Issue link: http://resourceworld.uberflip.com/i/162873
A U S TR A LI AN UP DATE Troy Resources: gold producer and mine developer by Greg Barns Gold and silver producer Troy Resources Ltd. [TRY-TSX, ASX] has delivered in spades for shareholders over the past decade. In fact, it has paid cash dividends for the past 13 years. Troy Resources has been in South America since 2003 and has two producing mines there. In the 12 months prior to June 30, 2013, the Casposo Project, located in Argentina, produced 69,314 oz gold at an average grade of 5.65 g/t, and 1,361,133 oz silver at a grade of 122.75 g/t. The cash cost per ounce of gold, net of silver credits, was AUS $549. This mine is both open pit and underground. In Brazil, Troy has its Andorinhas gold mine, though scheduled to close in 2015, it is still a solid performer. In the 12 months prior to June 30, 2013 it produced 33,688 oz gold averaging 4.63 g/t. Cash costs were AUS $779/oz. Overall in the 2012-2013 year, Troy produced 127,060 gold equivalent ounces and the company's gold and silver is unhedged which has served it well in the past decade of rising gold and silver prices. The company also announced, in March this year, its intention for a friendly takeover of Azimuth Resources; that was completed in July for AUS $120 million at the time of closing. Troy is not wasting any time getting to work on developing Azimuth's Omai Project in Guyana. It is a high-grade gold play with inferred resources of 1.6M oz gold at 3.1 g/t with 1M oz at 5 g/t. . Troy now has the largest exploration land position in Guyana with 8,000 km2 and recently announced some impressive drilling results from one of the project's two deposits – the Smarts deposit. The initial phase of infill drilling on the Smarts deposit produced results that included 20m of 30.09 g/t gold from 66m including; 1m at 184.17g/t gold from 76m; 6m at 34.24g/t gold from 34m; 6m at 27.03g/t gold from 141m; 7m at 13.71g/t gold from 10m; 22m at 11.49g/t gold from 91mand 4m at 42.4g/t gold from 188m including; 1m at 166.98g/t gold from 188m. The company says that "results are currently being incorporated into the existing geological model and a new resource 44 www.resourceworld.com Drill testing in the Omai West area, Guyana, South America. Photo courtesy Troy Resources Ltd. estimate is expected in September" this year. Commenting on the results in a recent announcement, CEO, Paul Benson, said that the results were impressive and "are in line with earlier drilling and reinforced why we believe West Omai will be Troy's next gold mine. We have already commenced Stage II of an infill drilling program, stepping out along strike on the Smarts deposit and in the higher grade section of the Hicks deposit and expect to release those results in December. Increasing the resource estimate confidence to the indicated category will support a probable reserve when we complete the pre-feasibility study early in calendar 2014," Benson said. Troy's recent acquisition has pleased some analysts. Carey Smith of Alto Capital told investor website The Bull, on August 19, while Troy Resources "isn't for the faint hearted as its market value partially depends on the gold price, management has a proven track record, and we expect the share price to rebound strongly once market sentiment towards the gold sector improves." Certainly investors can take comfort from the fact that Troy Resources latest acquisition is in a mining friendly and stable part of South America. n SEPTEMBER 2013