Past-producing Z87 pit at the Troilus project Credit: Troilus Gold
Troilus Gold has started a 20,000-metre drill program at its flagship 1,073.3-sq.-km Troilus gold project in Quebec’s Frotet-Evans greenstone belt, to upgrade existing resources and grow mineralization across the past-producing property.
These metres are scheduled for the remainder of 2020 and according to Justin Reid, the company’s CEO, “it is our expectation that drilling will aggressively continue through 2021 as well.”
In July, the company published an updated mineral resource estimate for the asset, with 177.3 million indicated tonnes grading 0.75 g/t gold, 0.08% copper and 1.17 g/t silver, and 116.7 million inferred tonnes at 0.73 g/t gold, 0.07% copper and 1.04 g/t silver.
The majority of the existing resources is contained around the historic Z87 and J pits. With a view that the Southwest zone, where a new discovery announced this January, could host additional near-surface, higher-grade material, additional drilling is planned for this area.
“It is our expectation that with more drilling, we have the potential to identify additional resources that could further contribute to the economic forecast of the future mine, in terms of life of mine and/or daily production capacity,” Reid added.
Earlier this month, Troilus announced the results of a preliminary economic assessment (PEA) on the project. The early-stage study defined a a 22-year, 35,000 t/d open pit and underground mine, with a 9,000 t/d sub-surface portion starting up in the eighth year.
The resulting operation would produce an average of 246,000 gold oz. in the first 14 years. With all-in sustaining costs estimated at US$1,051 per gold oz. and an initial capital outlay of US$333 million, the after-tax net present value estimate for the project came in at US$576 million, at a 5% discount rate, with a 22.9% internal rate of return, based on US$1,475 per oz. gold.
For more information, visit www.TroilusGold.com.