Casposo Exploration Drilling Update Kamila Southeast Trend Inca 1-Inca 2 Gap Target-High Grade ResultS

Mar 24, 2013 21:57 ET

PERTH, WESTERN AUSTRALIA--(Marketwire - March 24, 2013) -

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Troy Resources Limited ("Troy") (TSX:TRY)(ASX:TRY) is pleased to announce new drill results for the "Inca Gap" at its wholly owned Casposo gold and silver mine in Argentina. The best drill result was CA-13-543 and included 1.10m at 198.01g/t gold and 18,670g/t silver or 509.17g/t Au_Eq from 278.00m.

Commenting on the results Troy CEO Paul Benson said: "These drilling results are particularly pleasing on a number of levels. Obviously there are some very high grades, but more importantly these holes are filling a gap between the Inca 1 and Inca 2 blocks that are already in underground Reserves and are in an area where tunnel development was already planned and thus easy to access. At this stage we expect to add this material to Reserves and Resources later in the year."

"The holes were collared in the hangingwall and also tested the mineralised structure called B-Vein before hitting the INCA structure thus allowing us to continue to define this hangingwall zone. B-vein is currently being mined in the open cut, but to date none of the underground mineralisation has been included in Reserves. Again we now expect to include the underground B-Vein in a Reserve and Resources update later in the year."

In early January 2013, a review of the INCA 1 - INCA 2 Underground Resource identified a 60m-80m drilling gap between the INCA 1 Reserve and the INCA 2 Reserve in the vicinity of post mineral dyke 2. Given that the total strike length of the INCA 2 Reserve is about 240m this 60m-80m drilling gap was highlighted as a priority drill target.

In February 2013, drilling commenced with five holes completed to date. Four of the five holes hit the INCA structure and encountered the quartz vein at the planned target depth. The fifth hole hit the post mineral rhyolite dyke. All of these holes also targeted the B Vein structure in the hangingwall of the INCA Vein.

To view Table 1, a longitudinal cross section of INCA Vein Gap Target and an image of a Significant Vein Intercept, please visit the following link: http://media3.marketwire.com/docs/TRY324T.pdf.

Significant assay intervals received to date include.

INCA VEIN ZONE:

  • 1.10m at 198.01g/t gold and 18,670g/t silver or 509.17g/t Au_Eq from 278.00m;
  • 0.80m at 8.19g/t gold and 1,312g/t silver or 30.06g/t Au_Eq from 281.70m;
  • 4.00m at 1.74g/t gold and 699g/t silver or 13.38g/t Au_Eq from 338.60m;
  • 1.70m at 1.24g/t gold and 363g/t silver or 7.29g/t Au_Eq from 295.20m.

B VEIN HANGINGWALL ZONE:

  • 1.40m at 6.41g/t gold and 254g/t silver or 10.65g/t Au_Eq from 118.70m;
  • 2.20m at 5.21g/t gold and 125g/t silver or 7.30g/t Au_Eq from 121.10m;
  • 5.95m at 0.59g/t gold and 266g/t silver or 5.02g/t Au_Eq from 126.80m, Including: 0.85m at 0.70g/t gold and 868g/t silver or 15.16g/t Au_Eq from 126.80m;
  • 3.05m at 2.79g/t gold and 75g/t silver or 4.05g/t Au_Eq from 120.10m.

The best of the new holes was CA-13-543 drilled to a final depth of 342.80m; mineralised interval as follows;

  • 250.00m to 278.50m: Andesite with Quartz-Calcite-Adularia Veinlets - Rare Disseminated Sulphides (up to 4cm in width).
  • 278.50m to 279.10m: Brecciated Andesite with Quartz- Massive Black Sulphides, Chalcopyrite Pyrite with Silica-Calcite Veinlets (1.10m at 198.01g/t gold and 18,670g/t silver or 509.17g/t Au_Eq from 278.00m).
  • 279.10m to 281.70m: Quartz-Calcite-Adularia-Veining and Veinlets with Disseminated Pyrite and Black Sulphides in clusters.
  • 281.70m to 282.50m: Brecciated Quartz-Calcite-disseminated Pyrite and Black Sulphides Vein. (Inca Vein) (0.80m at 8.19g/t gold and 1,312g/t silver or 30.06g/t Au_Eq from 281.70m).

Drilling is continuing. All of the recent results will be included in an updated Reserve and Resource update expected later in calendar 2013.

Information of a scientific or technical nature that which relates to exploration results, Mineral Resources or ore Reserves 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 under the Australian JORC Code as per 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 announcement. Mr Doyle is:

  • A full time employee of Troy Resources Limited
  • 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'
  • A Fellow of the Australasian Institute of Mining and Metallurgy
  • Has consented in writing to the inclusion of this data

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, sample collection and testing procedures in respect of the Company's projects 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 announcement contains "forward-looking statements" and "forward-looking information", based on assumptions and judgments of management regarding future events and results. Such "forward-looking statements" and "forward-looking information which may include, but are not limited to statements as to the expected timing of delivery of underground ore at Casposo to the mill, forecasted production, operating costs, capital costs, the realization of mineral reserve and resource estimates, the discovery of additional mineral resources and reserves and the costs and timing of the development of the underground mine at Casposo. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "is expecting", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes", or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might", or "will" be taken, occur or be achieved. The purpose of forward-looking information is to provide the audience with information about management's expectations and plans. Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Troy and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, future prices of gold and silver, the actual results of current production, development and/or exploration activities, changes in project parameters as plans continue to be refined, variations in grade or recovery rates, plant and/or equipment failure, the possibility of cost overruns, as well as those factors disclosed in the Company's filed documents. There can be no assurance that the Company's plans will proceed as planned or that they will be successfully completed within expected time limits and budgets or that, when completed, expected production levels will be achieved.

Forward-looking information and statements are based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date such statements are made, but which may prove to be incorrect. The Company believes that the assumptions and expectations reflected in such forward-looking statements and information are reasonable. Assumptions have been made about, among other things: the accuracy of the capital and operating costs estimates, the price of gold and silver and the accuracy of mineral resource and reserve estimates. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used.

Troy does not undertake to update any forward-looking information or statements, except in accordance with applicable securities laws.

ABN 33 006 243 750

For further information, please contact:

Troy Resources Limited
Paul Benson
Chief Executive Officer
+61 8 9481 1277
troy@troyres.com.au
www.troyres.com.au

Cannings Purple
Annette Ellis
Media Relations
+61 8 6314 6300
aellis@canningspurple.com.au

Cannings Purple
Warrick Hazeldine
Media Relations
+61 8 6314 6300