Apr. 14, 2011 (Marketwire Canada) --
TORONTO, ONTARIO -- Western Troy Capital Resources (TSX VENTURE:WRY) (Western Troy or the Company) provides here an update on its activities in advance of its Annual General Meeting (AGM) to be held at the Toronto Board of Trade, Downtown Centre, 1 First Canadian Place, Toronto at 4:30 PM on Thursday, April 14, 2011.
Deborah Lake Copper/Gold Prospect: Diamond core drilling commenced at Deborah Lake on March 22, 2011. As of April 11, approximately 1,200 meters had been drilled with 11 holes being completed. Holes One through Five were drilled in the area that was the focus of surface sampling last summer and Hole Six was drilled on a target generated by the airborne survey conducted in December of 2010. These holes intersected intervals of less than 1 meter of semi-massive to massive sulphide mineralization (visually estimated at 25% to 75% sulphide content). Hole Seven was drilled on one of the major conductors detected on the airborne survey. Sulphide mineralization was intersected between the intervals of 8.6 m to 14.3 m. The hole started in mineralization and based on the results of Holes Eight through 11, it is believed that the hole only intersected part of the mineralization present at this location. In Hole Eight, located 514 meters south of Hole 7 and along the same conductor, sulphide mineralization in a quartz zone was intersected starting at 13.5 meters. At 16 meters depth there are mineralized veinlets in graphite schists continuing to 39.7 meters depth. Hole Nine was located 351 meters to the southeast of Hole Eight and was also on the same conductor. Sulphide mineralization was intersected from 41 to 52 meters. Hole 10 was drilled 110 meters southwest of Hole Nine and it intersected sulphide mineralization from 85.7 to 94.5 meters. Hole 11 was drilled 523 meters southeast of Hole 10 and intersected sulphide mineralization from 48.5 to 57.4 meters. In all of the sulphide intersections above, chalcopyrite (copper mineral) mineralization was visually identified along with pyrrhotite, pyrite, and arsenopyrite. Mineralized intersections listed here are not necessarily the true widths of the intersections.
Mineralized sections of core have been split and samples will be shipped to the lab for assay this week. Assay results should be available in early May. The original plan was to drill approximately 36 holes, or about 3600 meters, and complete the program by the end of April. However the program may be extended based on results obtained.
Rex Loesby, Western Troy's CEO, commented, "While the real story will only be known when assay results are in, we are encouraged that we are seeing chalcopyrite in all of the holes drilled so far, and chalcopyrite in sulphide mineralization over good widths in all of holes 7 through 11 which are on the same geophysical trend."
MacLeod Lake Copper/Molybdenum Project: The Preliminary Evaluation (Scoping Study) for the MacLeod Lake Project was completed in early 2008. It indicated that at reasonably conservative prices for copper and molybdenum, the project would generate attractive pre-tax returns. Based on this work, Western Troy contracted with GENIVAR of Val d'Or Quebec to produce a bankable feasibility study and provide all environmental permits for the project. In support of the bankable feasibility study, Western Troy contracted with SGS Lakefield for a detailed metallurgical testing program, a geotechnical test program was performed to determine the appropriate pit slope for the mine, an airborne survey of the road route from the Otish Mountain Road to the mine site was performed, and studies of various electric power options for the mine have been completed. The environmental work included all field studies for the mine including surface hydrology, ground water hydro-geology, vegetation, and wildlife surveys. All but a small portion of the field work for the feasibility and environmental permitting has been completed.
As compared with the Scoping Study, the fundamentals have improved on a number of fronts. The metallurgical work resulted in an improved forecast for copper recovery (96% versus 92% estimated in the Scoping Study), the geotechnical work resulted in an increase in the safe pit wall (60 degrees versus 45 degrees in the Scoping Study) which will result in a lower stripping ratio, and finally, the most recent Quebec budget includes full funding for the Otish Mountain Road. Copper prices have risen to the US$4.40 per pound level and molybdenum prices have held at $17 per pound since the world economy began to recover last year.
We still have a question regarding the choice of electric power. Preliminary studies indicate that diesel power is not an attractive option. In 2010, Western Troy commissioned GENIVAR's power division to conduct a study of a run of river power system on the Eastmain River. That study indicated such a system would cost approximately $63 million. When this capital expense is added to the initial capital for the mine, the economic returns are still attractive, though somewhat diminished from the economics as indicated in the Scoping Study. A power line is planned for Stornoway's Renard Diamond Project which is located approximately 80 kilometers north of MacLeod Lake. The cost of extending that line to the MacLeod Lake Project is estimated at approximately $75 million. So at this point, it looks like the run of river power system is the best option.
Rex Loesby, Western Troy's CEO, commented, "There are ongoing discussions between Western Troy, Hydro Quebec, and stakeholders in the region, regarding other power options that could result in attractive economics for the MacLeod Lake Project. We are pleased that the feasibility and environmental work completed to date has resulted in improvements in the fundamentals for MacLeod Lake, and while we could fast-track the project with the run of river power system, we believe the most favourable path for the project and our shareholders is to hold off for a few months to give our discussions on electric power options time to mature before proceeding with the completion of the bankable feasibility study."
Lake Chibougamau Copper: The Chibougamau Copper property is located about 20 kilometers south of Chibougamau, Quebec, and under the water of Lake Chibougamau. In 1974, 4 diamond drill holes were drilled in the region by Rio Tinto on airborne electromagnetic anomalies detected by a government survey in 1972. The same drill program resulted in the discovery of the Devlin copper deposit (1M tons of 2% copper and 0.014 oz/ton gold) located about 4 km to the west of the Western Troy property. Western Troy identified a significant geophysical anomaly close to these discoveries and staked nine claims on the prospect in April of 2010. Western Troy has contracted with Chibougamau Diamond Drilling to conduct a diamond drilling program of approximately 500 meters to test the anomaly. The drilling will commence in the next few days with assay results expected in May.
St-Pierre Project: Western Troy holds 100 % of the St Pierre project located some 70 kilometers to the west of the village of Kuujjuak in northern Quebec. The project hosts the St-Pierre poly-metallic gold, copper, zinc and silver showing. Government geologists described the St-Pierre showing as a particularly rich, massive sulphide lens (base and precious metals). Quebec Government report MB88-05 mentions that a chip sample returned 2.66% copper, 7.08% zinc, 8.24% lead, 256 g/t silver and 152 g/t gold over 0.71 metres. Chip sampling of the St-Pierre showing by Vantex in October of 2006, confirmed the very rich nature of the massive sulphide lens at surface in both base and precious metals. The alteration zone can be observed for approximately 40 meters before it gets buried under a swampy area to the west and under a lake to the east. Maximum thickness of the gossan is 5 meters although it could be slightly thicker under the overburden cover. Western Troy plans surface sampling and geologic mapping this year.
Eider Property: 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 in the interior of the intrusive. Western Troy plans surface prospecting this fall followed potentially by drilling 2011.
Lachabel Prospect: Western Troy staked 9 claims on the Lachabel Prospect. The property is located in the Mont Laurier area of Southern Quebec. Past work yielded assays of 12% copper, 7.7% tungsten, 16 g/t silver, 444 ppm bismuth and the mention of molybdenum. A nearby sample taken by another company assayed 0.8% uranium, 6.3 g/t gold, 0.92% niobium, 725 ppm tantalum and 0.55% yttrium. (GM59949, GM63529, Quebec Assessment Files). The model seems to be skarn mineralization on the margin of an alkali intrusion. This type of mineralization appears to be similar to Western Troy's MacLeod Lake property which includes copper, molybdenum, gold and silver mineralization but also contains anomalous values in tungsten and bismuth. Western Troy prospecting crews will make a site visit during the Spring 2011 season.
About Western Troy: Western Troy's shares trade on the TSX Venture Exchange under the symbol WRY. Western Troy has 33,589,970 shares outstanding. More information on Western Troy can be found on its Website at www.westerntroy.com.
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.
Mr. Eddy Canova, P.Geo. (OGQ 403), is the qualified person who has reviewed the content of this press release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Western Troy Capital Resources