Troilus Gold Corp. (TLG:TSX; CHXMF:OTC; CM5R:FRA) discovered a new zone, hit the highest grade ever, and returned some of the best drill results at its namesake gold project in Quebec's historic Val d'Or mining district, reported Stifel analyst Ian Parkinson in an October 17, 2022 research note. Based on these results, the Toronto-based explorer will advance Troilus to a feasibility study, due out in H2/23.
Further, with a current share price of about CA$0.37 and a target price assigned by Stifel of CA$4, the potential return with Troilus Gold is significant.
Another positive for investors is the mining company is trading at a discount to its peers, at a coverage low spot price: net asset value of 0.07 times versus an average of 0.20 times.
Further, with a current share price of about CA$0.37 and a target price assigned by Stifel of CA$4, the potential return with Troilus Gold is significant.
"Troilus Gold remains the cheapest company in our coverage universe," Parkinson wrote. "We rate it as a Buy."
Parkinson presented the drill results he described as "excellent." They are of holes drilled in the Z87 zone, the location of the previously mined open pit, but to the southeast of the preliminary economic assessment (PEA) pit shell. These holes led to three major developments at the Troilus project.
1) Troilus Gold discovered a new, high-grade, at-surface structure that extends 200 meters (200m) to the southeast of the PEA pit shell and remains open. This came to light with holes 87-410 and 87-411.
2) The advanced-stage company also encountered the highest grade ever at Troilus, 154.27 grams per ton gold equivalent (154.27 g/t Au eq), which extended over 1m. This interval, 265m outside of the PEA pit shell and encountered in Hole 87-417, demonstrates high-grade material along the strike and downdip of the existing resource.
3) Troilus Gold returned some of the best intercepts to date at the project. They include:
- 2.52 g/t Au eq over 25m, including 12.36 g/t Au eq over 3m and 3.15 g/t over 6m (hole 87-411, one of the discovery holes)
- 4.38 g/t Au eq over 46m, including 15.5 g/t Au eq over 12m (Hole 87-417, containing the highest grade)
Troilus Gold will keep drilling, in part to define the mineralization of the zone it just discovered at Troilus and, simultaneously, pursue a definitive project feasibility study (FS).
The latter, Parkinson wrote, will include "the results of this drilling, which already points to a higher-grade profile for the project and will therefore likely affect mine sequencing decisions." The FS will also include upcoming drill results.
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Disclosures For Stifel GMP, Troilus Gold Corp., October 17, 2022
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