PROJECT UPDATE

Argentina Project Generation (Troy 100% through Troy Resources Argentina Ltd)

  • Troy in its search for new projects has an ongoing assessment and evaluation program targeting exploration and development opportunities throughout the country.

Casposo (Troy 100% through Troy Resources Argentina Ltd)

  • 2014-2015 Exploration budget A$5M.
  • Diamond Core rig being commissioned.
  • Airborne Magnetics and Radiometrics survey as well as ground Geophysics - data reprocessing and interpretation in progress.
  • Additional Ground Magnetics and Induced Polarization (IP) survey planned for late in 2014.
  • Prospect evaluation target generation and follow-up field investigation on-going.

Recent Quarterly Results

  • Underground drilling commenced at Casposo targeting extensions of the INCA 1 Reserve between 2300m and 2250m elevation. Encouraging assay results received to date include: 0.75m at 31.51g/t Au_Eq; 1.35m at 15.76g/t Au_Eq; 1.90m at 10.13g/t Au_Eq; 1.45m at 9.09g/t Au_Eq; 1.00m at 8.32g/t Au_Eq; 0.65m at 5.61g/t Au_Eq and 1.60m at 5.22g/t Au_Eq. Drilling is continuing and once the current phase of drilling is completed the results will be incorporated into the existing Resource model.

INCA 1 Underground Drill Plan with Assay Results

  • Field work focused on the Polvorin and the Met Station Targets where geological mapping, coupled with results of ongoing multi-element geochemical sampling and alteration mapping, is driving follow-up work to define new drill targets.

Polvorin Target Geology and Alteration Mapping

Met Station Target Geology and Alteration Mapping

Project Location

Argentina Major Mine Location Plan

Casposo & Castano Nuevo Project Location Plan

Regional Geology

San Juan Province straddles the Andean Cordillera Frontal, the Precordillera Ranges and the Pampean and Transpampean Ranges physiographic regions. The property is located on the eastern border of the Cordillera Frontal along the western margin of Rodeo/Calingasta/Uspallata valley. The Andean Cordillera Frontal is a 1,110km long chain of mountains, the crest of which forms the physiographic divide with Chile. This feature occupies an area equal to almost one-quarter of the country. This mountain range is formed by magmatism and uplift along a margin of subduction where the Nazca plate plunges beneath the South American continent. Igneous rocks of Permian to Triassic age form the basement of this chain. The Permian-Triassic intrusive and coeval volcanic Choiyoi Group underlie the Andean Cordillera from Argentina and Chile through to Ecuador.

The Choiyoi Group consists of calc-alkaline felsic and monzonitic intrusive rocks, rhyolitic ignimbrite, and andesite. These rocks form part of a magmatic arc built at a continental margin. The sequence has been thickened by compression and numerous thrust faults from Triassic through Holocene time. The Choiyoi igneous complex is the basement rock, hosting Tertiary copper (gold) porphyry and precious metal systems such as the Collahuasi (Chile), Chita and El Salado porphyry copper (gold) deposits and Lama and Pascua (Chile) gold-enargite acid sulphate systems.

Casposo Project Geology

In San Juan Province, the Cordillera Frontal is underlain by marine sediments (shales, sandstones and conglomerates) of the Carboniferous La Puerta Formation. These sedimentary sequences are overlain by a thick intrusive and volcanic sequence assigned to the Permian-Triassic Choiyoi Group. Basal andesite volcanic flows, tuffs and breccias underlie the Casposo property. These are in turn overlain by rhyolite, rhyolite-dacite breccias and ignimbrite flows. This andesite-rhyolite package is considered to belong to the Vega de los Machos formation of the Choiyoi. The volcanic units dip gently to the east at 15-20º and are crosscut by north-south, east-west and northwest-southeast trending structures. North-south trending rhyolite and andesite dykes transect older geology.

Casposo Regional Geology

Casposo is a typical low sulphidation epithermal style gold-silver deposit where mineralisation is hosted within rhyolite breccias and andesite. Veins are typically banded quartz-chalcedony colloform-crustiform banded with quartz-carbonate infill. Mineralisation is associated with an assemblage consisting of quartz, chalcedony, adularia, calcite, illite, sericite and trace sulphides. Gold and silver occur as electrum, native silver, sulphosalts and silver sulphides.

Mineralisation at Casposo occurs along a 9km long west–northwest–east–southeast (N60ºW) regional structural corridor, with the main Kamila Vein system forming a sigmoidal set 500m long near the centre. The main structural corridor consists of two parallel veins sets dipping to the southwest at -60º to -65º (B Vein and INCA-Mercado Veins). A secondary mineralised trend comprises multiple north-south striking sigmoidal structures that dip to the west at -65º (Aztec, AF, B North and MV1-Mercado Veins). Ore shoots are typically lenticular bodies up to 200m in length and up to 15m wide.

Casposo Property Targets and Structural Trends

Work to date by Troy has included:

  • Compilation of all available historic geological property scale and detailed surface geological mapping.
  • Detailed structural studies and mapping.
  • Rock grab sampling of outcropping veins.
  • Detailed channel sampling of outcropping veins and accessible underground workings.
  • In 2012, an airborne Magnetics and Radiometrics was flown by helicopter.
  • Detailed processing and interpretation of airborne geophysics.
  • Alteration mapping and ASD Spectral studies.
  • Fluid Inclusion Rock Geochemistry and Age Dating Studies.
  • Limited Reverse Circulation Drilling of selected targets in 2010-2011.
  • Since early 2011, Troy has been Diamond Core Drilling.
  • Ground gradient-array induced polarization (IP) and pole-dipole IP surveys.
  • Bulk sampling for metallurgical studies.

Casposo Target Map

Castaño Nuevo JVs (Troy earning 100% through Troy Resources Argentina Ltd)

In December 2009, Troy secured a deal to acquire 100% of the historic Castaño Nuevo high grade, low sulphidation epithermal gold-silver vein project located 22km to the northeast of the Casposo Mine. Troy can acquire the project through a series of staged cash payments and in-ground exploration expenditures totaling US$1.1M over four years.

In 2010, Troy signed a second deal for similar terms to acquire a 100% interest in the Bastida or Don David Property at Castaño. This deal more than triples the Company’s land holdings in the Castaño area.

Castano JV Locations

The Project is the nearest outcropping, low sulphidation epithermal vein occurrences to the Casposo plant outside Troy’s existing tenements and within trucking distance of the Casposo Mill. Exploration commenced in February 2010 with a detailed geological mapping and rock sampling program.

Work to date by Troy has included:

  • Compilation of all available historic geological property scale and detailed surface geological mapping.
  • Detailed structural studies and mapping.
  • Rock grab sampling of outcropping veins.
  • Detailed channel sampling of outcropping veins and accessible underground workings.
  • Detailed mapping of the underground workings was undertaken where possible.
  • In 2012, an airborne Magnetics and Radiometrics was flown by helicopter.
  • Detailed processing and interpretation of airborne geophysics.
  • Alteration mapping and ASD Spectral studies.
  • In 2010, an initial 27 hole Diamond Core drill program was completed focusing on testing of the three main veins at shallow depths.
  • Follow-up Diamond Core Drilling Planned for mid-2013.

The Castaño Nuevo veins are quartz-adularia, with some late amethyst, and very low in sulphide content (no visible sulphides in the quartz). Minor iron staining occurs in wall rocks. Limited recent assay data (about 10 samples) suggests gold grades are low (<10g/t gold), with one sample 27g/t gold over 15cm. At Castaño Nuevo the gold-silver ratio is about one to one. Although linear, the vein zones are composed of anastomosing quartz veins, with rapid changes in width. Banded chalcedonic quartz and ginguro textures, similar to Casposo are observed at the western vein. Both veins are associated with large zones of argillic alteration and silicification, due to hot spring alteration at the paleo-surface, and therefore are clearly high level epithermal systems.

Castaño Nuevo is located 23km north-northeast of Casposo, probably in a similar geological setting hosted by ash flow tuff units that dip to the southeast as at Casposo.

Castaño Nuevo has been exploited (by intermittent) narrow vein mining between 1890 and 1950’s with three veins exploited, one at the mill site (3118m elevation) trends north-northeast for >370m, with highly irregular widths, up to about 3m. The mine workings have been flooded since 1930´s. Historic production records are not well documented and there is a very little information regarding the grades and the volume mined. From the available government records the average grade of ore at Castaño Nuevo is believed to be about 20g/t gold. The latest activity at this mine was during the 1960´s when an Argentinean Government crown corporation reprocessed the tailings.

The most recent exploration (prior to Troy acquiring the option) was completed between 2003 and 2005 and included ground geophysics (Induced Polarization and Magnetics) over a buried porphyry target and a high sulphidation target located just west of the outcropping low sulphidation veins. A total of four shallow Reverse Circulation holes two into each area respectively solely based on surface alteration mapping and geophysics. Channel sampling by previous explorers of the low sulphidation vein exposures in the historic underground workings was also completed.

Dos Protégé Vein located near the mill site (3118m elevation) trends north-northeast for >370m, with highly irregular widths, up to about 3m. The vein likely continues to the north-north-northeast (+500m) beneath a large river, and workings are visible across the valley and on strike.

The second vein system St Agustin occurs about 700m to the west of the mill site (top of vein zone at 3340m elevation), and trends northwest, and has been exploited for about 150m, in widths 1m - 2m. The depth of mining is unknown, although the vein at the mill site is likely to have been mined to the river level.  The third vein known as San Pedro located south and west of St Agustin saw limited mining on three vertical levels.

Castano Nuevo Property Geology

Castano Nuevo Rock Chip Channel Sampling & Drilling Results

In 2012, in conjunction with the helicopter-borne Magnetics and Radiometrics survey at Casposo, the Castaño JV areas were also flown (see below).

Castano JV Reduced to Pole Helimagnetics with Strategex Interpretation