October 19, 2021, Toronto, Ontario – Troilus Gold Corp. (“Troilus” or the “Company”, TSX: TLG; OTCQX: CHXMF) reports additional assay results from the Southwest Zone as part of its ongoing expansion and definition drilling program at its 100%-owned Troilus deposit, located in northcentral Quebec, Canada. The latest results have expanded the ore body to the southwest, well beyond the pit shell proposed in the Preliminary Economic Assessment published in August 2020. The Southwest Zone is located ~2.5 kilometres southwest of the former mine and main mineral zones (Z87, Z87 South and J Zone) and has become one of the most important mineral growth targets on the Troilus property since it was initially discovered and drilled in late 2019. Drill hole locations are provided in Figures 1 and 2, and results in Table 1.
Summary of Results:
Justin Reid, President, CEO and Director of Troilus Gold, stated, “These new results are very exciting as they confirm our exploration team’s latest geological modelling suggesting mineral continuity well beyond the southern extent of this zone, replacing a previous “narrow hinge” model in which it was thought to taper off. The ongoing drilling from late 2020 and throughout 2021 has resulted in major technical advancements that continue to unfold. We believe that the impact of the ongoing definition of shallow and above average grade mineralization in the Southwest Zone is too important not to be considered in the upcoming studies and overall mine plan; the original Q4 2021 timing of the resource estimate would have prevented us from considering these important results. As we continue to define the extent of the Troilus deposit, our outlook on the scale and robustness of the project has never been more positive.”
Southwest Zone: 2019 Discovery to Present
The Southwest Zone is located 2.5 kilometres southwest of Z87, the former mine’s main production pit, and lies along the margin of the Troilus Diorite and surrounding volcanics. Initial prospecting and mapping started in 2018 to follow-up on some sparse and shallow drilling completed by Inmet Mining Corporation from 1986 to 2000, which returned intercepts as high as 1.23 g/t gold over 36 metres and 1.06 g/t gold over 18 metres. Since drilling began in November 2019, Troilus’ exploration team has successfully delineated a homogeneous body of mineralization that is geologically similar to the main zone Z87, extending over a strike length of 1.85 kilometres and up to 420 metres in width.
While the primary lithology and poly-phase alteration and depositional event that likely emplaced the mineralization at Southwest Zone appears to be the same as what has been observed in the Z87 open pit, which produced over one million ounces of gold and copper bearing ore, the intensity of the alteration is stronger. The zone appears darker, intense amphibolite level metamorphism, and carries significantly more magnetite, as well as a trend of increasing amounts of base metals.
The grades in the Southwest Zone have generally been observed to be higher than the other mineral zones at Troilus with a greater frequency of visible gold, and includes some the best intercepts ever recorded at Troilus, including 3.58 g/t AuEq over 15m, incl. 6.76 g/t AuEq over 7m in hole ZSW21-512 (see August 17, 2021 press release) and 1.56 g/t AuEq over 73m, including 2.05 g/t AuEq over 48m in hole ZSW20-189 (see press release dated April 21, 2020). The technical team remain focused on developing the new structural model and hope to be successful in modelling high grade trends within the broader mineralized package.
The July 2020 mineral resource estimate included 8,500 metres of drilling from the Southwest Zone, which contributed 583,000 oz of Inferred resources (22.6 Mt @ 0.80 g/t AuEq) to the total mineral resources of 4.96 Moz AuEq in the Indicated category (177.3Mt @ 0.87 g/t) and 3.15 Moz AuEq in the Inferred category (116.7Mt @ 0.84 g/t) (see press release dated July 28, 2020). Since the 2020 mineral resource cut-off, over 40,000 metres have been drilled in the Southwest Zone, which has to date more than doubled the strike length of mineralization from 850 metres to 1.85km. As evidenced by today’s results, the Southwest zone still remains open in all directions and the next few months of drilling will aim to continue defining the extent of the mineral envelope.
Figure 1: Plan View Map of Southwest Zone with Location of New Drill Results
Figure 2: Longitudinal Section of the Southwest Zone, facing Northwest
Table 1: Southwest Zone Extension 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 Southwest Zone drill program in 2021, one metre 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 Kyle Frank, P.Geo., Senior Geologist, who is a Qualified Person as defined by NI 43-101. Mr. Frank is an employee of Troilus and is not independent of the Company under NI 43-101.
The updated mineral resource estimate disclosed in this press release was prepared by Mr. Paul Daigle, géo., Senior Associate Resource Geologist with AGP Mining Consultants Inc.. The supporting Technical Report is available on SEDAR (www.sedar.com) under the Company’s issuer profile, as well as on its website www.troilusgold.com.
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 is holds a strategic land position of 1,420 km² in the 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 2021 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.