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2022 to Be Transformative Year for Gold Copper Mining Co.


March 18, 2022 ( Newswire) Coverage was initiated on this "conviction name" that aims to update the resource estimate and complete a prefeasibility study on its namesake project this year, noted a Sprott Equity Research report.

Troilus Gold Corp. (TLG:TSX; CHXMF:OTC; CM5R:FRA) should have a "transformative" 2022, reported Sprott Equity Research analyst Brock Salier in a March 17 research note after a site visit. Thus, his firm initiated coverage on the mining company with a Buy rating and a CA$2.80 per share target price (current share price is around CA$0.80.)

"Combined with a disciplined track record of ounce growth (+195% since 2016), we think this is an overlooked growth story with no signs of slowing down," Salier wrote.

The analyst presented the investment thesis for Troilus Gold. The "monster gold-copper developer in Quebec," he noted, has "the scale and valuation to attract mergers and acquisitions (M&A) already, [a] location on infrastructure to drive margin on low-grade pits plus underground-regional upside, Salier noted.

Regarding the scale of the Troilus project, the current resource is estimated at 8,100,000 ounces (8.1 Moz) of 0.9 grams per ton gold equivalent (0.9 g/t Au eq), but the company is targeting a 10 Moz resource.

In terms of the project's value, the Q4/20 preliminary economic assessment outlines an open pit and underground operation having an after-tax net present value discounted at 5% (NPV5%) of CA$1.156 million. Based on a 5.1 Moz resource, production would be more than 210,000 ounces per year (210 Koz/year) of Au eq.

Since the PEA, Troilus Gold drilled more than 100 kilometers to infill and expand the resource, work Salier believes will pay off in the upcoming Q2/22 resource estimate update and Q3/22 prefeasibility study. With those, the analyst expects to see a boost in the resources and the pit inventory, higher grades from a larger Southwest zone start pit and a lower life-of-mine strip.

Specifically, Salier estimates just the open-pit portion of the Troilus mining operation will produce 255 Koz/year Au eq over a 15-year mine life, based on a pittable inventory of 4.6 Moz of 0.75 g/t Au eq, at a cost of US$880 per ounce. This scenario equates to an NPV5% of CA$1.5 billion (CA$1.5B), using a US$1,850 per ounce gold price.

In addition, the underground portion of the mining operation will provide long-term upside.

Further, there will be revenue from the copper, more than CA$1.5B of it at a spot price of about US$4.50 per pound, Salier wrote, and that will likely attract streaming companies.

Salier pointed out that Troilus is among the few advanced large bulk-tonnage gold projects in Canada located on existing, accessible infrastructure and not close to any provincial parks or major wildlife habitats.

"We think [Troilus] will be a mine this cycle, not the next, making this a conviction name for us," added Salier.

Further, Troilus Gold offers investors significant discovery upside, up to 15 Moz worth, with its robust pipeline of prospective targets in the Archean Greenstone Belt. These include Pallador Regnault, Testard and Beyan.

Salier concluded the report by writing, "This is a drill bit story, backstopped by existing endowment, so price drivers are more ounces and rerating to definitive feasibility study-M&A-build."


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Troilus Gold Corp. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Troilus Gold Corp., a company mentioned in this article.

Disclosures for Sprott Equity Research, Troilus Gold Corp., March 17, 2022

This research report (as defined in IIROC Rule 3600, Part B) is issued and approved for distribution in Canada by Sprott Capital Partners LP ("SCP"), an investment dealer who is a member of the Investment Industry Regulatory Organization of Canada ("IIROC") and the Canadian Investor Protection Fund ("CIPF"). The general partner of SCP is Sprott Capital Partners GP Inc. and SCP is a wholly-owned subsidiary of Sprott Inc., which is a publicly listed company on the Toronto Stock Exchange under the symbol "SII". Sprott Asset Management LP ("SAM"), a registered investment manager to the Sprott Funds and is an affiliate of SCP. This research report is provided to retail clients and institutional investors for information purposes only.

The opinions expressed in this report are the opinions of the author and readers should not assume they reflect the opinions or recommendations of SCP's research department. The information in this report is drawn from sources believed to be reliable but the accuracy or completeness of the information is not guaranteed, nor in providing it does SCP and/or affiliated companies or persons assume any responsibility or liability whatsoever. This report is not to be construed as an offer to sell or a solicitation of an offer to buy any securities. SCP accepts no liability whatsoever for any loss arising from any use or reliance on this research report or the information contained herein. Past performance is not a guarantee of future results, and no representation or warranty, expressed or implied, is made regarding future performance of any security mentioned in this research report.

The price of the securities mentioned in this research report and the income they generate may fluctuate and/or be adversely affected by market factors or exchange rates, and investors may realize losses on investments in such securities, including the loss of investment principal. Furthermore, the securities discussed in this research report may not be liquid investments, may have a high level of volatility or may be subject to additional and special risks associated with securities and investments in emerging markets and/or foreign countries that may give rise to substantial risk and are not suitable for all investors. SCP may participate in an underwriting of, have a position in, or make a market in, the securities mentioned herein, including options, futures or other derivatives instruments thereon, and may, as a principal or agent, buy or sell such products.

RESEARCH ANALYST CERTIFICATION: Each Research Analyst and/or Associate who is involved in the preparation of this research report hereby certifies that:
 The views and recommendations expressed herein accurately reflect his/her personal views about any and all of the securities or issuers that are the subject matter of this research report;
 His/her compensation is not and will not be directly related to the specific recommendations or view expressed by the Research analyst in this research report;
 They have not affected a trade in a security of any class of the issuer within the 30-day period prior to the publication of this research report;
 They have not distributed or discussed this Research Report to/with the issuer, investment banking group or any other third party except for the sole purpose of verifying factual information; and
 They are unaware of any other potential conflicts of interest.

ANALYST CERTIFICATION / REGULATION AC: The analyst and associate certify that the views expressed in this research report accurately reflect their personal views about the subject securities or issuers. In addition, the analyst and associate certify that no part of their compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this research report.

Research Disclosure

SCP and its affiliates collectively beneficially owns 1% or more of any class of the issuer's equity securities.

The analyst has conducted a site visit and has viewed a major facility or operation of the issuer.

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