In a May 15 research note, Red Cloud Securities analyst Jacob Willoughby reported that drilling continues to grow the Southwest zone at Troilus Gold Corp.'s (TLG:TSX; CHXMF:OTCQB) Troilus project in Quebec.
Willoughby reviewed Troilus Gold's recently reported results of six holes drilled in Southwest. They showed that in the zone, several high-grade gold intercepts occur within larger envelopes of disseminated gold. One such intercepts was 13.28 grams per ton (13.28 g/t) gold equivalent (Au eq) over 1 meter (1m) within 1.18 g/t Au eq over 21m, seen in hole TLG-ZSW20-181. Hole TLGZSW20-186 returned 16.1 g/t Au eq over 1.1m, 1.33 g/t Au eq over 5m and 1.43 g/t Au eq over 5m. Hole TLG-ZSW20-190 demonstrated 46.4 g/t Au eq over 1m.
These intercepts further suggest that the overall grade of the Southwest zone could exceed that of the existing resource, 0.95 g/t Au eq. As of now, the weighted average derived from all Southwest drilling reported so far is 1.05 g/t Au eq (unchanged) over an average 11.5m (down from 11.9m), and this represents an 11% improvement over the current resource grade.
The drill results also indicate that the mineralization in Southwest extends for 1-plus kilometers and remains open along trend and at depth.
Willoughby noted that he expects Southwest to improve the project's overall grade and expand the current resource. Troilus Gold plans to revise the project's mineral resource to include the Southwest drill results; the update could be released in Q2/20.
Looking forward, Willoughby commented, "Given previous operators (Inmet Mining Corp.) did almost no near-mine exploration, we expect the shares of Troilus to materially rerate over the next six to 12 months as the company demonstrates organic resource expansion potential along strike from the J zone, Z87 and the new Southwest zone areas."
Red Cloud has a Buy rating and a CA$1.80 per share price target on Troilus Gold, the stock of which is now trading at around CA$1.05 per share.
Read what other experts are saying about:
Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Troilus Gold. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
Disclosures from Red Cloud Securities, Troilus Gold Corp., Exploration Update, May 15, 2020
Part of Red Cloud Securities Inc.'s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.
Company Specific Disclosure Details
3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services and has been retained under a service or advisory agreement by the issuer.
4. In the last 12 months, a partner, director or officer of Red Cloud Securities Inc., or the analyst involved in the preparation of the research report has received compensation for investment banking services from the issuer.
Analyst Certification
The Red Cloud Securities Inc. Analyst named on the report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the company and securities that are the subject of this report; or any companies mentioned in the report that are also covered by the named analyst. In addition, no part of the research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.
