Troy Resources NL - Quarterly activities report to ASX for the second quarter ended December 31, 2007



    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/

    TSX, ASX: TRY

    PERTH, Western Australia, Jan. 31 /CNW/ - Troy Resources NL ("Troy" or
the "Company") (TSX, ASX: TRY) is pleased to report on its activities for the
second quarter ended December 31, 2007 in accordance with ASX Listing
Rule 5.1.

    
    OVERVIEW

    -   The Andorinhas project commenced commissioning in December and is on
        time and budget with first gold scheduled to be poured in February,
        2008.
    -   As advised in the October Quarterly report, the second half of
        calendar 2007 is a period of transition with minimal gold production
        coming from Brazil as we await the low cost production from our new
        Andorinhas mine. During the quarter, Sandstone produced 8,616 oz at a
        cash cost of A$633 per ounce.
    -   During the quarter Troy signed two exploration joint ventures giving
        it the right to earn 100% interests in prospective areas surrounding
        our Andorinhas mine. These triple Troy's land position in the region
        and are within trucking distance of our processing plant. Troy
        continues to capitalize on its first mover advantage and build its
        land position in this highly prospective area.
    -   Troy announced commencement of a scoping study to evaluate the
        potential of exploiting the iron ore found on the Andorinhas leases.
        The results of the scoping study are due in June, 2008.
    -   Mining finished at Sandstone during the quarter. The plant will
        however continue processing low grade stockpiles until at least
        December 2008. An aggressive exploration program was commenced during
        the quarter on the Sandstone leases with the aim of discovering
        additional ore to allow mining to recommence. The results of the
        program should be known by the end of the current financial year.
    -   Greenfields exploration continued in Mongolia, Australia and Brazil
        during the quarter.
    -   Troy formally listed on the TSX on 25 January 2008.

    OPERATIONS

    -   The Sandstone Mill (Troy 100%) treated 110,821 tonnes of ore at
        2.6g/t Au to produce 8,616oz of gold at a cash cost of
        A$633 per ounce.
    -   Total attributable gold for the 6 months to 31 December 2007 was
        19,496 ounces.

    PROJECT DEVELOPMENT

    -   Development of the Lagao Seca open cut progressed well with a
        stockpile of 93,175t of material at 3.48 g/t established.
    -   An aggressive exploration program commenced during the quarter aiming
        to build the resource base to extend the mine life past the initial
        five years assumed in the feasibility study.

    EXPLORATION

    Brazil - Andorinhas

    -   The Andorinhas regional airborne magnetics and radiometrics survey
        was completed.
    -   Drilling of Melechete East target produced intercepts of
        3.0m @ 25.77g/t gold from 87m and 1m @ 77.1g/t gold from 47m.
    -   At Babaçu results included: 3m @ 7.38g/t gold from 60m;
        1m @ 15.7g/t gold from 83m and 1m @ 19.7g/t gold from 37m.

    Australia - Sandstone

    -   Troy and Western Areas NL signed a Letter of Intent with respect to a
        nickel focused earn-in exploration JV at Sandstone.
    -   Significant gold assays the recent drill program included:
        Indomitable 6m @ 18.13g/t gold from 77m and 8m @ 5.60g/t gold
        from 107m; Musketeer North Prospect - 8m @ 26.6 g/t gold from 40m
        and Musketeer South Prospect -12m @ 4.56g/t gold from 48m.

    CORPORATE

    -   A preliminary Prospectus was lodged in Canada in December 2007.
    -   Fully franked dividend of 7.5 cents per share paid in October.
    -   Bonus share issue to existing shareholders completed in October.

    CORPORATE

    TSX LISTING

    The Company's fully paid ordinary shares commenced trading on the Toronto
Stock Exchange ("TSX") on Friday 25 January 2008 under the code "TRY", which
is the same code that Troy trades under on the ASX.

    PROSPECTUS ISSUED IN CANADA

    A preliminary prospectus was lodged in Canada on 9 December 2007. Troy
filed and received a receipt for its preliminary prospectus in respect of a
public offering of fully paid ordinary shares in each of the provinces in
Canada. The number of ordinary shares to be offered and the price per share
will be determined prior to the filing of the final prospectus.
    The offer will be made by a syndicate of agents led by Scotia Capital Inc.
and including Macquarie Capital Markets Canada Ltd, National Bank Financial
Inc. and RBC Capital Markets.

    OPERATIONS

    SANDSTONE - AUSTRALIA (Troy 100%)

    Production Summary

    -------------------------------------------------------------------------
                  December 2007   December 2006   6 months to   6 months to
                     Quarter         Quarter     December 2007 December 2006
    -------------------------------------------------------------------------
    Tonnes Milled    110,821         136,452        230,814       285,110
    Head Grade g/t     2.61            5.11           2.64          5.43
    Recovery %         92.4            94.6           92.1          94.3
    Gold Produced oz  8,616           21,232         18,051        46,911
    -------------------------------------------------------------------------
    Cash cost per oz  A$ 633          A$ 298         A$ 649        A$ 281
    -------------------------------------------------------------------------
    

    Health, Safety & Environment

    There was one LTI recorded during the quarter when a dump truck driver
for the mining contractor suffered a jarred back.
    Our environmental consultant visited the site to inspect the
rehabilitation work in progress on the open pits and waste dumps.

    Mining

    Mining was completed at the Lord Henry Pit on 23 December 2007. The
hardness of the rock, the ingress of water and confined space in the lower
levels of the pit delayed the completion of mining operations from the
original schedule. High drill and blast costs because of the hardness of the
rock and the large volumes of inpit water contributed to the high mining costs
for the period.
    A total of 149,340bcms of material was mined from the Lord Henry pit
during the quarter; which included 119,956 tonnes of ore grading 3.32g/t gold.

    Processing

    The Sandstone plant milled 110,821 tonnes of ore at a grade of 2.64g/t
gold yielding 8,616 ounces of gold. Mill throughput was restricted due to the
increased hardness and abrasive nature of the rock. The current Bond Walk
Index is 25.2% higher than the test work indicated.
    The hard and abrasive ore led to higher power usage and lower throughput
leading to increased unit costs. Due to the lower grades it is expected that
unit costs will remain around the same while ore stockpiles are treated.

    PROJECT DEVELOPMENT

    ANDORINHAS PROJECT - BRAZIL (Troy 100% through Reinarda Mineraçao Ltda)

    Health, Safety and Environment

    A total of 175,347 man hours were worked on site which recorded one lost
time injury of a minor nature involving a hand tool. The Safety Department now
has a Safety Engineer, a Safety Technician and two qualified emergency trained
Nurses ensuring adequate cover. The First Aid facility includes two equipped
ambulances of which one is suitable for underground use. An additional Safety
Technician with underground experience is being sourced.
    There were no environmental issues or incidents recorded during the
quarter. Rehabilitation work both at Lagoa Seca and the Mamao site is
progressing with a plant nursery being established at Lagoa Seca. An
Agronomist and Biologist/Environmental specialist has been contracted to
assist with formulating the best process for rehabilitating the tenements and
to assist in picking suitable plants and seeds.

    Mine Development

    Development of the Lagoa Seca open pit continued during the quarter with
total material movement of 229,913 bcm's mined comprising 6,771t of ore at
13.05 g/t, 10,138t of ore at 6.3 g/t and 65,461t at 2.19 g/t. A total of
185,943 bcm's of waste were removed.
    A total of 16,075t of low grade material (2.18 g/t) was transported to
the processing plant and used to build the crusher feed pad. This material
will also be used for the initial start up and commissioning process.
    At the end of the quarter stockpiles totalled 93,175t of material at
3.48 g/t.

    Construction

    During the quarter the majority of the plant construction work was
completed and commissioning of the crushers started on 16 December and will
continue through January. The additional ball mill is expected to be brought
on line in March.

    Permitting

    The process of obtaining the full mining permit is ongoing and three
public hearings were conducted during the quarter. These hearings are
mandatory for the issue of the final Environmental permit and in all cases the
public showed strong support for the project. The Company expects to receive
the first stage full Environmental permit for the license in the March
quarter.

    Administration

    The administrative accounting and HR personnel were transferred from the
Sertco Operation to the Andorinhas project. This department is also being
retained in Goias for the moment. The Assay laboratory continues to operate at
the closed down Sertao site until the new facilities are ready for use at
Andorinhas, with an expected transfer by end of January.

    General

    During the quarter the site was visited by representatives from the
Environmental Agency, (SECTAM) the Mines Department (DNPM) and the Department
of Lands (IBAMA) without any adverse comments.
    Relations with the public and the local Government remains very good and
the Company is building a good public foundation for the future.

    EXPLORATION REPORT

    ANDORINHAS PROJECT - BRAZIL

    During the quarter Troy concluded two new exploration joint venture deals
to triple the Andorinhas Project area.
    In November, Troy signed an exploration Joint Venture Earn-in and Option
Agreement with Brazmin Ltda, a subsidiary of TSX Listed Talon Metals Corp, for
the exploration and development of the Rio Maria Project (5 tenements
totalling 43,379 hectares) that borders the Andorinhas Project. Under the
terms of the agreement, RML can earn a 51% interest in the Rio Maria Project
by paying Brazmin Ltda a total of US$150,000 and incurring exploration
expenditures of US$100,000 over the first twelve months. RML can then increase
its ownership of the Rio Maria Project to 100% by incurring additional
exploration expenditures totalling US$250,000 over the next 2 years and making
an additional US$200,000 cash payment. A 2% NSR royalty is payable to Brazmin
on all production from the Project. One half of the 2% NSR (i.e. 1%) can be
purchased by RML for a one time payment of US$1,000,000.
    The Rio Maria Project geology is dominated by the Andorinhas syncline,
with clastic metasedimentary rocks overlying dacite, mafic to ultramafic
metavolcanic rocks and iron formations of the Andorinhas Group. Exploration on
the property from 1995-1997 focused on the gold potential of the Andorinhas
Group, yielding potentially economic gold values in saprolite trenches. The
most significant result from this program includes 2.40g/t gold over 8.80m.
Regional rock, soil and stream sediment sampling outlined a 10km gold
anomalous trend (Rufino Gold Trend) located on the southern limb of the
Andorinhas syncline.
    In December, Troy signed an exploration Joint Venture Earn-in and Option
Agreement with Horizonte Minerals plc ("HM") (AIM Listed) for the exploration
of the Tangara Project (7 tenements totalling 37,662ha) located about 20km
north-northwest of the Andorinhas Project. Under the terms of the agreement,
RML can earn a 100% interest in the Tangara Project by paying HM a total of
US$800,000 in option payments and incurring exploration expenditures of
US$2,000,000 over a three year period. If RML exercises the option, it will
pay HM US$2,000,000 cash and pay a Production Royalty of US$30 per oz of gold
up to 500,0000oz of production. Thereafter, a 1% NSR Royalty is payable to HM
for any ounces produced between 500,000 and 1,000,000 oz. The NSR royalty
increases to 2% on production above 1,000,000 oz.
    The property geology consists of Archaean aged mafic to ultramafic
volcanics of the Rio Maria Greenstone Belt intruded by small late stage felsic
intrusives. Mineralisation is related to magmatic hydrothermal fluids
associated with the post-tectonic felsic intrusive activity. The
mineralisation is found in a variety of forms ranging from quartz veinlets and
disseminated sulphides in shear zones, quartz/base metal veins, replacement
quartz, sericite sulphide bodies to zones of disseminated sulphides associated
with bleaching and silicification.
    Horizonte has been active in the area for 2 years and has carried out
approximately 3,000m of DC drilling as well as extensive stream, soil, mapping
and geophysical programs that have defined 14 high priority targets. These
include the Malvinas Trend, a 5km zone with multiple sub-parallel structures
that are associated with garimpeiro pits/workings and geochemical anomalies.
Only 3 of the 14 priority targets have been the focus of preliminary drilling.
    At Andorinhas a total of 195 holes (12,940m) were completed during the
reporting period including; 86 Rotary Air Blast (RAB) for 4658m; 89 Reverse
Circulation (RC) for 5432m and 20 Diamond Core (DC) for 2850m. The regional
airborne magnetics and radiometrics survey was completed just before
Christmas. Data processing and interpretation is underway with processed data
expected in early February.

    Lagoa Seca West Exploration: RAB drilling has yielded zones of pyrite
with strong albitization and silicification overprinting meta-sediments.
Ultramafics occur near the mineralised intersections. An RC/DC drilling
program to test a 200m strike length of 800m Lagoa Seca West resource target
is underway.

    At Lagoa Seca Deeps, a limited 8 hole (1,304.70m) DC drilling program
targeted the depth extensions of the Lagoa Seca mineralisation below the
current modelled pit. Most of assays from target zones yielded only slightly
anomalous gold results. The pit mineralisation appears to pinch out at depth
or has been off-set. A more detailed structural logging of the core is
required to plan further drilling at depth and/or to target any structural
offsets.

    Lagoa Seca East: Previous exploration work east of the Lagoa Seca Pit
outlined gold-in-soil (auger) anomaly in 3 holes. Six new RAB holes were
drilled to check the strike continuity of the anomalous zone to a depth of
45m. This drilling confirmed with the presence of a shallow altered zone with
pyrite. Best assays reported included; 3m @2.16g/t gold from 5m and 2m
@1.64g/t gold reported in Hole LSB10. Follow-up drilling is planned.

    Mamao Area exploration consisted of RC drilling focussed on the shallow
upper portions of the Mandioca (M2) Lode, Arame Lode and Melechete Lode. The
purpose of this work is to better define the upper extensions of these lodes
outside the modelled resource. In October, 6 RC drill holes; (445m) were
drilled to better define the upper portion of the M2 Lode (See Table 1).
Drilling is ongoing.

    Dona Onça is a shallow old garimpeiro pit located 300m southwest of the
Melechete Lode. This mineralisation is associated with the shear zone that
controls the Arame Lode. Ten drill holes (430m) were completed and intercepted
a shear zone with strong silicification, biotitisation, minor carbonatisation,
quartz veins and pyrite were also reported. Assays from Dona Onça drilling
produced a number of hits within the shallow western portions of the Melechete
Lode that included; MAB013; 1m @3.53g/t gold from 24m; MAC041; 1m @20.92g/t
gold from 56m; MAC043: 1m @7.24g/t Au from 42m; MAC044 1m @9.0g/t gold from
31m & 1m @11.98g/t gold from 75m; MAR048; 2m @3.64g/t gold from 12m and
MAR049; 3m @2.94g/t gold from 5m (See Table 1).
    Twelve RC holes were completed to better define the east portion of old
garimpeiro underground workings at Melechete East. The best intercepts
reported to date at Melechete East are MAC061 yielded 3.0m @ 25.77g/t gold
from 87m. This intersection together with a previous result in MAC054 of 1m @
77.1g/t gold from 47m opens up the Melechete ore surface to the east outside
the modelled resource (See Table 2).

    Mamao - Babaçu Corridor (Luiza, F8 and Xuxa Prospects): The Xuxa Prospect
is the second biggest garimpo in the Babaçu area. Ten "first pass" RC holes
were drilled to test the Xuxa mineralisation at depth. Much of this initial
test focussed on the shallow Eastern side of the old workings. Quartz veins
were intercepted in the saprolitic zone. The gold assay results received to
date have been disappointing with the best value reported being 2m @ 2.60g/t
gold from 41m. Further work will test the Xuxa main pit where earlier drilling
by Golden Star identified a 50m zone of anomalous gold.

    The F8 Prospect is an old garimpo pit located 450m from Mamao, on the
Mamao-Babaçu Corridor. Preliminary RAB drilling identified several mineralised
zones that require additional drilling. The holes cut metasediments and
metabasalts with zones of moderate to weak hydrothermal alteration of silica,
biotite, and minor pyrite. The mineralisation intercepted is narrow and the
best result was 1m @ 15.33g/t gold from 44m (See Table 3). Additional assays
are pending and this campaign will continue in January 2008.

    At Babaçu the main focus of drilling effort was the Luiza Zone. Earlier
RAB drilling produced gold including 5m @4.52g/t gold from 62m; 2m @7.17g/t
gold from 79m; 1m @7.09g/t gold from 71m and 1m @36.78g/t gold from 64m.
Follow-up drilling consisting of 6 DC holes and 10 RC holes were drilled and
all drill holes intercepted mineralized shear zones (quartz veins with
hydrothermal assemblage of chlorite-biotite-carbonate-pyrite). These distinct
lodes have been identified as Luiza 1, Luiza 2 and Luiza 3. At Luiza, the
mineralisation plunges -30 degrees to northeast, has an average lode width of
1.7m. The ore zone is open to east and at depth. An RC drilling program is
planned.

    Iron Ore Exploration

    In late November Troy announced that it would start an evaluation and
conceptual study to determine the viability of mining colluvial iron ore at
Andorinhas in January 2008. Earlier work by the previous property owner
Agincourt included a limited program of selected rock "float" sampling over
the colluvial iron ore target that identified significant amounts of coarse
colluvium ore as boulders assaying up to 69% iron. Agincourt focused on the
area adjacent to and along strike from the Floresta do Araguaia Colluvial Iron
Ore Mine (Big Mac Iron Mine) located northeast of Troy's Andorinhas Project
and owned by MFA Sidepar, a Brazilian company.
    Exploration, mapping between Babaçu Prospect and Big Mack Iron Mine was
carried out on 200m spaced lines. At least part of Andorinhas Ridge (highest
topographic feature) hosts banded iron formation (BIF) layers. Most of this
BIF comprises layers intercalated with quartz and hematite. The mapping
confirmed that primary BIF in outcrop is about 50m thick. The BIFs are
overlain by the Rio Fresco metasediments. In December trial excavator test
pitting program began focused on an easily accessible 700m strike length of
the 4km long colluvial iron ore target zone. Nineteen pits were completed with
the aim to map the colluvial section and 100kg panel samples were collected
for total iron assay. Seventy-five RAB drill holes (547m) were drilled to
define the depth of the colluvial section. This preliminary work has confirmed
the soil profile that hosts the colluvial iron ore (hematite rich) boulders
varies from 3m-5m in depth. Assays are pending.

    EXPLORATION - AUSTRALIA

    Sandstone Project (Troy 100%)

    Troy Resources NL ("Troy") and Western Areas NL ("Western Areas") have
signed a letter of Intent with respect to a nickel focused earn-in exploration
and development joint venture at Sandstone. Western Areas has the right to
earn up to a 51% interest in the nickel rights on Troy's Sandstone Project by
sole funding $4M expenditure on exploration over a four year period with a
minimum first year expenditure of A$500,000. Western Areas can then elect to
earn an additional 19% interest by sole funding to completion of a Bankable
Feasibility Study and decision to mine. If Western Areas earn a total of 70%
and a decision to mine is made Troy can elect to contribute to JV expenditure
pro rata to Troy's 30% interest or elect to dilute to a royalty. Troy will
retain ownership of the tenements and all rights to gold and other minerals
excluding nickel.
    The last nickel focused exploration effort at Sandstone was completed by
Kennecott Exploration Incorporated between 1969 and 1972. Recent work by the
Geological Survey of Western Australia and a study by the Centre for
Exploration Targeting at the University of Western Australia funded by Troy
has highlighted the prospectivity for nickel in the southern portion of the
greenstone belt.
    During this quarter a (3089m/25 hole) RC drill program was completed that
targeted the Indomitable, Musketeer North, Hacks, Oroya and Lord Henry
Targets.
    Twelve RC holes were completed at Indomitable for a total of 1086m.
Significant gold intercepts in residual laterite include 3m @ 1.26g/t gold
from 18m (TRC577) and 5m @0.99 g/t gold from 15m (TRC579). Low grade
intersections 2m-5m wide were common in the highly weathered upper saprolite,
however a wider zone of 14m @1.72g/t gold from 23m was intersected in
weathered clay and pisolites in TRC580.
    The best gold intersections at Indomitable were at depth and associated
with strongly iron altered gossanous zones, secondary chalcedonic silica and
fuchsite including 6m @18.13g/t gold from 77m (TRC576) and 8m @5.60g/t gold
from 107m (TRC578). Drill holes in this southern portion of Indomitable
Prospect often terminated still within highly oxidised gossanous saprolite
(see Table 4).
    Thirteen RC holes for 1062m were completed at Musketeer North. Fresh rock
intersected at the base of several holes consisted of sericite or fuchsite
altered mafic rock, extensively quartz veined and containing pyrite and
arsenopyrite. This rock is weakly mineralised with gold and the extensive
nature of this highly altered zone within the Musketeer Structural Corridor
suggests proximity to a major gold deposit within the primary zone. The
mineralised zone at Musketeer North is interpreted to be a tabular zone
dipping -40 degrees to the west. However the best mineralisation occurs over a
limited cross strike extent at about the same elevation within the clay zone
on each section suggesting a supergene effect at that depth or concentration
within a north south striking alluvial channel (See Table 5).
    At Musketeer South a 10m to 30m thick layer of transported cover
consisting of lateritic gravel and pisolites extends throughout the area. The
current RC drill program intersected 12ms @2.02 g/t gold from 15m within
pisolitic laterite in drill hole TRC624.
    Deeper saprolite and primary mineralisation dips at about -40 degrees
west. Alteration within the primary zone consists of broad areas of fuchsite
(or massive sericite) and disseminated pyrite and arsenopyrite. Additional RC
holes have been planned along the western side of the prospect to follow up
intersections of 12m @4.56 g/t gold from 48m in TRC623 and 11m @2.68g/t gold
from 50m in historical hole TRC536. A further five RC holes are planned to
test the mineralisation to the south.
    The extensive nature of the gold zone within the Musketeer-Indomitable
Corridor suggests there is good potential for the discovery of a gold deposit
in the area (See Table 6).
    At Phoenix Prospect the mineralisation intersected is associated with
quartz veining within weathered mafic and ultramafic rocks. Grades and widths
were slightly lower than anticipated. All RC holes intersected the target zone
at or near the anticipated position except for the southernmost drill section.
On the southernmost section line drilling failed to intersect any significant
mineralisation effectively defining the southern boundary of the zone. As the
northern extent of the deposit is restricted by the Nungarra cemetery reserve,
the potential tonnage and contained ounces of gold in the Phoenix Prospect is
severely restricted (See Table 9).
    Four RC holes (838m) were completed at the Hacks Deposit targeting the
Hack's Main Lode and the Hack's Northern Lode at depth. All holes intersected
the target at or near the anticipated depth however there were no significant
gold results. Host rock in all of the holes targeting the Hack's Main Lode
consisted of medium to coarse grained dolerite. In TRC630 the quartz lode was
about 1m thick with a 2m wide shear zone above in the hanging wall and 1m of
hydraulically fractured breccia consisting of quartz and altered metadolerite
in the footwall. The zone carried some sulphides and chlorite alteration. In
TRC632 the quartz lode was 4m thick with quartz stringers in foliated
metadolerite over a 1m interval in the hanging wall. The quartz lode in TRC629
occurred between 273m - 275m within foliated and weakly pyritic metadolerite
in the footwall and hangingwall.
    RC Hole TRC631 targeted the Hack's Northern Lode. The entire hole
consisted of metabasalt and intersected the quartz lode between 216m - 217m
downhole. The lode consisted of quartz veins with pyrite and fuchsite within a
broader alteration halo of quartz and pyrite. In general gold assays were
disappointing.

    Daly River Project - Northern Territory (Troy 100%)

    The aeromagnetic survey of the northern portion of the project area was
completed in January 2008.

    EXPLORATION - MONGOLIA

    Dornogovi Coal JV Project (Troy 100% - Rio Tinto Earning - in)

    Rio Tinto Mongolia (RTM) advised that a short drilling programme has been
carried out in order to determine the presence of Lower Cretaceous
coal-bearing strata within the Altanshiree basin. The targets were previously
identified through satellite interpretation, reconnaissance mapping, and
evaluation of previous work, including reviewing regional water exploration
logs.
    Two vertical holes totalling 406m were completed in November.

    Gutain Davaa Gold JV Project (Troy earning 80%)

    A 12 hole (1,482m) Diamond Core (DC) drill program to test the new
structural model for the Toordogiin Shil "TS" Prospect completed in October
2007. Significant gold assays from this latest round of drilling included:
Hole GDDD-54: 5m @ 7.45g/t (50m - 55m), and 2m @ 10.51g/t (62m - 64m); Hole
GDDD-56: 17m@ 3.53g/t (52m-69m) including; 2m @ 11.99g/t (56m - 58m), & 6m @
10.19g/t (103m - 109m) and Hole GDDD-61: 6m @ 7.93g/t (41m - 47m) including 2m
@ 23.22g/t (42m - 44m). A full table of the drill results was included in the
Company's ASX announcement dated 26 November 2007.
    The current geological interpretation is a "folded shoot target"
consisting of a northeast-southeast trending fold axis that plunges to the
northwest. The mineralised quartz veins are hosted within a strongly
tectonized and folded, pervasively quartz-sericite-pyrite +/- arsenopyrite
altered medium grained, Mesozoic granodiorite and black schist. Visible gold
and bonanza gold grades are associated with the strongly sheared margins of
the quartz veins.
    TMAR has now completed all the earn-in requirements stipulated in the
joint venture agreement with U & B Mining and has now earned an 80% interest
in the property. The current plan is for field work to recommence in May 2008
with a program of infill soil sampling, detailed ground magnetics, excavator
trenching, rock sampling and geological mapping followed by drilling.

    SITE CLOSURE

    SERTAO MINERACAO LTD ("SML") BRAZIL - (Troy 70%)

    During the December quarter the Sertao operation continued to be wound
down with re-habilitation work continuing. Final surveys for environmental
reporting purposes were started to finalise the Environmental Rehabilitation
Report in early 2008.
    At the end of the quarter SML retained three active employees involved
with re-habilitation work and monitoring as required. The Company will monitor
re-habilitation work for two years including water quality checks and so on.
The office facilities in Goias have now been transferred to Andorinhas. All of
SML's tenements are being marketed for sale.

    FINANCIAL REPORT

    CASH POSITION

    As at 31 December 2007, Troy within Australia held $3.5M in cash, plus
equity investments with a market value of $57.6M and 1,420 ounces of gold
awaiting sale which approximates to $1.3M based on a gold price of A$928 per
ounce. This equates to a total of approximately $62.4M of liquid assets.
    Troy's wholly owned Brazilian and European subsidiaries held cash
deposits of A$4.0M. At quarter end, Sertao Mineraçao Ltda ("SML"), Troy's 70%
owned Brazilian subsidiary, had the equivalent of $3.2M in cash (Troy's
share).
    The Troy group equity share of cash marketable securities and liquid
assets is approximately $69.6 million as at 31 December 2007.
    During the quarter, the Company purchased 73,388 of its own shares under
an approved On Market Share Buy-Back at an average price of $3.00 for a total
outlay of $220,155.
    In October, the Company paid a fully franked dividend of 7.5 cents per
share to its shareholders which totalled $4.7 million. In December the Company
paid $6.9 million in taxes.

    GOLD SALES

    Gold sales from the Sandstone operation for the quarter were 9,668 ounces
at an average price of A$882 per ounce. The average Cash Cost was $633 per
ounce which gives a Cash Margin of $249 per ounce for the quarter.

    HEDGING

    The Company is totally unhedged, and debt free.

    EXPLORATION EXPENDITURE

    During the quarter, exploration expenditure incurred was $1,002,000 in
Australia, $320,000 in Mongolia and $210,000 in Brazil. Troy's total
exploration expenditure for the quarter was therefore $1,560,000.
    Capital and development expenditure in Australia during the quarter was
$0.2 million and $6.7 million on the Andorinhas Project in Brazil.

    Information of a scientific or technical nature in this press release was
prepared under the supervision of Peter J. Doyle, Vice President Exploration
and Business Development of Troy, a "qualified person" under National
Instrument 43-101 - "Standards of Disclosure for Mineral Projects" and a
member of the Australasian Institute of Mining and Metallurgy. Mr. Doyle has
sufficient experience, which is relevant to the style of mineralization and
type of deposit under consideration, and to the activity he is undertaking, to
qualify as a "competent person" as defined in the 2004 edition of the
"Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves". Mr. Doyle has reviewed and approved the information contained
in this news release. For further information regarding the Andorinhas or
Sandstone project, including a description of Troy's quality assurance
program, quality control measures, the geology, samples collected and testing
procedures in respect of the Andorinhas project and Sandstone project please
refer to the technical report entitled "Troy Resources NL: Technical Report on
Andorinhas Gold Project, Para State, Brazil" dated November 2007 and the
technical report entitled "Troy Resources NL: Sandstone Gold Project, Mid West
Region Western Australia" dated June 2007, which in each case, is available
under the Company's profile at www.sedar.com.

    This news release contains forward-looking statements. These
forward-looking statements reflect management's current beliefs based on
information currently available to management and are based on what management
believes to be reasonable assumptions. A number of factors could cause actual
results, performance, or achievements to differ materially from the results
expressed or implied in the forward looking statements. Such factors include,
among others, future prices of gold, the actual results of current production,
development and/or exploration activities, changes in project parameters as
plans continue to be refined, variations in ore grade or recovery rates, plant
and/or equipment failure, delays in obtaining governmental approvals or in the
commencement of operations.


    
    -------------------------------------------------------------------------
                        Table 1: Andorinhas Project
         Mamao Shallow Extensional Reverse Circulation "RC" Drilling
                  Drill Assay Results - Gold Intersections
    -------------------------------------------------------------------------
                                                                       Hole
    Hole       Easting        Northing        Azimuth         Dip      Depth
     ID          (m)            (m)          (degrees)     (degrees)    (m)
    -------------------------------------------------------------------------
    MAC016    630560.2      9175159.194    N000(degrees)E     -90      75.00
    -------------------------------------------------------------------------
    MAC025    630501.932    9175141.714    N000(degrees)E     -90      73.00
    -------------------------------------------------------------------------
    MAC026    630520.285    9175144.195    N000(degrees)E     -90      72.00
    -------------------------------------------------------------------------
    MAC027    630560.272    9175137.197    N000(degrees)E     -90      64.00
    -------------------------------------------------------------------------
    MAC029    630499.315    9175120.264    N000(degrees)E     -90      60.00
    -------------------------------------------------------------------------
    MAC030    630518.994    9175143.446    N180(degrees)E     -50      97.00
    -------------------------------------------------------------------------
    MAC033    630561.521    9175117.815    N000(degrees)E     -90      35.00
    -------------------------------------------------------------------------
    MAC040    630560.847    9175081.778    N000(degrees)E     -90      72.00
    -------------------------------------------------------------------------
    MAB002    630500.588    9175040.091    N000(degrees)E     -90      23.00
    -------------------------------------------------------------------------
    MAC018    630656.078    9175430.123    N000(degrees)E     -90      75.00
    -------------------------------------------------------------------------
    MAC044    630371.54     9175108.24     N000(degrees)E     -90      90.00
    -------------------------------------------------------------------------
    MAR048    630349.47     9175079.75     N090(degrees)E     -60      85.00
    -------------------------------------------------------------------------
    MAC049    630539.48     9175377.92     N000(degrees)E     -90      86.00
    -------------------------------------------------------------------------
    MAC050    630539.23     9175358.02     N000(degrees)E     -90      59.00
    -------------------------------------------------------------------------
    MAB013    630319.92     9175039.99     N000(degrees)E     -90      40.00
    -------------------------------------------------------------------------
    MAC041    630319.65     9175080.32     N000(degrees)E     -90      70.00
    -------------------------------------------------------------------------
    MAC043    630319.93     9175060.57     N000(degrees)E     -90      60.00
    -------------------------------------------------------------------------
    MAC044    630371.54     9175108.24     N000(degrees)E     -90      90.00
    -------------------------------------------------------------------------

    --------------------------------------------------
             From     To     Length   Gold     Lode
    Hole     (m)     (m)     (m)     (g/t)
     ID                                Au
    --------------------------------------------------
    MAC016  62.00   63.00    1.00   11.04   Melechete
    --------------------------------------------------
    MAC025  59.00   62.00    3.00   11.43   Melechete
    --------------------------------------------------
    MAC026  56.00   59.00    3.00    4.21   Melechete
    --------------------------------------------------
    MAC027  43.00   45.00    2.00    2.22   Melechete
    --------------------------------------------------
    MAC029  45.00   46.00    1.00    5.11   Melechete
    --------------------------------------------------
    MAC030  49.00   51.00    2.00    2.92   Melechete
    --------------------------------------------------
    MAC033  28.00   30.00    2.00    6.95   Melechete
    --------------------------------------------------
    MAC040  54.00   55.00    1.00   14.16   Arame
    --------------------------------------------------
    MAB002   3.00    7.00    4.00    3.36   Arame
    --------------------------------------------------
    MAC018  57.00   60.00    3.00   14.25   M2
    --------------------------------------------------
    MAC044  31.00   32.00    1.00    9.00   Dona Onça
    --------------------------------------------------
    MAR048  12.00   14.00    2.00    3.64   Dona Onça
    --------------------------------------------------
    MAC049  52.00   53.00    1.00    5.36   M2
    --------------------------------------------------
    MAC050  43.00   44.00    1.00   14.50   M2
    --------------------------------------------------
    MAB013  24.00   25.00    1.00    3.53   Dona Onça
    --------------------------------------------------
    MAC041  56.00   57.00    1.00   20.92   Dona Onça
    --------------------------------------------------
    MAC043  42.00   43.00    1.00    7.24   Dona Onça
    --------------------------------------------------
    MAC044  75.00   76.00    1.00   11.98   Dona Onça
    --------------------------------------------------



    -------------------------------------------------------------------------
                         Table 2: Andorinhas Project
          Mamao - Melechete East Reverse Circulation "RC" Drilling
                  Drill Assay Results - Gold Intersections
    -------------------------------------------------------------------------
                                                                       Hole
    Hole       Easting        Northing        Azimuth         Dip      Depth
     ID          (m)            (m)          (degrees)     (degrees)    (m)
    -------------------------------------------------------------------------
    MAC054    630736.17     9175180.34     N000(degrees)E     -90      49.00
    -------------------------------------------------------------------------
     and          -              -               -             -         -
    -------------------------------------------------------------------------
    MAC059    630765.27     9175201.84     N000(degrees)E     -90      90.00
    -------------------------------------------------------------------------
    MAC061    630764.31     9175220.97     N000(degrees)E     -90      91.00
    -------------------------------------------------------------------------
    MAC063    630805.58     9175181.56     N000(degrees)E     -90      70.00
    -------------------------------------------------------------------------
    MAC064    630788.01     9175160.36     N000(degrees)E     -90      60.00
    -------------------------------------------------------------------------
    MAC065    630638.71     9175441.38     N000(degrees)E     -90      90.00
    -------------------------------------------------------------------------

    --------------------------------------
             From     To     Length  Gold
    Hole     (m)     (m)     (m)     (g/t)
     ID                                Au
    --------------------------------------
    MAC054  45.00   46.00    1.00    2.05
    --------------------------------------
     and    47.00   48.00    1.00   77.08
    --------------------------------------
    MAC059  74.00   75.00    1.00    1.68
    --------------------------------------
    MAC061  87.00   90.00    3.00   25.77
    --------------------------------------
    MAC063  35.00   36.00    1.00    2.08
    --------------------------------------
    MAC064  32.00   33.00    1.00    1.32
    --------------------------------------
    MAC065  68.00   70.00    2.00    1.79
    --------------------------------------



    -------------------------------------------------------------------------
             Table 3: Andorinhas Project Mamao - Babaçu Corridor
                 F8 Prospect Rotary Air Blast "RAB" Drilling
                  Drill Assay Results - Gold Intersections
    -------------------------------------------------------------------------
                                                            Hole
    Hole       Easting        Northing        Azimuth       Depth       Dip
     ID          (m)            (m)          (degrees)       (m)    (degrees)
    -------------------------------------------------------------------------
    MAB037    630290.21     9174978.01     N180(degrees)E   75.00        -60
    -------------------------------------------------------------------------
    and           -              -               -            -           -
    -------------------------------------------------------------------------
    MAB039    631391.33     9175619.97     N210(degrees)E   70.00        -60
    -------------------------------------------------------------------------
    MAB044    631424.5      9175636.73     N210(degrees)E   87.00        -60
    -------------------------------------------------------------------------

    -------------------------------------
             From     To     Length  Gold
    Hole     (m)     (m)     (m)     (g/t)
     ID                                Au
    --------------------------------------
    MAB037  17.00   19.00    2.00    5.70
    --------------------------------------
    and     33.00   34.00    1.00    2.29
    --------------------------------------
    MAB039  44.00   45.00    1.00   15.33
    --------------------------------------
    MAB044  25.00   27.00    2.00    2.34
    --------------------------------------



    -------------------------------------------------------------------------
              TABLE 4: Sandstone Project - Indomitable Prospect
            Reverse Circulation "RC" Drilling Drill Assay Results
                            - Gold Intersections
    -------------------------------------------------------------------------
    Hole ID      Easting      Northing       Dip        Azimuth        Hole
                E_MGA94_50   N_MGA94_50   (degrees)    (degrees)      Depth
                    (m)          (m)                                    (m)
    -------------------------------------------------------------------------
    TRC574        733267       6892211       -60     N090(degrees)E  113.00
    -------------------------------------------------------------------------
      and            -            -           -            -            -
    -------------------------------------------------------------------------
    TRC575        733316       6892212       -60     N090(degrees)E  125.00
    -------------------------------------------------------------------------
    TRC576        733220       6892252       -60     N090(degrees)E   93.00
    -------------------------------------------------------------------------
      and            -            -           -            -            -
    -------------------------------------------------------------------------
    TRC577        733259       6892253       -60     N090(degrees)E   89.00
    -------------------------------------------------------------------------
      -              -            -           -            -            -
    -------------------------------------------------------------------------
    TRC578        733209       6892312       -60     N090(degrees)E  126.00
    -------------------------------------------------------------------------
    TRC579        733250       6892313       -60     N090(degrees)E  112.00
    -------------------------------------------------------------------------
      -              -            -           -            -            -
    -------------------------------------------------------------------------
    TRC580        733299       6892313       -60     N090(degrees)E   85.00
    -------------------------------------------------------------------------
    including        -            -           -            -            -
    -------------------------------------------------------------------------
    and              -            -           -            -            -
    -------------------------------------------------------------------------
    TRC581        733112       6892413       -60     N090(degrees)E   65.00
    -------------------------------------------------------------------------
    TRC583        733267       6892652       -60     N090(degrees)E   99.00
    -------------------------------------------------------------------------
    and              -            -           -            -            -
    -------------------------------------------------------------------------
    including        -            -           -            -            -
    -------------------------------------------------------------------------
    TRC584        733276       6892973       -60     N090(degrees)E   95.00
    -------------------------------------------------------------------------
    including        -            -           -            -          56.00
    -------------------------------------------------------------------------
    TRC585        733081       6893052       -60     N090(degrees)E   89.00
    -------------------------------------------------------------------------


    -----------------------------------------
    Hole ID     From     To    Width    Gold
                 (m)     (m)    (m)     (g/t)
                                          Au
    -----------------------------------------
    TRC574      63.00   64.00   1.00    7.63
    -----------------------------------------
      and       82.00   83.00   1.00    2.46
    -----------------------------------------
    TRC575      48.00   49.00   1.00    2.24
    -----------------------------------------
    TRC576      47.00     50    3.00    1.19
    -----------------------------------------
      and       77.00   83.00   6.00   18.13
    -----------------------------------------
    TRC577      44.00   45.00   1.00    4.01
    -----------------------------------------
      -         57.00   59.00   2.00    4.51
    -----------------------------------------
    TRC578     107.00  115.00   8.00    5.60
    -----------------------------------------
    TRC579      15.00   20.00   5.00    0.99
    -----------------------------------------
      -         59.00   61.00   2.00    4.35
    -----------------------------------------
    TRC580      23.00   37.00  14.00    1.72
    -----------------------------------------
    including   31.00   35.00   4.00    3.87
    -----------------------------------------
    and         62.00   64.00   2.00    2.63
    -----------------------------------------
    TRC581      44.00   46.00   2.00    2.00
    -----------------------------------------
    TRC583      45.00   58.00  13.00    0.98
    -----------------------------------------
    and         72.00   99.00  27.00    1.22
    -----------------------------------------
    including   73.00   75.00   2.00    8.29
    -----------------------------------------
    TRC584      47.00   59.00  12.00    1.38
    -----------------------------------------
    including   56.00   58.00   2.00    5.56
    -----------------------------------------
    TRC585      43.00   49.00   6.00    1.20
    -----------------------------------------



    -------------------------------------------------------------------------
           TABLE 5: Sandstone Project - Musketeer North Prospect
            Reverse Circulation "RC" Drilling Drill Assay Results
                            - Gold Intersections
    -------------------------------------------------------------------------
    Hole ID       Easting      Northing       Dip        Azimuth        Hole
                 E_MGA94_50   N_MGA94_50   (degrees)    (degrees)      Depth
                     (m)          (m)                                    (m)
    -------------------------------------------------------------------------
    TRC606         732491       6891252       -60     N090(degrees)E  117.00
    -------------------------------------------------------------------------
    TRC607         732538       6891202       -60     N090(degrees)E   60.00
    -------------------------------------------------------------------------
    TRC608         732497       6891202       -60     N090(degrees)E   90.00
    -------------------------------------------------------------------------
    TRC614         732491       6891122       -60     N090(degrees)E   85.00
    -------------------------------------------------------------------------
    including         -            -           -            -            -
    -------------------------------------------------------------------------
    including         -            -           -            -            -
    -------------------------------------------------------------------------
    TRC615         732474       6891122       -60     N090(degrees)E   69.00
    -------------------------------------------------------------------------

    -----------------------------------------
    Hole ID     From     To    Width    Gold
                 (m)     (m)    (m)     (g/t)
                                          Au
    -----------------------------------------
    TRC606      79.00   80.00   1.00    4.51
    -----------------------------------------
    TRC607      43.00   48.00   5.00    3.22
    -----------------------------------------
    TRC608      82.0    69.00   7.00    1.90
    -----------------------------------------
    TRC614      40.0    48.00   8.00   26.60
    -----------------------------------------
    including   40.0    43.00   3.00   69.04
    -----------------------------------------
    including   40.0    41.00   1.00  201.90
    -----------------------------------------
    TRC615      51.00   54.00   3.00    3.59
    -----------------------------------------



    -------------------------------------------------------------------------
            TABLE 6: Sandstone Project - Musketeer South Prospect
            Reverse Circulation "RC" Drilling Drill Assay Results
                            - Gold Intersections
    -------------------------------------------------------------------------
    Hole ID       Easting      Northing       Dip         Azimuth       Hole
                 E_MGA94_50   N_MGA94_50   (degrees)     (degrees)     Depth
                     (m)          (m)                                    (m)
    -------------------------------------------------------------------------
    TRC618         732339       6890642       -60       N090degreesE   45.00
    -------------------------------------------------------------------------
    TRC619         732269       6890642       -60       N090degreesE   85.00
    -------------------------------------------------------------------------
    TRC621         732285       6890582       -60       N090degreesE   60.00
    -------------------------------------------------------------------------
    TRC622         732201       6890592       -60       N090degreesE   96.00
    -------------------------------------------------------------------------
    TRC623         732208       6890552       -60       N090degreesE   70.00
    -------------------------------------------------------------------------
    TRC624         732263       6890475       -60       N090degreesE   51.00
    -------------------------------------------------------------------------

    ---------------------------------------
    Hole ID   From     To    Width    Gold
               (m)     (m)    (m)     (g/t)
                                        Au
    ---------------------------------------
    TRC618    26.00   28.00   2.00    2.04
    ---------------------------------------
    TRC619    45.00   48.00   3.00    2.12
    ---------------------------------------
    TRC621    14.00   15.00   1.00    1.18
    ---------------------------------------
    TRC622    60.00   62.00   2.00    1.46
    ---------------------------------------
    TRC623    48.00   60.00  12.00    4.56
    ---------------------------------------
    TRC624    15.00   27.00  12.00    2.02
    ---------------------------------------
    




For further information:

For further information: Mr Paul Benson, Chief Executive Officer, Troy
Resources NL, Perth, Western Australia, Tel: (6 18) 9481 1277, Email:
troy@troyres.com.au

Organization Profile

Troy Resources Limited

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890