Troy Resources NL (TSX, ASX: TRY) reported an inferred mineral resource estimate of 10.54 million tons grading 1.3 grams per ton gold for 452,000 ounces contained gold for the Two Mile Hill tonalite gold mineralisation on the Sandstone project in Western Australia.
Troy CEO, Paul Benson said: "This is a significant resource and although low-grade, the geometry of the intrusive is such that it could be amenable to low-cost high-tonnage mining methods. However, it's the recent discovery of high-grade gold mineralisation in the adjacent Banded Iron Formation (BIF), announced on July 16th, but not included in this resource number, that makes this really interesting.”
The group is currently planning a Phase 3 exploration program to test the extent of the high-grade BIF mineralisation.
“Sandstone has never had much more than 3 years forecast mine life ahead of it, yet it is about to mark its 10th anniversary as a Troy operation. It's been an outstanding performer for the company and obviously we're hoping that Two Mile Hill can play a part in extending production well into the next decade. All going well we should be in a position to evaluate the Phase 3 results early in the December quarter".