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TICKERS: TLG; CHXMF

Mining Firm Achieves 'Significant Growth in Resource Estimate' for Quebec Asset
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Troilus Gold's resource update and the factors behind it are covered in a Laurentian Securities report.

Troilus Gold

In a July 29 research note, Laurentian Bank Securities analyst Jacques Wortman reported that Troilus Gold Corp. (TLG:TSX; CHXMF:OTCQB) announced a new resource estimate for its Troilus project and, afterward, held a technical session.

Wortman described the update as "positive in terms of resource growth" and specified the increases. Since the previous update and using a 0.3 grams per ton (0.3 g/t) cutoff grade, the Indicated resource increased 11% to 177.3 million tons (177.3 Mt). Total contained Indicated ounces are up 8% to 4.29 million ounces (4.29 Moz).

The Inferred resource, which included the Southwest zone, grew 121% to 116.7 Mt. Total contained Inferred ounces rose 81% to 2.76 Moz.

Whereas overall tons went up significantly, the analyst noted, grades went down a bit. The grade of the Indicated resource decreased 4% to 0.75 g/t, and the grade of the Inferred resource dropped 19% to 0.73 g/t. The greater tons, though, more than offset the lower grades, particularly that of the Indicated resource.

Wortman noted that two factors drove the increases in overall tons and contained ounces. They were a higher gold price assumption, of US$1,600 per ounce, up from US$1,400, and inclusion of the Southwest zone, which contributed 0.51 Moz gold.

"Management believes that both tonnage and the 0.7 g/t grade of the Inferred Southwest zone resource have significant growth potential with additional drilling," he relayed.

The analyst added that Laurentian intends to revise its current key model assumptions based on comments Troilus Gold made in its technical session. One change is raising the estimated throughput. Another is leaving the underground mining scenario as an option for consideration down the line instead of including it in the preliminary economic assessment, which is expected in late September.

"Troilus Gold has succeeded in further growing the overall resource base at Troilus," Wortman concluded.

Laurentian has a Buy rating and a CA$2.85 per share target price on Troilus Gold, whose stock is trading now at about CA$1.40 per share.

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Disclosure:
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 Laurentian Bank Securities, Troilus Gold Corp., July 29, 2020

Laurentian Bank Securities Inc. and/or its officers, directors, representatives, traders, analysts and members of their families may hold positions in the stocks mentioned in this document and may buy and/or sell these stocks on the market or otherwise.

The Research Analyst's compensation is based on various performance and market criteria and is charged as an expense to certain departments of Laurentian Bank Securities (LBS), including investment banking.

Laurentian Bank Securities Inc. may, in exchange for remuneration, act as a financial advisor or tax consultant for, or participate in the financing of companies mentioned in this document.

The analyst(s) certify that (1) the views expressed in this report in connection with securities or issuers they analyze accurately reflect their personal views and (2) no part of their compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed by them in this report. The Research Analyst's compensation is based on various performance and market criteria and is charged as an expense to certain departments of Laurentian Bank Securities (LBS), including investment banking.

Within the last 24 months, LBS has undertaken an underwriting liability with respect to equity securities of, or has provided advice for a fee with respect to, this issuer.

The Analyst has visited material operations of this issuer.

This issuer paid a portion of the travel-related expenses incurred by the Analyst to visit material operations of this issuer.

To access Laurentian Bank Securities' regulatory disclosures, please click here.




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