In a Feb. 9 research report, Stifel analyst Ian Parkinson reported that Troilus Gold Corp. (TLG:TSX; CHXMF:OTCQB) is continuing to "focus on ounces that count" at its Troilus project.
"TLG is out this morning with accretive drilling results from the Southwest Zone, a low risk open pit growth deposit first discovered in 2019 which yielded 580koz @ 0.80gt AuEq in the 2020 PEA," Parkinson wrote.
The analyst provided the highlights of the recent drill results from Troilus Gold's Southwest zone. At year-end 2020, the Canadian company had drilled 8,500 meters (8,500m) in Southwest and delineated an Inferred resource there of 580,000 ounces of gold equivalent (Au eq).
"Southwest Zone showcases the near surface, on strike, open pitable resources potential of the Troilus property," Parkinson wrote.
New results come from hole TLG-ZSW20-203 that was placed 75 meters to the north of the pit shell outlined in the 2020 preliminary economic assessment (PEA). The hole's notable assays included 1.2 grams per ton gold equivalent (1.2 g/t Au eq) over 16m and 6.66 g/t Au eq over 3m.
Hole TLG-ZSW20-203 extended mineralization and also intersected mineralization 100 meters below the bottom of the pit, the analyst stated.
"The drill results released today will widen the pit without increasing the strip, effectively increasing ounces per vertical meter and pushing out the underground portion of the PEA," thereby improving the overall project economics, Parkinson noted.
Stifel has a Buy rating and a CA$4 per share target price on the exploration firm. The stock is currently trading at around CA$1.13.
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Disclosures from Stifel GMP, Troilus Gold, February 9, 2021
Important Disclosures and Certifications
I, Ian Parkinson, certify that the views expressed in this research report accurately reflect my personal views about the subject securities or issuers; and I, Ian Parkinson, certify that no part of my compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report.
Troilus Gold is a client of Stifel Canada or an affiliate or was a client of Stifel Canada or an affiliate within the past 12 months.
Troilus Gold has paid the research analystís travel expenses to view their material operations.
Troilus Gold is provided with investment banking services by Stifel Canada or an affiliate or was provided with investment banking services by Stifel Canada or an affiliate within the past 12 months.
Stifel Canada or an affiliate has received compensation for investment banking services from Troilus Gold in the past 12 months.
Stifel Canada or an affiliate expects to receive or intends to seek compensation for investment banking services from Troilus Gold in the next 3 months.
Stifel Canada or an affiliate managed or co-managed a public offering of securities for Troilus Gold in the past 12 months.
Stifel Canada or an affiliate is a corporate broker and/or advisor to Troilus Gold.
The equity research analyst(s) responsible for the preparation of this report receive(s) compensation based on various factors, including Stifel's overall revenue, which includes investment banking revenue.