Troy Resources NL
ASX : TRY
FRANKFURT : TRW

Troy Resources NL

July 31, 2006 10:51 ET

Troy Resources NL: Quarterly Report for the Three Months Ending 30 June 2006

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 31, 2006) - Troy Resources NL (ASX:TRY)(FWB:TRW) -

HIGHLIGHTS JUNE 2006

OPERATIONS

- Sandstone (Troy 100%) treated 121,525 tonnes of ore at 3.66 g/t Au to produce 13,286 oz of gold at a cash cost of A$387 per ounce (US$288). Gold production for the 2005/06 year was 67,934 oz.

- SML Project (Troy 70%) in Brazil treated 36,499 tonnes of ore at 6.55 g/t Au to produce 6,993 oz of gold at cash cost of A$415 per ounce (US$308). Gold production for the 2005/06 year was 59,306 oz.

- Attributable gold production of 18,181 ounces of gold for the June quarter.

- Attributable gold production of 110,263 ounces for the 2005/06 year, which was ahead of forecast.

- The average gold price received by the Troy group for the 2005/06 year was A$687 per ounce (US$510). The average cash cost of production for the year was A$240 per ounce (US$178) giving a Cash Margin of A$447 per ounce (US$332).

EXPLORATION - AUSTRALIA

- Encouraging RC drill intersections were received from the Blackman's Find Project. Better intercepts include: 5m @ 8.08g/t Au from 27m, 11m @ 3.22g/t Au from 62m and 8m @ 2.65g/t Au from 36m.

- At Sandstone reconnaissance RAB drilling tested a number of structural and geotechnical targets at the Detour Road, Henry South, Indomitable and Sandstone North Prospects. The best intercept was 5m @ 3.87g/t is from the Detour Road Prospect.

EXPLORATION - BRAZIL

- Channel sampling of the veins exposed in the old workings at the Serrita Project yielded encouraging gold assays including; 0.13m @ 56.48g/t, 0.2m @ 28.53g/t, 0.3m @ 25.01g/t, 0.5m @ 24.25g/t, 0.3m @ 14.33g/t, 0.45m @ 7.88g/t and 0.3m @ 15.29g/t.

EXPLORATION - MONGOLIA

- At Gutain Davaa, grid based soil sampling identified 4 new prospects: East, Uzuur, Fluorite and Naimt and extended the Toordogiin Shil Zone.

CORPORATE

- Brazilian State tax claim dismissed at first hearing.

- Strategic alliance with Birim Goldfields Inc. to explore and develop prospects in Ghana.

- Group cash and equivalent liquid assets of $50.5 million.

Contact Information

  • Troy Resources NL
    J L C Jones
    Chairman
    (618) 9481 1277
    or
    Troy Resources NL
    T D McKeith
    Chief Executive Officer
    (618) 9481 1277
    (618) 9321 8237 (FAX)
    troy@troyres.com.au
    www.try.com.au