Western Troy Acquires Gold Claims in Quebec, Delays MacLeod Lake Feasibility Study

Western Troy Acquires Gold Claims in Quebec, Delays MacLeod Lake Feasibility Study

Western Troy Capital Resources Inc. announced it has staked 92 claims in the Ashuanipi Lake district approximately 50 kilometers northwest of Schefferville, Quebec. The claims cover 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 0.06-0.14 ounces 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. The drilling and surface sampling results cannot be verified and should not be considered reliable.

Wayne Holmstead, Western Troy’s Vice President Exploration, commented, “Despite encouraging results obtained with prior work, the property remains virtually unexplored. Gold was not discovered in the area until 1985 when the Government of Quebec initiated mapping. Since then, the property has seen limited and spotty exploration.”

Western Troy will launch a program on the property next spring beginning with a property examination and evaluation followed by a summer drilling program. Additional work may include trenching of the known showings and soil geochemistry to detect new areas of interest.

Western Troy has asked Genivar to suspend work on the MacLeod Lake feasibility study which will save approximately $500,000 in expenses for 2009. Rex Loesby, Western Troy’s President, commented, “Low current prices for copper and molybdenum, coupled with the uncertainty regarding energy and consumables costs, make it very unlikely that a feasibility study produced this year could be a meaningful assessment of the project. Even though we are delaying things a bit, we remain confident the MacLeod Lake Project will be developed into a profitable mining operation in the not too distant future. This belief is based on the relatively high grade of the resource (approximately 63% higher than the average grade of existing surface mine molybdenum producers), favorable metallurgy, and a favorable political environment in Quebec. Taking this step to delay the work will free up a considerable amount of cash and assure our ability to weather the current market turmoil. Once we see a more stable environment and higher copper and molybdenum prices, we will ask Genivar to resume the feasibility work.”

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