Investor Update June 2011 For personal use only Forward Looking - - PDF document

Investor Update

US & Canada Roadshow June 2011

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Forward Looking Statements

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This presentation contains certain forward-looking statements and forecasts which include without limitation, expectations regarding future performance, costs, production levels or rates, reserves and resources, the financial position of Troy Resources NL (the “Company”), industry growth or other trend projections. Although such forecasts and forward-looking statements reflect current beliefs and are based on information currently available and assumptions believed to be reasonable there is no assurance that actual results will be consistent with such forecasts and forward-looking

• statements. A number of factors could cause actual results, performance, or achievement to

differ materially from the results expressed or implied in such forecasts and forward-looking

• statements. For a description of such factors please see the section entitled “Risk Factors”

in the Company’s amended and restated preliminary prospectus dated 10 January 2008 available under the Company’s profile at sedar.com. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities.

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Dividend Paying Junior Gold Producer

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 Listed on ASX (TRY) in 1987 as a Gold Explorer  Became a gold producer in Western Australia in 2000  Opened our first gold mine in South America in 2002 (Sertão)  Dual listed on the TSX in 2008  Commissioned the Andorinhas gold mine in Brazil in 2008  Acquired the Casposo gold silver project in Argentina in 2009  Paid 10(1)consecutive cash dividends  First gold pour at Casposo in November 2010  April Casposo production 4,414 oz Au @ US$232/oz net of silver

credits

 No hedging  Significant exploration potential

(1)

11th Dividend declared and to be paid on June 29, 2011

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What We Own

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Gold Assets

 Andorinhas Gold Mine – Brazil  Casposo Gold Silver Mine – Argentina  Sandstone Gold Mine – Australia (Closed)

Performance

 Dec 2010 H1 Profit of A$6.05m  FY2011 production guidance of ~80,000oz Au_eq

We ste rn Austra lia Q ue e nsla nd

• N. S. W.

A.C.T .

Vic to ria

So uth Austra lia

500 km

Daly R iver S ydney P erth

X

S ands tone Gold Mine

On Car e and Maintenance

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Corporate Snapshot

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Troy Share Price Board & Senior Management

Non-Executive Directors



David Dix, Non-Executive Chairman



Gordon Chambers, Non-Executive Director



Fred Grimwade, Non-Executive Director



John Jones, Non-Executive Director



Robin Parish, Non-Executive Director Senior Management



Paul Benson, CEO & Managing Director



Peter Doyle, VP Exploration & Bus. Development



Ken Nilsson, Executive Director Operations



David Sadgrove, CFO & Company Secretary

Ordinary Shares: 87.97M Options: 4.8M Share Price as at June 9, 2011: $3.67 52 Week Range: $1.85 - $4.29 Market Cap as at June 9, 2011: ~A$320M Net Debt as of May 31, 2011 ~A$19.3m

Key Statistics (A$)

0.5 1 1.5 2 2.5 3 3.5 4 4.5 1‐Oct‐08 1‐Dec‐08 1‐Feb‐09 1‐Apr‐09 1‐Jun‐09 1‐Aug‐09 1‐Oct‐09 1‐Dec‐09 1‐Feb‐10 1‐Apr‐10 1‐Jun‐10 1‐Aug‐10 1‐Oct‐10 1‐Dec‐10 1‐Feb‐11 1‐Apr‐11 1‐Jun‐11

Troy Share Price A$

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Andorinhas Gold Mine – Brazil

 Small narrow vein underground supplemented by low grade

• pen cut stockpiles

 FY2010 - 31,568oz at US$634/oz  9 months to March 31, 2011 34,364 oz @ US$584/oz

Already exceeded FY10 production at a lower cost

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Andorinhas, Mamão Underground Mine

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Melechete Lode Drilling and Grade Distribution

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Melechete Deep Drilling Plan

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Andorinhas – Summary

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 Moving into higher grade areas  FY2010: 31koz  Guidance FY2011: ~48koz, FY2012: ~50koz  2 year mine life with potential at depth and

regionally to add Reserves

 Monetising iron ore royalty ~ forecast US$3m pa

from calendar 2012

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Casposo Project – San Juan Province

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San Juan Province Mineral Endowment Mines and Casposo Project Access

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Mine is 30km from Calingasta at 2,400m AMSL

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Delays in Ramp Up to Full Production

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 Relatively complex circuit

• Merrill Crowe (due to silver)
• Dry Tailings (due to seismically active area)
• Closed circuit for water balance

 Initial difficulty with tailings filter performance

• Clay binding filter cloth
• New Flocculent
• Introduction of antiscalant
• Introduction of diatomaceous earth and

cellulose  Various challenges with:

• Merrill Crowe filters
• Thickeners/clarifiers
• Commissioning of electronics/plant

monitoring and control systems  Training and supervision  Expect to reach budget throughput in June quarter

Tails Filtering January 2011 Tails Filtering March 2011

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Casposo Ramp Up

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 March Quarter Produced:

• 4,318 oz Au @ US$974/oz (net of 72koz

silver credits)

• or 6,118 oz Au_eq @ US$1,153/oz Au_eq

(co-product costing)

• Averaged 250tpd compared to design of

1100tpd  Month of March:

• 2,465 oz Au @ US$477/oz net of silver credits
• Averaged 360tpd

 Month of April:

• 4,414 oz Au @ US$232/oz net of silver
• Averaged 550tpd

 Mining comfortably ahead of the plant – stockpile at March 31:

• 145,877 t @ 7.1g/t Au and 97.7 g/t Ag
• Over 4 months stockpile at budget rates!

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Open Cut, Underground and Processed Tonnes

16 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Original data from 2010 NI 43-101 – Actual results delayed by slower than expected ramp up

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Total Gold Equivalent Production

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Aim to avoid the drop in production in Years 3 and 4 through proving up additional higher grade ore – eg Kamila SE Extension Aim to extend mine life through proving up additional surface and underground Reserves

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Original data from 2010 NI 43-101 – Actual results delayed by slower than expected ramp up

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Unit Costs and Production

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Unit Costs and Production

Life of Mine Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 FY 2017 30‐Jun‐17 Unit Cost: By‐Product Costing (after Silver credits) Gold Produced Oz 320,841 81,846 90,394 43,741 35,012 49,901 19,946 ‐ Unit Cash Cost net of Silver USD/ Oz (Au) (net Ag credits) 120.49 127.00 151.39 349.36 387.83 (88.18) (495.32) ‐ Total unit Cost net of silver (inc deprn & amort) USD/oz 448.85 455.38 505.01 779.50 681.63 157.85 (238.07) ‐ Unit Cost: Co Product Costing Equivalent Gold Produced Oz 463,494 96,056 110,705 60,681 64,576 92,520 38,956 ‐ Equivalent Gold unit cash cost USD/ Oz (Au+Au Ag) 382.05 270.94 307.08 517.03 645.20 390.05 209.97 ‐ Total Equivalent Gold unit total cost (deprn & amort) USD/oz 609.03 550.74 595.83 827.10 804.49 522.75 341.68 ‐ Based on forecasts given in May 2010 43-101 Report . The table will be updated in 2011 once actual operating costs are established

Original data from 2010 NI 43-101 – Actual results delayed by slower than expected ramp up NI 43-101 Assumed silver price at $17/oz falling to $15/oz

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Blue Sky

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1 2 3 4 5 6 7 8 million ounces

South American Low Sulphidation Epithermal Deposits Total Endowment

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Casposo – Low Sulphidation Epithermal Deposit

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Kamila – Mercado Deposit Geology

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The NW- SE Structural Corridor is a Key Driver in Placement of Mineralisation

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Casposo 2010 Mining Reserves

Highest value intercept on the property to date HOLE: CA08250 7.2m @ 108.7g/t Au 4,423g/t Ag Contained metal value over US$10,000 per tonne at US$1500/oz Au and US$35/oz Ag.

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Kamila Southeast Target Inca Vein Initial 2011 Drilling

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High Grade Intercepts Drilled in April

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Note the quoted gold equivalent grade assumes a conversion of 70:1 for converting silver to gold equivalent. This is a conservative approach to enable comparisons to the reserve published in 2010. The ratio of 70:1 assumes the differential metallurgical recoveries assumed in the NI43101 Report produced in 2010 and the metal prices assumed at that time. Because silver prices have risen proportionally more than gold prices, this ratio is increasingly conservative for high silver grade intercepts. Using the same assumptions for metallurgical recoveries but current prices of: Au – US$1500/oz and Ag – US$35/oz Gives a conversion ratio of 50:1 to convert silver to gold. The impact can be seen for hole CA-11-300 5.4m @ 8.18 g/t Au and 2,607 g/t Ag Was reported as 45.43 g/t Au_eq assuming a conversion ratio for silver to gold of 70:1 The grade would be 60.3g/t Au_eq if the conversion ratio of 50:1 was assumed.

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Inca Vein CA-11-295 Cross Section

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Inca Vein CA-11-300 Cross Section

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Inca Vein CA-11-297 Cross Section

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Julieta SE Drilling

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Julieta is a target on the main North West – South East structural corridor – some 5kms from the Kamila deposit and at approximately 1000m higher altitude. Troy established a small low-grade Resource in 2010 based on relatively shallow drilling. 268,700t grading 3.21g/t gold and 15.44g/t silver (3.43g/t Au_eq) for 29,700 Au_eq ounces at a cut-off grade of 1g/t Au_eq. In 2011 we have commenced a program of deeper drilling attempting to find zones of higher grade.

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Julieta SE Drilling

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2011 Drilling Results

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These higher grade results are strategically important because:  Although at depth, the topography is such that underground access could be gained by a short adit from the side of the hill thus lowering the hurdle in terms of size to justify development.  Only 7km haul distance to the Casposo plant.  We now have ore grade intercepts 5kms apart on the NW-SE structural corridor and ~4kms of this is covered by a thin layer of volcaniclastics.  Commenced planning airborne and ground geophysics with the aim of defining drill targets below the cover.

2011 Drilling Results

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Exploration Potential Brownfields Targets

32 Cerro Norte Zone Looking East Maya Vein Mercado NW Vein

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Lucia Vein Drill Target

Channel Sample Results

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Casposo Norte – Anomalous Gold In and Near Surface A Target for Follow Up Deeper Diamond Drilling

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Castaño Nuevo Target, Argentina

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Castaño Multiple Outcropping Veins Systems

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Extended Our Ground Position with the Signing of the Don David JV

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An Inflection Point?

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 Casposo ramping up to budget production.  Casposo will be a very low cost mine.  Andorinhas performing well.  Significant exploration results at Casposo with potential, dependent on further exploration success, to:

• Extend mine life (additional ounces)
• Avoid drop in production in years 3 and 4 (access to higher grade)
• Lower unit costs (access to higher grade)

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Qualifying Statements

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1. Au_eq grade calculated using a gold to silver ratio of 1:70. As per May 2010 Current Casposo NI-43101 Technical Report The gold equivalent cut-off was determined according to the parameters below:

• Au/Ag ratio

1:70.00

• Au Price

US$933.33/oz

• Ag Price

US$15.50/oz

• Au processing recovery 93.7%
• Ag processing recovery 80.6%

Gold equivalency is determined by metal price and recovery factors. Metal prices were the average prices assumed in the Casposo life of mine plan. Processing recoveries were determined by metallurgical testwork carried out by independent consultants on diamond drill core from Casposo. The equivalency is calculated by the formula - Gold: Silver ratio: = (gold price ÷ silver price) x (gold recovery ÷ silver recovery) = (933.33 ÷ 15.5) x (.937 ÷ .806) = 70.00 Gold equivalency is calculated by the formula: Au_eq g/t = Au g/t + (Ag g/t ÷ 70.00) 2. NSR – No Significant Results All samples were prepared and assayed by Alex Stewart (Assayers) Argentina Laboratory in Mendoza Argentina. 3. Gold by FA and either a gravimetric or AAS finish, using method gold 4-50 or gold 4A 50 for samples with gold>10g/t 4. Silver by three techniques: four-acid digestion followed by AAS reading for check samples up to February 2006, aqua regia digestion followed by inductively coupled plasma with optical emission spectroscopy (ICP-OES) reading for all samples in mineralised intersections after February 2006. Method numbers were GMA, ICP-AR-39 and silver 4A-50. Geological information in this Report has been compiled by Troy’s Vice President Exploration & Business Development, Peter Doyle, who:

• Is a full time employee of Troy Resources NL
• Has sufficient experience which is relevant to the type of deposit under consideration and to the activity which 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’

• Is a member of the Australasian Institute of Mining and Metallurgy
• Has consented in writing to the inclusion of this data

Information of a scientific or technical nature in this report 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”, a Fellow of the Australasian Institute of Mining and Metallurgy.

• Mr. Doyle has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify

as a “qualified person” as defined in “National Instrument 43-101 – Standards of Disclosure for Mineral Projects”. Mr Doyle has reviewed and approved the information contained in this report. For further information regarding the Company’s projects in Brazil, Australia and Argentina, including a description of Troy’s quality assurance program, quality control measures, the geology, samples collection and testing procedures please refer to the technical reports filed which are available under the Company’s profile at www.sedar.com or on the Company’s website. This report 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.

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