Western Troy Reports Exploration Prospect Assay Results, Property Options, and Provides MacLeod Lake Project Update
TORONTO, ONTARIO -- (Marketwire) -- 09/13/10 -- Western Troy Capital Resources (TSX VENTURE: WRY) (Western Troy) reports it has received assay results from its summer exploration programs on a number of its prospects in Quebec. Western Troy has also optioned a number of its exploration prospects to third parties including the Schefferville Gold, Franelle Copper, Indian Lake, and Menary Township Gold properties. Western Troy also reports progress on its MacLeod Lake Copper/Molybdenum Project.
Rex Loesby, Western Troy's CEO commented, 'We have the solid foundation of a high grade advanced stage copper/molybdenum project at MacLeod Lake, along with the blue sky potential of early stage exploration prospects in Quebec and Ontario. Our exploration prospects are showing good results and the work is bearing fruit in the form of option agreements from third parties. Under the agreements, Western Troy retains a substantial interest in the prospects while others fund exploration work.'
Exploration Results
From June to August Western Troy prospecting crews worked on a number of prospects in central and northeast Quebec. The results at Indian Lake, Schefferville Gold, and Deborah Lake were all encouraging. The properties were prospected using low intensity geophysics equipment (beep mats) and visual prospecting. Samples were taken on geophysical anomalies and areas of visible mineralization.
Schefferville Gold: A drilling program was conducted by Western Troy on the Schefferville Gold Prospect in 2009 which produced significant intersections in gold, silver, lead and zinc (http://westerntroy.com/10- 30-09.pdf). This year's work focussed on more surface prospecting to identify more drill targets. A total of 16 samples were taken and two showed significant gold values of 2.47 and 3.42 g/t gold. The prospect caught the attention of Rockland Minerals Corp. (TSX VENTURE: RL) which approached Western Troy with an option proposal on the property. Under the option agreement, signed in August, Rockland can acquire a 55% interest in the Property by making cash payments to Western Troy totalling $60,000, issuing an aggregate of 600,000 common shares to Western Troy, and by spending $800,000 in exploration on the property over a three-year period. Western Troy retains a 2% net smelter return on the property (http://westerntroy.com/08-27-2010.pdf). Rockland will be releasing its exploration plans for the Schefferville gold property shortly.
Indian Lake: The Indian Lake property was discovered at the beginning of the field season. The property is located approximately 60 kilometers east of Schefferville, Quebec. A large gossanous area was observed by Western Troy's prospecting crew while traveling by helicopter from Schefferville to another prospect in the area (http://westerntroy.com/7-6-10.pdf). Of the 8 rock chip samples taken on the Indian Lake West property, two showed significant copper analyses (both greater than 0.5 percent). A total of 17 samples were taken on the Indian Lake East property. One sample showed a platinum value of 102 ppb and another showed a zinc value of 0.201 percent. Twenty-three samples were taken on the Indian Lake North property. Three significant platinum values of 128, 133, and 143 ppb were returned. Three significant palladium values of 294, 460 and 550 ppb were returned. Two anomalous silver values were 14 and 28 g/t. Three copper values were 0.5 percent or greater. Eight nickel values were greater than 0.1 percent and two zinc values were greater than 0.5 percent. In the preliminary sample analysis, assay results for copper and zinc values above 0.5% are reported at 0.5%. These samples will be re-analyzed with a more sensitive process to determine the true value. This is also true for nickel values greater than 0.1%.
An agreement was made with Match Capital (TSX VENTURE: MHC.H) on the Indian Lake property where Match can earn a 50% interest on the property by spending $250,000 over a 2 year period (http://www.westerntroy.com/jul26-2010.pdf). A 43-101 report was produced by Stewart Winter P.Geo and can be viewed at http://westerntroy.com/43-101-indian.pdf. Significant results to date include a 200 metre long, 0.8 metre to 1.0 metre wide stratiform zone trending 270 and dipping vertically. The zone is sulphide-rich and sampling by Winter (composite chip samples across the zone) returned copper values of 4.30%, 1.04%, and 2.28% with associated gold values of 2.94 g/t, 0.463 g/t and 12.30 g/t respectively. Match will resume work on the Indian Lake property in September. The work will consist of mechanical stripping and channel sampling of showings found during the summer program.
Lake Deborah: Western Troy's activities in the Schefferville region resulted in the discovery of the Lake Deborah property which was staked by Western Troy. Western Troy was first attracted to the area by a government geologist report of a grab sample that assayed 1% copper and 250 ppb gold. The Lake Deborah prospect is located about 80 kilometers northeast of Schefferville, Quebec.
Western Troy's Exploration Vice President, Wayne Holmstead commented, 'Upon investigation of the claims on the ground, we quickly came upon rusty boulders. Outcrop exposure in the area is sparse but most of the boulders in the area appear to be frost-heaved and in place. The area was prospected with the beep mat and several buried boulders containing chalcopyrite mineralization were found. We were struck by the fact that we were easily finding significant mineralization in an area that did not appear to have been worked in the past. On checking on the assessment files we found that a company had flown an airborne survey in the early 1960's and drilled some of the more promising conductors to the south. They drilled one zone that was traced for about 275 meters with an intersection of 0.4% copper over 75 feet (true width).' (GM 15133, GM15139 Quebec Assessment Files)
Mineralized peridotites were noted in the area (peridotites are known to host Platinum Group Elements present in the area). The copper/gold potential at Lake Deborah appears to be good, but the PGE potential was apparently not tested. The conductors found by the old airborne survey appear to rim a circular magnetic high that is likely due to a mafic intrusion that is also a characteristic of peridotites. The property is located about 20 km from the Blue Lake property where copper, nickel, and PGE mineralized zones have been located in the past.
A total of 53 samples were taken on the Lake Deborah property during Western Troy's summer program. Of these, 16 were greater than 0.5 percent copper (the upper limit of the assay method used by the lab), and 3 were greater than 1000 ppm nickel. One significant gold value was detected. (4.2 g/t). Historically, this is the highest gold value reported on the Lake Deborah property. The copper and nickel samples will be re-analyzed to determine the actual content. The old core has been located and will be logged and analyzed.
Eider: The Eider Property was staked by Western Troy in August of 2010. It is located in the western end of the Frotet-Evans Greenstones Belt, about 100 kilometers north of Matagami, Quebec, an area well known for its gold and base metals deposits. A mineral exploration company's work (from 1998 to 2000) unearthed high grade values (up to 5.4% copper, 1.2 g/t gold, 0.4 g/t palladium and 16.3 g/t silver in chip samples) located at the periphery of an intrusive. Lower values were found over larger thicknesses. Enriched mineralization along the periphery of the intrusion exhibit an excellent geophysical signature (see map below). Western Troy plans additional surface prospecting this fall followed potentially by drilling in 2011.
To view the map, please visit the following link - http://media3.marketwire.com/docs/WRY10913.pdf
Other Exploration Prospects: Western Troy prospecting crews also visited the Fabiola Molybdenum, Strange Lake Rare Earths, and Troilus Molybdenum properties. Results were less than encouraging on these prospects so no further work is planned. Other prospects in Western Troy's stable include the Lac Volant Rare Earths prospect (http://westerntroy.com/12-1-09.pdf) and the Reboul Lithium prospect (http://westerntroy.com/3-25-10.pdf). Western Troy plans prospecting visits to these sites in the fall of 2010 or the spring of 2011.
Additional Exploration Prospect Option Agreements
Over the past few years, Western Troy has identified and staked claims on a number of exploration prospects in Quebec. This work has resulted in significant interest from third parties to option some of the prospects from Western Troy. Two of these agreements on the Schefferville Gold and Indian Lake prospects are outlined above. In addition, Western Troy recently signed an agreement on its Franelle Copper Prospect, and last year, Western Troy optioned its Menary Township Gold prospect to Kings Bay Gold.
Franelle Copper: Two claims were staked by Western Troy on the Franelle Copper Prospect in the Schefferville area of Quebec in December 2009 (See Western Troy press release dated 12/21/09 at http://westerntroy.com/dec21-2009.pdf). The 2 claims formed the core of a copper property that included over 80 claims and it attracted the interest of Key Gold Holdings of Montreal. Key Gold assembled the property from a total of five vendors. With the 2 claims, Western Troy retains 20% of the total venture and will receive $4,512 in cash payments, 450,000 shares of Key Gold Holdings and a 0.4% NSR in the entire property. Key Gold's announcement of the agreement can be viewed at http://westerntroy.com/09-01-10.pdf.
Menary Township: Western Troy optioned its Menary Township Gold Prospect to King's Bay Gold Corporation (TSX VENTURE: KBG) in January of 2010. Under the option agreement, King's Bay can earn 100 percent of the property by making cash payments of $75,000 and stock payments of 175,000 shares of King's Bay, of which Western Troy will receive 50 percent of such payments. Western Troy retains a 3 percent NSR royalty on the property. Full details of the agreement can be seen in a King's Bay press release dated January 20, 2010 on the SEDAR system. King's Bay is presently waiting for assay results from six drill holes that were recently completed on the property. The Menary Township property is located near Richardson Township where Rainy River Resources Ltd. and Bayfield Ventures Corp. have identified 43-101 gold reserves.
MacLeod Lake Copper/Molybdenum Project Update
Work continues on the MacLeod Lake final feasibility study. Some highlights of the work and other related activities are:
Metallurgical Testing: SGS Mineral Services of Lakefield, Ontario conducted a full metallurgical study in 2009. The study indicates copper recoveries would average about 96 percent and molybdenum recoveries would average about 85 percent. This is an improvement over the Preliminary Assessment (Scoping Study) which assumed 92 percent for copper and 85 percent for molybdenum and should result in a significant improvement in overall project economics.
Run of River Power: GENIVAR, the MacLeod Lake feasibility study engineering contractor, produced a preliminary study of electric power generation from two sites on the Eastmain River. The study indicates a hydroelectric power system for the MacLeod Lake Project is estimated to cost approximately $64 million. While this is a viable option for the project, Western Troy and GENIVAR will continue to look at power options, including diesel generators and a power line from Hydro Quebec. A final decision on power will be made after more definitive estimates are developed for all power options.
Geotechnical: A study is in progress to determine the final pit slope. The work includes drilling test holes to determine rock strength and the orientation of major crack patterns in the rock. The Scoping Study assumed a conservative 45 degree angle for the pit slope. Preliminary indications are that a pit slope of 55 to 60 degrees may be safe, thus improving overall project economics.
Environmental Permitting: All of the baseline studies and field surveys for the mine permitting were completed in September of 2010. Community meetings and environmental permit document preparation are planned for 2011 with full permitting planned for the end of 2011.
Otish Mountain Road: The final feasibility study for the Otish Mountain Road is proceeding. The study is funded by the Ministry of Transport, Quebec (MTQ). Construction is planned for early 2011 and the construction schedule indicates the road will be complete through to kilometre 115 by late 2011. The spur to Western Troy's MacLeod Lake Project has been planned to branch off the Otish Mountain Road at kilometre 104, thus making it feasible to plan for mine and spur road construction beginning in 2012.
The timing of the completion of the MacLeod Lake final feasibility and environmental permitting are dependent on the decision regarding the selection of the electric power options as well as the schedule for the completion of the Otish Mountain Road. If the power decision is made and the road construction schedule is firmed up in next few months, the feasibility study could be competed in early 2011, permitting could be completed by the end of 2011, mine construction could begin in 2012, and first production could come in 2014.
About Western Troy: Western Troy's shares trade on the TSX Venture Exchange under the symbol WRY, with 23,284,970 shares outstanding. More information on Western Troy can be found on its Website at www.westerntroy.com. Those wishing to be added to Western Troy's Email update system, please go to the following link: http://westerntroy.com/contact.html
Forward Looking Statements: Statements in this release that are forward-looking reflect the Company's current views and expectations with respect to its performance, business, and future events. Such statements are subject to various risks and assumptions, some, but not necessarily all, are disclosed elsewhere in the Company's periodic filings with Canadian securities regulators. Such statements and information contained herein represent management's best judgment as of the date hereof based on the information currently available; however actual results and events may vary significantly. The Company does not assume the obligation to update any forward-looking statement.
Rex E. Loesby, P.Eng., is the qualified person that has reviewed the content of this press release.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Western Troy Capital Resources
Rex E. Loesby, P. Eng.
President
416-929-3268
RexLoesby@aol.com