Canadian junior Troilus Gold Corp says a feasibility study on its proposed US$1 billion namesake project in Quebec suggests its use of hydro power, cyanide-free processing and existing tailings storage capacity can help it deliver one of the “largest scale, lowest cost gold and copper” operations in the country.
“The FS outlines a generational-scale asset, with a 22-year mine life and compelling economics, both at discounted and current metal prices,” Troilus CEO Justin Reid said.
“The project has reasonable capex and capital intensity, including bottom quartile operating costs among the major Canadian gold mines.
“With a life-of-mine average payable gold production of nearly 245,000 ounces annually [at projected AISC of $1109/oz], more than 17 million pounds of copper and nearly 447,000 ounces of silver, Troilus stands not only as a strategically significant project that aligns with the province of Quebec’s priority on the production of strategic metals but is also positioned to be amongst the largest scale, lowest cost gold and copper projects across Canada.”
The project’s economic base case includes an after-tax NPV (5%) of USD$884.5 million and IRR of 14% using a US$1975/oz gold price, $4.05/lb copper, $23/oz silver and a 74c USD/CAD exchange rate.
At the April 2024 average metal prices – $2332/oz gold, $4.30/lb copper and $27.50/oz silver – the after-tax NPV climbs to $1.55 billion and IRR to 19.5%.
Toronto-listed Troilus has a current market value of about C$150 million.
“In today’s challenging market, the value of our existing infrastructure has become even more critical, reducing the capital intensity required to build project infrastructure and providing ongoing access to low-cost renewable energy supplied by Hydro-Quebec,” Reid said.
“The Troilus project has been designed to minimise the environmental footprint of the future operation including using a cyanide free process, engaging in progressive reclamation, making use of the existing tailings facility and minimising GHG emissions through reliance on sustainable energy sources.”
Troilus has enlarged its 2020 preliminary economic assessment openpit and plant rating by 43% in the new study (to 50,000 tonnes a day) to produce up to 456,100oz of gold, 31.8Mlb of copper and 613,600oz of silver in year seven of its proposed 22-year mine life.
