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ASX & TSX: WSA
WEST PERTH, Western Australia, Nov. 2 /CNW/ - Troy Resources NL ("Troy")
and Western Areas NL ("Western Areas") have signed a letter of Intent with
respect to an earn-in exploration joint venture pertaining to nickel
exploration and development at Sandstone in Western Australia.
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
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.
Sandstone is located approximately 660km northeast of Perth, Western
Australia within the Sandstone greenstone belt near the northern end of the
Southern Cross province of the Archaean Yilgarn craton. The Southern Cross
province has during the past few years been the focus of intense nickel
sulphide exploration resulting in a number of discoveries.
At Sandstone, exploration for nickel sulphides has been minimal with no
modern work undertaken. The last nickel focused exploration effort was
completed by Kennecott Exploration Incorporated between 1969 and 1972.
Recent work by 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.
Troy will retain ownership of the tenements and all rights to gold and
other minerals excluding nickel.
"Troy is pleased to be a partner with Western Areas that brings its
extensive nickel exploration and development experience to our Sandstone
Project" said Mr. Paul Benson, CEO of Troy Resources.
Western Areas Managing Director Mr Julian Hanna said "Western Areas is
looking forward to working on this exciting new project with Troy Resources.
This new project further consolidates our extensive holdings in this nickel
The full report with extended commentary can be viewed at the company
For further information:
For further information: Mr Paul Benson, CEO - Troy Resources NL, Tel:
(618) 9481 1277, E: firstname.lastname@example.org; Mr Julian Hanna, Managing Director -
Western Areas NL, Tel: (61 8) 9486 7855, E: email@example.com