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~!

[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~!

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