Drilling Proves 'Connector Zone' Exists at Gold Asset

Source: Jacques Wortman   11/18/2022

The owner of this Quebec project will include these exploration results in the upcoming definitive feasibility study, noted a Laurentian Bank Securities report.

Troilus Gold Corp. (TLG:TSX; CHXMF:OTC; CM5R:FRA) released additional drill results that “confirm the discovery of the new high-grade ‘Connector zone’” between the past-producing Z87 and J zones at its namesake Troilus project, reported Laurentian Bank Securities mining analyst Jacques Wortman in a November 8, 2022 research note. This new zone is outside of the pit shells outlined in previous preliminary economic assessments.

“The intersection of a second high-grade structure (new X22 zone assays announced last month) further appears to validate Troilus Gold management’s decision to defer its economic study work to include the new structures in the definitive feasibility study by H2/23,” Wortman wrote.

Regarding the new drill results, Troilus Gold reported five holes, all part of its recently completed 11,000-meter (11,000m) drill program aimed at expanding mineralization to the north and south of the Z87 pit. Wortman presented the results of the highlight holes.

Hole 87-422 hit both J zone and Z87 mineralization, indicating the two areas connect. Intersection with the J zone was within 200m of surface, as indicated by the intercept, 1.75 grams per ton gold equivalent (1.75 g/t Au eq) over 138m, starting 157m downhole.

The analyst also pointed out Laurentian’s target price on Troilus Gold, Buy rated, is CA$2.50 and the Canadian explorer’s current share price is about CA$0.56. 

Intersection with Z87 was deeper, as demonstrated through two intervals. They are 3.58 g/t Au eq over 38m, starting 200m downhole, and 5.19 g/t Au eq over 21m, starting 217m downhole.

Wortman reported that the high-grade Connector zone structure looks to be subvertical. Drilling there appears to be perpendicular to and was likely not “down the throat of” the structure, given hole dip was 55 degrees. More work, however, is needed to delineate the structure’s actual orientation and thickness.

As for stepout drilling from Z87, represented by four reported holes, it too was positive with mineralization encountered. Wortman relayed the results of three highlight holes, all of which were oriented to previously reported hole 87-421.

• Hole 87-419, drilled a 200m step back from 87-421, showed 1.35 g/t Au eq over 98m, starting 549m downhole, including 2.89 g/t over 33m.
• Hole 87-420, drilled a 100m step back from 87-421, returned 1.1 g/t Au eq over 91m, starting 475m downhole, including 1.95 g/t Au eq over 24m.
• Hole 87-423, drilled a 100m step to the north of holes 87-419 and 87-420 (reported above), demonstrated 1.21 g/t Au eq over 55m, starting 505m downhole, including 2.19 g/t Au eq over 9m.

The analyst also pointed out Laurentian’s target price on Troilus Gold, Buy rated, is CA$2.50 and the Canadian explorer’s current share price is about CA$0.56. The large difference between these prices implies a significant potential return for Troilus Gold investors.

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( Companies Mentioned: TLG:TSX; CHXMF:OTC; CM5R:FRA, )