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'Exceptionally Undervalued' Gold Developer Continues Resource Expansion at Quebec Property
Research Report

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Troilus Gold's recent project resource update and the company's undervaluation in the market are discussed in a Cormark Securities report.

In a July 29 research report, Cormark Securities analyst Richard Gray reported that Troilus Gold Corp. (TLG:TSX; CHXMF:OTCQB) quickly grew the resource at its Troilus gold project in Quebec to 8.11 million ounces of gold equivalent (8.11 Moz Au eq) yet remains "exceptionally undervalued."

Thus, "the shares remain attractively priced, especially when considering the project has the size and scope to be an attractive acquisition target for senior and mid-tier producers looking for large and undervalued resources in what is one of the safest jurisdictions in the world," Gray added.

Cormark has a CA$4.50 per share target price on Troilus Gold, and the shares are currently trading at CA$1.39.

Gray compared the recent resource update on Troilus to the previous one compiled in November 2019. For the updated resource, a $1,600 per ounce ($1,600/oz) gold price was used as were two cutoff grades, 0.3 g/t for the open pit resources and 0.9 g/t for the underground resources.

The Toronto-headquartered explorer expanded the overall resource by 25% since the last resource report, when it was 6.47 Moz Au eq and based on a $1,400/oz gold price and the same cutoff grade for both open pit and underground mining scenarios.

The new resource includes 583,000 Inferred ounces of Au eq from the recently discovered Southwest zone, where Troilus Gold has only drilled 8,500 meters (8,500m) to date, Gray stated.

The average grade of the overall updated Troilus resource is down slightly to 0.86 g/t Au eq from 0.95 g/t Au eq. This is due to the average grade of the Southwest ounces, which is 0.80 g/t Au eq and, Gray noted, "lower than expected," but likely will increase with infill drilling.

"Further drilling across the ever-expanding [Troilus] property is poised to grow the resource towards the 10 Moz level," commented Gray.

Accordingly, Troilus Gold plans to start a 20,000m drill program at the property in September. Plans include infill drilling around the main ore bodies at the Z87 and J zones; expansionary drilling at the Southwest zone and in the 2.5 kilometer gap between the Z87 South and Southwest zones; and geotechnical drilling in delineated zones.

Cormark has a Buy rating on Troilus Gold.


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. Click here for important disclosures about sponsor fees.
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Disclosures from Cormark Securities, Troilus Gold Corp., Morning Meeting Notes, July 29, 2020

Analyst Certification: We, Richard Gray and Brandon "Smith, hereby certify that the views expressed in this research report accurately reflect our personal views about the subject company(ies) and its (their) securities. We also certify that we have not been, and will not be receiving direct or indirect compensation in exchange for expressing the specific recommendation(s) in this report.

During the past twelve months, Cormark Securities Inc., either on its own or as a syndicate member, participated in the underwriting of securities and /or provided financial advice regarding the stock market insight and financial analysis regarding potential transactions and/or received a fee for the non-brokered placement of securities for these companies.

The Disclosure Statement Chart for Troilus Gold can be found on the website.

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