About Troilus Gold

Troilus Gold is a Canadian-based advanced exploration and development company formed in 2018, focused on the past-producing gold and copper Troilus mine. Located in the mining-friendly jurisdiction of Quebec, their focus has been on mineral expansion and engineering with the aim of putting the former mine back into production. From 1996 to 2010 the Troilus mine, then operated by Inmet Mining, produced more than 2 million ounces of Gold and 70,000 tonnes of Copper.

The Company initiated their Provincial and Federal permitting process in Q1 2022, and a new Resource estimate and Pre-Feasibility Study is due in the second half of September 2022, with a Definitive Feasibility Study to be initiated by the end of the year.

Summary

Troilus Gold acquired the past-producing Troilus project with a 2.75 million ounce gold equivalent resource in 2017 for US$300,000 (plus a 2.5% Net Smelter Return (NSR) royalty, which has since been repurchased by Troilus). The project is in Quebec, Canada, a highly regarded location for mining - the Fraser Institute rated it the 6th best mining jurisdiction in the world in 2021.

As a former producer, the Company inherited extensive infrastructure worth ~US$350 million. This will significantly reduce the cost of bringing the asset back into production, and will result in a streamlined permitting process (ex: the inherited tailings facility is already permitted).

The Preliminary Economic Assessment (PEA) results from 2020 placed Troilus among the top 5 gold producers in Canada. This study showed an annual production of ~250,000 ounces with bottom quartile all-in-sustaining-costs of $850/oz, low initial capital expenditure of ~$330 million and a Net Present Value of ~$1 billion.

Thesis

For investors seeking exposure to gold and copper, Troilus provides a compelling proposition. Since 2017, the gold and copper resources at the Troilus project have grown by 195%, from 2.75 million ounces to 8.11 million ounces. This is expected to grow further with the new resource targeted for late September 2022.

In addition to gold, the Company provides strong exposure to copper. Copper demand for the Electric Vehicle sector is projected to rise from 500,000 tonnes today, to nearly 1.5 million tonnes in 2025. At the Troilus project, production of copper will be 7,358 tonnes per year (identified in the 2020 PEA), placing Troilus among the top copper producers in Canada. The copper is expected to contribute 15.5% to Troilus’ total revenue.

Work on the Provincial and Federal permitting process has kicked off in Q1 2022. The remaining catalysts for the year will be the new resource estimate (including an Inaugural Reserve) and the Pre-Feasibility Study in the second half of September 2022. Following this will be the Definitive Feasibility Study with work beginning by the end of the year.  

Growing gold & copper resource

Since acquiring the Troilus project, the Company has experienced major exploration success. As a result, it has increased its land position from 4,700 hectares to 142,000 hectares, driven by the team’s belief in the extensive scale potential of the mineral system in the district. This expansion came from the Company's acquisition of UrbanGold Minerals, making them now the largest mineral claims holder in the region.

Troilus has drilled +150,000 meters since 2018 which has led to a total resource increase from 2.8 million ounces to 8.11 million ounces.

Risks

As with every mining company, any negative pressure on the gold price will typically affect share price.

Inflationary environment: In an inflationary environment, the cost to build the mine is increasing. However, the past-producing site with ~US$350 million worth of infrastructure mitigates this risk.

Permitting timeline: Unexpected delays are always a risk for development-stage mining companies, however, Troilus are lucky to be in an established mining jurisdiction with a well-defined and predictable permitting process and timeline.

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