Troilus Discovers New GOLD Zone IN Southwest Footwall of J Zone - Hole Terminated IN Open Mineralization
TROILUS DISCOVERS NEW GOLD ZONE IN SOUTHWEST FOOTWALL OF J ZONE - HOLE
TERMINATED IN OPEN MINERALIZATION
March 26, 2019, Toronto, Ontario – Troilus Gold Corp. (TSX: TLG; OTCQB: CHXMF) (“Troilus” or the
“Company”) reports initial results from the 2019 exploration program at its Troilus Gold Project, in
Quebec, Canada, including the discovery of a new gold-mineralized zone in the southeast portion of
the J Zone.
New Gold Discovery in J Zone Footwall
The discovery hole, TLG-J419-092, intersected gold-rich mineralization 300 metres from surface, in the
immediate structural footwall to the J Zone (J4) mineralized zone. Drilling ended in gold-bearing
mineralization (See Figure 1 and 2). Intercept highlights in the new gold zone, include:
▪ 1.11 g/t AuEq over 19 metres, including 1.79 g/t AuEq over 6 metres
Other intercept highlights:
▪ 2.57 g/t AuEq over 8 metres and 1.43 g/t AuEq over 22 metres in hole TLG-J419-091 less than
200 metres from surface, below J4 open pit.
▪ 3 g/t AuEq over 8 metres and 2.09 g/t AuEq over 9 metres in hole TLG-J4-092 below J4 open pit.
Justin Reid, Chief Executive Officer for Troilus Gold Corp., commented, “This is a great start to the 2019
drill program. We are very encouraged by the results from the first few holes, particularly discovery hole
TLG-J419-092, which extended gold-rich mineralization outside of the known mineral resource envelope
at depth and to the east. We are currently following-up on this exciting hole with additional drilling, and
look forward to further developments as the program advances. Results to date continue to validate our
new geological interpretation of the Troilus deposit, and are helping us generate new targets across the
entire property.”
A key part of the 2019 drill program is to expand and improve the grade at the J Zone, specifically
below the former secondary open pit northeast of the primary Z87 open pit. Using new structural
interpretations validated with the 36,000 metre drill program in 2018, the Company decided to
extend drilling beyond the planned depth in one hole, TLG-J419-092, located directly northeast of
the Z87 trend. Almost immediately beyond the expected mineralization at J4, a new zone
characterized by a far less deformed texture than typical J Zone mineralization with clear brecciation
and disseminated sulphides within the recognizable Troilus Diorite was identified in the stratigraphic
footwall (See Figure 1 and 2).
Hole TLG-J419-092 ended in gold bearing mineralization and remains open. Drilling is underway now
to further test the potential extent of this new zone discovery.
Troilus plans to drill over 40,000 metres as part of its 2019 Exploration Program, targeting zones Z87
South, the J Zone, Z87, and J4 North (See Figure 3).
Figure 1: Plan view of Troilus Property Showing Drill Hole Locations and Geological Interpretation of
Mineral Zones
Figure 2: Section J4-N14150 Facing North
Table 1: Summary of Drill Hole Intercepts
Hole From (m) To (m) Interval
(m)*
Au Grade
(g/t)
Cu Grade
(%)
AuEq Grade
(g/t)
TLG-J419-091
178 226 48 0.573 0.039 0.63
incl. 178 184 6 0.953 0.033 1.01
190 198 8 2.350 0.141 2.57
204 226 22 1.286 0.090 1.43
356 360 4 0.638 0.009 0.65
TLG-J419-092
12 22 10 0.449 0.085 0.58
207 209 2 18.900 0.033 18.95
269 275 6 0.447 0.125 0.64
291 305 14 0.506 0.038 0.57
317 325 8 2.930 0.047 3
incl. 317 319 2 9.610 0.098 9.77
383 390 7 0.816 0.128 1.02
397 406 9 1.956 0.083 2.09
incl. 401 405 4 3.381 0.102 3.54
422 441 19 0.950 0.103 1.11
incl. 422 425 3 0.675 0.105 0.84
incl. 427 433 6 1.061 0.102 1.22
incl. 435 441 6 1.531 0.161 1.79
incl. 439 440 1 5.220 0.644 6.24
TLG-J419-093
111 112 1 3.110 0.076 3.23
182 188 6 0.587 0.075 0.71
208 214 6 0.693 0.084 0.83
286 290 4 0.835 0.027 0.88
308 310 2 1.630 0.173 1.9
326 340 14 0.606 0.061 0.7
350 362 12 0.500 0.083 0.63
370 398 28 0.669 0.141 0.89
incl. 388 394 6 1.310 0.243 1.69
403 410 7 0.877 0.259 1.29
incl. 404 406 2 1.300 0.371 1.89
419 421 2 0.758 0.192 1.06
433 437 4 1.282 0.255 1.69
incl. 434 436 2 1.755 0.337 2.29
477 481 4 0.590 0.053 0.67
incl. 480 481 1 1.260 0.082 1.39
*Note drill intervals reported in this news release are down-hole core lengths as true thicknesses cannot
be determined with available information
Figure 3: Troilus Property and Exploration Targets
Troilus Mineral Zones Overview
J Zone (J4 & J5)
J4 and J5, two secondary historic open pits located 1.2 kilometres directly northeast of Z87 are
characterized by the same mineralization and geology as Z87; both remaining open at depth and along
strike. These areas have undergone a significant amount of deformation, and appear to potentially
represent a structurally hosted mineralization related to tight isoclinal folding, suggests folding could
represent excellent traps for gold. This is likely true at drill core scale, and as broadly as regional scale.
Near-surface mineralization at the J Zone defined during the 2018 exploration program signifies
promising open pittable resource opportunities. The objective of the 2019 drill campaign, will be to
expand open pit estimated mineral resources below the 2018 conceptual grade shell (whittle shell) with
the intent of recognizing material that could contribute to an early production scenario.
Z87 South
Z87 South and Z87 North Open Pit are located on the surface flanks of the Z87 open pit. The objective of
drilling in these areas is to create new, near surface open pit opportunities directly adjacent to the Z87
pit, and to better understand the structural relationship between Z87 and the J Zone. The offset
between these two areas moving grid west has previously been interpreted as solely related to faulting.
More recent work carried out by the Company suggests that a large, regional fold system could be
accountable, at least in part, for the en echelon pattern moving northeast and grid west. The nature of
these structures could relate directly to high grade gold distribution, ultimately changing the approach
to property exploration completely.
Z87
The broad geology and style of mineralization at Z87 creates a large deposit area, nearly 1 kilometre
along strike and 30-50 metres wide, which remains open both along strike and down dip. The 2019 drill
program in this area is designed to expand and infill certain areas of Troilus’ existing underground
estimated mineral resource. The program will also serve to increase the overall understanding on
geological orientation of mineralized material and use this to vector property scale exploration.
From 1996 to 2010, Z87 produced the majority of the over 2 million ounces of gold and 70,000 tonnes of
copper produced at the Troilus Project. The Z87 pit was ultimately 350 metres deep and had a strike of
approximately 900 metres. The Z87 zone is the focus of the current underground estimated mineral
resource, representing over 1.02 million ounces of indicated and 600,000 ounces of inferred material
(See mineral resource in Table 1).
Table 2: Troilus Mineral Resource Estimate, Effective November 19, 2018
Classification Tonnage
(Mt)
Au
(g/t)
Cu
(%)
AuEq
(g/t)
Contained
Gold
(Moz)
Contained
Copper
(Mlb)
Contained
AuEq
(Moz)
Total Open Pit and Underground
Indicated 121.7 0.87 0.086 1.00 3.40 231.8 3.92
Inferred 36.1 0.88 0.083 1.01 1.02 66.2 1.17
Total Open Pit
Indicated 97.5 0.76 0.078 0.88 2.37 167.0 2.7
Inferred 21.7 0.60 0.062 0.69 0.42 29.7 0.5
Total Open Pit Z87
Indicated 56.6 0.83 0.096 0.98 1.51 119.4 1.8
Inferred 12.1 0.58 0.066 0.68 0.23 17.5 0.3
Total Open Pit J Zone (J4,J5)
Indicated 40.8 0.66 0.053 0.74 0.86 47.6 1.0
Inferred 9.6 0.61 0.058 0.70 0.19 12.2 0.2
Total Underground
Indicated 24.2 1.32 0.121 1.50 1.02 64.8 1.2
Inferred 14.4 1.31 0.115 1.49 0.61 36.5 0.7
Notes:
• CIM definitions were followed for Mineral Resources.
• Open pit Mineral Resources were estimated at a cut-off grade of 0.3 g/t AuEq and were constrained by a Whittle pit shell.
Underground Mineral Resources were estimated at a cut-off grade of 0.9 g/t AuEq.
• Mineral Resources were estimated using long-term metal prices of US$1,400 per ounce gold and US$3.25 per pound copper; and
an exchange rate of US$1.00 = C$1.25.
• AuEq = Au Grade + 1.546 * Cu grade
• A recovery of 83% was used for gold and 92% for copper.
• Figures have been rounded to the appropriate level of precision for the reporting of Mineral Resources.
• Due to rounding, some columns or rows may not compute exactly as shown.
• Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources
may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues
J4 North
J4 North represents an area of mineralization running 1.8 kilometres from the end of the J Zone to the
former boundary of the Troilus gold property (see Figure 4). The excellent results obtained from surface
exploration in 2018, including outcrop samples returning over 100 g/t Au and 4 g/t Au, led to the
acquisition of over 11,000 hectares to the immediate northeast. This trend could represent the
extension of the J Zone or potential new gold deposits to the northeast.
Figure 4: Troilus Property Geology, Claim Contour and Mineral Zones
Southwest Zone
The Southwest Zone is located along the margin of the Troilus Diorite and surrounding volcanics, 3.5
kilometres Southwest of Z87 (See Figure 4). Historically this area exhibited significant mineralization
from drilling including intercepts as high as 36m @ 1.23g/t Au, and 18m @ 1.06g/t Au. Historic drilling in
this area is limited, leaving the opportunity to explore and potentially outline new mineralization at
surface.
The Southwest Zone exemplifies near term, blue sky opportunity at Troilus, and will be the initial focus
of a significant, property wide exploration program. The Troilus Diorite remains underexplored and
highly prospective. Surface mapping on recently uncovered bedrock show geology (lithology) resembling
the identical sequencing to Z87, over 3.5 kilometres to the northeast.