- Laurentian Bank Securities has a “Buy” rating and CA$3.30/share target price for Troilus Gold.
- Troilus Gold Corp. announced assay results from eight holes at its Troilus project.
- Several holes intersected mineralization outside the 2020 PEA pit shell.
- The Southwest Zone could potentially be the center point of the new proposed mine plan.
- A PFS for the project is now pending and expected to be completed in H1/22.
- The research firm plans to review its valuation when the Troilus PFS is released.
In a January 20 research note, Laurentian Bank Securities Equity Research Mining Analyst Jacques Wortman, BSc, MBA commented on the assay results obtained by Troilus Gold Corp. (TLG:TSX; CHXMF:OTCQX) from eight (8) new drill holes at the firm’s Troilus project.
The analyst advised that “the majority of the holes intersected mineralization outside of the previously proposed PEA pit shell.”
Laurentian Bank Securities believes that the assay results are slightly positive as drilling intersected mineralization both inside and outside of the boundaries laid out in the August 2020 PEA and located near-surface mineralized areas that may fall below new conceptual pit shells.
The analyst remarked that Laurentian considers the 2021drill program at the Southwest Zone a success and believes that Troilus has shown that the Southwest Zone shows great potential for further development and could become the focal point of the mine
Drill results demonstrated the continuity of mineralization as five drill holes located on the western edge of the Zone extended mineralization down dip by up to 85m and Hole 523 verified that the mineralized trend extends up to 200m below the PEA pit shell.
The Laurentian report listed some of the drill results. Some of the most notable were from Hole SW-21-502 which returned 6m of 0.83 g/t Au eq starting from a downhole depth of 139m, Hole SW-21-514 which returned 1.13 g/t Au eq over 10m and Hole SW-21-537 which returned 1.14 g/t Au eq over 19m.
At a much deeper depth, the company reported that starting from a downhole depth of 408m, Hole SW-21-523 intersected 14.0 m of 2.06 g/t Au eq.
Laurentian Bank Securities Equity Research stated that it arrived at its valuation and target price for Troilus Gold based upon the fundamental parameters outlined in the company’s 2020 PEA. The research firm indicated that it intends to review its valuation calculation after the PFS is released.
Laurentian Bank Securities Equity Research currently has a “Buy” rating on Troilus Gold Corp. with a target price of CA$3.30/share.
Troilus Gold trades on the Toronto Stock Exchange under the symbol “TLG” and last closed for trading at CA$0.68 on Thursday, January 27, 2022. The company’s shares also trade under the ticker symbol “CHXMF” on the OTCQB market.
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Disclosures for Laurentian Bank Securities, Troilus Gold Corp., Jan. 20, 2022
The information contained in this document is based on what we deem to be reliable sources, but no guarantee or promise, explicit or implicit, is given as to the accuracy and exhaustiveness of these sources. This report shall under no circumstances be considered an offer to buy or sell, or a request to buy and/or sell the stocks mentioned. Laurentian Bank Securities Inc. and its employees may not be held liable for any monetary losses stemming from the implementation of the recommendations contained in this document.
Laurentian Bank Securities Inc. and/or its officers, directors, representatives, traders, analysts and members of their families may hold positions in the stocks mentioned in this document and may buy and/or sell these stocks on the market or otherwise. Stocks in foreign currency may be adversely affected by exchange rate fluctuations. Laurentian Bank Securities Inc. is a wholly-owned subsidiary of Laurentian Bank of Canada. The opinions, projections and estimates are those of the Economic and Financial Research department of Laurentian Bank Securities Inc. as at the date appearing on the cover page, and are subject to change without prior notice.
Laurentian Bank Securities Inc. may, in exchange for remuneration, act as a financial advisor or tax consultant for, or participate in the financing of companies mentioned in this document. This study may not be reproduced, in whole or in part, without the consent of Laurentian Bank Securities Inc. Member of the Investment Industry Regulatory Organization of Canada and of the Canadian Investor Protection Fund. The regulation of the securities market establishes requirements that analysts must follow when issuing research reports or making recommendations. These guidelines are included in the research dissemination policy of Laurentian Bank Securities, available at http://www.vmbl.ca/portal/researchdissemination.
( Companies Mentioned: TLG:TSX; CHXMF:OTCQX,
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