daytrade diaries... december 11&12, page-22

This was in the paper yest. did SP jump.

http://www.perthnow.com.au/business/troy-sitting-on-a-goldmine-literally/story-e6frg2s3-1225809330555

Troy sitting on a goldmine - literally
Neil Dowling From: PerthNow December 11, 2009 7:49AM

PERTH-based Troy Resources is sitting on a potential goldmine but needs more exploratory work to prove up the prospect.

Its Two Mile Hill Prospect, 2.7km northeast of the Sandstone mill, has shown the potential for high-grade gold mineralisation identified during drilling earlier this year. Results included 13.7m at 25.98gpt gold from 240.1m.

Troy chief executive Paul Benson said that although the latest drilling results were highly encouraging, the nature of the mineralisation in the exploration area meant more work was needed.

``These results are from the third phase of drilling at Two Mile Hill and were aimed at better understanding the high grade mineralisation announced in August of this year,'' he said.

``We have again had some extraordinary intersections, including 8.5m @ 49.59gpt gold. The challenge continues to be proving up a target of sufficient size that justifies development.

``With this in mind, the overall results are viewed as sufficiently encouraging for the board to approve a further eight-hole program.

``We expect to complete this program and be in a position to make a final decision on any development in the March quarter of 2010.''

Mr Benson said the Sandstone area had an amazing history of coming up with more gold ``just when we think it is about to run out''.

``The mine has never had a forecast life longer than three years but recently celebrated its 10th year of consecutive production for Troy. Obviously our hope is that one of these targets will enable us to again extend the mine life,'' he said.

The recent drilling has highlighted that the mineralisation is a difficult drill target.

But high-grade gold mineralisation was encountered in several of the holes and included: 8.5m at 49.59gpt gold from 195.8m, including 3.6m at 91.68gpt gold from 195.8m; 7.8m at 3.2gpt gold from 199.2m, including 2m at 9.1gpt gold from 205m; and 4.75m grading 11.16gpt gold from 198.25m.

An eight hole follow-up program is planned to further test the gold mineralisation and will start next month.