Troilus tables Quebec gold mine feasibility study
Troilus Gold Corp. [TLG-TSX, CHXMF-OTCQB] has announced the results of a feasibility study at its Troilus gold property near Chibougamau, Quebec.
It said the study incorporates an initial reserve estimate that supports a long life, large scale 50,000 tonnes per day open pit mining operation. The initial development capital estimate of over $1.07 billion, includes mine pre-production costs, net of existing infrastructure.
Troilus shares moved sharply lower on the news, easing 22.7% or 15 cents to 51 cents in early trading, Tuesday. The shares trade in a 52-week range of 85 cents and 31.3 cents.
Troilus is a Quebec-focused exploration and early-stage development company. It is aiming for a mineral expansion and potential restart of the former gold and copper Troilus mine.
The Troilus property is located northeast of the Val d’Or district, within the Frotet-Evans Greenstone Belt in Quebec. From 1997 to 2010, Inmet Mining Corp operated the Troilus project as an open-pit mine, producing more than 2.0 million ounces of gold and nearly 70,000 tonnes of copper.
After mining was completed in April 2009, the mill ceased to operate and the camp was subsequently sold and dismantled. Inmet was acquired by First Quantum Minerals Ltd. (FM-TSX) in 2013.
The feasibility study envisages an open pit mine life of 22 years with the potential for underground development. Life of mine average annual payable gold production is forecast to be 244,600 ounces of gold, 17.3 million pounds of copper and 445,700 ounces of silver.
The all-in-sustaining cash operating cost is estimated at US$1,109 per ounce.
Peak production is expected to be achieved in year seven when the production is estimated at 456,100 ounces, 31.8 million pounds of copper and 613,600 ounces of silver.
The feasibility study is supported by an initial mineral reserve estimate of 380 million tonnes of grade 0.59 g/t gold equivalent (AuEq) (0.49 g/t gold, 0.058% copper, and 1.0 g/t silver), containing 7.26 million ounces of AuEq (6.02 million ounces of gold, 484 million pounds of copper and 12.2 million ounces of silver.
“Troilus stands not only as a strategically significant project that aligns with the Province of Quebec’s priority on the production of strategic metals but is also positioned to be amongst the largest scale, lowest cost gold and copper projects across Canada,’’ said Troilus Gold CEO Justin Reid.
The Troilus Project consists of four main zones of mineralization, which are located on a northeast-southwest trend, covering approximately seven kilometres. Ore will be processed in a flotation mill to produce gold-rich copper concentrate for sale to a smelter, with provision for gravity gold recovery to produce dore after year one.
Total payable metal over the 22-year mine life is estimated at 5.4 million ounces of gold, 381.8 million pounds of copper and 9.9 million ounces of silver.
Next steps include the completion and submission of the Environmental and Social Impact Assessment by the end of 2024, project financing and ongoing exploration both near the mine and regionally.