70m at 10.64g/t gold and 1244.7g/t silver or 28.42 g/t Au_eq from 345.5m (Final)

Brief description of the zone:

  • 338.05m to 346.80m: Andesitic crystal tuff including, brecciated zones
  • 346.80m to 349.80m: Banded quartz–adularia vein, brecciated sections, with fine bands of sulphides, faulted footwall contact from 348.20m to 349.8m in contact with andesite dyke
  • 349.80m to 353.60m: Propylitic altered andesitic dyke

CA-11-308: (2439596E; 6547661N) / (45º / -65º / 425.40m)

  • 0.9m at 9.7g/t gold and 21.0g/t silver or 10.00 g/t Au_eq from 381.9m (Final)

Brief description of the zone:

  • 375.00m to 379.00m: Andesite crystal tuff with fine banded quartz vein
  • 379.00m to 382.80m: Quartz vein, brecciate, (milky quartz as matrix) to massive textures, include andesite, brecciate and banded vein fragments

CA-11-309 (2439614E; 6547642N) / (45º/-65º/ 433.7m)

  • 1.4 m at 3.54g/t gold and 6.0g/t silver or 3.63g/t Au_eq from 406.1m (Final)

Brief description of the zone:

  • The vein was intercepted from 399.5m to 409.7m. Including Andesite crystal tuff with minor quartz banded veins, and from 406.1m to 407.5m quartz vein with banded brecciate texture. Assays are pending

CA-11-310: (2439531E; 6547708N) (45º/-57º/ 383.60m)

  • 5.1m at 2.76g/t gold and 327.5g/t silver or 7.44g/t Au_eq from 297.7m including 2.7m at 4.90g/t gold and 597.6g/t Ag or 13.43g/t Au_eq from 298.8m (Final)

Brief description of the zone:

  • 273.90m to 274.40m: Fault Zone. Fragments of quartz>calcite
  • 280.60m to 282.40m: Fault Zone with breccia quartz-calcite fragments
  • 288.20m to 293.90m: Andesite with moderate stockworks calcite and minor quartz
  • 293.90m to 298.90m: Andesite with moderate stockworks, <3 cm, quartz>calcite composition
  • 298.80m to 301.50m: Quartz vein, with brecciate, banded, massive and scarce cockade textures. Dark grey minerals are present into fine bands
  • 301.50m to 307.50m: Andesite with moderate to strong stockworks, <15 cm, quartz>calcite composition
  • 307.50m to 359.10m: Variable andesite and andesite quartz-calcite veinlets, including minor breccia quartz>calcite from 357.35m to 357.50m
  • Assays are pending

CA-11-311: (2439532E; 6547606N) / Down plunge of CA-11-306 intercept (45°/-60º/556.20m)

  • 1.35m at 11.64g/t gold, 35.0g/t silver or 12.14g/t Au_eq from 455.8m & 2.10m at 0.54g/t gold, 62.1g/t silver or 1.43 g/t Au_eq from 503.0m Inca Vein (Preliminary)

Brief description of the zone:

  • The vein zone consisted of several vein up to 1m: from 430.4m to 430.95m; banded with quartz–pyrite–adularia vein, from 455.8m to 456.35; brecciated quartz–pyrite vein, and from 503.0m to 503.65m; brecciated quartz-Ag sulphosalts–pyrite vein.

CA-11-312: (2439549E; 6547693N) / Up dip of CA-11-306 intercept (45º/-65º / 430m):

  • 1.2m at 17.73g/t gold, 22.5g/t silver or 18.05g/t Au_eq from 377.1m (Preliminary)

Brief description of the zone:

  • 377.10m to 378.230m: Quartz vein breccia–banded, brecciated and colloform textures with sulphides

Competent Person's Statement

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 Fellowr 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.

ABN 33 006 243 750

To view the maps and tables associated with this Press Release, please visit: http://media3.marketwire.com/docs/try-map-0621.pdf.

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