Samples taken from an area located 10 km south of the current mineral resources returned some of the highest in-situ gold grades ever recovered from the Frotet-Evans greenstone belt on which the property is located.
Highlights from the newly defined Testard Zone includes 203 g/t gold, 2,440 g/t silver and 4.37% copper in an outcrop sample. Similar Testard mineralization has been traced in outcrop on Troilus ground for up to 400 metres from the main showing, the company said in a press release Monday.
â€œThe silica flooding and brittle features that host gold-bearing sulphides at Testard have the same characteristics as the Troilus Mine and the newly discovered Southwest Zone,â€ the company said.
Results from 35 surface samples obtained in the vicinity of the Testard showing are still pending.
Troilus shares were unchanged at $1.27 on Monday. The shares are currently trading in a 52-week range of $1.82 and 41 cents.
The sampling results have been released 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 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 has also launched a new 20,000-metre drill program 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.
â€œWe are thrilled with the latest in-situ results, including the highest grade gold occurrence on our property to date and the highest ever reported in outcrop within the Frotet-Evans Belt, located only 10 km from our resource and mine site,â€ said Troilus CEO Justin Reid.
â€œWhat is 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 Beyan Gold Zone Discovery and the Goldfield Boulder Zone discovery located eight kilometres and 36 kilometres away from the Troilus mine site,â€ Reid said.
â€œThe scale and range of the gold-bearing system at Troilus is very exciting, and continues to strengthen our confidence in the district potential of our project.â€
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.