Troilus Gold

Troilus Gold Corp. (TSX:TLG) is a Canadian junior mining company focused on advancing the Troilus gold-copper project towards production in Quebec, Canada. The project is a past-producing mine that operated from 1996-2010, producing over 2 million ounces of gold and 70,000 tonnes of copper. Since acquiring the project in late 2017, Troilus Gold has significantly expanded the mineral resource through extensive drilling and exploration programs.

The Troilus project is now positioned as one of the largest undeveloped gold-copper deposits in North America. Based on a 2024 Feasibility Study, the project boasts Probable Mineral Reserves of 380 million tonnes grading 0.59 g/t gold equivalent for 7.26 million ounces. The study outlines a 22-year mine life producing an average of 303,000 ounces of gold equivalent per year at an all-in sustaining cost of $1,109/oz. Following the completion of the Feasibility Study, Troilus has continued advancing project development, recently initiating the dewatering of the pits, a key step in mine redevelopment. In parallel, the Company has installed solar panels on site, designed for rapid deployment and scalability, supporting Troilus’s strategy for a reliable and diversified energy supply.

Located in the Frotet-Evans Greenstone Belt in Quebec, the Troilus project benefits from existing infrastructure, including a 50MW substation, 60km power line, permitted tailings facility, water treatment plant, and core storage facilities. This brownfield advantage is estimated to provide over $500 million in value to the project development.

The Troilus project represents a compelling investment opportunity as a large-scale, long-life gold and copper asset in a premier mining jurisdiction. Several key factors contribute to the project's attractiveness:

Scale and Economics: With average annual production of 303,000 ounces of gold equivalent over a 22-year mine life, Troilus would rank as the 6th largest gold producer in Canada. The project boasts robust economics including an after-tax NPV (5%) of $885 million, IRR of 14%, and a cumulative free cash flow of $2.2B at base case metal prices (Au: $1975/oz, Cu: $4.05/lb, Ag: $23/oz).

Brownfield Advantages: The past-producing nature of the site provides Troilus with significant infrastructure already in place, reducing initial capital requirements and development timelines. The estimated $500 million value of existing infrastructure is a key competitive advantage.

Expansion Potential: Troilus has demonstrated consistent resource growth since acquiring the project, expanding from 2.05 million indicated ounces in 2016 to 11.21 million ounces in 2023. Further resource expansion potential exists through continued exploration.

Jurisdiction: Quebec consistently ranks as a top global mining jurisdiction, providing a stable regulatory environment, skilled labor force, and government support for mineral development. The project's location offers excellent access to infrastructure and services.

Copper Exposure: In addition to gold production, Troilus offers investors exposure to copper, aligning with the growing demand for critical metals required for the clean energy transition. The project is positioned as the largest permitting-stage copper project in Quebec.

Troilus Gold is led by an experienced management team with a proven track record in mineral exploration, mine development, and capital markets. Key members include:

Justin Reid - President, CEO & Director: Mr. Reid brings over 20 years of experience in the mineral resource sector as a geologist, capital markets executive, and corporate leader. His background includes roles as a mining analyst, executive positions at Paladin Energy and National Bank Financial, and leadership of Sulliden Gold Corporation until its acquisition.

Susanna Milne - Chief Financial Officer: With nearly two decades of experience in the mining sector, Ms. Milne specializes in financial reporting, regulatory compliance, and strategic planning. Her expertise has been integral to Troilus' strategic achievements since joining in 2017.

Ian Pritchard - Senior VP, Technical Services: Mr. Pritchard contributes over 30 years of project and operations management experience in the mining industry, including oversight of feasibility studies and construction management projects.

Jacqueline Leroux - VP, Environment, Permitting & QC Operations: Mrs. Leroux's 20+ years of experience in the Quebec mining industry, particularly in environmental management and permitting, is crucial for advancing the Troilus project.

The management team is complemented by experienced professionals in exploration, corporate affairs, legal, and sustainability roles. This well-rounded leadership provides Troilus with the necessary expertise to advance the project through development and into production.

Troilus Gold's growth strategy centers on advancing the Troilus project towards production while continuing to expand and optimize the resource base. Key elements of this strategy include:

Project Development: Following the positive Feasibility Study results, Troilus is focused on advancing the project through detailed engineering, permitting, and construction. Recent steps including the commencement of dewatering the existing pits and installing scalable solar panels demonstrate Troilus’s commitment to site readiness and sustainable energy solutions as it advances through permitting and development milestone. The company aims to submit its Environmental and Social Impact Assessment in 2025, with a goal of receiving all necessary permits by end of year 2026. Construction is targeted to commence in late 2027, leading to first production in 2029.

Resource Expansion: Troilus continues to pursue exploration opportunities to grow the resource base and extend the mine life. The company has demonstrated consistent success in this regard, with indicated resources growing by 446% since 2016. Particular focus is on the newly discovered X22 zone and further definition of the Southwest zone.

Optimization: As the project advances, Troilus will seek opportunities to optimize the mine plan, potentially improving project economics. This may include evaluating opportunities for increased throughput or incorporation of additional mineral resources into the mine plan.

ESG Leadership: Troilus is committed to responsible development, as evidenced by its ECOLOGO certification and UN Global Compact membership. The company is targeting a carbon-neutral mining operation, leveraging Quebec's low-cost hydroelectric power and evaluating supplemental renewable energy sources.

Strategic Partnerships: Troilus has fostered strong relationships with local communities, including First Nations groups. The company will continue to build on these partnerships to ensure broad stakeholder support for the project's development.

As of April 30, 2024, Troilus Gold reported a cash and marketable securities position of C$17.1 million. The company has a market capitalization of approximately C$100 million based on 285 million shares outstanding and a share price of C$0.35 (as of October 2024).

The Feasibility Study outlines an initial capital cost of US$1.08 billion to develop the Troilus project. While this represents a significant funding requirement, the project's robust economics and strategic importance as a critical minerals project in Quebec position it favorably for attracting investment. The company will likely pursue a combination of debt, equity, and potentially strategic partnerships to finance the project development.

It's worth noting that approximately 65% of Troilus' shares are held by institutional investors, including several Quebec-based institutions. This strong institutional backing provides validation of the project's potential and may facilitate future capital raises.

Troilus Gold presents a compelling investment opportunity in the gold and copper mining sector. The company's flagship Troilus project offers a rare combination of scale, long mine life, and attractive economics in a premier mining jurisdiction. With a Feasibility Study demonstrating robust economics and a clear path to production, Troilus is well-positioned to create significant shareholder value as it advances towards becoming a major North American gold-copper producer.

Key investment highlights include:

• Large-scale project with 22-year mine life and average annual production of 303,000 ounces of gold equivalent.
• Attractive economics with low AISC positioning Troilus in the lower cost quartile of Canadian gold producers.
• Significant existing infrastructure providing a brownfield advantage and reducing development risk.
• Competitive CAPEX Efficiency with Troilus’s CAPEX per ounce is $216, significantly below the $310/oz average for comparable projects.
• Consistent track record of resource growth with further exploration upside.
• Exposure to both gold and copper, aligning with the critical minerals narrative.
• Experienced management team with a proven track record in mine development and capital markets.
• Strong ESG focus, including commitment to carbon-neutral operations and community engagement.

While risks exist, particularly around project financing and execution, Troilus has demonstrated a methodical approach to de-risking the project and has strong institutional backing. For investors seeking exposure to a large-scale gold-copper development story in a top-tier jurisdiction, Troilus Gold offers an attractive risk-reward proposition with significant potential upside as the company transitions from explorer to producer in the coming years.