'Excellent Results' From Quebec Project Drilling: Analyst

Source: Streetwise Reports   07/13/2021

The latest batch of drill results from Troilus Gold’s namesake project is presented and interpreted in a Red Cloud Securities report.

In a July 8 research note, Red Cloud Securities analyst Timothy Lee reported Troilus Gold Corp.’s (TLG:TSX; CHXMF:OTCQX) recent positive drill results of infill and stepout holes targeting the J zone at its Troilus project. The J zone is at the far north end of the property and where the two past producing pits were located.

“These are excellent results,” Lee wrote. They “demonstrate the potential to further improve project economics.”

Of the eight holes reported, Lee noted, hole ZJ21-241 was the highlight, as it extended the zone’s western extension another 150 meters (150m) along strike to 850m. Within 150m from surface, the hole returned 1.57 grams per ton gold equivalent (1.57 g/t Au eq) over 31m, including 4.72 g/t Au eq over 7m and 22.51 g/t Au eq over 1m within 150m from surface. These and other new intercepts are inside the pit shell outlined in the 2020 preliminary economic assessment (PEA).

“This will likely add significant ounces to the resource and improve project economics, as we anticipate the conversion of mineralization in areas previously considered as waste to lead to lower strip ratios,” Lee commented.

The analyst pointed out that there now is “potential for a larger pit and/or an underground resource.” Stepout drilling extended mineralization from the PEA pit, up to about 90m below it and about 60m downdip. Further, drilling outside the PEA pit returned mineralization with grades equal to or better than those of the J zone’s existing resource. Those intercepts include 1.19 g/t Au eq over 19m, including 3.29 g/t Au eq over 4m, in hole ZJ21-240, and 0.88 g/t Au eq over 22m, including 3.65 g/t Au eq over 2m in hole ZJ21-239.

Over the summer, noted Lee, Troilus Gold will continue resource expansion drilling of multiple targets at Troilus, completing about 10,000 meters per month. Two of the four rigs active on the property are drilling in the Southwest zone.

Later this year, for the Troilus project, Troilus Gold is expected to release a resource estimate update for followed by a prefeasibility study. These two events, along with additional drill results in the meantime, all are potential catalysts for the company’s stock, the analyst stated.

Lastly, Lee indicated, Red Cloud updated its model on Troilus Gold to include the recent CA$45 million financing and share issuance from the UrbanGold acquisition. The result is a decrease in Red Cloud’s price target on the explorer to CA$3 from CA$3.50. The stock is trading now at about CA$0.95 per share. Red Cloud rates Troilus Gold Buy.

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Disclosures from Red Cloud Securities, Troilus Gold Corp., Exploration Update, July 8, 2021

Part of Red Cloud Securities Inc.’s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.

Company Specific Disclosure Details
3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services and has been retained under a service or advisory agreement by the issuer.
4. In the last 12 months, a partner, director or officer of Red Cloud Securities Inc., or the analyst involved in the preparation of the research report has received compensation for investment banking services from the issuer.

Analyst Certification
The Red Cloud Securities Inc. Analyst named on the report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the company and securities that are the subject of this report; or any companies mentioned in the report that are also covered by the named analyst. In addition, no part of the research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

( Companies Mentioned: TLG:TSX; CHXMF:OTCQX, )