Troilus increases resource base ahead of Q3 PEA
An updated resource estimate for Troilus Gold’s wholly-owned gold-copper-silver project in Quebec features 177.3 million indicated tonnes, grading 0.75 g/t gold, 0.08% copper and 1.17 g/t silver as well as 116.7 million inferred tonnes, at 0.73 g/t gold, 0.07% copper and 1.04 g/t silver.
The indicated resource contains 5 million gold-equivalent oz. and features a gold-equivalent grade of 0.87 g/t; the inferred portion features 3.2 million gold-equivalent oz., based on a 0.84 g/t gold-equivalent grade.
These latest numbers represent an 11.5% increase in the indicated resource tonnes and a 121% growth in the inferred tonnage, when compared with the company’s prior estimate from November 2019, which estimated gold-equivalent grades of 0.92 g/t and 1.04 g/t for the indicated and inferred mineralization, respectively.
“We have materially added to the estimated inferred and indicated resource in every zone while maintaining essentially the same grade,” Justin Reid, the company’s CEO, said in a release.
“Troilus has shown scale, the ability for expansion and optionality from multiple resource centres.”
The latest resource features both open-pit and underground mineralization – this was also the case in last year’s estimate – with a total of 164.2 million indicated tonnes grading 0.8 g/t gold-equivalent and 101.2 million inferred tonnes at 0.7 g/t gold-equivalent in the latest open-pittable estimate.
The Southwest zone, discovered in January of this year, now contributes 22.6 million inferred open-pittable tonnes at 0.8 g/t gold-equivalent (580,000 gold-equivalent oz.) to the company’s inventory.
Troilus now plans to complete a preliminary economic assessment (PEA) for the project, which is expected to be released towards the end of the third quarter of this year.
In 2020, the company expects to drill 20,000 metres at the 1,073 sq. km project, to target new mineralization at the Southwest zone and infill existing zones of mineralization.
The latest resource estimate is based on a 0.3 g/t gold-equivalent cut-off for the open-pittable portion and a 0.9 g/t gold-equivalent cut-off for the underground component.
The Troilus property includes the past-producing gold and copper Troilus mine, which generated over 2 million gold oz. and 70,000 tonnes of copper from open-pit operations between 1996 and 2010. The site lies within the Frotet-Evans greenstone belt and is 170 km northeast of Chibougamau.
Midday Wednesday, Troilus’ stock was up 2% on the TSE. The company has a C$165 million market capitalization.
(This article first appeared in the Canadian Mining Journal)