Annual report on EL 26248 and EL 26250, for the period 15 February 2009 to 14 February 2010

Abstract

Daly River is, located approximately 145 kilometres south of Darwin in the Northern Territory. Deposits of copper, lead and zinc have been mined sporadically from veins and lodes in the Daly River region since the late 19 century. Approximately 7,000 tonnes of oxide ore grading 20% to 30% copper has been produced. Modern mineral exploration, since the 1960s, using geophysical and geochemical techniques, resulted in the discovery of several small volcanogenic massive sulphide (VMS) deposits, which to date have been prohibited from exploitation by their small size and uneconomic grade. Exploration for gold in the area has been minimal. Troy Resources NL currently holds the area, including all the old mines, prospects and new discoveries, under four granted exploration licences and two exploration licence applications. Troy has carried out little exploration work in the area having been restricted both currently and in an earlier period of tenure by other stakeholder ownership disputes. The project area has potential for discovering additional base-metal deposits and gold and a number of inadequately tested and untested targets generated by previous explorers are available for immediate follow-up. Also, it is anticipated that other targets can be generated through surveys resulting from the appraisal of the large volume of data in existence. This report pertains to Daly River Project Exploration LicLicences EL 26248 and EL 26250 for the period 15 February 2009 to 14 February 20010. No work has been carried out on the tenements the subject of this report and no expenditure has been incurred on the ground. In spite of the refusal of consent, it is recommended that Troy persevere with the project, commence work on the granted tenements and try to encourage the Aboriginal landholders to reopen negotiations toward the grant of EL 22066 and EL 10081.