Troilus Gold launches 20,000-metre drill program

Troilus Gold Corp. [TLG-TSX; CHXMF-OTCQB] has launched a new 20,000-metre drill program at its 100%-owned Troilus property near Chibougamau, Quebec.

The move comes on the heels of a preliminary economic assessment (PEA), which indicates that the project could produce 246,000 ounces of gold annually for the first 14 years of operations, and 98,000 ounces 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/oz.

The company said the program will be completed through the remainder of 2020. The objective is to upgrade current mineral resource estimates and continue the expansion and exploration of mineralization across the property following the discovery of the Southwest Zone (SWZ) earlier this year.

On Wednesday September 23 shares eased 10% or 13 cents to $1.17 on volume of 546,415. The shares are currently trading in a 52-week range of $1.82 and 41 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.

A total of 80,500 metres of drilling since 2018 delivered an estimated indicated mineral resource of 4.96 million ounces of gold equivalent (177 million tonnes averaging 0.87 g/t AuEq). Inferred resources are 3.15 million ounces of AuEq (116.7 million tonnes averaging 0.84 g/t AuEq).

Those resources are located in areas below and around the former pits.

The majority of the resource estimate is credited to 72,000 metres of drilling in proximity to the Z87/Z87 South and J Zones.  Drilling at these zones will aim to upgrade the inferred resources within current open pit constraining shells to support a planned feasibility study as well as expand and extend near-surface mineralization to support the open-pit mine development scenario.

“An 8,500-metre drill program undertaken in late 2019 and early 2020 delivered some of the best results ever drilled at the Troilus property, including 1.56 g/t AuEq over 73 metres in hole TLG-ZSW20-189,” the company said. The drill program outlined a more than 500-metre mineralized trend that remains open along strike.