People of my vintage are familiar with comedian/actor Rodney Dangerfield and his catchphrase “I don’t get no respect!” It’s a classic and timeless expression, which is probably why he was so well remembered for it. This expression can also be applied to a lot of stocks out there today, and I’m not talking about Tesla (NASDAQ: TSLA) and its one year return of +79%, despite what I’m sure Elon Musk thinks the performance should have been. I’m also not talking about the now unloved lockdown darlings like Zoom Video Communications (NASDAQ: ZM) and Peloton Interactive (NASDAQ: PTON). You had to know at some point in time those stocks would stop growing at the pace they were on and the market would reassess their respective valuations. What I’m talking about is a stock that has dramatically underperformed its peer group without having any materially negative news.

Today I want to look at a gold stock that has significantly underperformed many of its peers over the last year, including one, Centerra Gold Inc. (TSX: CG | NYSE: CGAU), who last May announced that it had its largest asset, the Kumtor Mine in the Kyrgyz Republic, essentially seized by the government and then two weeks ago announced it had temporarily suspended gold production at another mine due to a mercury leak. That seems like a pretty low bar to try and outperform but it appears that for the time being, the team at Troilus Gold Corp. (TSX: TLG | OTCQX: CHXMF) don’t get no respect.

Troilus is a Canadian-based junior mining company focused on the advancement and de-risking of the former gold and copper Troilus Mine towards production. From 1996 to 2010, the Troilus Mine produced 2+ million ounces of gold and nearly 70,000 tonnes of copper. Troilus is located in the top-rated mining jurisdiction of Quebec, Canada, where it holds a strategic land position of 1,420 km² in the Frôtet-Evans Greenstone Belt. A robust PEA in 2020 demonstrated the potential for the Troilus project to become a top-ranked gold and copper producing asset in Canada with an after tax NPV5% of US$1,156 million with a 38.3% IRR at a Spot Price of US$1,950/oz Gold and an NPV5% of US$576 Million and 22.9% IRR at Base Case US$1,475/oz Gold. This was based on a total estimated indicated mineral resource of 4.96 million ounces AuEq (177 Mt with an average grade of 0.87 g/t AuEq) and total estimated inferred mineral resource increased to 3.15 million ounces AuEq. Since that time the Company has drilled over 120,000 meters, approximately 46,000 during the six months ended January 31, 2022.

Looking forward, Troilus is planning to update its mineral resource utilizing that additional 120,000 meters of drilling targeting release for mid calendar 2022. Additionally, a Pre-feasibility Study (PFS) is planned to be published mid calendar 2022 along with a continued drilling campaign with the objective of expanding the mineral resource estimate at the Southwest Zone as well as definition drilling in the Z87 and J Zone in support of the PFS. Plans to finalize the Environmental Impact Study targeted for filing in early 2023 show the progress the Company is making in getting this mine into production. The latest news reported excellent metallurgical recovery results for the J Zone as part of an ongoing pilot plant scale metallurgical testing program on each of the main mineral deposits. Knelson gravity separation and column flotation tests achieved gold, copper and silver recoveries of 92.9%, 90.4% and 88.8%, respectively, which will also be used to support the upcoming PFS.

Sounds like nothing but good news past, present and future. But that’s not what the stock price is saying when you stack Troilus up against other Canadian based junior gold miners. The chart below might be a little hard to read but it shows the one year performance of the commodity – gold (red line) and a hand full of peers. Troilus is the bottom line in this chart.

Source: Stockcharts.com

I guess you could say Centerra and the others I’ve included aren’t quite peers of Troilus given several of them actually have production today. However, one could argue that Troilus is well on its way to becoming a producer in the not too distant future and is in a stable, mining friendly jurisdiction with a large and growing resource. In the meantime, it seems odd, at least to me, that Troilus had a one year return of almost 37% lower than Centerra given their relative risk profiles and associated news. Then again, perhaps my opinion gets no respect either.

In a recent InvestorIntel interview, Chris Thompson spoke with Justin Reid, President, CEO and Director of Troilus Gold Corp. (TSX: TLG | OTCQX: CHXMF) about Troilus’ recent drilling success at their Troilus Gold Mine which continues to show growth in its mineral resource.

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Justin said that Troilus is a past-producing gold and copper mine which according to the 2020 PEA has the potential to rank among the top gold mines in Canada with a 22-year mine life and with substantially longer open pit life. In the interview, Justin also provided an update on Troilus Gold’s recent drill results which is expected to positively impact the overall economics of the project in the upcoming Pre-Feasibility Study.

To watch the full interview, click here.

About Troilus Gold Corp.

Troilus Gold Corp. is a Canadian-based junior mining company focused on the systematic advancement and de-risking of the former gold and copper Troilus Mine towards production. From 1996 to 2010, the Troilus Mine produced +2 million ounces of gold and nearly 70,000 tonnes of copper. Troilus is located in the top-rated mining jurisdiction of Quebec, Canada, where it holds a strategic land position of 1,420 km² in the Frôtet-Evans Greenstone Belt. Since acquiring the project in 2017, ongoing exploration success has demonstrated the tremendous scale potential of the gold system on the property with significant mineral resource growth. The Company is advancing engineering studies following the completion of a robust PEA in 2020, which demonstrated the potential for the Troilus project to become a top-ranked gold and copper producing asset in Canada. Led by an experienced team with a track-record of successful mine development, Troilus is positioned to become a cornerstone gold and copper project.

To learn more about Troilus Gold Corp., click here

Disclaimer: Troilus Gold Corp. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp. (IIC) does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete. 

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation.  Forward-looking statements are based on the opinions and assumptions of management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken,  as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please email [email protected].

Troilus Gold Corp. (TSX: TLG | OTCQX: CHXMF) (“Troilus”) announced yesterday one of their ‘best ever’ drill results. Hole ZSW21-512 returned high-grade gold within 60 metres from surface including 3.51 g/t gold over 15m, including 6.70 g/t gold over 7m and 27.40 g/t gold over 1m in the Southwest Zone at the Troilus Gold Project.

Troilus stated: “This hole is located 400m south and on trend with previously reported drill hole ZSW20-189, which also returned one of the best results at Troilus 1.56 g/t AuEq over 73m, including 2.05 g/t AuEq over 48m suggesting a possible extension of this high-grade trend to the south of the Preliminary Economic Assessment (“PEA”) pit shell.”

Troilus Gold CEO & President Justin Reid commented: “The latest results from the Southwest are exceptional and expand the mineralization in a direction that has not previously been tested. These are among the strongest intercepts that have ever been drilled at Troilus and exemplify the exciting growth potential in this zone, as well as the scale of the larger Troilus trend…..”

Indeed, any time a high grade gold zone can be extended it is great news for a gold explorer.

Hole ZSW21-512 drill result shown relative to the mineralized structure and PEA pit

Source

In other recent news, Troilus announced solid drill results at the J Zone, including 4.72 g/t AuEq over 7m and 22.51 g/t AuEq over 1m within a broader intersection of 1.57 g/t AuEq over 31m. Several step-out holes extended down dip mineralization ~60m beyond what was previously known, and up to ~90m below the pit shell proposed in the PEA.

The Southwest Zone sits about 2.5kms away along trend from Z87 South and the old Troilus Mine (Z87 pit)

Source: Company presentation

Some background on Troilus Gold

Troilus bought the former gold and copper Troilus Mine in 2017 and has subsequently grown the Inferred Resource estimate by 350% (and the Indicated Resource by 142%). Troilus now has one of the largest undeveloped gold resources in Canada. From 1996 to 2010, the Troilus Mine produced 2 million plus ounces of gold and nearly 70,000 tonnes of copper.

The Troilus Project has an Indicated Resource of 4.96 million ounces of contained AuEq @ 0.87g/t AuEq and an Inferred Resource of 3.15 million ounces of contained AuEq @0.84g/t. Valuable by-products include copper and silver.

The 2020 Preliminary Economic Assessment (PEA) resulted in a post-tax NPV5% of US$915 million, post-tax IRR of 32.2%, based on a US$1,750 gold price. The initial CapEx (net of existing infrastructure) is estimated at US$333 million and sustaining CapEx over the life of the mine is an additional US$506 million. The PEA was based on supporting a combined open pit/underground mining (starting in year 8) scenario with a 35,000 tonnes per day (“tpd”) operation over a 22-year mine life. The Project has US$350 million worth of existing infrastructure in place. The PEA forecast a cash operating cost of US$719/oz AuEq and an All In Sustaining Cost (“AISC”) of US$850/oz AuEq. Projected gold production averages 220,000 oz per year over the first 5 years and 246,000 oz average per year for the first 14 years and 98,000 from year 15 on. Projected payable gold is 3.8 million ounces, payable copper 265 million lbs and payable silver 1.5 million ounces over the 22-year mine life.

Next steps

Troilus is currently advancing engineering studies and working towards their Feasibility Study. A recent non-brokered Private Placement raised ~C$11.15 million from the government of Québec through Investissement Québec (“IQ”), following on from the C$45 million public offering raised in June.

Following the equity raise, Troilus stated: “Troilus and the government of Québec, through Investissement Québec, along with our other strategic Québec-based institutional shareholders have defined a long-term strategic framework focused on defining and establishing full project financing options for the development of the Troilus project as we move through feasibility.” What this means exactly is open for interpretation. It sounds to me that Troilus may potentially receive further government support when it comes to project financing.

Troilus Gold is receiving support from the Quebec Government who see the potential of the Troilus Gold Project

Source: Company presentation

Closing remarks

Troilus continues to deliver strong drill results that can potentially grow their resource even further. Management has also delivered by raising a total of C$56 million in June/July 2021 (C$45m + C$11m) and appear to have an excellent relationship with the government of Québec, which could bode well for assisting with project financing.

If Troilus can successfully make it to production and produce 200,000 oz Au pa then the Troilus Project would become a top-ranked gold and copper producing asset in Canada. Trading on a current market cap of C$166 million these are exciting times for investors in Troilus Gold Corp.

In a recent InvestorIntel interview, Tracy Weslosky speaks with Justin Reid, President, CEO and Director of Troilus Gold Corp. (TSX: TLG | OTCQX: CHXMF) about the recent closing of a C$45 million bought deal public offering and an $11.15 million strategic investment from the Government of Québec.

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Justin went on to say that Troilus Gold’s recent C$45 million raise was ‘massively’ oversubscribed and was done at a premium. He added that Troilus Gold now has a strong balance sheet and explained how they have been able to de-risk the Troilus Gold Project which has copper and silver credits.

To watch the full interview, click here.

About Troilus Gold Corp.

Troilus is a Canadian-based junior mining company focused on the systematic advancement and de-risking of the former gold and copper Troilus Mine towards production. From 1996 to 2010, the Troilus Mine produced +2 million ounces of gold and nearly 70,000 tonnes of copper. Troilus is located in the top-rated mining jurisdiction of Quebec, Canada, where it holds a strategic land position of 1,420 km² in the Frôtet-Evans Greenstone Belt. Since acquiring the project in 2017, ongoing exploration success has demonstrated the tremendous scale potential of the gold system on the property with significant mineral resource growth. The Company is advancing engineering studies following the completion of a robust PEA in 2020, which demonstrated the potential for the Troilus project to become a top-ranked gold and copper producing asset in Canada. Led by an experienced team with a track-record of successful mine development, Troilus is positioned to become a cornerstone project in North America.

To learn more about Troilus Gold Corp., click here

Disclaimer: Troilus Gold Corp. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp. (IIC) does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete. 

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation.  Forward-looking statements are based on the opinions and assumptions of management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken,  as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please email [email protected].

Beware of inflation….maybe. US Federal Reserve Chairman Jerome Powell says inflation is transitory. In other words it’s here now but it will dissipate come the fall or sometime later in the year. Somewhat surprisingly (at least to me) David Rosenberg agrees with this. However, yesterday’s CPI numbers seem to be telling a different story and the markets have been officially spooked. Most notably the VIX (CBOE Volatility Index or fear gauge) has moved from 17 to 27.6 (a rise of 62%) since Monday morning!

So what does this mean to gold? Well, that depends on what kind of inflation it is. Historically, gold has been considered a hedge against inflation for its protection against a reduction in purchasing power of your hard earned dollars. This would be a good thing for gold investors, although the yellow metal wasn’t overly helpful as a hedge yesterday. The counter argument is that if interest rates increase in an effort to combat inflation that can be a bit of a boat anchor for gold given risk free investments like GIC’s look more appealing compared to the zero yielding metal that you have to pay to store safely. I don’t know for sure what the answer is but I’m leaning towards the fact that interest rates can’t rise too far, too fast because there is so much national debt everywhere in the world it would crush and destroy most economies. So I’m kinda, sorta bullish gold but I’m definitely not shouting it from the rooftops.

That is my terrible segue to talk about Troilus Gold Corp’s (TSX: TLG | OTCQB: CHXMF) latest exciting results. The Company announced a substantial new western extension of their J Zone, traced over a minimum of 200 metres in strike, previously modelled as waste within the pit shell. Why can’t I find gold in my garbage? Highlights include: 1.10 g/t AuEq over 68m, including 1.65 g/t AuEq over 10m and 2.23 g/t over 3m (ZJ21-226); 1.01 g/t AuEq over 34m, including 1.40 g/ t AuEq over 15m and 1.60 g/t AuEq over 5m; 2.21 g/t AuEq over 13m, including 7.13 g/t AuEq over 1m and 4.39 g/t AuEq over 3m (ZJ21-225). Of note, these appear to be higher grades than previously encountered at the J Zone.

As a refresher, the Troilus Gold property is located northeast of the Val-d’Or mining district, in Quebec, Canada. The property covers 107,326 hectares and includes the former Troilus mine operated by Inmet Mining Corp from 1997 to 2010, which produced in excess of 2,000,000 ounces of gold and 70,000 tonnes of copper (I’ll save my copper and inflation dissertation for another day). The J Zone represents the formerly mined open pit which Troilus has now expanded materially.

Source: Company Website

As encouraging as these results are, one can’t ignore the other exploration activity going on. In April the Company announced an expansion of the Southwest Zone Strike Length by 40% to 1.5 km into what the company is calling the Gap Zone. The Southwest Zone is located approximately 2.5 kilometres southwest of the J Zone with the Gap Zone being The Space Between (capitalized in homage to the Dave Matthews Band). Justin Reid, CEO of Troilus Gold is quoted as saying “The Southwest Zone continues to grow and exceed our expectations. The continuity of mineralization is exciting and the Gap Zone will be a continued major focus of our work through the spring and summer of 2021 to help us better understand the nature and extent of the results we are seeing.”

Source: Company Website

The Company released an updated mineral resource estimate in July 2020 with total estimated indicated mineral resource increased to 4.96 million ounces AuEq and total estimated inferred mineral resource increased to 3.15 million ounces AuEq. Troilus has completed 32,000 metres of drilling since January 2021 and intends to drill approximately 10,000 metres per month throughout. It’s easy to imagine those numbers being a lot bigger the next time the company updates its resource estimate. Stay tuned, it’s going to be a busy summer for Troilus Gold.

In a recent InvestorIntel interview, Peter Clausi spoke with Justin Reid, CEO and Director of Troilus Gold Corp. (TSX: TLG | OTCQB: CHXMF) about Troilus Gold’s latest news release on the expansion of Southwest Zone strike length by 40% and extending gold mineralization 450 metres below PEA pit.

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Justin went on to say that the expansion is continuation of the program that the company has been working on over the last four months. The company has expanded the resource by 1.5km and has also added width. He also provided an update on Troilus’ definitive agreement to acquire UrbanGold Minerals. The acquisition aligns with Troilus’ focus on developing a near-term production asset. “We are going to unlock a lot of value quickly,” Justin added.

To watch the full interview, click here.

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.

To learn more about Troilus Gold Corp., click here

Disclaimer: Troilus Gold Corp. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp. (IIC) does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation.  Forward-looking statements are based on the opinions and assumptions of management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements.  Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company.  The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on www.sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please email [email protected].

Earlier in March, Gold (the commodity) tested and held an important technical support level at approximately $1,680/oz. Since then Gold has based and started to move higher, not dramatically, but with yesterday’s close at $1,733/oz it’s now headed in the right direction again after a great run from $1,450/oz in November 2019 to well over $2,000/oz in August 2020. This is important, as with most commodity stocks, it’s a lot easier for the underlying producers of these commodities to go up when they aren’t swimming against the current.

So let’s look at Troilus Gold Corp. (TSX: TLG | OTCQB: CHXMF). The company has had a busy start to 2021, reporting several new drill results, and then a tuck-in acquisition of UrbanGold Minerals on March 23^rd. In fact, the company has been busy since it acquired the former producing Troilus Mine in December 2017. Since then, the company has added over 100,000 ha to its land position in and around the existing Mine (pro-forma the UrbanGold purchase), drilled over 100,000 metres including a new discovery zone (SouthWest Zone) and completed a positive PEA in August 2020. And those are just the highlights for this Toronto based miner focused in the Frotêt-Evans Greenstone Belt in Quebec (NE of the better known Val-d’Or Gold region).

Several companies around the world have found success revisiting former producing mines/regions and applying new techniques and technologies or just plain old due diligence and this is no exception. Troilus began by expanding the drilling around the existing Z87 and J Zone pits that were successfully mined from 1996-2010. Based on that work the Troilus technical team analyzed the historical and new data that was being collected and formulated a new geological interpretation of the Troilus property, which led to a new discovery in the Southwest Zone that they began drilling in late 2019.

Results from the Southwest Zone (roughly 3 kilometres southwest of the former mine and main mineral resource area) represent one of the most important near-term mineral growth targets on the Troilus property. Troilus will include all the recently announced Southwest results from late 2020 and ongoing 2021 results into an updated mineral resource estimate and Pre-Feasibility Study, targeted for completion in the second half of 2021.

To summarize, Troilus already has a mineable resource based in a low-risk jurisdiction with excellent accessibility. There is existing infrastructure that came with the original mine acquisition that will significantly reduce the overall cost to bring a new mine into production, thus helping to lower the AISC (All-In Sustaining Cost, which is a standardized Gold Industry comparison metric) to the lowest quartile in Canada. Three existing strike zones (Z87, J, Southwest) are all open on strike and at depth – which means they haven’t found the limit of mineralization yet. Plus over 142,000 ha of property (pro forma UrbanGold purchase) to continue exploring. This all adds up to an exciting opportunity for investors.

Even if Gold moves in a sideways, consolidation pattern for the next little while, miners with the right story have a chance to excel. The trend is your friend, so let’s hope gold continues along the same trend as Troilus Gold’s drilling results.

In a recent InvestorIntel interview, Peter Clausi speaks with Justin Reid, CEO and Director of Troilus Gold Corp. (TSX: TLG | OTCQB: CHXMF) about the new assay results from the Fall/Winter 2020 drill program. Highlighting the addition of 6.5 million ounces to the Troilus resource in less than 2 years, Justin walks Peter through their record growth last year and shares how Troilus has secured and “unheard of” volume of institutional investors (51).

Want to find out more? Click here

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.

To learn more about Troilus Gold Corp., click here

Disclaimer: Troilus Gold Corp. is an advertorial member of InvestorIntel Corp.

Troilus Gold Corp. (TSX: TLG | OTCQB: CHXMF) (‘Troilus’) has been having success in recent months discovering very high grade gold, silver and copper samples; suggesting that the increased market valuation has yet to be translated into comparable share value. It seems the market has not been paying attention. Or perhaps the recent capital raise of C$22.1 million has slowed the price gains. At least for now this is indeed more good news for the Company…

Speaking of good news, Troilus Gold Corp. had three strong news releases in H2 2020:

On December 9, 2020 Troilus reported: “Troilus expands high grade Testard Zone with outcrop samples up to 80 g/t gold and 1,060 g/t silver and channel samples up to 19.5 g/t gold; Beyan Zone expanded with 12 g/t gold outcrop sample located 600 metres north of main discovery.” This is good news, yet the market has hardly reacted.

On October 19, 2020 Troilus reported: “Troilus reports up to 203 g/t (6.53 Oz/tonne) gold, 2,440 g/t (78.45 Oz/tonne) silver and 4.37% copper from insitu sample located 10km south of current mineral resource.” Again very high grades, albeit just small samples.

It should be noted these are only sample findings at this stage; however high grade gold is considered to be above 5 g/t, high grade silver above 50 g/t, and high grade copper above 1.5%. What this means is that these excellent sample results are potentially good early indicators towards future drill results, but no guarantee.

In further good news, in December 2020 Troilus Gold announced that they had entered into an agreement “pursuant to which it has repurchased and cancelled the sliding 2.5% Net Smelter Royalty (“NSR”) from First Quantum Minerals Ltd. (“FQML”) attached to the 81 mineral claims and one surveyed mining lease known as the Troilus Mine, for cash consideration of C$20 million.” My take on this news is that Troilus Corp. must be very confident in their Project that they were prepared to pay C$20 million to extinguish the royalty.

The Troilus Gold Project and Mine aerial view and location map

Source: Troilus Gold Corp. Corporate presentation

More about Troilus Gold Corp.

Troilus is focused on exploration and a potential mine re-start of the former gold and copper Troilus Mine. The Troilus Property (includes the past producing mine) encompasses 107,326 hectares and is located within the Frotêt-Evans Greenstone Belt in Quebec, Canada. This is a highly prospective gold region and the Troilus Property is still largely unexplored, leaving excellent exploration upside. From 1996 to 2010, Inmet Mining Corporation operated the Troilus Project as an open pit mine, producing more than 2 million ounces of gold and nearly 70,000 tonnes of copper. In 2017 Troilus acquired the Project and has drilled over 80,000 metres and grown the resource significantly. It is also good to note that back in 2010 when the old Troilus Mine closed gold was trading at about US$1,000/oz; almost half today’s gold price.

The Troilus Project has an Indicated Resource of 4.96 million ounces of contained AuEq @ 0.87g/t AuEq and an Inferred Resource of 3.15 million ounces of contained AuEq @0.84g/t. This is a considerable size resource for a gold junior on a huge and mostly unexplored property. In fact it is one of the largest undeveloped gold resources in Canada. The Project looks likely to be a combination of open pit and underground mining.

Troilus Gold Corp. Preliminary Economic Assessment (PEA) (Aug. 2020) and reasons to invest

Source: Troilus Gold Corp. Corporate presentation

Closing remarks

Troilus trades on a market cap of C$167 million (~US$132 million), which appears to be good value given where the current gold price is today, hovering around US$1,945/oz. As shown above at gold US$1,950 the PEA post-tax NPV5% is US$1.156 billion. Perhaps the low market cap (11% of the gold US$1,950 NPV) is because Troilus is still in the relatively early stages of proving up their resource and is yet to fund their Project. The Quebec jurisdiction is excellent and the Project has US$350 million worth of existing infrastructure in place. Finally Troilus has very high institutional equity ownership (+ Eric Sprott) and high insider ownership with a strong management team with a proven track record. We will know more after the PFS is released at some stage in 2021.

All of this gives long term investors that are bullish on gold plenty of reasons to consider Troilus Gold Corp. as your next junior gold play. You can read more here in my previous article.

Disclosure: The author is long Troilus Gold Corp. (TSX: TLG)

Latest insitu results released today by Troilus Gold include ‘highest grade gold occurrence’ on property to date

Troilus Gold Corp. (TSX: TLG | OTCQB: CHXMF) (‘Troilus’) is focused on the mineral expansion and potential mine re-start of the former gold and copper Troilus Mine, located within the Frotêt-Evans Greenstone Belt in Quebec, Canada. The Troilus Property encompasses 107,326 hectare and is largely unexplored.

From 1996 to 2010, Inmet Mining Corporation operated the Troilus Project as an open pit mine, producing more than 2 million ounces of gold and nearly 70,000 tonnes of copper. Then in 2017 Troilus acquired the Project and has drilled over 80,000 metres and grown the resource significantly.

The Troilus Project now has an Indicated Resource of 4.96m ounces of contained AuEq @ 0.87g/t AuEq and an Inferred Resource of 3.15m ounces of contained AuEq @0.84g/t AuEq.

Troilus Project Resource Estimate

Source

The August 2020 PEA was very impressive, with a 22 year mine life, 220,000-246,000 gold ounces produced pa, resulting in a post-tax NPV5% of US$576m (22% IRR), based on a gold price of US$1,475/Oz.

Initial CapEx was estimated to be US$333m and AISCs of US$1,051/Oz Au. Looking at the sensitivity analysis the post-tax NPV5% rises to US$1.156b (38.3% IRR) at a gold price of US$1,950. Today’s gold price is US$1,901/Oz.

The Company state that based on the PEA the Troilus Project, once in full production, would be Canada’s 5th largest gold producer and have the 4th lowest AISC of production among Canada’s top gold producers. Another huge plus for the Project is that there is already US$350m of infrastructure in place from the past operators.

Source

New discoveries on the Troilus Property

The very large Troilus Property has very significant exploration potential. Some recent examples include discovering the new Beyan Gold Zone 8km Southwest of the main Resource. Samples returned up to 9.7 g/t gold and 32.5 g/t silver. Another recently discovery at the Goldfield Boulder Zone included grab samples that returned up to 26.2 g/t gold and 27.8 g/t silver in outcrop. Also announced today an exciting discovery at the Testard Zone, 10 kilometres south of the main mineral resource area. An in situ sample returned 203 g/t (6.53oz/t) gold, 2,440 g/t (78.45oz/t) silver and 4.37% copper from outcrop.

Justin Reid, CEO of Troilus, comments: “We are thrilled with the latest insitu results including, the highest grade gold occurrence on our property to date and the highest ever reported in outcrop within the Frotêt-Evans Belt, located only 10 kilometres from our resource and mine site……What’s particularly exciting about these results is that the geological characteristics of the Testard Zone and host rock are not only the same as our main mineral resource zones, including the newest Southwest Zone discovered earlier this year, but also hold many geological similarities to the recently announced BeyanGold Zone Discovery (see press release dated September 30, 2020) and the Goldfield Boulder Zone discovery (see press release dated October 8, 2020), located 8 kilometres and 36 kilometres away from the Troilus mine site…..”

Troilus Property, regional geology and location of the Testard Zone

Next catalysts for Troilus include further exploration results, and a PFS in 2021.

Troilus Gold looks to be somewhat under the radar for investors. Troilus has a very good size estimated gold resource with copper and silver by-products, an impressive PEA, potential to be a significant Canadian low cost gold producer, excellent established infrastructure, a strong management team with a good track record, and a top tier location in Canada with significant potential exploration upside.