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Troy Resources announces first gold and silver pour at Casposo project in Argentina "gold"

Troy Resources announces first gold and silver pour at Casposo project in Argentina

Junior gold producer Troy Resources (TSX:TRY)(ASX:TRY) said Friday that it produced its first gold and silver at the company's Casposo Mine in San Juan Province, Argentina, as part of the commissioning of the refinery section.
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"This is the milestone we have been waiting for. We commenced project construction in August of 2009. Although a little later than our ambitious schedule, we have built a plant and poured first gold in just 16 months," said CEO Paul Benson.

Benson explained the delay from its initial September target was due to late delivery of equipment, and issues around quality control.

The crushing, grinding and leaching circuits are now fully operational and able to operate at above planned capacity, while the concentrate and tails filtering sections and refinery are still sorting minor commissioning issues, expected to be completed in the coming weeks, said Troy.

More than 74,000 tons of ore at 9.83g/t gold equivalent has also been stockpiled to allow for a rapid build-up in production once the entire facility is fully commissioned.

Currently, the plant is being operated in manual mode, until the installation of the automated process control is finalised, anticipated next month. Troy said that ramp up to full production is now expected in the March quarter of 2011.

In exploration terms, drilling has begun at the Castano Nuevo and Casposo Norte areas, targeting the shallow upper parts of the veins systems.

Ongoing surface mapping and sampling identified good mineralisation in the Lucia Vein, according to the company, with a peak result of 3.3m grading 11.67g/t Au eq.

"The Lucia sampling results are some of the best both in terms of width and grade for an outcropping vein on the property outside the Kamila vein, which is the site of the initial open cut," said Troy in a statement.

In May, Troy announced it completed a mineral reserve report for Casposo, which estimated that 320,800 ounces of gold and 9,000,000 ounces of silver will be produced over the property's six year mine life, representing 19% more gold and 67% more silver than assumed in the company's previous 2008 study.

Aside from Casposo, the dual-listed Troy has operations at Sandstone in Western Australia and at the Andorinhas gold mine in Para State, Brazil.