In a news release, Troilus Gold Corp. (TLG:TSX; CHXMF:OTCQB) announced that it has "initiated a new 20,000 meter drill program at its 100%-owned Troilus property located near Chibougamau, within the Frotêt-Evans Greenstone Belt in Quebec, Canada."
The firm indicated that the drill program will continue through the end of this year with the objective of upgrading current mineral resource estimates and continuing expansion and exploration of mineralization across the Troilus property. The company noted that this program follows the Southwest Zone (SWZ) discovery earlier in 2020.
The company reported that since 2018, "a total of 80,500 meters of drilling has delivered a total estimated indicated mineral resource of 4.96 Moz Au eq (177 Mt with an average grade of 0.87 g/t Au eq) and total estimated inferred mineral resource of 3.15 Moz Au eq (116.7 Mt with an average grade of 0.84 g/t Au eq)."
The firm explained that the SWZ lies about 3.5 km southwest of Z87, parallel and directly adjacent to the access road to its Troilus mine site. The company said that an 8,500 meter drill program, which was completed in early 2020, recorded some of the best results ever drilled at the Troilus property. The results included 1.56 g/t Au eq over 73 meters in hole TLG-ZSW20-189 and identified a mineralized trend longer than 500 meters long that remains open along strike. The company noted that the SWZ contributed 583 Koz Au eq open pit inferred ounces (22.6 Mt with an average grade of 0.80 g/t Au eq) to the total estimated mineral resources.
Troilus Gold Corp.'s CEO Justin Reid remarked, "The drills are currently turning. We anticipate that our team will be able to complete a minimum of 20,000 meters before the end of the year. It is our expectation that drilling will aggressively continue through 2021 as well."
"Over the last three years, our technical team has consistently delivered positive results by refining our structural model and understanding of the Troilus deposit and controls on gold emplacement," Reid said. "This has resulted in a 142% increase to estimated indicated mineral resources and a 350% increase to estimated inferred resources since we acquired Troilus in 2017, thereby solidifying management's belief that this project has the potential to emerge as a long-life, open pit gold producer of scale located in one of the most favorable mining jurisdictions on the globe."
"The recent Preliminary Economic Assessment (PEA) results confirm that the Troilus project, based on the current estimated mineral resources, has the potential to deliver an after-tax IRR of 22.9% and NPV5% of $576 million based on $1,475/oz Au increasing to 32.2% and $915 million at $1,750/oz Au and 38.3% and $1,156 million at $1,950/oz spot gold prices over the course of a 22-year mine life with production averaging 35,000 tpd," Reid added.
The company noted that the Troilus property covers greater than 107,000 hectares and is highly prospective, but remains underexplored. The firm stated that it completed extensive field exploration work this summer throughout the property and is presently compiling the information in order to identify new prospective targets. The company advised that it is awaiting the results from assay samples collected and will provide updates after the results are tabulated.
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