Troilus Launches New 20,000 Metre Drill Program Following Release of Positive Preliminary Economic Assessment
TROILUS LAUNCHES NEW 20,000 METRE DRILL PROGRAM FOLLOWING RELEASE OF POSITIVE
PRELIMINARY ECONOMIC ASSESSMENT
September 23, 2020 Toronto, Ontario – Troilus Gold Corp. (TSX: TLG; OTCQB: CHXMF) (“Troilus” or the
“Company”) has initiated a new 20,000 metre drill program at its 100% -owned Troilus property (the
“Troilus Project”) located near Chibougamau, within the Frotêt-Evans Greenstone Belt in Quebec, Canada.
The program will be completed through the remainder of 2020 with the objective being to upgrade current
mineral resource estimates and continue the expansion and exploration of mineralization across the
Troilus property, following the discovery of the Southwest Zone (“SWZ”) earlier this year (see Figure 1).
A total of 80,500 metres of drilling since 201 8 (see Figure 2) has delivered a total estimated indicated
mineral resource of 4.96 Moz AuEq (177 Mt with an average grade of 0.87 g/t AuEq) and total estimated
inferred mineral resource of 3.15 Moz AuEq (116.7 Mt with an average grade of 0.84 g/t AuEq) (see press
release dated July 28, 2020), the majority of which is derived from 72,000 metres of drilling proximal to
the Z87/Z87 South and the J Zones. Drilling at these zones will target upgrading the inferred mineral
resources within current open pit constraining shells to support the planned prefeasibility study, as well
as expand and extend near-surface mineralization to support the open-pit mine development scenario.
The Southwest Zone is located 3.5 kilometres southwest of Z87, parallel and directly adjacent to the access
road to the Troilus mine site . The Southwest Zone is characterized by the same dioritic host rock as Z87,
but having a more intense level of alteration and mineralization. An 8,500 metre drill program undertaken
in late 2019 and early 2020 delivered some of the best results ever drilled at the Troilus property, including
1.56 g/t AuEq over 73 metres in hole TLG-ZSW20-189 (see press release dated April 21, 2020), and outlined
a more than 500 metre mineralized trend that remains open along strike. The SWZ contributed 583,000
AuEq open pit inferred ounces (22.6 Mt with an average grade of 0.80 g/t AuEq) to the overall estimated
mineral resources (see press release dated July 28, 2020). Management believes successful drilling at the
SWZ has the potential to outline more near surface, higher grade material that could have a significant
impact on future engineering studies and production scenarios.
Justin Reid, Chief Executive Officer of Troilus Gold Corp., commented, “The drills are currently turning. We
anticipate that our team will be able to complete a minimum of 20,000 meters before the end of the year.
It is our expectation that drilling will aggressively continue through 2021 as well. Over the last three years,
our technical team has consistently delivered positive results by refining our structural model and
understanding of the Troilus deposit and controls on gold emplacement . This has resulted in a 142 %
increase to estimated indicated mineral resources and a 350% increase to estimated inferred resources
since we acquired Troilus in 2017 , thereby solidifying management’s belief that this project has the
potential to emerge as a long -life, open pit gold producer of scale located in one of the most favorable
mining jurisdictions on the globe.”
“The recent Preliminary Economic Assessment (“PEA”)* results confirm that the Troilus project, based on
the current estimated mineral resources, has the potential to deliver an 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 and 38.3%
and $1,156 million at $1,950/oz spot gold prices over the course of a 22-year mine life with production
averaging 35,000 tonnes per day (see press release dated August 31, 2020). It is our expectation that with
more drilling we have the potential to identify additional resources that could further contribute to the
economic forecast of the future mine in terms of life of mine and/or daily production capacity.”
*Assuming a US$:C$ exchange of $0.74. All figures reported in US$ unless stated otherwise
Troilus remains underexplored and highly prospective. Extensive field exploration work undertaken this
summer across the +107,000 hectare Troilus property is currently being compiled to identify new
prospective targets. Assays of samples collected in the field are pending and will be updated in due course.
The Company has engaged the services of drilling company Forages Chibougamau Ltée . and 3 drills have
been mobilized on site.
Figure 1: Plan view of Troilus Property Showing Mineral Resource Area and Geological Interpretation of
Mineralized Zones. New drilling will occur in all mineralized zones.
Figure 2: Troilus Property drill hole locations 2018-2020
Qualified Person
All technical and scientific information, in this press release has been reviewed and approved by Bertrand
Brassard, M.Sc., P.Geo., Chief Geologist, who is a Qualified Person as defined by NI 43-101. Mr. Brassard
is an employee of Troilus and is not independent of the Company under NI 43-101.
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:
Justin Reid
Chief Executive Officer
+1 (647) 276-0050 x 1305
Paul Pint
President
+1 (416) 602-1050
Cautionary Note Regarding Forward-Looking Statements and Information
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 Technical Report, once filed, for more information with respect
to the key assumptions, parameters, methods and risks of determination associated with the foregoing.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viabili ty; 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.
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 planned drill program and results on the Company, 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, the potential to extend mine life beyond the period contemplated in the
PEA, opportunity to expand the scale of the project, 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 planned 2020 drill program and their possible impact on the potential size of the mineral
resource estimate; costs of future activities; capital and ope rating 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 and the anticipated timing of filing the
Technical Report. 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”, “antici pates” 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: 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 i nherent 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 supplie s 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 Technical Report to be filed 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.
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.