Troilus Gold probes high-grade Connector Zone in Quebec
Troilus Gold Corp. [TLG-TSX, CHXMF-OTCQB] has released positive assay results from the 787 zone at its Troilus gold property near Chibougamau, Quebec
It said the results are part of a recently completed 11,000-metre drill campaign designed to expand mineralization to the north and south of 787 pit, the largest of two formerly mined open pits, which continues to show the most continuous and highest-grade resource at Troilus.
The results released on Tuesday, confirm a high-grade zone of mineralization connecting the gap between the formerly mined 787 and J open pits (Connector Zone), and exhibit the potential for significant growth of indicated and inferred resources well above the average grade of the Troilus deposit, the company said.
Drilling highlights include hole 87-422, which returned 1.75 g/t gold equivalent (AuEq) over 138 metres, including 3.58 g/t AuEq over 38 metres and 5.19 g/t AuEq over 21 metres. This interval starts 130 metres from surface, 157 metres downhole and is locatedinside the modelled J Zone PEA pit, where drilling to these depths between the two pits was not previously tested.
Troilus Gold CEO Justin Reid said he is pleased with the latest results. “Our team’s commitment to finding high grade mineralization, that could be immediately impactful to the economics of this project, has led to the discovery of two extremely high-grade areas, this new Connector Zone and our recently announced X22 zone,’’ he said. “The team will be continuing to test these extensions and have high confidence in our ability to expand on today’s results.’’
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.
Troilus recently released drill results that it said were among the thickest and most continuous high grades identified at the project to date. They included 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.
On November 7, 2022, Troilus shares closed at 40 cents and currently trade in a 52-week range of 93 cents and 33.5 cents.