Company Reports Excellent Metallurgical Results at Quebec Gold Project


The test results bode well for the prefeasibility study of the Canadian explorer’s past-producing project in Quebec’s historical Val d’Or mining district, noted a Stifel report, and named it the cheapest company in its coverage universe. A Laurentian Bank Securities report called the company’s most recent drill results “encouraging.”

Metallurgical Testing

Troilus Gold Corp.’s (TLG:TSX; CHXMF:OTC; CM5R:FRA) reported excellent metallurgical results from testing a 3-tonne sample at the Southwest Zone of its Troilus Gold project, reported Stifel analyst Ian Parkinson in a June 28 research note. “Results show copper recovery of 93.5%, gold recovery of 88.3%, and silver recovery of 89.4%,” he noted.  

“Today’s results are an important step towards the prefeasibility study (PFS) we expect to see in mid-2022,” Parkinson wrote.

He indicated the results are notable because they are consistent with previously determined recovery rates that were used in the preliminary economic assessment and “build on similarly excellent results obtained from the J Zone in February, which showed recoveries of 92.9%, 90.4%, and 88.8% for copper, gold, and silver, respectively.”

Regarding the imminent Troilus project PFS, Parkinson noted that Troilus Gold’s drilling over the past few years “should help strengthen mining-specific elements of the PFS economics.” In the Southwest Zone, the company has added ounces to the resource after the completion of the 2020 preliminary economic assessment. At the J Zone, Troilus Gold has “widened the mineralized horizon, converted waste to ore, and decreased the strip ratio.”

Parkinson pointed out Troilus Gold is trading significantly below its peers at a spot price:net asset value of 0.09x versus the group average of 0.21x, according to Stifel data.

Stifel’s target price on the company is CA$4 per share; Troilus Gold’s current share price, in comparison, is around CA$0.54. 

“Troilus Gold is currently the cheapest company in our coverage universe,” wrote Parkinson.

Gap Zone Drill Results

Jacques Wortman, mining analyst with Laurentian Bank Securities, on June 29 reported that Troilus released assay results from five holes drilled as part of the phase 2 Gap Zone program at the Troilus project.

Three of the drill holes were to the southwest of the past-producing Z87  pit. “The key takeaway is the continuity of mineralization down-dip and up-dip from Z87 South,” Wortman noted.

The other two drill holes were along the Southwest Zone’s northern extension. “We would characterize the results as encouraging but very early stage,” he wrote.

Wortman indicated the results “support the explorer’s thesis that mineralized units in the Z87 and Southwest zones extend into the Gap Zone.” He added, “We have long believed that the Gap zone has significant potential.”

“Some of the mineralized intervals reported today are quite deep, but several appear to be high enough in the system to be captured in conceptual open-pit shells in future resource updates,” Wortman wrote.

Troilus Gold should finish the phase 2 Gap Zone drill program in July and results should follow over the next few months. Wortman noted that the company will not include these results in the upcoming PFS.

Laurentian has a target price on Troilus of CA$3.30. 


Want to be the first to know about interesting Gold, Base Metals and Silver investment ideas? Sign up to receive the FREE Streetwise Reports’ newsletter. Subscribe

Disclosures:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Troilus Gold Corp. Click here for important disclosures about sponsor fees. 

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Troilus Gold Corp., a company mentioned in this article.

Disclosures for Stifel GMP., Troilus Gold Corp.,  June 28, 2022

I, Ian Parkinson, certify that the views expressed in this research report accurately reflect my personal views about the subject securities or issuers; and I, Ian Parkinson, certify that no part of my compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report. Our European Policy for Managing Research Conflicts of Interest is available at www.stifel.com/institutional/ ImportandDisclosures

Troilus Gold is a client of Stifel or an affiliate or was a client of Stifel or an affiliate within the past 12 months. Troilus Gold has paid the research analyst’s travel expenses to view their material operations. Troilus Gold is provided with investment banking services by Stifel or an affiliate or was provided with investment banking services by Stifel or an affiliate within the past 12 months. Troilus Gold is provided with non-investment banking, securities related services by Stifel or an affiliate or was provided with noninvestment banking, securities related services by Stifel or an affiliate within the past 12 months.

Stifel or an affiliate has received compensation for investment banking services from Troilus Gold in the past 12 months. Stifel or an affiliate expects to receive or intends to seek compensation for investment banking services from Troilus Gold in the next 3 months. Stifel or an affiliate managed or co-managed a public offering of securities for Troilus Gold in the past 12 months. The equity research analyst(s) responsible for the preparation of this report receive(s) compensation based on various factors, including Stifel’s overall revenue, which includes investment banking revenue.

Please visit the Research Page at www.stifel.com for the current research disclosures and respective target price methodology applicable to the companies mentioned in this publication that are within the Stifel coverage universe. For a discussion of risks and changes to target price including basis of valuation or methodology please see our stand-alone company reports and notes for all stocks.

The information contained herein has been prepared from sources believed to be reliable but is not guaranteed by us and is not a complete summary or statement of all available data, nor is it considered an offer to buy or sell any securities referred to herein. Opinions expressed are as of the date of this publication and are subject to change without notice. These opinions do not constitute a personal recommendation and do not take into account the particular investment objectives, financial situation or needs of individual investors. Employees of Stifel, or its affiliates may, at times, release written or oral commentary, technical analysis or trading strategies that differ from the opinions expressed within.

Stifel or any of its affiliates may have positions in the securities mentioned and may make purchases or sales of such securities from time to time in the open market or otherwise and may sell to or buy from customers such securities on a principal basis; such transactions may be contrary to recommendations in this report. Past performance should not and cannot be viewed as an indicator of future performance.

Unless otherwise noted, the financial instruments mentioned in this report are priced as of market close on the previous trading day and presumed performance is calculated always over the next 12 months. As a multi-disciplined financial services firm, Stifel regularly seeks investment banking assignments and compensation from issuers for services including, but not limited to, acting as an underwriter in an offering or financial advisor in a merger or acquisition, or serving as a placement agent in private transactions. 

Disclosures for Laurentian Bank Securities Inc., Troilus Gold Corp.,  June 29, 2022

“Laurentian Bank Securities Equity Research” is a trade name used by the Equity Research sector of Laurentian Bank Securities Inc. To access Laurentian Bank Securities’ regulatory disclosures, please click or press on the hyperlink – http://www.vmbl.ca/portal/disclosure

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.

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-policy.



Read The Original Article