Troy Resources steps-out high-grade intercept
THE DRILL SERGEANT: Perth-based gold producer Troy Resources recently completed drilling of a step-out hole from the high grade Inca Vein Intercept (14.70 metres at 26.24 grams per tonne gold equivalent from 342.5m) the company reported in late April.
The news from the latest hole is that it intercepted the Inca Vein about 100m southeast of the 295 intercept to yield a mineralised intercept of 5.9m interval grading 15.80g/t gold & 2610g/t silver – or 53.09g/t gold equivalent – from 308.5m downhole
This included a peak interval of 1.05m grading 52.0g/t gold and 7210g/t silver – or 155.0g/t gold equivalent from 308.50m downhole.
The new intercept has added 100m strike length to the Kamila Southeast Zone and confirmed the high grade gold and silver values associated with the Inca Vein within the zone.
Commenting on the exploration results Troy’s CEO Paul Benson said:
“This is a very encouraging result as we are seeing high grade in a 100m step out along strike from the high grade CA-11-295 intercept we released in April,” Troy Resources Chief Executive Officer Paul Benson said in a company release.
“This is increasing our confidence that we will ultimately be able to add to our Reserve and Resource inventory.
“What we have seen so far justifies bringing an additional diamond drill rig to site to focus on infill drilling with the aim of lifting the block to Resource status this year.
“This will also allow us to use the existing rig to continue to step-out further along strike to test the remainder of the structure to the southeast of the current drilling.”
Benson said the company would welcome any additions to the current Reserve as they will lead to an extension of the mine’s current 6 years mine life.
“The Inca Vein within the Kamila Southeast Zone is strategically significant in that any delineated Resources and Reserves would be located close to the existing planned underground development,” Benson said.
If it is able to delineate a significant mineralised zone Troy will then determine if rescheduling the underground mine development is justified in order to access the high grade material earlier in the mine life.
This would offset any drop in mined grades forecast in years 3 and 4 of the current mine plan.
“It is a characteristic of the Kamila ore body that the silver to gold ratio increases with depth,” Benson explained.
“In addition to high gold grades this intercept has bonanza silver grades. Using the parameters assumed in the 2010 NI 43-101 Report that took into account the then assumptions on price and metallurgical recovery this equates to a grade of 54 grams per tonne gold equivalent.
“This is conservative but allows direct comparison to the existing Reserve and Resource grades.
“However, using recent prices of US$1500 per ounce gold and US$35 per ounce silver, but keeping the same assumptions for metallurgical recovery, this would translate to a gold equivalent grade of 68 grams per tonne.”