Western Troy to Explore Gold and Rare Earths Prospects this Summer
TORONTO, ONTARIO--(June 2, 2009) - Western Troy Capital Resources Inc. (TSX VENTURE:WRY, “Western Troy”) announced today its plans for the remainder of 2009. Western Troy plans to drill its Schefferville Gold Prospect in August or September and perform surface surveys and sampling at most of its nine exploration prospects in Quebec, most notably, it’s Washicoutai Rare Earths Prospect on the North Shore of Quebec.
The Schefferville gold prospect covers the south limb of a folded iron formation with numerous gold values ranging up to 24 g/t over a strike length of 5.5 kilometers. Anomalous values were also detected in silver (30g/t), copper (1.28%), and tungsten (0.17%). Soil sampling over 3 kilometers of the strike detected anomalous gold and arsenic values and the anomaly was found to be open both along strike and across strike. Limited historical drilling at the west end of the zone yielded 2 to 4.5 grams per tonne gold over three to six meters in width in three drill holes. The claims are located within 5 kilometers of existing roads that lead to the railhead at the town of Schefferville. A NI 43-101 assessment of the prospect has not been prepared. Western Troy plans a 1,000 meter drilling program for August or September of this year.
The Lac Washicoutai Rare Earths Prospect is located about 72 km east of the town of Natashquan on the North Shore of the St Lawrence River. The property covers 3 rare earth showings over about 5 kilometers on the boundary of gneissic intrusive rocks in contact with gneissic rocks derived from metasediments and volcanics. In the most westerly block, the mineralization is found in at least 2 large pegmatitic lenses 150x50m and 100x30m. Analyses of selected samples gave the following results:
3.7% Total Rare Earths
1.55% Cerium
0.3% Thorium
0.28% Gadolinium
0.11% Praseodymium
0.155% Samarium
0.0357% Dysprosium
0.2% Lanthanum
0.649% Neodymium
0.114% Yttrium
0.59% Zirconium
The data presented in this release for both the Schefferville and Washacoutai prospects are from Assessment Files developed and maintained by the Province of Quebec. NI 43-101 assessments of the prospects have not been prepared.
Western Troy’s President, Rex Loesby, commented, “While we continue to advance our MacLeod Lake Molybdenum/Copper Project, we are excited about the prospects for new discoveries at our nine Quebec exploration prospects. Our VP of Exploration, Wayne Holmstead, has worked in Quebec for over 30 years and he has generated these prospects from detailed analysis of data that has recently become available from the Quebec government. We are also encouraged by recent market price increases in copper and molybdenum. Based on the Scoping Study economic model generated last year by Scott Wilson, Roscoe Postle Associates of Toronto, at copper and molybdenum prices of $2.25 and $17 per pound respectively, the MacLeod Lake Project has a net present value (at 10%) of $156 million and generates an internal rate of return (IRR) of 32 percent. As this is being written, copper prices have recovered to $2.30 per pound and molybdenum prices have recovered to above $10 per pound after dipping below $8 earlier this year. Demand for molybdenum has grown from China and new strength is beginning to be seen from Western consumers. China has been a large producer and exporter of molybdenum in recent years, but when prices fell below $13 per pound, many mines in China closed due to high costs. This give us comfort that once some rationality returns to world markets, molybdenum prices will rise to something above $13 per pound. Another factor in molybdenum price has been its very high statistical correlation (over 90 percent) with the price of oil. The following chart shows this relationship.
While correlation does not necessarily mean causation, molybdenum has significant uses in oil pipeline and drill steel and it is used as a catalyst to remove sulfur from fuels. If this relationship continues, it implies that at $67 oil, the price of molybdenum should be $22. So we are confident molybdenum prices will continue to rise over the next few years.”
About Western Troy
Western Troy Capital Resources Inc. is a mineral exploration company. Its 100% owned MacLeod Lake Project, located about 275 km north of Chibougamau, Quebec, hosts a well defined Main Zone of mineralization as outlined by extensive drilling. In addition, a South Zone resource and several IP anomalies of potential interest have been identified. In April of 2008, Western Troy received an independent Preliminary Assessment (Scoping Study) consistent with National Instrument 43-101 on its MacLeod Lake Property. The report has been filed on SEDAR and is available at and on Western Troy’s website, Western Troy also has a number of early stage molybdenum, copper, uranium, platinum, and other minerals exploration properties in Quebec. The shares of Western Troy trade on the TSX Venture Exchange under the symbol WRY, with 19,284,970shares outstanding.
Statements in this release that are forward-looking reflect Western Troy'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 information currently available; however actual results and events may vary significantly. The Company does not assume the obligation to update any forward-looking statement.
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. Rex E. Loesby, P.E., is the qualified person that has reviewed the content of this press release.
Contact Information:
Western Troy Capital Resources
Rex E. Loesby, P. E.
President
Tel: (416) 929-3268
Email:
Website: