Gold miner, Troy Resources, looking to begin to create lasting peace

The much publicised battle for Australian and South American gold miner Troy Resources is over but the issue ahead is whether there is a peace treaty that will last.

PERTH - 

Key shareholder and former chairman of Troy Resources NL (ASX & TSX: TRY), John Jones, saw the two directors he wanted removed depart and the chief executive Paul Benson retain that post but ceasing to be a director.

Jones had moved for the voting out of foundation director Alan Naylor and another director, Dr Denis Clarke, and removal also of Benson, but a compromise welded together by chairman John Dow, resulted in both Naylor and Clarke not seeking re-election, and Benson going off the board at the annual meeting on Friday.

However, there has been some division in the company that has been a profitable mid-tier producer paying dividends. It is understood Jones would prefer Benson leave the company, and conversely it was reported that about 18% of voting shareholders were against Jones being re-elected.

In a presentation at the annual meeting it was pointed out that Troy has no debt, no hedging and A$19 million (US$17.24 million) in cash and bullion.

Shareholders were told that in the past year the company's share price had risen 390% though the boardroom battle did take some shine off the price.

Gold exploration has re-commenced in the Sandstone district of Western Australia where Troy has operated a series of mines. Output from Sandstone in fiscal 2009 was 32,930 ounces.

At the company's mine at Andorinhas in Brazil production was now at 50,000 oz per annum and, based on known reserves there should be adequate resources for five years output. The high grade Mamao underground mine at Andorinhas was commissioned this year.

The new Casposo gold-silver project in Argentina was acquired this year from Intrepid Mines for US$20 million. There will be a further payment of US$2 million after the first six months of production.

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