Troilus Files Positive Preliminary Economic Assessment Technical Report FOR the Troilus GOLD Project
TROILUS FILES POSITIVE PRELIMINARY ECONOMIC ASSESSMENT
TECHNICAL REPORT FOR THE TROILUS GOLD PROJECT
October 15, 2020, Toronto, Ontario – Troilus Gold Corp. (TSX: TLG) (OTCQB: CHXMF) (“Troilus” or the
“Company”) reports that it has filed the technical report supporting the Preliminary Economic Assessment
(“PEA”) for the Company’s 100%-owned Troilus Gold Project, located within the Frôtet-Evans Greenstone
Belt of northern Quebec (the “Technical Report”) . The Technical Report, titled “ Preliminary Economic
Assessment of the Troilus Gold Project, Quebec, Canada” dated October 1 4, 2020 (the mineral resource
has an effective date of July 20, 2020 and the PEA has an effective date of August 31, 2020) was prepared
by Gordon Zurowski, P. Eng. Principal Mining Engineer, AGP Mining Consultants Inc. (“AGP”), Paul Daigle,
P. Geo, Senior Associate Geologist, AGP and Mr. Andy Holloway, P. Eng. Principal Processing Engineer,
AGP.
The positive PEA, announced August 31, 2020, demonstrates the potential for Troilus to rank among the
top gold producing assets in Canada.
Troilus Gold Project PEA Highlights (all results are reported in U.S. Dollars*):
After-tax IRR of 22.9% and NPV5% of $576 million based on $1,475/oz gold, increasing to 32.2%
and $915 million at $1,750/oz gold
Projected average annual gold production of 220,000 oz for the first 5 years and 246,000 oz for
the first 14 years
Open pit mine life of 14 years and total mine life of 22 years with future underground
development
Initial capital of (“CAPEX”) of $333 million, including all mine pre-production costs, net of
existing infrastructure (access road, power line, tailings facility, substation, camp, water
treatment plant)
After-tax payback of 4.0 years at base case $1,475/oz gold
Average cash operating costs of $919/oz gold and all-in sustaining costs of $1,051/oz gold
Cumulative cashflow of $1.27 billion after tax and $2.04 billion pre-tax over 22 years on base
case assumptions
Payable Gold of 3.8 million ounces, payable Copper of 265 million lbs and payable Silver of 1.5
million ounces
Average strip ratio for the open pit life of the mine estimated at 3.9:1
*Assuming a US$:C$ exchange of $0.74. All figures reported in US$ unless stated otherwise
The Technical Report can be found on the Company’s website at www.troilusgold.com and under the
Company’s profile on SEDAR at www.sedar.com.
Qualified Person
Mr. Gordon Zurowski, P. Eng. Principal Mining Engineer, AGP Consultants, who is an independent
Qualified Person as defined under NI 43-101, has reviewed and approved the technical information
pertaining to the PEA disclosed in this press release.
Non-IFRS Financial Measures
The Company has included certain non-IFRS financial measures in this news release, such as Initial Capital
Cost, Cash Operating Costs ,Total Cash Cost, All-In Sustaining Cost, Expansion Capital and Capital Intensity,
which are not measures recognized under IFRS and do not have a standardized meaning prescribed by
IFRS. As a result, these measures may not be comparable to similar measures reported by other
corporations. Each of these measures used are intended to provide additional information to the user and
should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.
Non-IFRS financial measures used in this news release and common to the gold mining industry are
defined below.
Total Cash Costs and Total Cash Costs per Ounce
Total Cash Costs are reflective of the cost of production. Total Cash Costs reported in the PEA include
mining costs, processing & water treatment costs, general and administrative costs of the mine, off-site
costs, refining costs, transportation costs and royalties. Total Cash Costs per Ounce is calculated as Total
Cash Costs divided by payable gold ounces.
All-in Sustaining Costs (“AISC”) and AISC per Ounce
AISC is reflective of all of the expenditures that are required to produce an ounce of gold from operations.
AISC reported in the PEAS includes total cash costs, sustaining capital, expansion capital and closure costs,
but excludes corporate general and administrative costs and salvage. AISC per Ounce is calculated as AISC
divided by payable gold ounces.
About Troilus Gold Corp.
Troilus is a Toronto-based, Quebec focused, advanced stage exploration and early-development
company focused on the mineral expansion and potential mine re-start of the former gold and
copper Troilus mine. The 107,326 hectare Troilus property is located within the Frotêt-Evans
Greenstone Belt in Quebec, Canada. From 1996 to 2010, Inmet Mining Corporation operated the
Troilus project as an open pit mine, producing more than 2,000,000 ounces of gold and nearly
70,000 tonnes of copper.
For more information:
Paul Pint
President
+1 (416) 602-1050
Cautionary Note Regarding Forward-Looking Statements and Information
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 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 mineral resource estimates contained herein may be subject to legal, political, environmental or other
risks that could materially affect the potential development of such mineral resources. See the Resources
Report, once filed, for more information with respect to the key assumptions, parameters, methods and
risks of determination associated with the foregoing.
The PEA is preliminary in nature, includes inferred mineral resources that are considered too specul ative
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 Technical Report 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, the results of the PEA,
statements regarding the impact and implications of the economic statements related to the PEA, such as
future projected production, costs, including without limitation, AISC, total cash costs, cash costs per
ounce, capital costs and operating costs, statements with respect to Mineral Resource estimates, recovery
rates, IRR, NPV, mine life, CAPEX, payback period, sensitivity analysis to gold prices, timing of future studies
including the pre-feasibility study, environmental assessments (including the timing of an environmental
impact study) and development plans, the Company’s understanding of the project; the potential to extend
mine life beyond the period contemplated in the PEA, opportunity to expand the scale of the project, the
project becoming a cornerstone mining project in Quebec and Canada; 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; 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”, “contemplates”, “goal”, “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 material ly 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: 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; there being no assurance
that the exploration program or programs of the Company will result in expanded mineral resources; risks
and uncertainties inherent to mineral resource estimates; the high degree of uncertainties inherent to
preliminary economic assessments and other mining and economic studies which are based to a significant
extent on various assumptions; variations in gold prices and other precious metals, exchange rate
fluctuations; variations in cost of supplies and labour; receipt of necessary approvals; general business,
economic, competitive, political and social uncertainties; future gold and other metal prices; accidents,
labour disputes and shortages; environmental and other risks of the mining industry, including without
limitation, risks and uncertainties discussed in the latest annual information form of the Company, in the
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 im portant 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 updat e any forward- looking statements,
except in accordance with applicable securities laws.
Cautionary Note to U.S. Investors Concerning Estimates of Mineral Resources
Mineral resource estimates have been prepared in accordance with the requirements of Canadian
securities laws, which differ from the requirements of U.S. securities laws. The terms “mineral resource”,
“measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in
NI 43-101 and recognized by Canadian securities laws but are not defined terms or recognized under U.S.
securities laws. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these
categories will ever be upgraded to mineral reserves. “Inferred mineral resources” have a great amount of
uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot
be assumed that all or any part of an “inferred mineral resource” will ever be upgraded to a higher
category. Under Canadian securities laws, estimates of “inferred mineral resources” may not form the
basis of feasibility or pre-feasibility studies. U.S. investors are cautioned not to assume that all or any part
of an inferred mineral resource exists or is economically or legally mineable. Accordingly, these mineral
resource estimates and related information may not be comparable to similar information made public by
U.S. companies subject to the reporting and disclosure requirements under the U.S. federal securities laws
and the rules and regulations thereunder.