Troy Resources NL (ASX & TSX: TRY) missed significant mineralisation on its first deep hole at the Two Mile prospect but today announced some very positive intersections in the second.

The deeper hole, well into fresh rock, had a spectacular hit in the oxide at 79 metres depth of 7m @ 25.16 grams/tonne gold, then three more hits at depth - 116m @ 5.3 g/t at 311m downhole, 35m @ 1.06 g/t from 333m and 25m @ 1.28 g/t from 371m.

Troy has had strong intersections in the oxide in recent drilling and Two Mile is now obviously the great hope for the company as its long relationship with the Sandstone region was getting tired with the depletion of reserves at its two most recent mines.

Two Mile is only 2.7 km from Troy's Sandstone mill which is continuing to operate on low grade stockpiles. Sandstone was the flagship operation for Troy until it began mining in Brazil about six years ago.

The hole, TRCD727 tested the projected intersection of a banded iron formation (BIF) intrusive contact on the eastern margin of the tonalite and to test for potential stockworks-style quartz veins in the tonalite.

The hole terminated at 402m within the tonalite and 11 occurrences of visible gold were noted within quartz veins in the tonalite.

Troy's chief executive Paul Benson said deep RC drill holes are being planned to further test the mineralised tonalite to a depth of 450m.

We have been waiting for these results to better understand the potential of this portion of our Sandstone tenements. Though the upper gold intercept of 7 metres @ 25g/t is a great number it is situated in an area of reasonable drill density and thus appears to have limited extent, he said.

The good news, however, is that the hole showed that the tonalite continues to show mineralisation 80m from the first drill hole. Although deep, we have a significant mineralised system.

We will now plan the next phase of drilling which we hope to commence in the second half of this year with the aim of fully understanding the extent and potential of the mineralisation.

Troy's exploration team and consultants has traced the tonalite system well for at least 250 metres south of the old open cut.

Two Mile came into market focus when Troy announced its first drill holes in April that included 167m @ 1.45 g/t, and 141m @ 2.3 g/t, including higher sections of 12m @ 9.05 g/t and 3m @ 13.51 g/t.

Another Sandstone regional prospect, Indomitable, gave significant early drill intercepts this year. This prospect is 12 km north east of Sandstone.

A challenge for the company, and most other mineral explorers in Western Australia is to procure drilling rigs.