Golden hole lifts Troy for second time

Vancouver – In early April results from the top half of a gold-rich hole at the Sandstone project in Australia boosted Troy Resources (TRY-V) considerably. Results from the lower half of the hole attracted less attention but well-mineralized intercepts indicate the Two Mile Hill target has strong potential.

Hole 34 targeted an open stockwork of flat-lying quartz veins hosted in a tonalite intrusive. Drilled to a depth of 451 metres, results from the first 285 metres lifted Troy’s share price by 16% on April 9th.

From 285 metres the drill cut 33 metres grading 1.32 grams gold per tonne. From 321 metres downhole a 50-metres interval graded 2.71 grams gold; the 44 metres starting at 374 metres depth graded 0.92 gram gold. Finally, a 27-metre interval starting 424 metres below surface graded 0.74 gram gold.

The drill cut numerous quartz veins and the core contained 30 occurrences of visible gold, primarily within sets of narrow quartz veins dipping shallowly to the northeast. The tonalite intrusive extends over 200 metres strike and across 50 metres width, though the extent of gold mineralization within the tonalite is not yet known.

Results from a second deep hole located 80 metres south and 100 metres east of hole 34 are pending. The second hole tested the projected intersection of a banded iron formation near the eastern margin of the tonalite intrusion and the tonalite itself. The drill passed through altered basalt to a depth of 258 metre, then cut through the banded iron formation to 306 metres depth where it entered the tonalite stock. The 96 metres of tonalite core included 11 occurrences of visible gold.

Troy is an Australian-based company that took on the Sandstone project in 1999 and has since mined out three deposits. The Two Mile target is 3 km northeast of the mill at Sandstone.

Results from the rest of hole 34 pushed Troy up 20 or 10% to close at $2.20. The company listed on the Toronto Stock Exchange in January after raising $22 million in its initial public offering, wherein it sold 8.5 million shares for $2.60 a piece. Since then Troy’s share price has ranged from $1.90 to $2.81; its recent share prices were have been tied to a temporary mill shutdown at the company’s Brazilian gold mine following an electrical storm-induced power surge.