Diggers and Dealers gg 2010 Forum August 2010, Kalgoorlie Forward - PowerPoint PPT Presentation

Diggers and Dealers gg 2010 Forum August 2010, Kalgoorlie

Forward Looking Statements This presentation contains certain forward-looking statements and forecasts which include without limitation expectations regarding future performance costs production levels or 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 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 g p an offer to buy or sell securities. 2

Overview Troy is a dividend paying junior gold producer focused on growth with a track record of low cost mine development Becoming a profitable Mid Tier Producer 3

Troy Is Unique  Troy has paid A$30.5M in ten consecutive fully franked cash dividends  ASX Top 300 Company  Troy has two producing mines  Troy has a major growth project with Casposo  Troy has a major growth project with Casposo  All three sites have significant brownfields potential  Gold exposure at a compelling valuation  No hedging o edg g  A$11m in net cash and A$25M debt facility 4

Troy – The Planets Are Aligning  Mine Life Today Troy has the longest forecast mine life in its history   Liquidity Over the last 18 months a step change in market liquidity   Blue Sky Greatest number of drill targets in the Company’s history •  Institutional Interest  Institutional Interest  Institutions now make up over 30% of the register  Broker coverage  Broker coverage Today 6 brokers cover the stock  5

What We Own Gold Assets  Sandstone Gold Mine - Australia Andorinhas Belém Gold Mine  Andorinhas Gold Mine - Brazil  Casposo Gold Silver Mine -  Casposo Gold Silver Mine BRAZIL Argentina Brasilia Belo Horizonte Daly R iver Rio de Janeiro Rio de Janeiro Sao Paulo San Juan Casposo Gold Buenos Aires S ands tone Q ue e nsla nd We ste rn We ste rn Silver Mine Silver Mine Gold Mine Austra lia So uth X Austra lia Other Assets N. S. W. P erth S ydney  Andorinhas, Brazil – Iron Ore Andorinhas Brazil Iron Ore 500 k 500 km A C T A.C.T . Vic to ria  Sandstone, Australia – Nickel JV  A$11m net cash (1)  Approx A$2.6M (2) in listed equities as at June 30, 2010 (1) as at July 29, 2010 1.98 M Volta Resources shares (2) 6

Corporate Snapshot Key Statistics (A$) Troy Share Price Ordinary Shares: 87.5M Partly Paid Shares: Partly Paid Shares: 0 35M 0.35M Options: 3.1M Share Price as at July 12, 2010: $2.48 52 Week Range: 52 Week Range: $1 20 - $2 86 $1.20 $2.86 Market Cap as at July 12, 2010: $217M Board & Senior Management Board & Senior Management Non-Executive Directors John Dow, Non-Executive Chairman  Gordon Chambers, Non-Executive Director Gordon Chambers, Non Executive Director    David Dix , Non-Executive Director John Jones, Non-Executive Director  Robin Parish, Non Executive Director Robin Parish, Non-Executive Director   Senior Management  Paul Benson, CEO  Peter Doyle, VP Exploration & Bus. Development Ken Nilsson, Executive Director Operations  David Sadgrove, CFO & Company Secretary  7

8 Casposo Project – San Juan Province

San Juan Province Mineral Endowment Mines and Casposo Project Access 9

10 at 2,400m AMSL Mine is 20km from Calingasta

11

Casposo  Acquired from Intrepid Mines for US$20M in May 2009 plus US$2M on 6 th month anniversary of first production  July 2009 announced 32% in gold equivalent in Mineral Resource update  August 2009 announced 47% reduction in pre-production construction capital to US$45M  Started construction in August 2009  February 2010 announced a further reduction in pre-production construction capital to US$41 5M construction capital to US$41.5M  May 2010 announced a 31% increase in gold equivalent in Mining Reserve Reserve  June 2010 announced discovery of new outcropping vein 4kms from the plant p  On schedule and budget to pour first gold in September quarter 2010 12

13 Open Cut, Underground and Processed Tonnes

Total Gold Equivalent Production Aim to avoid the drop in production in 2013 and Aim to extend mine life 2014 through proving up additional open cuttable through proving up additional Reserves – eg Castaño Nuevo and Casposo Note surface and underground Reserves 14

15 Project Cumulative Cash Flow After Capital

Casposo – Summary  Value adding acquisition V l ddi i iti  Fast track and low cost mine development  Fast track and low cost mine development  Supporting a greater than 100% increase in gold  Supporting a greater than 100% increase in gold production in FY2011  Excellent Brownfields potential 16

Andorinhas Gold Mine – Brazil  Small narrow vein underground supplemented by low grade l t d b l d open cut stockpiles   Calendar 2010 H1 operating in Calendar 2010 H1 operating in lower grade and narrow part of the ore body leading to excessive dilution excessive dilution  June quarter - 7,808oz at US$655/oz  FY2010 - 31,568oz at US$634/oz 17

18 Andorinhas, Mamão Underground Mine

19 Melechete Lode Drilling and Grade Distribution

20 Narrow Vein Shrinkage Stope – M2

Andorinhas – Monetising Iron Ore Resource  Colluvial Iron Ore  Reserves 2.8 Mt  Resources 6.5 Mt  LOI LOI with MFA to mine ith MFA t i the iron ore   Payments Payments  US$4m over FY11 and FY12  Over US$3m pa (1) (1) based on production and iron ore market price assumptions 21

Andorinhas – Summary  Currently mining in a low grade area  Currently mining in a low grade area  FY2010: 31koz  3+  3+ years remaining Reserves i i R  Potential at depth and regionally to add Reserves  Monetising iron ore 22

Australia, Sandstone Gold Mine Historically the Backbone of the Company  Mining remnants  June quarter 4 836 oz Au  June quarter 4,836 oz Au at cash cost of A$1,227/oz  FY2010: 29,885 oz Au at cash cost of A$1,000  Moving to care and  Moving to care and maintenance in September quarter 2010  Considering options with respect to Two Mile Hill  Nickel exploration JV with  Nickel exploration JV with Western Areas NL 23

24 Blue Sky

25 Casposo Drill Targets Around Existing Reserves

Exploration Potential Brownfields Targets Cerro Norte Cerro Norte Zone Looking East Maya Vein Mercado NW Vein 26

27 New Casposo Norte Discovery

28 Castaño Nuevo Target, Argentina

29 Castaño Multiple Outcropping Veins Systems

Why Invest In Troy  A strong Board and Management team with proven  A strong Board and Management team with proven track record  Consistent dividend payer with compelling valuation  Consistent dividend-payer with compelling valuation  Clean, strong balance sheet  Excellent track record of building Reserves and Resources  Strong growth profile through 2012 – will re-enter the +100,000oz pa club in FY2011  Significant brownfields exploration potential 30

Troy is a dividend paying junior gold producer focused on growth with a track record of low cost mine development Becoming a profitable Mid Tier Producer 31

Thank You k Y Th