September 7, 2023, Montreal, Quebec – Troilus Gold Corp. (“Troilus” or the “Company”, TSX: TLG; OTCQX: CHXMF) is pleased to report assay results from the X22 Zone (“X22”) at its Troilus Project, located in northcentral Quebec, Canada. The results herein are from the Company’s drill campaign at X22, a body of mineralization identified in late 2022 that originates at the Z87 open pit and extends to the southwest into the Gap Zone, which has rapidly defined and expanded a high-grade NE-SW deformation corridor that characterizes the zone.
The reported drill holes have further demonstrated continuity of mineralization between the high-grade trends of this zone (see plan view in Figure 1 and section in Figure 2). The results reported today represent the final set of drill holes from the X22 definition drill program and the data cut-off for inclusion in the upcoming mineral resource estimate (“MRE”). All results reported herein lie entirely outside of the PEA pit shells and will be included in the MRE, on track for completion in the coming weeks.
Zone X22 Intercept Highlights:
Justin Reid, CEO of Troilus Gold, commented, “Despite a challenging summer for the region as a result of the forest fires, our team has continued to make significant headway in its exploration and development activities. The now completed X22 drill program has rapidly delineated and expanded this zone and returned extremely positive results with some of the highest grades and most continuous intercepts that Troilus has seen to date, supporting our goal of creating value through near-pit drilling for resource growth and conversion. X22 accounts for a small fraction of the drilling at our project, however, has returned exceptionally high grades, which we believe will present compelling opportunities for mine sequencing and project payback. Our team is now working diligently to incorporate this new data into the geological model for the MRE, which we expect to complete in the coming weeks.”
The X22 expansion and infill drilling program has defined and expanded the mineralization trend, which now has a strike length of ~1km, having drilled 80 drill holes for a total of 23,256 metres since its initial discovery in 2022 (see October 17, 2022, press release). These most recent results from X22 continue to demonstrate the zone’s typical pattern of near-surface mineralization over wide intervals and showcase continuity of mineralization between the previously reported holes. Mineralization at X22 is observed to be structurally unique, distinct from the other zones at Troilus, which are dominantly hosted in volcanic rocks and felsic porphyry dykes around the margins of the dioritic Troilus intrusion. X22 is hosted within a more evolved tonalitic phase of the Troilus intrusion that lies along a prominent D2 structural corridor. Where this corridor is intersected by earlier D1 structures, significant zones of mineralization have been discovered. The occurrence of exceptional high grades at X22 is also of note, as the zone accounts for less than 7% of total drilling executed at Troilus, but from which 60% of assay results have grades greater than 100 g/t AuEq.
All results from the recently completed drilling program at X22 have now been reported. Approximately 240,450 metres have been drilled since the 2020 MRE cut-off, focusing on growth and conversion of mineral resources from the Inferred category to the Measured and Indicated categories. These results will all be incorporated into an updated MRE, expected to be announced in the coming weeks, and included in a Feasibility Study, expected to be complete by the end of 2023 or early 2024. With the X22 drilling now complete, the Company has curtailed exploration activities to focus on mine development and the progression of Federal and Provincial permitting processes. This will mean a decreased level of activity at the Troilus site effective this week and through the winter. Regional exploration plans will be evaluated in the Spring. This slowdown will also allow for some upgrades to camp infrastructure and repairs to the hydroelectric transmission lines that were damaged by the forest fires this summer.
Figure 1: Plan View Map of Zone X22 Showing Current and Previously Reported Drilling
Figure 2: Section 12,625N (A-A’ Figure 1) Showing New Results for Holes X22-23-047, X22-23-048, X22-23-049 and X22-23-071
Table 1: Zone X22 Drill Results
*Note drill intervals reported in this news release are down-hole core lengths as true thicknesses cannot be determined with available information.
Quality Assurance and Control
During the Zone X22 drill program, one meter assay samples were taken from NQ core and sawed in half. One-half was sent for assaying at ALS Laboratory, a certified commercial laboratory, and the other half was retained for results, cross checks, and future reference. A strict QA/QC program was applied to all samples, which included insertion of one certified mineralized standard and one blank sample in each batch of 25 samples. Every sample was processed with standard crushing to 85% passing 75 microns on 500 g splits. Samples were assayed by one-AT (30 g) fire assay with an AA finish and if results were higher than 3.5 g/t Au, assays were redone with a gravimetric finish. For QA/QC samples, a 50 g fire assay was done. In addition to gold, ALS laboratory carried out multi-element analysis for ME-ICP61 analysis of 33 elements four acid ICP-AES.
The technical and scientific information in this press release has been reviewed and approved by Nicolas Guest, P.Geo., Senior Project Geologist, who is a Qualified Person as defined by NI 43-101. Mr. Guest is an employee of Troilus and is not independent of the Company under NI 43-101.
About Troilus Gold Corp.
Troilus Gold Corp. is a Canadian-based junior mining company focused on the systematic advancement and de-risking of the former gold and copper Troilus Mine towards production. From 1996 to 2010, the Troilus Mine produced +2 million ounces of gold and nearly 70,000 tonnes of copper. Troilus is located in the top-rated mining jurisdiction of Quebec, Canada, where it holds a land position of 435 km² within the prospective Frôtet-Evans Greenstone Belt. Since acquiring the project in 2017, ongoing exploration success has demonstrated the tremendous scale potential of the gold system on the property with significant mineral resource growth. The Company is advancing engineering studies following the completion of a robust PEA in 2020, which demonstrated the potential for the Troilus project to become a top-ranked gold and copper producing asset in Canada. Led by an experienced team with a track-record of successful mine development, Troilus is positioned to become a cornerstone project in North America.
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Cautionary Note Regarding Forward-Looking Statements and Information
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability; the estimate of Mineral Resources in the updated Mineral Resource statement may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no certainty that the Indicated Mineral Resources will be converted to the Probable Mineral Reserve category, and there is no certainty that the updated Mineral Resource statement will be realized.
The PEA is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA is subject to a number of risks and uncertainties. See below and the Company’s latest technical report available on SEDAR for more information with respect to the key assumptions, parameters, methods and risks of determination associated with the foregoing.
This press release contains “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements regarding the impact of the ongoing drill program and results on the Company, the possible economics of the project and the Company’s understanding of the project; the development potential and timetable of the project; the estimation of mineral resources; realization of mineral resource estimates; the timing and amount of estimated future exploration; the anticipated results of the Company’s ongoing 2022 drill program and their possible impact on the potential size of the mineral resource estimate; costs of future activities; capital and operating expenditures; success of exploration activities; the anticipated ability of investors to continue benefiting from the Company’s low discovery costs, technical expertise and support from local communities. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “continue”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “will”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are made based upon certain assumptions and other important facts that, if untrue, could cause the actual results, performances or achievements of Troilus to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Troilus will operate in the future. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, currency fluctuations, the global economic climate, dilution, share price volatility and competition. Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of Troilus to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: there being no assurance that the exploration program will result in expanded mineral resources; risks and uncertainties inherent to mineral resource estimates; the impact the COVID 19 pandemic may have on the Company’s activities (including without limitation on its employees and suppliers) and the economy in general; the impact of the recovery post COVID 19 pandemic and its impact on gold and other metals; the receipt of necessary approvals; general business, economic, competitive, political and social uncertainties; future prices of mineral prices; accidents, labour disputes and shortages; environmental and other risks of the mining industry, including without limitation, risks and uncertainties discussed in the most recent Technical Report and in other continuous disclosure documents of the Company available under the Company’s profile at www.sedar.com. Although Troilus has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Troilus does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.