EDITOR: | February 24th, 2021

Troilus Extends Gold Bearing Zone Well Beyond Pea Pit Limits in the Southwest Zone With Intercepts of 1.16 g/t AuEq Over 18m, Incl. 2.36 g/t Over 7m and 11.1 g/t Over 1m; 1.08 g/t AuEq Over 16m, Incl. 1.87 g/t Over 7m and 2.56 g/t Over 4m

| February 24, 2021 | No Comments
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February 24, 2021 (Source) — Troilus Gold Corp. (TSX: TLG; OTCQB: CHXMF) (“Troilus” or the “Company”) reports additional drill results from recent exploration drilling at its 100%-owned Troilus Gold Project (“Troilus” or the “Project”) located in north central Quebec, Canada. These latest results represent exploration and step out holes located in the Southwest Zone, a priority growth target which was discovered and drilled in late 2019 and early 2020 (See Figure 1). Results continue to define significant mineral expansion well beyond the pit proposed in the Preliminary Economic Assessment (“PEA”) (See press release dated August 31, 2020) (See Figure 2). Highlights include:

ZSW20-209 extended known mineralization an additional 250 metres east of the PEA defined pit shell, over 225m below it and remains open, suggesting potential for continued resource growth (see Figure 3). Intercept highlights include:

  • 1.08 g/t AuEq over 16m, incl. 1.87 g/t over 7m and 2.56 g/t over 4m
  • 1.13 g/t AuEq over 8m, incl. 4.45 g/t AuEq over 1m and 1.28 g/t over 1m

ZSW20-211 intersected substantial mineralization approximately 75m below the PEA pit shell and extended down dip mineralization to at least 500m from surface (see Figure 3). Intercept highlights include:

  • 1.48 g/t AuEq over 6m, incl. 6.9 g/t over 1m
  • 1.28 g/t AuEq over 9m, incl. 5.3 over 1m, 3.3 g/t over 1m and 2.4 g/t over 1m
  • 1.37 g/t AuEq over 8m, incl. 3 g/t over 1m

ZSW20-208 extended the defined ore zone down dip over 200m below the PEA pit shell having markedly higher grades than previously reported in hole ZSW20-187 (see May 14, 2020 press release), located approximately 150m above it (See Figure 4). The mineralized trend remains open at depth. Intercept highlights include:

  • 1.16 g/t AuEq over 18m, incl. 2.36 g/t over 7m and 11.09 g/t over 1m
  • 3.44 g/t AuEq over 2m, incl. 5.46 g/t over 1m; and 3.10 g/t AuEq over 1m located in a previously undrilled area within the PEA pit shell

“These continued positive results in the Southwest Zone are demonstrating a potential scale that is exceeding our expectations,” stated Justin Reid, CEO of Troilus Gold. “The results from holes 209 and 211 have defined an expanded mineral system that dwarfs the pit shell proposed in the PEA completed last year with strong extensions of mineralization all located within 500m from surface. It’s very exciting to see the Southwest Zone rapidly evolving from its initial discovery just over 1 year ago. We are eager to continue targeted drilling in this area to better define the potential of what could rapidly become a very large system with multi-million ounce resource potential of a scale we believe could be in-line with the main zone Z87, or potentially larger.”

This Southwest Zone is located approximately 2.5 kilometres southwest of the former mine site and main mineral resource area (See Figure 1). It was initially discovered and drilled in late 2019 and early 2020 following some new geologic modelling work by Troilus’ technical team. A minimal 8,500 metres of drilling in this zone has already outlined an estimated Inferred resource of 580,000 oz of gold equivalent ounces (22.6 Mt, at avg. grade of 0.80 g/t AuEq). The Company is working towards an updated mineral resource estimate and Pre-Feasibility Study, expected for completion in the second half of 2021.

Figure 1: Location of New Drill Hole Results in the Southwest Zone –
https://www.globenewswire.com/NewsRoom/AttachmentNg/92b4c570-f3a7-457f-9bcf-bd9ab3ccd933

Figure 2: Southwest Zone PEA Pit Shell and New Drill Results – Looking North East –
https://www.globenewswire.com/NewsRoom/AttachmentNg/0d91fb6e-a361-4c6a-b6e7-f28b9743f97c

Figure 3: Section N9925; View of drill hole TLG-ZSW20-209 and TLG-ZSW20-211 –
https://www.globenewswire.com/NewsRoom/AttachmentNg/e4743ef6-43a4-4870-9a5c-d4ee6d7f5124

Figure 4: Section N9700; View of drill hole TLG-ZSW20-208 –
https://www.globenewswire.com/NewsRoom/AttachmentNg/7356df30-663d-486b-b845-56c8ef61851d

Table 1: New Southwest Zone Drill Results Highlights

Hole From (m) To (m) Interval (m) Au Grade (g/t) Cu Grade (%) Ag Grade (g/t) AuEq Grade (g/t)
TLG-ZSW20-208
  78 80 2 3.37 0.0517 0.58 3.44
incl. 79 80 1 5.33 0.0963 0.90 5.46
98 99 1 2.99 0.0731 1.40 3.10
187 188 1 1.63 0.0038 0.25 1.63
223 224 1 1.47 0.0282 0.50 1.51
  248 266 18 1.14 0.0169 0.38 1.16
incl. 250 257 7 2.33 0.0207 0.52 2.36
incl. 252 253 1 11.05 0.0246 0.90 11.09
incl. 265 266 1 1.38 0.0100 0.25 1.40
347 348 1 0.83 0.4050 4.90 1.40
372 373 1 1.09 0.6120 4.20 1.91
389 390 1 2.93 0.1320 3.30 3.13
398 399 1 0.77 0.1740 1.80 1.01
TLG-ZSW20-209
24 27 3 0.84 0.0702 2.30 0.95
incl. 25 26 1 1.99 0.0943 4.20 2.15
  83 91 8 0.88 0.0288 20.21 1.13
incl. 87 88 1 2.95 0.0977 130.00 4.45
incl. 88 89 1 1.17 0.0275 6.90 1.28
222 224 2 1.12 0.1287 3.45 1.33
262 268 6 0.88 0.0079 0.42 0.90
incl. 262 263 1 2.78 0.0137 0.25 2.80
292 293 1 1.07 0.0187 0.25 1.10
298 299 1 2.51 0.2930 7.30 2.96
  318 334 16 0.94 0.1040 0.53 1.08
incl. 318 324.9 6.9 1.63 0.1841 0.72 1.87
incl. 321 324.9 3.9 2.22 0.2603 1.08 2.56
incl. 328 329 1 1.00 0.0828 1.10 1.11
399 400 1 0.95 0.4420 4.10 1.56
486 487 1 1.10 0.0176 14.10 1.27
TLG-ZSW20-211
151 152 1 1.45 0.0408 0.25 1.50
  157 163 6 1.40 0.0152 5.91 1.48
incl. 160 161 1 6.66 0.0087 22.00 6.90
171 176 5 0.89 0.0140 1.01 0.92
incl. 173 174 1 2.78 0.0086 0.25 2.79
184 192 8 1.06 0.0020 0.31 1.07
incl. 185 186 1 5.10 0.0027 0.50 5.11
  231 240 9 1.23 0.0259 1.49 1.28
incl. 231 232 1 2.39 0.0156 0.25 2.41
incl. 234 235 1 5.05 0.1180 10.30 5.31
incl. 239 240 1 3.32 0.0024 0.25 3.33
  256 257 1 12.05 0.0021 0.25 12.06
  369 370 1 12.45 0.0713 1.10 12.55
504 506 2 0.96 0.0057 0.25 0.97
incl. 504 505 1 1.24 0.0065 0.25 1.25
531 534 3 1.99 0.0171 0.57 2.02
incl. 572 573 1 0.82 0.1725 5.30 1.10
  625 633 8 1.13 0.1692 2.56 1.37
incl. 629 630 1 2.68 0.2150 3.90 3.00
639 641 2 1.20 0.3220 3.80 1.65
783 784 1 1.16 0.0028 0.25 1.16
817 819 2 1.42 0.2895 6.65 1.86
incl. 818 819 1 2.36 0.255 7.70 2.77

*Note drill intervals reported in this news release are down-hole core lengths as true thicknesses cannot be determined with available information.

Quality Assurance and Control

During the Southwest Zone drill program in 2020, one metre assay samples were taken from NQ core and sawed in half. One-half was sent for assaying at ALS Laboratory, a certified commercial laboratory, and the other half was retained for results, cross checks, and future reference. A strict QA/QC program was applied to all samples; which included insertion of one certified mineralized standard and one blank sample in each batch of 25 samples. Every sample was processed with standard crushing to 85% passing 75 microns on 500 g splits. Samples were assayed by one-AT (30 g) fire assay with an AA finish and if results were higher than 3.5 g/t Au, assays were redone with a gravimetric finish. For QA/QC samples, a 50 g fire assay was done. In addition to gold, ALS laboratory carried out multi-element analysis for ME-ICP61 analysis of 33 elements four acid ICP-AES.

Qualified Person

The technical and scientific information in this press release has been reviewed and approved by Bertrand Brassard, M.Sc., P.Geo., Chief Geologist, who is a Qualified Person as defined by NI 43-101. Mr. Brassard is an employee of Troilus and is not independent of the Company under NI 43-101.

About Troilus Gold Corp.

Troilus is a Toronto-based, Quebec focused, advanced stage exploration and early-development company focused on the mineral expansion and potential mine re-start of the former gold and copper Troilus mine. The 107,326 hectare Troilus property is located northeast of Chibougamau, within the Frotêt-Evans Greenstone Belt in Quebec, Canada. From 1996 to 2010, Inmet Mining Corporation operated the Troilus project as an open pit mine, producing more than 2,000,000 ounces of gold and nearly 70,000 tonnes of copper.

For more information:

Caroline Arsenault
VP Corporate Communications
+1 (647) 407-7123
info@troilusgold.com

Cautionary Note Regarding Forward-Looking Statements and Information

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability; the estimate of Mineral Resources in the updated Mineral Resource statement may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no certainty that the Indicated Mineral Resources will be converted to the Probable Mineral Reserve category, and there is no certainty that the updated Mineral Resource statement will be realized.

The PEA is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA is subject to a number of risks and uncertainties. See below and the Company’s latest technical report available on SEDAR for more information with respect to the key assumptions, parameters, methods and risks of determination associated with the foregoing.

This press release contains “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements regarding the impact of the ongoing drill program and results on the Company, the possible economics of the project and the Company’s understanding of the project; the development potential and timetable of the project; the estimation of mineral resources; realization of mineral resource estimates; the timing and amount of estimated future exploration; the anticipated results of the Company’s planned 2021 drill program and their possible impact on the potential size of the mineral resource estimate; costs of future activities; capital and operating expenditures; success of exploration activities; the anticipated ability of investors to continue benefiting from the Company’s low discovery costs, technical expertise and support from local communities. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “continue”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “will”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are made based upon certain assumptions and other important facts that, if untrue, could cause the actual results, performances or achievements of Troilus to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Troilus will operate in the future. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, currency fluctuations, the global economic climate, dilution, share price volatility and competition. Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of Troilus to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: there being no assurance that the exploration program will result in expanded mineral resources; risks and uncertainties inherent to mineral resource estimates; the impact the COVID 19 pandemic may have on the Company’s activities (including without limitation on its employees and suppliers) and the economy in general; the impact of the recovery post COVID 19 pandemic and its impact on gold and other metals; the receipt of necessary approvals; general business, economic, competitive, political and social uncertainties; future prices of mineral prices; accidents, labour disputes and shortages; environmental and other risks of the mining industry, including without limitation, risks and uncertainties discussed in the most recent Technical Report and in other continuous disclosure documents of the Company available under the Company’s profile at www.sedar.com. Although Troilus has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Troilus does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

Location of New Drill Hole Results in the Southwest Zone

Southwest Zone PEA Pit Shell and New Drill Results – Looking North East

Section N9925; View of drill hole TLG-ZSW20-209 and TLG-ZSW20-211

Section N9700; View of drill hole TLG-ZSW20-208


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