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Troilus shows potential to rank among top gold mines in Quebec and Canada with new PEA
On September 1, 2020, Troilus Gold Corp. released a preliminary economic assessment (PEA) on its 100 per centowned Troilus Gold Project, located 170 kilometres northeast of Chibougamau, Quebec. The PEA supports a combined open pit/underground mining scenario with low initial capital costs and high rate of return for a 35,000 tonne per day (tpd) operation over a 22-year mine life.
The PEA assumes an open pit operation for the first 14 years with the underground operation coming online starting in year eight. Production averages 220,000 ounces per year the first five years, 246,000 ounces per year for the first 14 years, and 98,000 ounces per year from year 15 onwards. Over 22 years, the mine is projected to produce payable gold of 3.8 million ounces of gold, payable copper of 265 million lbs., and payable silver of 1.5 million ounces.
The Troilus mine previously operated under InMet Mining Corporation starting in 1996 until 2010. The current operation benefits from extensive inherited infrastructure worth approximately US$350 million, including over 40 kilometres of access road connected to the Route du Nord, over 80 kilometres of power line, tailings facility, a 50 MW substation, camp and water treatment plant. As a result, the PEA estimates low initial CAPEX of US$333 million. All-in, sustaining cost (AISC) is US$1,051 per ounce Au.
Amongst the top gold-producing assets
Table 1: Summary of Troilus Gold economic results by gold price (US$)
The Troilus mine previously operated under InMet Mining Corporation starting in 1996 until 2010. The current operation benefits from extensive inherited infrastructure worth approximately US$350 million. / De 1996 à 2010, InMet Corporation a exploité la mine Troilus. L’exploitation actuelle bénéficie d’une vaste infrastructure déjà établie d’une valeur d’environ 350 M$ US.
in Quebec, Troilus would rank number three in annual production and second lowest by all-in sustaining costs (AISC), and would be a top-ranked gold-producing asset in Canada, ranking number five in annual production and third-lowest AISC based on 2020 estimates.
The recent PEA is based on an estimated mineral resource of 4.96 Moz AuEq (177 Mt with an average grade of 0.87 g/t AuEq) and a total inferred mineral resource estimate of 3.15 Moz AuEq (116.7 Mt with an average grade of 0.84 g/t AuEq). This mineral resource estimate is the result of over 80,500 metres of drilling conducted on the Troilus property over the last two and a half years, with drilling around the existing pits and a new discovery of mineralization 3.5 kilometres to the southwest.
Recognizing the potential for further exploration and development, Troilus has significantly expanded its land position in 2020 from 16,000 hectares to over 107,000 hectares, making it the largest claims holder in the highly prospective Frôtet-Evans Greenstone Belt.
With new drilling set to get underway this fall, high-priority exploration targets identified, a strong treasury, and a positive PEA that puts the company in the range of Canada’s top gold producers, Troilus is looking ahead to pre-feasibility and working towards an environmental impact study in 2021.
Troilus is listed on the Toronto Stock Exchange (TSX:TLG) and in the U.S. (OTC:CHMXF). The company’s head office is in Toronto, Canada, with operations in Quebec.
For more information, please visit www.troilusgold.com. u
and their 160 employees are proud to present their new partnership with the Manik family from Arviat, Nunavut to serve the mines of this territory.
a partnership between LJL and Qitik A.T.
