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HIGH UPSIDE ALERT:
Invest in North America’s Next Great Gold-Copper Asset for Potentially Pennies on the Dollar
Troilus Gold Corp. (TSX: TLG); (OTCQX: CHXMF) is advancing one of North America’s largest undeveloped gold-copper deposits towards production
Analysts’ consensus price target for the company’s shares represents potential upside of 314% from the current price
7 REASONS
Why Troilus Gold Corp. (TSX: TLG); (OTCQX: CHXMF) Should Be On Your Radar Today
1
A Generational Scale Asset: Troilus Gold Corp. (TSX: TLG); (OTCQX: CHXMF) has one of the largest undeveloped gold-copper deposits in North America. Over the past several years, Troilus Gold Corp. has grown the resource from what was a two-million-ounce, underground opportunity to a 13 million-ounce measured, indicated & inferred resource.
2
Advancing Toward Production: In May 2024, a feasibility study was completed that was the culmination of five years of work and 350,000 meters of drilling. The study showed a projected 22-year mine life…average annual production of 303,000 ounces of gold equivalent…and peak annual production of 536,400 ounces of gold equivalent. Pit dewatering at the property began in August 2024 and all permits for start of construction at the project are expected by mid-2026.
3
Located in a Gold-Rich, Tier-1 Mining Jurisdiction: The project is located in a mining-friendly, gold-rich region. Quebec was ranked among the top five mining jurisdictions in the world by the Fraser Institute in 2023.
4
5
Low All-In Sustaining Costs: All-in sustaining costs for production were estimated at a low $1,109 per ounce, which is very favorable when compared to the most recent quarterly AISCs reported by Newmont and Barrick of $1,611/oz. and $1,498/oz. respectively.
6
Undervalued Opportunity: As the company has worked to fund this large gold-copper project in Quebec, fears of excessive equity dilution have placed downward pressure on the share price. This creates an opportunity for investors to add shares of Troilus Gold at what appears to be a deep discount, as positive news on funding could have a significant impact on the share price.
7
Analyst Consensus 314% Potential Upside: Currently five analysts have “buy” or “outperform” ratings on Troilus Gold Corp. (TSX: TLG); (OTCQX: CHXMF). And the consensus price target for the company’s shares is $1.45. That represents an upside of 314% from the share price as of this writing.
Size, Location and Timing:
Troilus Gold Corp. is Developing a Generational-Scale Asset – in a Gold-Rich Region – as Gold Prices Continue to Climb
In the midst of a potentially historic long-term bull market for gold, one Canadian company now appears to present a high-upside scenario for early investors.
It’s a company still flying below the radar of most investors in spite of the enormous potential of its gold-copper asset. But that may not be the case for long. Here’s what is now unfolding:
With gold prices climbing steadily for the past two years – to the current price of around $2,700/oz. – mining stocks are now in an extremely favorable environment.
Experts are forecasting that this long-term bull market will continue for the foreseeable future, with Goldman Sachs predicting gold will reach $2,900/oz. by early 2025 and both Citibank and Bank of America calling for $3,000 gold in 2025.
“Gold is expected to remain strong…and numerous central banks remain keen buyers.”
In the midst of this long-term bull market for gold, one company has emerged as an intriguing, undervalued resource play offering significant upside in the months ahead.
That company is Troilus Gold Corp.
Troilus Gold Corp. (TSX: TLG); (OTCQX: CHXMF) is right now advancing one of North America’s largest undeveloped gold-copper deposits towards production.
Troilus Gold Appears Poised to Emerge as One of Canada’s Largest Future Gold-Copper Producers
The first thing to know about the opportunity with Troilus Gold Corp. is that the company is dealing with an extremely large gold-copper asset.
The company’s Troilus Project is on the site of the former Troilus gold and copper mine, a past-producing mine located in the tier-one mining jurisdiction of Quebec, Canada.
Quebec was ranked among the top five mining jurisdictions in the world by the Fraser Institute in 2023.
The project’s existing infrastructure provides Troilus Gold Corp. with a huge advantage, as there is power running directly to the mine site and truck-ready roads leading to the project.
Troilus Gold currently holds a large land position of 435 km2 within the Frotet-Evans Greenstone Belt, one of the world’s richest gold regions.
The former Troilus gold and copper mine, located in the prolific Val-d’Or district of Quebec, was operated from 1996 to 2010 by Inmet Mining Corp. During that time, the mine produced 2 million ounces of gold and 70,000 tonnes of copper via two open pits.
The mine was shut down in 2010 as the company focused its attention on its South American copper assets.
The mine was then acquired in 2016 privately from First Quantum Minerals, who had acquired Inmet, and in the years since Troilus Gold Corp. has invested $100 million into the ground.
During that time, Troilus Gold Corp. has grown the resource from what was a two-million-ounce, underground opportunity into a 13 million-ounce – and growing – opportunity moving towards development…
…and potentially one of North America’s largest undeveloped gold-copper deposits that is set to emerge as one of Canada’s largest future producers.
Feasibility Study Shows 22-Year Mine Life and 536,400-oz Peak Annual Production
A feasibility study completed in May 2024 shows the potential for Troilus Gold to rank among the largest gold producers in Canada with life-of-mine average annual production of 303,000 ounces of gold equivalent (80% gold, 20% copper) over a 22-year mine life.
And peak annual production is projected to reach a high of 536,400 ounces of gold equivalent annually.
That type of annual production places the Troilus Project right alongside the top producers in all of Canada.
In addition, all-in sustaining costs (AISC) for production were estimated at a low $1,109 per ounce, which is very favorable when compared to the most recent quarterly AISCs reported by Newmont and Barrick of $1,611/oz. and $1,498/oz. respectively.
At the current gold price of over $2,700/oz., Troilus will generate over $250 million in free cash flow annually.
Troilus Gold Corp. is Moving Quickly On its Journey from Discovery to Production
Troilus Gold Corp. (TSX: TLG); (OTCQX: CHXMF) has accomplished a tremendous amount in a short period of time.
As a result of previous operation at the Troilus Project, the company inherited a well-established infrastructure valued at approximately $500 million.
This infrastructure includes an extensive network of well-maintained all-weather access roads, a 50MW substation and over 60 kms of high-tension power lines.
This significant inherited infrastructure helps keeps capital intensity low for the project.
Troilus Gold Corp. was formed around the Troilus Mine in 2018 and in the years since its formation the company has taken full advantage of its inherited infrastructure and developed quickly.
To date, the company has drilled more than 325,000 meters and it has grown its indicated mineral resources by 447% to 11.21 million ounces of gold equivalent.
Several prospective regional targets have also been identified, providing long-term growth upside to strengthen Troilus’s position as a leading gold-copper project in Quebec.
Why Shares of Troilus Gold Corp. (TSX: TLG); (OTCQX: CHXMF) Could Be Severely Undervalued
One of the things that makes the opportunity with Troilus Gold Corp. (TSX: TLG); (OTCQX: CHXMF) especially attractive for investors is the opportunity to buy while the company’s shares appear significantly undervalued.
Due to fears of excessive equity dilution to fund the Troilus Project at its projected $1.08 billion initial capex, downward pressure has kept the share price below expectations.
This has triggered a window of opportunity for those investors who see the true potential for the company as it moves forward in advancing one of North America’s largest undeveloped gold-copper deposits towards production.
But that window of opportunity could quickly close in the days and weeks ahead as the company moves forward with further de-risking and progressing in its mining life cycle.
Troilus Gold Continues to Expand and De-Risk Its Project
Troilus Gold is expected to continue looking to expand the economics of the project with additional drilling.
In fact, in September 2024 the company announced positive drill results from an 1,866-meter exploratory drill program on its West Rim target of the property.
This target was located within 150 meters of the North Reserve Pit Shell at its Troilus Project and the program identified gold targets that were 40% higher grade than at the main site.
This could help not only expand but expedite the project as the company continues to explore the potential for tapping into higher-grade gold deposits early in the development process.
Additionally, the company continues to look to de-risk the project through exploring potential strategic partnerships and funding opportunities.
Breaking News
The Cree Hunters Economic Security Board, 16 Mining & Exploration Companies Contribute $750,000 For The Reconstruction Initiative Forest Fires Fund 2023, James Bay, Quebec
Quebec, QC, October 31, 2024 – The Cree Hunters Economic Security Board (“CHESB”), and 16 mining and exploration companies are pleased to announce their voluntary financial contribution totalling $750,000 for the Reconstruction Initiative Forest Fires Fund 2023 (“RIFFF”). The RIFFF has been created for the reconstruction of cabins that were burnt in the aftermath of extensive damage caused by the wildfires in 2023 in the Eeyou Istchee James Bay territory of Quebec, Canada.
For more info, click here.
Troilus Gold Corp.’s Copper Resources Offer Additional Upside Potential
It’s important to understand that the copper component of the Troilus Gold story is also significant.
The copper market, much like gold, is in the midst of an impressive bull run with no signs of slowing down thanks to soaring demand for copper worldwide.
“Copper’s bull run should continue for at least the next three years, fueled by global supply challenges and hot demand for the metal to power energy transition and artificial intelligence technologies, industry analysts say.”
Copper makes up only about 15% of Troilus Gold’s deposit, but is an important element and provides tremendous leverage to the company because of copper’s “critical mineral” status and its role in global electrification efforts.
The company’s location in Quebec is also an important consideration when it comes to its copper resource, as Quebec is at the forefront of incentivizing and building battery material supply chains to help support plans for the clean energy transition.
The Troilus Project is currently the largest permitting-stage copper project in Quebec and the third-largest undeveloped copper deposit.
This positions the company as a strong candidate for advancing towards production of this critical asset in Quebec, especially as the provincial government places increasing emphasis on copper resource development.
Following the Path of a C$3 Billion Market Cap Gold Company: Is Troilus Gold Corp. the Next Artemis Gold?
When it comes to understanding the life cycle growth of any exploration company, it’s important to remember that there are stages within a company’s life cycle that can offer the potential for significant value creation.
The Lassonde Curve is a graphical representation that illustrates the various stages of value creation in a mining company’s life cycle.
As you can see from the graph above, there is a distinct “lull” just after the feasibility stage before the development stage triggers potentially explosive growth.
With its feasibility study completed earlier this year, this “lull” is the stage where Troilus Gold Corp. (TSX: TLG); (OTCQX: CHXMF) now appears to be.
Just how lucrative could this opportunity be as the company progresses up the curve?
Take as an example Artemis Gold (TSXV: ARTG).
Despite Troilus Gold’s smaller resource and production profile, the company is very similar to Artemis Gold – with a similarly-sized resource – and potentially on the same path for growth.
This is a path which took Artemis to a market cap of over C$3 billion as it progressed along this very same life cycle path, as you can see in the image below.
Artemis Gold is now funded, permitted and under construction with first pour scheduled for late Q4 2024.
So the progression through the next stage of the Lassonde Curve for Troilus Gold has the potential to be very exciting when viewed in comparison to Artemis Gold.
Even if you consider the potential for Troilus Gold to reach 50% of Artemis Gold’s current market cap, that $1.5 billion would represent a 15x gain from today’s valuation.
And as Troilus Gold Corp. continues to advance its project, it is also possible that the company attracts the attention of mid-tiers and major gold companies looking to grow.
A project the size of the Troilus Project is truly rare – especially in Canada – so the potential exists for things to move quickly on the M&A front at any time.
Analysts’ Consensus:
314% Potential Upside for Troilus Gold Corp.
While Troilus Gold Corp. continues to fly beneath the radar of most individual investors, there are many larger investors and analysts who are very much aware of the company’s significant potential upside.
Troilus Gold is currently 65% institutionally held and has enjoyed long-term support from very large institutions.
And currently five analysts have “buy” or “outperform” ratings on Troilus Gold Corp. (TSX: TLG); (OTCQX: CHXMF).
The consensus analysts’ price target for the company’s shares is $1.45…that represents an upside of 314% from the share price as of this writing.
- Cormark analyst Richard Gray says that Troilus Gold Corp. is “trading at a significant discount to other large development projects…we believe Troilus is a potential takeout target for midtier and senior producers looking for growth in a Tier 1 jurisdiction.”
- Redcloud analyst Timothy Lee says, “The numbers are similar to those of other major gold projects in Canada that have since been acquired by major producers…we believe Troilus is a desirable target for a senior producer.”
- Haywood analyst Pierre Vaillancourt writes that Troilus Gold Corp. “is a significant scale-up from the PEA and will benefit from strong leverage in this gold environment…we believe TLG has added value to the project.”
- And Desjardins analyst Allison Carson writes, “We view Troilus as a potential acquisition target and see significant upside to its current valuation based on recent comparable takeout multiples.”
7 REASONS
Why Troilus Gold Corp. (TSX: TLG); (OTCQX: CHXMF) Should Be On Your Radar Today
1
A Generational Scale Asset: Troilus Gold Corp. (TSX: TLG); (OTCQX: CHXMF) has one of the largest undeveloped gold-copper deposits in North America. Over the past several years, Troilus Gold Corp. has grown the resource from what was a two-million-ounce, underground opportunity to a 13 million-ounce measured, indicated & inferred resource.
2
Advancing Toward Production: In May 2024, a feasibility study was completed that was the culmination of five years of work and 350,000 meters of drilling. The study showed a projected 22-year mine life…average annual production of 303,000 ounces of gold equivalent…and peak annual production of 536,400 ounces of gold equivalent. Pit dewatering at the property began in August 2024 and all permits for start of construction at the project are expected by mid-2026.
3
Located in a Gold-Rich, Tier-1 Mining Jurisdiction: The project is located in a mining-friendly, gold-rich region. Quebec was ranked among the top five mining jurisdictions in the world by the Fraser Institute in 2023.
4
5
Low All-In Sustaining Costs: All-in sustaining costs for production were estimated at a low $1,109 per ounce, which is very favorable when compared to the most recent quarterly AISCs reported by Newmont and Barrick of $1,611/oz. and $1,498/oz. respectively.
6
Undervalued Opportunity: As the company has worked to fund this large gold-copper project in Quebec, fears of excessive equity dilution have placed downward pressure on the share price. This creates an opportunity for investors to add shares of Troilus Gold at what appears to be a deep discount, as positive news on funding could have a significant impact on the share price.
7
Analyst Consensus 314% Potential Upside: Currently five analysts have “buy” or “outperform” ratings on Troilus Gold Corp. (TSX: TLG); (OTCQX: CHXMF). And the consensus price target for the company’s shares is $1.45. That represents an upside of 314% from the share price as of this writing.
Sources
[i] https://www.kitco.com/news/article/2024-10-01/goldman-sachs-raises-gold-price-target-2900oz-early-2025-sovereign-buying
[ii] https://www.msn.com/en-in/money/markets/goldman-lifts-its-gold-year-end-forecast-unshakeable-bull-market/ar-BB1lE4zJ?ocid=finance-verthp-feeds
[iii] https://www.sbcgold.com/blog/experts-boost-gold-price-forecasts-for-2024-2025-again/
[iv] https://www.reuters.com/business/finance/most-banks-expect-golds-bull-run-persist-into-2025-2024-09-24/
[v] https://www.reuters.com/markets/commodities/bulls-jump-deeper-into-copper-amid-supply-
challenges-ai-fueled-demand-2024-04-12/#:~:text=%22Copper’s%20second%20secular%
20bull%20market,next%20two%20to%20three%20years.%22
[vi] https://www.kitco.com/news/article/2024-10-01/goldman-sachs-raises-gold-price-
target-2900oz-early-2025-sovereign-buying
[vii] https://www.msn.com/en-in/money/markets/goldman-lifts-its-gold-year-end-forecast-unshakeable-bull-
market/ar-BB1lE4zJ?ocid=finance-verthp-feeds
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Pursuant to an agreement between Winning Media LLC and the issuer Troilus Gold Corp., Winning Media LLC has been hired for a period beginning on 11/11/24 and ending on 12/11/24 to conduct investor relations advertising and marketing and publicly disseminate information about Troilus Gold Corp. via Website, Email and SMS. Winning Media has been compensated the sum total of one hundred forty thousand dollars via bank wire transfer. Furthermore, Winning Media LLC has paid up to fifteen thousand dollars to Jade Cabbage Media LLC to manage the production budget and digital media campaign for Troilus Gold Corp.
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