Troilus Gold drills 4.38 g/t AuEq over 46 metres in Quebec
Troilus Gold Corp. [TLG-TSX, CHXMF-OTCQB] has released positive assay results from a continuing 11,000-metre drill campaign at its Troilus gold property near Chibougamau, Quebec
The program aims to expand and identify higher-grade mineralization to the northern and southern extents of zone 87, the larger of two formerly mined pits.
The company said the results released on Monday are among the thickest and most continuous high grades identified at the project and includes the single highest-grade interval ever drilled at the Troilus Mine site.
Drilling highlights include 4.38 g/t AuEq (gold equivalent) over 46 metres, including 154.27 g/t over 1.0 metre, marking the single best interval in project history. “Furthermore, a new shallow and high-grade panel of mineralization has been defined at the border of the Z87 PEA pit shell, which was not modelled in the preliminary economic assessment (PEA) nor considered as part of the pre-feasibility study engineering work,’’ the company said.
“This new panel west of Z87 has thus far been identified over a 300-metre strike length and remains open at depth and towards the Gap Zone.’’
Troilus Gold CEO Justin Reid said he expect that these results will have a significant impact on the economic modelling of the project since the company believes both the grades and the new discovery in Z87, along with its proximity to the main deposit, have the potential to immediately enhance the project’s grade profile, notwithstanding any further definition.
As a result of recent positive technical developments, coupled with cost and timing considerations, management has refocused its engineering efforts towards a definitive feasibility study, which is expected to be delivered in the second half of 2023 following completion of the 787 panel drilling.
On October 14, 2022, Troilus shares closed at 39 cents and currently trade in a 52-week range of 93 cents and 33.5 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 in 2013.
A preliminary economic assessment (PEA) has indicated that the project could produce 246,000 ounces of gold annually for the first 14 years of operations, and 98,000 from year 15 onwards. Projected payable metal includes 3.8 million ounces of gold, 265 million pounds of copper and 1.5 million ounces of silver over a 22-year mine life.
The PEA envisages an initial capital expenditure of US$333 million. Sustaining CAPEX over the life of the mine is estimated to be an additional US$506 million. The all-in-sustaining cost is estimated at US$1,051 an ounce.