TRY-TROY RESOURCES cheap low cost Gold producer

[JBmurc]

Good low cost Gold producer with a nice cash balance an assets..mid-cap in the making
-Mrktcap-117mill
-Divie -1.7%
-forward production 80-100koz gold + silver
-Just $90 an ounce is the expected cost of gold production from TRY's recently acquired Casposo Gold/Silver Project from IAU (IAU book value 60mill TRY paid 22mill )
-Unhedged
-Only 69,837,533 fully paid ordinary shares held by 2,744 shareholders

http://www.try.com.au/

TRY is aiming to become a significant profitable mid tier gold producer with a portfolio of quality long life assets. Between 2004 to 2007, TRY produced approximately 410,000oz of gold at an average cash cost of US$201/oz. This was in line with a strategy of generating strong earnings and cash flow from low cost operations. TRY are also focused on; growing annual gold production and reserves, strategic merger and acquisitions, an aggressive exploration program and fast tracking gold field development. TRY purchased the Andorinhas Gold project from Agincourt Resources and commenced first production within 16 months of purchase in March 2008. The company is targeting 50,000oz of gold per annum with forecast operating costs of US$300 per ounce over a 5 year life. As at 30 June 2008, TRY had a cash balance of approximately $60m and has committed to spending over $10m in FY08 focusing on gold and iron ore at the Andorinhas project. Troy Resources reported net loss of $17.65m for the year ended 30 June 2008. Revenue from ordinary activities were $39.73m, down 57% from last year. Basic and Diluted EPS were (25.7) cents compared to 34.4 cents last year. The net operating cash outflow was $31.38m compared to an inflow of $34m in the pcp. The final dividend declared was 3 cents fully franked, taking the full year dividend to 3 cents compared with 7.5 cents last year.

[drillfix]

Good stock JB, These guys also gotta sh#t heap of cash dont they?

I remember reading a report on these guys a while back when they about mid 80s.

Another stock I wish I had bought when I had no funds Bahhh~! :rolleyes:

[JBmurc]

Good stock JB, These guys also gotta sh#t heap of cash dont they?

I remember reading a report on these guys a while back when they about mid 80s.

Another stock I wish I had bought when I had no funds Bahhh~! :rolleyes:

Yeah still when Golds over 2k an silvers priced in the 000s TRY will be many multiples of today close of 1.70
I luckily got in at 1.35 only a week back

[JBmurc]

Been buying up TRY of late under the pressure of bot trades an the odd short termers
volume wise their only been some 2.5mill shares traded from 1.70 to 1.30 so it really been the smaller holder pressure selling ,as 70% is held by the smart top-20
If any other big boys want to buy a decent piece they'll have to pay up to get it.

looks likely to be producing a av. 100ozpa over the next 5yrs + 800k silver(the real kicker once silver goes though the roof)

has -32mill cash on hand -2 producing mines soon to be 3 massive exploration upside
big plus there's only 74.7mill shares outstanding


worth reading up their latest presentation----

http://hotcopper.com.au/asx_announcements.asp?id=66719

[JBmurc]

16 July 2009
High Grade Results at Two Mile Hill Prospect, Sandstone
Western Australia
Highlights
 Banded Iron Formation (BIF) hosted high grade gold mineralisation was intersected
on both the eastern and western margins of the Two Mile Hill tonalite. The BIF is
quartz veined and extensively replaced by pyrite. Gold intersections are as follows:
TRCD735; 6.8m at 15.73g/t gold from 215.0m downhole including 3.4m at 30.36g/t
gold from 216.4m and TRCD733; 25.9m at 16.56g/t gold from 240.1m
including 3.5m at 20.24g/t gold from 243.0m and 13.7m grading 25.98g/t gold
from 251.0m downhole.
 Tonalite hosted gold intercepts (calculated without using a cutoff or applying a top
cut) include; TRCD727; 96.6m at 1.66g/t gold from 306.0m downhole; TRCD730;
205.5m at 1.14g/t gold from 94.0m downhole; TRCD731; 156.3m at 1.14g/t gold
from 216.5m downhole; TRCD732; 353.3m grading 1.04g/t gold from 125.7m
downhole; TRCD034; 158.6m at 0.83g/t gold from 200.3m downhole and
TRCD735; 230.4m grading 1.62g/t gold from 243.1m downhole.
PERTH, Western Australia: Troy Resources NL (“Troy”) (TSX: TRY, ASX: TRY) is
pleased to advise that an 8 hole (2940m) follow-up drill program at Two Mile Hill has better
delineated the intrusive hosted stockworks style gold mineralisation associated with the Two
Mile Hill tonalite first identified by drilling in April - June 2008 (TDD034; 387.0m grading
1.57g/t gold and TRCD727; 96.6m at 1.66g/t gold from 306.0m downhole) and has
identified a second higher grade style of gold mineralisation hosted within a Banded Iron
Formation (BIF). The Two Mile Hill Prospect is located 2.7km northeast of the Sandstone Mill
(see attached Drill Hole Cross-Sections and Location Plan).
All assays have now been received for the 8 hole drill program consisting of Reverse
Circulation (RC) precollars and Diamond Core (DC) extensions totaling 2940m (780m in RC
precollars; 2160m in DC extensions).
Holes were drilled on 40m sections over a 240m strike of the Two Mile Hill tonalite stock. All
holes were orientated at an azimuth of 270o (MGA) with variable declinations ranging from
-55o to -67o. The maximum hole depth was 504m.

---BIF was intersected on both sides of the tonalite in close proximity to the tonalite in several
holes. The two intersections in separate drill holes occur on the east side and on the west
side of the tonalite. The BIF is highly quartz veined and extensively replaced by pyrite. These
intersections contained high grade gold values as follows:
TRCD735: 6.8m at 15.73g/t gold from 215.0m
Including 3.4m at 30.36g/t gold from 216.4m
TRCD733: 25.9m at 16.56g/t gold from 240.1m
Including 3.5m at 20.24g/t gold from 243.0m
and 13.7m at 25.98g/t gold from 251.0m

[fruitloop]

Hey JB, been looking at this stock in the last couple of weeks.
Trying to round out my portfolio by holding some gold stocks.
Nice announcement and results.
Personally I think that Gold will provide some nice insurance against the way the economy is going.

Only need to find some spare cash :-(

[JBmurc]

TRY- moving higher again today -good news coming-? has gone from low 1.20s to 1.445 currently ,bots doing the work with 1-6 shares getting brought 7-8 times in a row hitting the sells (was doing the same on the buy side only weeks ago)
games being played??

[JBmurc]

Casposo
Life of mine operating cost:

US$276/oz AuEq (1)

US$90/oz after silver by-product (now I believe we'll see gold head towards 1500oz next yr nice profit per oz)


BUENOS AIRES, June 22 (Reuters) - Casposo, an Argentine mine operated by Australia's Troy Resources TRY.V, will begin to produce gold and silver next year after an $87 million investment in the project, an executive from the company told Reuters on Monday.

Construction at the mine in San Juan Province, some 785 miles (1,265 km) northwest of Buenos Aires, should be complete this year and the mine will employ at least 200 people when it is operational.

"What we have said is that we could start the construction before the end of the year, now I quite clearly see we are probably going to do it faster than that," Ken Nilsson, operations director for Troy Resources said in an interview in Buenos Aires.

"And the planning (for production) is for 12 months after starting the construction but again I'm hoping to do it quicker than that. My personal target is the beginning of July (of 2010)," he said.

Casposo is expected to produce some 60,000 ounces of gold and silver in its first year and 80,000 ounces per year in the rest of its five-year projected life.

Troy Resources acquired Casposo from Intrepid Mines IXN.TO in May. The mid-sized miner, formed in 1987, also has two mines in Brazil and plans to continue investing in South America.

"We have been looking at other projects in Argentina for a number of years but they are not for sale. But we keep looking and this year and in following years we would spend a lot of money on exploration, particularly around the mine site," Nilsson said.

He said the company's Sandstone mine in Australia will stop producing in the next 12 to 18 months, so getting Casposo up and running soon is important.

[JBmurc]

New Inferred Resource – Two Mile Hill Prospect Sandstone
Western Australia
Highlights
 An Inferred Mineral Resource of 10,541,000t grading 1.3g/t (grams per tonne)
gold for 452,000oz contained gold has been estimated for the Two Mile Hill
tonalite gold mineralisation
COMMENTARY
Commenting on the results Troy’s CEO, Paul Benson, said: “At over 450,000 oz this is a
significant resource and although low-grade, the geometry of the intrusive is such that it
could be amenable to low-cost high-tonnage mining methods. However, it’s the recent
discovery of high-grade gold mineralisation in the adjacent Banded Iron Formation (BIF),
announced on July 16th, but not included in this resource number, that makes this really
interesting.
We are currently planning a Phase 3 exploration program to test the extent of the high-grade
BIF mineralisation. If we can prove up sufficient high-grade it’s easy to see a concept where
a decline is mined through the tonalite to access the BIF horizon. With an existing operation
and workforce, a permitted site and development in mineralised tonalite, the tonnage
required to make a viable operation is significantly less than for a standalone greenfields
operation.
Sandstone has never had much more than 3 years forecast mine life ahead of it, yet it is
about to mark its 10th anniversary as a Troy operation. It’s been an outstanding performer for
the company and obviously we’re hoping that Two Mile Hill can play a part in extending
production well into the next decade. All going well we should be in a position to evaluate the
Phase 3 results early in the December quarter”.

[JBmurc]

Troy Declares 10th Consecutive Fully Franked Dividend
Highlights
 Dividend of 4.0 Australian cents per share fully franked.
PERTH, Western Australia: Growing junior gold producer, Troy Resources NL (“Troy”)
(TSX: TRY, ASX: TRY) today announced it will pay a fully franked final dividend of 4
Australian cents per share out of profits for the year ended 30 June 2009. The Company is
expecting to report an audited net profit after income tax, for the year ended 30 June 2009,
approximating AUD 16 million. The record date for the dividend is close of trading on Friday
21 August, 2009 and the payment date is Friday 4 September, 2009.
Commenting on the announcement Troy’s CEO, Paul Benson said: “This is Troy’s
tenth consecutive fully franked dividend which is an amazing record for a junior gold
producer. The dividend of 4 cents per share represents a yield of 2.3% on Friday’s
closing share price. The 2009 financial year was certainly one of building the
foundations for the profitable growth of the company which will allow us to continue
paying dividends in the future.”
ENDS

[JBmurc]

Troy Resources Finds A Princess Among The Frogs, As It Moves Towards Production Of 120,000 Ounces Of Gold Per Year

By Rob Davies / www.minesite.com

Few junior miners could have been better placed for the crash last year than Troy Resources. Troy banked A$48m in cash in July 2008 after selling its stake in Canadian junior Comaplex Minerals to Agnico-Eagle. So you might think that in the context of what followed the market would have rewarded a company that was cashed up and had two producing gold mines. Wrong.

At one point last year Troy was trading at A$67 cents, well below the value of the cash it had on the balance sheet. These days the equity is trading at a more reasonable A$1.95 giving Troy a market capitalisation of A$144 million. Some of that change in valuation is due to a firmer market, but it is mostly down to the company’s judicious purchase of the Casposo gold-silver project In Argentina for US$20 million in May this year from Intrepid Mines.

Troy undertook a long search before it found the right acquisition, and chief executive Paul Benson admits to kissing a lot of frogs before finding the right one.
But as he was out shopping, what he found interesting was that companies that in the past had declined to allow Troy past the coffee machine were now all over them. And by the time Troy had run its slide rule over the properties that were now on offer, it was troy that was the one saying “Adios”. In the end the choice of a deposit in Argentina might surprise some. However, Paul defends it by saying that it is in the mining-friendly province of San Juan, and is just down the road from Barrick’s Pascua Lama mine.

Moreover, Troy has experience of operating in South America, through its Andorhinas gold mine in Brazil. It was declining output from a combination of Andorhinas and from the Sandstone project in Australia that lead to Troy undertaking the 18 month search for a new mine all round the world. Paul admits that the company spent a lot of time in West Africa. The problem there though, he continues, is that compared to South America the lack of infrastructure meant that mine development would be slower and more expensive.

Troy acquired Casposo at a valuation of US$48 per resource ounce on a gold equivalent basis and then immediately set about recalculating the resource statement using existing drill data that hadn’t yet been incorporated into the existing totals. As it stands now, Casposo has a a gold reserve of 287,000 ounces, a silver reserve of seven million ounces, a gold resource of 444,000 ounces, and a silver resource of 17 million ounces, which on a gold equivalent resource ounce basis equates to an even lower acquisition valuation of US$36 per ounce. The previous AMEC feasibility study on Casposo is the one being used to construct the mine and Paul sees no need to change that at this stage, so there won’t be any change to reserves just yet either.

Right now his challenge is to shift the two million tonnes per year process plant that’s currently sitting in an Australian shed out to Argentina. The first concrete pour will start in a few weeks, and the plant will be shipped in October. The mine plan calls for first production during the September quarter of 2010. Output in year one will be 58,000 ounces of gold, and half a million ounces of silver.

Adding that to the existing production from Sandstone and Andorhinas takes group output up to over 120,000 ounces per year. At that level, Troy’s production would be its highest ever. Although the forecasts project a decline from then on, Paul is confident that the recent resource increases at both Troy’s existing mines will enable current production rates to be sustained for longer.

Total gold resources for the group now stand at over 1.5 million ounces, another record for the group. One area in particular Paul is enthusiastic about is Two Mile Hill at Sandstone, where recent drill testing revealed several good intersections, including one of 13.7 metres at 25.9 grammes per tonne.

A deposit in Argentina and a plant in a shed in Australia isn’t much use until they are mated. That, and finishing the rest of the construction, will cost another US$45 million. While that total is a lot less than the original estimate of US$86 million that appeared in the AMEC report it will take all the company’s existing cash of A$35 million - and a bit.

The lesson from last year, though, is that the market wants miners to own mines, not cash. Troy has delivered on that by converting its cash into gold in the ground. Once it has built the plant in Argentina it can complete the circle by turning the gold back into cash, a lot more cash. That’s what we call adding value.

[JBmurc]

Troy Announces a Profit of A$16.7 Million and Builds the
Foundation for Future Growth
Highlights:
 Net profit after tax of A$16.7 million
 Pays 10th consecutive fully-franked cash dividend. FY2009 4 cents per share
 53% increase in gold production to 61,832 ounces
 Acquired the Casposo gold/silver deposit in Argentina
 32% increase in the Casposo Mineral Resource
 Commenced production from the high grade Mamão underground mine at the
Andorinhas operation in Brazil
 The Sandstone mine which was due to close in February 2009, will now continue
production through at least July 2010 with the mining of additional ore
(30,000oz) from a cut back to the pit at the Lord Nelson deposit
 Discovery of high-grade mineralisation at the Two Mile Hill prospect at
Sandstone, Western Australia including an intercept of 13.7m at 25.98g/t Au
 96% increase in gold Reserves to 539,500oz, a 60% increase in Measured and
Indicated gold Resources to 893,400oz and a 240% increase in Indicated
Resources to 648,400oz
 Maiden silver Reserves of 6.7 million ounces and silver Indicated Resources of
15.4 million ounces
 Cash reserves of over A$35 million
 Unhedged gold and silver position
 Debt free
PERTH, Western Australia: Growing junior gold producer, Troy Resources NL
(TSX/ASX: TRY) today announced a profit of $16.7m for the financial year ended 30 June
2009. This result compares to a loss $17.6m in FY 2008.

[JBmurc]

Well been enjoying the TRY ride not in any hurry to get off either current S/P- 2.38could have brought a truck load back when I first started the thread 1.30's

will sell some once north of $3

[JBmurc]

I mean shouldn't LOL very tightly held blue chip jnr mining could well raise the total amount through a rights issue just include some free $3ex opts

Gold at $1015 TRY's forward production costs $90-100per oz of gold thanks to the silver credits now with once TRY have their third gold mine in production TRY should be producing over 100,000oz of GOLD 2011yr
Now if you like myself believe gold will be trading north of $1500 by 2011 TRY should stand to have a massive nett profit over 100mill+ so even if TRY have say 100mill shares outstanding TRY should well command an SP of $8-$10 as well as paying a great divie to buyers of now..


2 October 2009
Dear Fellow Shareholder
TROY RESOURCES UPDATE
Notice of Shareholder Meeting
As you are aware, the Company received, on 25 September, a 249D notice from Warrigal Pty Ltd,
(a 9.63% shareholder in the Company associated with Mr John Jones, a Non-Executive Director in
the Company).
Mr Jones, through his company, Warrigal Pty Ltd, is requisitioning a meeting of shareholders to:
 Remove Mr Paul Benson, the current CEO of the Company, as a Director
 Remove Mr Alan Naylor, the founding shareholder and a Director of the Company since 1984,
as a Director
 Remove Dr Denis Clarke, the Chair of the Company’s Audit Committee and a Director of the
company since 1999, as a Director
And replace them with:
 Mr Peter Stern, an advisor to Mr Jones
 Mr Robin Parish, and
 Mr Andrew Barclay
The Board has formed a sub-committee to guide the Company’s response to the above
requisitions.
It is anticipated that a general meeting will be held towards the end of November, most likely on the
same day as the Company’s Annual General Meeting. An explanatory booklet will be sent to
shareholders ahead of this general meeting, and each director to whom the 249D notice relates,
along with Warrigal Pty Ltd’s proposed nominees to the Company’s board, will be asked to provide
details for the booklet, to assist shareholders in making a decision.
Casposo Project
The 249D notice came at a time when the Company was finalising its evaluation of a range of
capital raising alternatives to secure the balance of funding required to complete construction of the
Casposo Gold Project (Casposo) in San Juan Province Argentina.
There has been some media commentary on the funding of Casposo. In light of that, I thought it
would be useful to recap the Company’s recent progress regarding this project.
After finalising the acquisition of Casposo in May 2008, Troy set about recalculating the Casposo
Mineral Resource to incorporate data from 61 new diamond drill holes completed by the previous
owners, Intrepid Mines Limited which had not been incorporated into their published resource
numbers.
TROY RESOURCES NL
ABN 33 006 243 750
All Correspondence to:
REGISTERED OFFICE
Ground Floor
44 Ord Street
West Perth 6005
Western Australia
Telephone: (61 8) 9481 1277
Facsimile: (61 8) 9321 8237
Email: troy@troyres.com.au
Web Site: www.try.com.au
2
The new calculations resulted in a 32% increase in contained gold equivalent Indicated Resource
ounces as was announced to the market on 29 July.
On 5 August 2009, a capital cost revision was completed for Casposo to produce a revised
estimate of US$45 million to develop the project to first production. The revised estimate
represents a 47% or US$41million reduction on the capital cost estimate previously announced by
Intrepid.
The capital savings were realised from utilisation of existing near-new plant, which had been held
in storage in Cobar, NSW and bringing the project management in-house utilising Troy’s existing
capacity and expertise in South America, resulting in a significant decrease in costs over using an
EPCM contractor.
This work led to a significant improvement in project economics and on 6 August the Board
authorised the commencement of construction at Casposo. First gold production is planned for the
September quarter 2010.
The Board is continuing to work through the best ways to fund Casposo. It is anticipated that
funding will now be required by the end of 2009, in light of, among other things, advantageous
pricing of certain capital items if they are acquired now.
As a first step in obtaining that funding, the Company’s partly paid shares have been called, to
raise $1,946,418 by 23 October 2009.
The Board continues to evaluate the best way to raise the balance of the capital required to ensure
timely completion of construction and will keep shareholders informed.
Financial Results
I would also like to take this opportunity to inform shareholders that the Company’s full year
statutory accounts for 2009 were released to the ASX on 30 September 2009, and are available for
your review on the ASX website.
ASX 300
We were pleased that on 18 September 2009 the Company joined the ranks of Australia’s top 300
companies with its admission to the ASX300.
Further announcements will be made as and when updated information becomes available.
In the interim, please do not hesitate to contact me on shareholders@troyres.com.au or visit
Troy’s website www.try.com.au should you require any further information.

[Corporate]

JB..have you taken a loook at DRA?

[JBmurc]

JB..have you taken a loook at DRA?

Na not yet you should do post some of your research on DRA -reserves,grades,cash,marketcap,managerment class,past history etc

PRESS RELEASE
9 October 2009
CASPOSO PROJECT UPDATE
HIGHLIGHTS
 Site excavation and pre-construction site preparation completed
 Government approval secured to commence plant construction
 Concrete work underway – leach tanks 30% complete
 On site access roadwork completed
 Site fencing completed
 Project well supported by local community and Argentinean Government
 Transport of stored plant components from NSW on schedule to arrive at Zarate
Port in December 2009
 Brownfields exploration of near-mine targets ongoing
Perth, Western Australia: Growing junior gold producer, Troy Resources NL (TSX, ASX:
TRY) is pleased to update the market on the progress of its Casposo gold-silver project
(Casposo) in San Juan province, Argentina.
Troy’s Chairman, John Dow reiterated Casposo’s significance to the continued delivery of
value to its shareholders.
“Casposo is the cornerstone of the Company’s near term growth plans. When the project
comes online, Troy will again be producing more than 100 000 ounces per annum, bringing
us closer to our vision of becoming a profitable mid-tier gold producer.
“The project remains on schedule and within budget, with site work progressing rapidly. It is
very exciting to see the transformation from an exploration camp to a producing mine.
Already the size and scope of the infrastructure is evident.
“It’s all coming together very nicely under the management of Troy’s Executive Director Ken
Nilsson. Ken has a proven track record as a mine builder, and we remain confident in our
ability to build and commission Casposo safely, quickly and at low cost.
“The Board continues to work through the funding for Casposo, and is confident in meeting
forecast first production in the September quarter of 2010, provided that project funding is
finalised before the end of the calendar year.”

[JBmurc]

Current TRY SP-$2.75
The way the SP has gone of late TRY could have raised the lot though shareholders these $2 rights are very sort after can't wait to get my lot

INFORMATION FOR SHAREHOLDERS PRO-RATA NON-RENOUNCEABLE ENTITLEMENTS ISSUE
As you may be aware, the Company will shortly be offering to you an opportunity to acquire more shares in the Company pursuant to a pro-rata non-renounceable entitlements issue to shareholders of ordinary fully paid shares ("Shares") on the basis of one (1) Share for every six (6) Shares held by you at 5.00pm WST on 12 November 2009, at an issue price of $2.00 per Share, to raise approximately $24.9 million ("Entitlements Issue"). This offer will be made pursuant to an offer document ("Offer Document") and if you wish to participate in the Entitlements Issue, you will need to complete the Entitlement and Acceptance Form that will accompany that Offer Document.
A copy of the Offer Document will be lodged with ASX on 17 November 2009 and will available on the ASX website (www.asx.com.au) and the Company's website (www.troyres.com.au) on that date. The Offer Document will be despatched to persons holding shares as at the record date of 12 November 2009.
Pursuant to the Listing Rules of the ASX Limited (“Listing Rules”), the Company is required to provide to you certain information before proceeding with the Entitlements Issue. This letter contains all the information required by Appendix 3B of the Listing Rules.
1. A maximum of 12,449,790 Shares will be issued pursuant to the Entitlements Issue (assuming no existing options are exercised).
2. The Shares rank equally in all respects from the date of allotment with the existing class of quoted Shares.
3. The issue price of the Shares will be $2.00 each.
4. The Company will apply for quotation of the Shares issued pursuant to the Entitlements Issue on the official list of the ASX.
5. The funds raised by the Entitlements Issue will be used for construction activities at the Casposo Project in Argentina.
6. It is anticipated the securities will be entered into uncertificated holdings or dispatch of certificates on 7 December 2009.
7. The total number and class of all securities quoted on ASX (including the maximum number of Shares to be issued in the Entitlements Issue on an undiluted basis – ie. assuming none of the Company's options are exercised) is as follows:
TROY RESOURCES NL
ABN 33 006 243 750
All Correspondence to:
REGISTERED OFFICE
Ground Floor
44 Ord Street
West Perth 6005
Western Australia
Telephone: (61 8) 9481 1277
Facsimile: (61 8) 9321 8237
Email: troy@troyres.com.au
Web Site: www.try.com.au
Class
Number
Ordinary shares
74,698,744
Entitlements Issue
12,449,790
TOTAL
87,148,534

[JBmurc]

SULPHIDATION EPITHERMAL PROJECT LOCATED 22KM NORTH OF THE CASPOSO
MINE, SAN JUAN PROVINCE, ARGENTINA
HIGHLIGHTS
 Troy secures deal to acquire the historic Castaño Nuevo high grade, low
sulphidation epithermal gold -silver vein project located 22km to the northeast
of the Casposo Mine.
 Troy has entered into an earn-in option agreement with the owners of the
Castaño Nuevo Property whereby Troy can earn a 100% interest in the project
through a series of staged cash payments and in-ground exploration
expenditures totaling USD$1.1M over 4 years. The project is one of the best
outcropping, low sulphidation epithermal vein occurrences in the Casposo
District outside Troy’s existing tenements and within trucking distance of the
Casposo Mill.
PERTH, Western Australia: Troy Resources NL (“Troy”) (TSX: TRY, ASX: TRY) is
pleased to announce that it has entered into an earn-in option agreement with the owners of
the Castaño Nuevo Property whereby Troy can earn a 100% interest in the project through
a series of staged cash payments and in-ground exploration expenditures totalling
USD$1.1M over a 4 year period. Troy’s first year commitment includes in-ground exploration
expenditure of US$100,000 as well as cash payments totaling US$100,000.
Commenting on the deal Troy’s CEO, Paul Benson, said: “This is an exciting and
significant step as it is Troy’s first exploration play in Argentina outside of the
Casposo leases. Importantly, with its close proximity to Casposo, we can leverage our
infrastructure and local knowledge to quickly assess the project’s potential.
“With this deal we have secured the rights to explore and develop the Castaño Nuevo
Project which, in our view, represents one of the best outcropping low-sulphidation
epithermal vein occurrences in the Casposo district outside our existing tenements.
Being within trucking distance of our Casposo Mill, the project has potential as a
satellite ore source to supplement our current Resource and Reserve inventory and
extend the Casposo Life of Mine production.
“Exploration will commence in early 2010 with a detailed geological mapping and rock
sampling program that will be followed by drilling later in the year”.
The Castaño Nuevo Property comprises a series outcropping, gold and silver bearing low
sulphidation epithermal quartz-amethyst-adularia veins which were first discovered in 1885.
This historic high grade gold-silver vein district is located 22km to the northeast; about 45km
by road from Troy’s Casposo plant site (see Figure 1).
TROY RESOURCES NL
ABN 33 006 243 750
All Correspondence to:
REGISTERED OFFICE
Ground Floor
44 Ord Street
West Perth 6005
Western Australia
Telephone: (61 8) 9481 1277
Facsimile: (61 8) 9321 8237
Email: troy@troyres.com.au
Web Site: www.try.com.au
2
Figure 1: Project Location Plan Casposo Mine and Castaño Nuevo Property
CASTAÑO NUEVO PROPERTY
During the late 1800s the Dios Protege, San Antonio, Andacollo, San Pedro and San
Agustín Mines, were operated by the London Registered Rio Del Oro Mining Company. A
1914 Argentina government Census report noted that the site saw continuous production
over a 20 year period through 1914 and in 1909, 2200 tons of ore were treated, which
produced 62,693g of gold (2,106oz gold) and 381,222g of silver (12,256oz silver), giving
an average of 28 gold grams (recovered) per ton.
3
The most recent exploration in the area was undertaken between 1997 and 2005 by two
junior explorers. Both programs included geological mapping, rock sampling, geophysical
surveys (magnetics and Induced Polarization) as well as limited shallow drilling.
Like Casposo to the south, the Castaño Nuevo Project is situated within a northwest –
southeast trending regional structural corridor. The low sulphidation vein system is
genetically very similar to the Casposo Deposit (see Photos 1 and Photo 2).
At surface the veins, with the exception of the main historic producer (Dios Protege), are
narrow (<1.5m) and low grade (2g/t gold) but historic surface rock grab sampling has
produced values of up to 30g/t gold and 50g/t silver. The veins form a north trending open
fan pattern over strike lengths of up to 700m, with vein widths ranging from 1m up to 5m.
This vein system is hosted in propylitic altered and locally silicified andesite. The veins have
been dated at 265Ma, which is about 15Ma younger than the Casposo veins.

[Huang Chung]

JB

A hint of some positive news regarding TRY's nickel JV with Western Areas at Sandstone, in today's release from WSA.

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01028323

[JBmurc]

JB

A hint of some positive news regarding TRY's nickel JV with Western Areas at Sandstone, in today's release from WSA.

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01028323

yeah now thats out of left feild also I here TRY have a nice wee Iron ore discovery with a low start-up costs also sitting in the back round ....I was more than happy to invest just with their GOLD an SILVER mines an permits the extra kicker to send TRY upwards to $3+ in 2010

[JBmurc]

TROY FINANCING UPDATE
HIGHLIGHTS
 Following a competitive process, Troy Resources NL has signed a mandate with
Investec Bank (Australia) Limited to provide a A$25m Revolving Corporate Debt
Facility.
 With existing cash reserves, including the recent equity raising, the Casposo gold
and silver project in Argentina is now fully funded to first production in the
September quarter 2010.
 The Facility has two Tranches. Tranche A of A$15m will fund construction of
Casposo. Tranche B of A$10m is available for a combination of Casposo
development and for general corporate purposes. The intention is that these funds
will primarily be used for an accelerated exploration program of the Casposo and
Castaño Nuevo leases to build the Company’s gold and silver Reserves and
Resources.
 The facility requires no gold or silver price hedging leaving Troy shareholders fully
exposed to the underlying commodity prices.
 The facility includes the issuance of options to Investec with an exercise price at a
30% premium to the Troy share price.
 Loan Maturity is 3 years.
Perth, Western Australia: Growing junior gold producer, Troy Resources NL (TSX, ASX:
TRY) today reported it has signed a mandate with Investec Bank (Australia) Limited
(Investec) to provide an A$25m Revolving Corporate Debt Facility. The Facility is provided in
two tranches. Tranche A for the amount of A$15m has already received Investec Credit
Approval and will be available for drawing when the loan documentation is finalised,
currently expected in March 2010. Tranche A is intended to provide the balance of funding to
finalise construction of the Casposo gold and silver mine in Argentina.
Tranche B for the amount of A$10m is subject to Investec’s due diligence review and final
credit approval which is expected in May 2010. For clarity, the availability of Tranche A is not
impacted by the availability of Tranche B. Although the funding from Tranche B is intended
for general corporate purposes it is expected that it will primarily be directed to funding an
accelerated exploration program of the Casposo and Castaño Nuevo leases to build the
Company’s gold and silver Reserves and Resources, with a view to extending the Casposo
mine life.
Part of the cost of the loan facility includes the granting of call options over Troy ordinary
shares to Investec (subject to the standard approval of the Toronto Stock Exchange). The
volume of the shares will be equivalent to A$3m for Tranche A and A$2m for Tranche B. The
exercise price for these options will be a 30% premium over the relevant 90 day VWAP
(volume weighted average share price):
TROY RESOURCES NL
ABN 33 006 243 750
All Correspondence to:
REGISTERED OFFICE
Ground Floor
44 Ord Street
West Perth 6005
Western Australia
Telephone: (61 8) 9481 1277
Facsimile: (61 8) 9321 8237
Email: troy@troyres.com.au
Web Site: www.try.com.au
2
 Tranche A exercise price - $3.15/share
 Tranche B exercise price - to be calculated on the date Investec advises Troy that
Tranche B is credit approved
The term of the loan is 3 years and no mandatory gold or silver price hedging is involved.
Finalisation of the loan is subject to standard conditions precedent and completion of
documentation.
The acceptance of Investec’s offer followed a rigorous and competitive selection process
undertaken with the assistance of Optimum Capital.
Commenting on today’s announcement, Troy’s CEO Paul Benson said: “Casposo plays a
significant role in Troy’s strategy to become a profitable mid-tier gold company. In this
context, securing the debt facility to finalise construction funding is a very important company
milestone. With full funding in place, Ken Nilsson, Troy’s Executive Director Operations, can
focus on bringing Casposo into production. We remain on track to pour first gold in the
September quarter of 2010.
“Importantly the facility includes a second Tranche of A$10m (Tranche B) that puts Troy in
the position to continue to look at and evaluate new gold projects. With the additional
funding in place, acquisitions are very much on the agenda along with accelerated
exploration programmes testing the potential of the Casposo leases and the nearby Castaño
Nuevo Joint Venture. We are very excited by the geological prospectivity of the leases and
are confident that we will be able to add significantly to the existing gold and silver Reserves
and Resources over the coming twenty four months, with a view to extending the Casposo
mine life.
“Based on the significant free cashflow forecast from Casposo, our expectation is that any
debt drawn-down will be repaid expeditiously. Any repayments ahead of schedule can be
redrawn for corporate acquisitions or project developments.
“We reached agreement with Investec following an exhaustive and rigorous competitive
process. Of importance for Troy shareholders, the facility does not require mandatory gold or
silver price hedging. Also, part of the fees payable is in the form of call options over Troy
stock. The exercise price of these options is at a 30% premium to the relevant Troy share
price; and a significant appreciation in the Troy share price would presumably be necessary
before these options are exercised.”

[JBmurc]

TRY - looking at buying more into this A grade Goldie hoping for a pullback in gold an some sellers to push closer to $2 for me to top up

-from recent presentation-

How Does Troy Measure Up?
 Troy has a track record of low cost mine development and
production
 We focus on low-capex relatively high-grade gold deposits in
jurisdictions we are comfortable operating in
− Sandstone, WA
− Sertao, Brazil
− Andorinhas, Brazil
− Casposo, Argentina
 Troy has paid A$30.5M in ten consecutive fully franked cash
dividends
 Troy has been operating in South America since 2002 and
Casposo will be the 3rd mine we have built and operated there.

-TRY third mine to open sept 2010-

 All major permits in place
 Site civil and earthworks commenced
 Tanks manufactured locally have begun arriving on site
 Gold processing plant held in storage in Australia was shipped to
Argentina in December 2009
 Other pieces of plant purchased in Canada, Australia, Germany and
the USA
 Although still in the early stages of project development, Troy expects
Casposo to be:
 On schedule (first production September quarter 2010); and
 Under budget (US$41.5M capital spend to first production

-TRY 2011 target is 100,000oz+ gold pa for many years as their in the right place to increase reserves
with there 3 mines forward costs ranging from-$90-$450-$550per oz US (yes I know want your thinking major$$$$$$ thanks to the silver credit costs are very low if silver goes even higher TRY could well be producing gold for free at their new casposo mine opt sept)

-now at current gold prices AUD where taking about some serious profits here

Now with a market cap of only 190mill AUD- no dept - a history of paying SH's divies-a very bright 100-200 mill dollar income future is TRY has very few peers in the same league.


TRY could well command a $10 sp within the decade IMHO as well as pay a large yield to smart holders-they'll need a large reserve base ,high gold price,low costs,smart management



-With the IMF looking at selling another 190t of real hard currency for USD just like last time when gold was 1040 an then went to 1200+ I really think we could see another buyer or buyer's fight to exit their USD for the gold -China for one will be hoping to see the Gold price reduce closer to 1000 so they get a good price on the sale if say the buyers front up closer or higher than current prices I really think gold will fly like last time $1300-$1400

-The final Pillar in the gold bull market is a bear market in US Treasuries.

The increase in the discount rate to 0.75% is driven by market realities and a desire to be able to sell US Treasuries as foreign demand falls off.

The bull market in gold moved from $400 to $887.50 in the 1970s as interest rates rose from 3% to 14 7.8% on Ten Year money.

Once again the knee jerk reaction is to sell gold and buy the dollar. Be assured this must happen.

Because the final Pillar is falling while Gold is over $1000, you can look at Armstrong's $5000 prediction as a realistic possibility.

Stay the course.

Respectfully,
Jim

[Corporate]

JB - are you sure about that cash cost?

[shasta]

JB - are you sure about that cash cost?

Here's the cash costs for FY09

http://www.try.com.au/default.aspx?MenuID=18

This doesn't take into account the silver credits, that i can see?

Total production/cash costs to date

http://www.try.com.au/default.aspx?MenuID=20

[JBmurc]

JB - are you sure about that cash cost?

yeah sorry only for their 3rd mine $90 an ounce is the expected cost of gold production from TRY's recently acquired Casposo Gold/Silver Project thats at a 60:1 gold : silver ratio (geo's believe at the most there's round 7 times more silver than gold left the long term ratio is average round 14:1)so if silver increases more than gold TRY costs at casposo will decrease with the silver cashflows increasing

Also Casposo which is the mine I was focused on will produce 98,000oz Equivalent Gold in it's second year or 80,000oz of just gold so you can see it's going make a major dent in costs of their next 3 yrs of gold/silver production

I really believe TRY will find more gold reserves in close to their operation's in turn keeping production above 100k for many years to come

[JBmurc]

Troy believes that the Andorinhas Iron Ore Project has the potential to develop into a profitable operating mine with limited capital expenditure required. Troy is already operating an open pit at Lagoa Seca (10km) and underground mine and processing plant at Mamao (2km) from the iron ore target areas. Thus it has personnel and facilities in place to commence mining quickly if a positive outcome is received from the Pre Feasibility Study and when appropriate statutory approvals are received. Capital costs for the construction of an on-site screening plant are currently being assessed. Approaches to domestic iron ore smelters have been made and discussions for an off-take agreement have commenced.

Troy CEO Paul Benson said, "We are pleased with these sampling results which highlight the high grade nature of the iron ore and are increasingly confident that Troy will soon be developing a second mining operation at Andorinhas that has the potential to significantly enhance the profitability of the site and the value of the Company."

"We need to wait until we complete the Resource Statement, Pre Feasibility Study, receive the appropriate permits and sign off-take agreements, but so far everything is on track to enable the Troy Board to consider the investment decision this calendar year."

"The Pre Feasibility Study is still looking at an initial production rate in the range of 500,000 to 1 million tonnes per year. Because this is a very simple operation, free digging and screening, and because of the synergies with the gold operation, the capital costs should be very low by current market standards. We still see capital in the order of US$5 million. The final number will be dependent on what we do in-house and what we contract out."

"This is an exciting project for the loyal Troy shareholders who have stood by the Company."


from what I've found it was cancelled due to the 2008 GFC -but isn't iron ore looking bullish again BHP etc planning on higher sales prices

talk was of a 5mill setup cost for a 10c+ per share return pa -

[shasta]

Some bad news for Troy

http://www.theaustralian.com.au/business/mining-energy/armed-robbers-steal-gold-troy-resources/story-e6frg9do-1225833516731

2,000 ounces of Gold stolen....

[Huang Chung]

Would have to get the award for the most unusual announcement of the day :).

[Corporate]

TRY's cash costs can't be that great JB. For the half year ended 31 December they made a gross profit of $1.2m (4% GP) and a loss for the 6 months of $5.5m.

Take a look at DRA.

[JBmurc]

TRY's cash costs can't be that great JB. For the half year ended 31 December they made a gross profit of $1.2m (4% GP) and a loss for the 6 months of $5.5m.

Take a look at DRA.

forward costs Corp --will prob go no-where for awhile till they announce profits or increase in reserves which I believe they will soon.
investing longer term in TRY with the new silver/gold mine an history of returning cash to shareholders a major reason why I will continue to hold

The result was achieved after allowing A$3.7m for exploration expenditure (2008: A$3.9m)
and A$6.6m for amortisation and depreciation (2008: A$5.7m). It is important to note that
Troy has an aggressive exploration program aimed at increasing reserves and resources
and nearly all of this exploration expenditure is expensed.
At the end of December 2009, Troy had available cash and bullion valued at more than
A$40m. This, together with the A$25m debt facility to be provided by Investec Bank as
announced in February 2010, is sufficient to complete construction and commissioning of the
Casposo gold and silver project in Argentina and to aggressively explore the Casposo and
nearby Castaño Nuevo leases.
Casposo remains on track to pour first gold in the September quarter 2010. The Sandstone
operation is scheduled to close in the June quarter 2010. The site will move to care and
maintenance while we evaluate exploration results due to be completed in the March
quarter.
Commenting on the results Troy CEO Paul Benson said: “Reporting a loss is always
disappointing although this result was largely impacted by delayed gold sales in Brazil
through the December 31 balance date. The profit on these sales of approximately A$2.5m,
realised in January, 2010, will now be recorded in the June half.
“At an operating level the result was largely in line with the previous corresponding period
but the final result in the 2008 half benefited from the A$21m profit from the sale of the
Company’s interest in Comaplex.
“We fully expect to return to profitability in FY2011 with the commissioning of the Casposo
gold and silver project in Argentina.

[shasta]

forward costs Corp --will prob go no-where for awhile till they announce profits or increase in reserves which I believe they will soon.
investing longer term in TRY with the new silver/gold mine an history of returning cash to shareholders a major reason why I will continue to hold

The result was achieved after allowing A$3.7m for exploration expenditure (2008: A$3.9m)
and A$6.6m for amortisation and depreciation (2008: A$5.7m). It is important to note that
Troy has an aggressive exploration program aimed at increasing reserves and resources
and nearly all of this exploration expenditure is expensed.
At the end of December 2009, Troy had available cash and bullion valued at more than
A$40m. This, together with the A$25m debt facility to be provided by Investec Bank as
announced in February 2010, is sufficient to complete construction and commissioning of the
Casposo gold and silver project in Argentina and to aggressively explore the Casposo and
nearby Castaño Nuevo leases.
Casposo remains on track to pour first gold in the September quarter 2010. The Sandstone
operation is scheduled to close in the June quarter 2010. The site will move to care and
maintenance while we evaluate exploration results due to be completed in the March
quarter.
Commenting on the results Troy CEO Paul Benson said: “Reporting a loss is always
disappointing although this result was largely impacted by delayed gold sales in Brazil
through the December 31 balance date. The profit on these sales of approximately A$2.5m,
realised in January, 2010, will now be recorded in the June half.
“At an operating level the result was largely in line with the previous corresponding period
but the final result in the 2008 half benefited from the A$21m profit from the sale of the
Company’s interest in Comaplex.
“We fully expect to return to profitability in FY2011 with the commissioning of the Casposo
gold and silver project in Argentina.

TRY - Casposo Updated Mining Reserve & Production schedule

http://www.stocknessmonster.com/news-item?S=TRY&E=ASX&N=490397

AVERAGE CASH COSTS AFTER SILVER CREDITS OF $US120/oz

Capex approx ~$US86m (payback 1 year), Troy now estimate this to be down to $US41.5m

IRR = 74.8%, for the 5 -6 year production totalling 320k/oz Au & 9m/oz Ag

Generating good cashflows, & leveraged nicely to the price of gold & silver

I'm watching this gold/silver play closely

Disc: Nil held

[shasta]

TRY - Casposo Updated Mining Reserve & Production schedule

http://www.stocknessmonster.com/news-item?S=TRY&E=ASX&N=490397

AVERAGE CASH COSTS AFTER SILVER CREDITS OF $US120/oz

Capex approx ~$US86m (payback 1 year), Troy now estimate this to be down to $US41.5m

IRR = 74.8%, for the 5 -6 year production totalling 320k/oz Au & 9m/oz Ag

Generating good cashflows, & leveraged nicely to the price of gold & silver

I'm watching this gold/silver play closely

Disc: Nil held


TRY - Casposo Financing Complete

http://www.stocknessmonster.com/news-item?S=TRY&E=ASX&N=490862

1st Tranch of funding received $15m (out of $25m)

With Casposo due for production Q3 2010, this money will make sure it's all ready to go.

3 year term for the total $25m loan, & no hedging obligations is great for TRY who should easily be able to repay the loan.

[shasta]

TRY - Casposo Financing Complete

http://www.stocknessmonster.com/news-item?S=TRY&E=ASX&N=490862

1st Tranch of funding received $15m (out of $25m)

With Casposo due for production Q3 2010, this money will make sure it's all ready to go.

3 year term for the total $25m loan, & no hedging obligations is great for TRY who should easily be able to repay the loan.

TRY closed up 22c to $2.86 (near to the intra-day high) on slightly higher than usual volume, no anns out?

The other goldie i'm following GDO was up 12.5% today (up 3.5c to 31.5c)

TRY Chart looking good too...

http://hfgapps.hubb.com/asxtools/imageChart.axd?BI=2&COMT=index&OVS=XJO&TF=D6&TIMA1=20&TIMA2=20&s=TRY

[shasta]

TRY closed up 22c to $2.86 (near to the intra-day high) on slightly higher than usual volume, no anns out?

The other goldie i'm following GDO was up 12.5% today (up 3.5c to 31.5c)

TRY Chart looking good too...

http://hfgapps.hubb.com/asxtools/imageChart.axd?BI=2&COMT=index&OVS=XJO&TF=D6&TIMA1=20&TIMA2=20&s=TRY

TRY - Presentation at the Goldman Sachs JBWere Micro Cap Conference

http://www.stocknessmonster.com/news-item?S=TRY&E=ASX&N=492658

I still prefer GDO in the Gold sector, but TRY's low cash costs & silver credits makes it a close 2nd

[Huang Chung]

Sale of Andorinhas Iron Ore:

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01083064

[shasta]

Sale of Andorinhas Iron Ore:

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01083064

Seems to be a very favourable sale for Troy, i like the earn out clauses to boost the total payments, given the $4m is spread over 360 days

[asc4]

Looks to be following the US Gold Price at the mo. So much potential with the silver credits here. Still waiting on first pour at casposo. Dividend and exploration results should come closer to the end of year.

Anyone got thoughts on this?

It seems the market has barely priced in Casposo as a low cost 90,000oz/yr prospect, with production imminent.
Is it a sovereign risk issue with 2 mines in South America?

[JBmurc]

TRY-my fav safe jnr gold producer now I don't think it will double in the short like ARD,SVL,ARV etc can but mid term TRY has a great path to growth an should re-rate many $ higher over the next few years as well as pay a divie

Buy if you want a solid producer linked to the Gold/Silver price with little downside (as long as GOLD etc stays strong)

[COLIN]

A quiet achiever, which has stirred a bit today following a favourable view in "Diggers and Drillers" - suggesting 30% above then level. Might be tempted to add to my holding (should have done that before telling you guys!).

Cheers.

[shasta]

A quiet achiever, which has stirred a bit today following a favourable view in "Diggers and Drillers" - suggesting 30% above then level. Might be tempted to add to my holding (should have done that before telling you guys!).

Cheers.

The chart i posted earlier in the thread suggests somethings in the wind today, up 42c (~11%) to $4.12 at the mo

[COLIN]

The chart i posted earlier in the thread suggests somethings in the wind today, up 42c (~11%) to $4.12 at the mo

I take it that you might have changed your mind, Shasta, as to the merits of TRY versus GDO (your post of 28/5/10)!

[Entrep]

been looking at GDO lately too - can't work out the pull back yesterday though?

[JBmurc]

TRY been a great investment glad my mate listen to me back in 09 when I got him to buy 41,000 TRY at 1.28 today $4.72 plus divies ea year a great hold...
I sure many others been happy to keep holding this strong jnr goldie

[Joshuatree]

Great advice to your mate JB. The better quality, cream goldies like TRY (i hold)have started moving ,playing catchup to the goldprice.Smaller developing ones will follow,like EVG (my biggest holding).Being long gold in a global economy where there is no quick fix a profitable strategy methinks.Cheers