Troilus Mining (TSX: TLG; US-OTC: CHXMF) has found gold in past-producing ground treated as waste at its namesake Quebec project, raising the prospect of improving the planned open-pit operation’s economics.
Hole 87-26-524 cut 34 metres at 1.29 grams gold per tonne from 207 metres depth, including 12 metres at 3.04 grams, Troilus said Wednesday. The results come from the Z87 hanging wall, beside the main mineralized zone.
“We view the results positively, as they support potential resource conversion, lower strip ratios, improved early-year mill feed and future pit optimization,” Desjardins Capital Markets mining analyst Bryce Adams said Wednesday in a note.
The exploration work comes as Troilus assembles financing for a redevelopment on the site of a former gold-copper mine. The federal assessment registry places the project about 170 km north of Chibougamau and 615 km north of Montreal.
Converting waste to ore could reduce stripping and improve early mill feed. The results still need modelling, since the resource and reserve underlying September’s updated study exclude all 2026 drilling, Troilus said.
“We are confident in our existing mine plan, but remain committed to continual improvement and evaluating opportunities to strengthen it,” CEO Justin Reid said.
Drilling gaps
Some historical drill core was never assayed, leaving gaps in the geological model. Troilus is testing those intervals and inferred material around the proposed pit. Estimated true thicknesses are 75%–90% of the reported drill lengths.
September’s development update for the project envisaged a 26-year operation, with construction anticipated in 2027, first ore in September 2029 and commercial production in March 2030. Initial capital was estimated at about $1.43 billion (C$2 billion), Troilus said.
Troilus received a credit-approved commitment for $850 million in debt from KfW IPEX-Bank and Société Générale in September. The package contemplated a further $250 million from Export Development Canada, subject to that lender’s final approvals, Troilus said at the time.
Shares of Troilus dropped 2.8% to C$1.56 Wednesday afternoon in Toronto, valuing the company at about C$880 million ($629 million). The stock has traded between C$1.20 and C$2.47 in the past year.
Source: www.northernminer.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
