Troilus Gold (TSX: TLG, OTCQX: CHXMF) is not your ordinary Canadian junior mining company. The Company’s Troilus gold project is considered one of the largest undeveloped gold copper assets in Quebec, Canada. It hosts an impressive, indicated resource of 4.96Moz AuEq (177 Mt with an average grade of 0.87 g/t AuEq), and an estimated inferred mineral resource of 3.15 Moz AuEq (116.7 Mt with an average grade of 0.84 g/tAuEq).
Troilus (TSX: TLG, OTCQX: CHXMF) holds a strategic land position of 142,000 ha (1,420 km²) northeast of the Val-d'Or district of Quebec, the former Troilus Mine produced 2 million ounces of gold and almost 70,000 tonnes of copper between 1996 and 2010.
Troilus Gold (TSX: TLG, OTCQX: CHXMF) is currently focused on bringing the former mine back into production by advancing it through multiple engineering studies. Following the completion of a robust Preliminary Economic Assessment (“PEA”) in 2020, it has demonstrated the potential for the Troilus project to become a top-ranked gold and copper producing asset in Canada.
Under the August 2020 PEA results based on a US$1,750 long term gold price and $3.00/lb copper price the project demonstrates robust economics:
- Average production of 246,000oz Au for first 14 years and 22 year mine life
- CAPEX US$333M
- US$719/oz AuEq Cash operating costs, US$850/oz AuEq AISC
- Pre-tax NPV (5%) US$1.538B (US$915M post-tax)
- 41.8% pre-tax IRR (32.2% post-tax)
- 3-year payback period
Troilus Gold (TSX: TLG, OTCQX: CHXMF) will be one of the leading producers within Canada ranking within the top 5 gold producers once commissioned. Pretivm's (TSX/NYSE: PVG) Brucejack Mine is processing 3,800 tonnes per day and is currently set to produce between 325,000-365,000 with an AISC between $1,060-$1,190 per ounce, and only has a 13 year mine life (commercial operation in July 2017). Pretivm (TSX/NYSE: PVG) will look at generating $120M-$170M in free cashflow for 2021. Currently Pretivm (TSX/NYSE: PVG) is trading at a $2.5 BILLION market cap.
Troilus Gold (TSX: TLG, OTCQX: CHXMF) will produce slightly less gold ounces on an annually basis, but will have a mine life of 22 years, as well as producing copper and silver. The company will also have almost a 20% saving on an AISC basis ($850 compared to $1,040). Between Year 14-22, the Troilus Mine will produce an average of 100,000 ounces of gold per year.
Further more, Troilus Gold (TSX: TLG, OTCQX: CHXMF) still has untapped exploration potential, as it has made a discovery within the J zone, and acquired UrbanGold Minerals in 2021 adding another 35,000 hectares to the Troilus property. The team is excited to do further work on UrbanGold’s Cressida target directly adjacent to the Beyan Zone, the Freegold/Bullseye target which is adjacent to Testard and the Pallador Regnault target which is in close proximity to the Tortigny deposit and Goldfield Boulders Zone.
Currently drilling 10,000 metres per month, Troilus Gold (TSX: TLG, OTCQX: CHXMF) will continue to outline additional ounces, as it aggressively moves through feasibility stage, to bring this former mine back into commercial production.
As of today, Troilus Gold (TSX: TLG, OTCQX: CHXMF) is trading at $0.75 and has 196M shares outstanding, giving it a market cap of $147M.
Disclaimer: Troilus is a paid marketing client and we own shares in the company