Troilus Gold (TSX: TLG; US-OTC: CHXMF) has released results from three drill holes completed at the Southwest zone within its 160-sq.-km Troilus gold project, northeast of Chibougamau, Quebec. The results appear to confirm a mineralized trend of over 1 kilometre.
The drill highlights include 33 metres of 1.65 grams gold-equivalent per tonne, 13 metres of 1 gram gold-equivalent per tonne, and 9 metres of 1.34 grams gold-equivalent per tonne. The first intercept is from a vertical depth of less than 75 metres.
The company first announced the discovery of this zone in January. The Southwest zone is 3.5 km from Z87, the main deposit at the site. A total of seven drill holes were completed within this area at the end of last year and additional assays are pending. In February, Troilus completed a further 17 holes to test a larger area and confirm continuity of the mineralization.
Thus far, the Southwest zone appears to consist of two mineralized zones, and extend for 1 km of strike, with widths ranging from 10 metres to 70 metres. It remains open on strike and at depth.
“We are very encouraged by these new results, which continue to expand the scale of the Troilus mineralizing system,” Justin Reid, the company’s CEO, said in a news release. “Our technical team is now analyzing the Southwest zone drill results with the intention of incorporating the findings into the overall resource estimate in the coming months.”
With field operations temporarily suspended due to the threat of COVID-19, remote work is ongoing to analyze the results from the Southwest zone and eventually incorporate these into the project’s mineral inventory. Further data compilation is also underway ahead of a preliminary economic assessment (PEA).
In the past, the Z87 pit at the site produced almost 2 million oz. gold. Indicated resources at the project are at 159.1 million tonnes grading 0.92 gram gold-equivalent for a total of 4.71 million gold-equivalent oz., with additional inferred resources of 52.7 million tonnes at 1.04 grams gold-equivalent for a further 1.76 million ounces. The resources include both an open pit and an underground component.
“The latest results from the 6,000-metre winter drill program suggest the Southwest zone has similar characteristics to the main mineralized system, with potential to add significant ounces to the company’s existing resources,” Pierre Vaillancourt, a mining analyst at Haywood Securities, commented in a research note.
“Troilus closed on a $12.8 million equity financing at the end of February, so is well positioned for the COVID-19 closure and when fieldwork resumes. In the meantime, the company will report on more drill results in the next few weeks. Troilus is considering completing a PEA on a larger resource by mid-year, or a PFS in 3Q20.”
Vaillancourt has a price target on the stock of $2.00 per share.
At press time in Toronto, Troilus was trading at 81¢ within a 52-week trading range of 42¢ and 90¢. The junior has 89 million common shares outstanding for a $72-million market capitalization.
— This article first appeared in our sister publication, Canadian Mining Journal.