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Troilus Gold Corp T.TLG

Alternate Symbol(s):  CHXMF

Troilus Gold Corp. is a Canadian mining company focused on the systematic advancement and de-risking of the former gold and copper Troilus Mine towards production. The Company owns a 100% interest in the Troilus project. The Company holds a land position of approximately 435 square kilometers (km2) in the mining jurisdiction of Quebec, Canada, within the prospective Frotet-Evans Greenstone Belt. The Troilus Mine is located northeast of the Val-d'Or district of Quebec, produced 2 million ounces of gold and approximately 70,000 tons of copper. The seven kilometer main mineral corridor includes zones Z87, J Zone, X22 and Southwest, containing an estimated 11.21 Moz AuEq in the Indicated category and 1.80 Moz AuEq in the Inferred category. The Troilus property has an established infrastructure, including operating substation and power lines, an extensive network of well-maintained roads, operating water treatment facility, and a permitted tailing facility.


TSX:TLG - Post by User

Post by templetooth2on Dec 18, 2023 4:31pm
208 Views
Post# 35790605

Dundee/Osino

Dundee/OsinoI'm kinda surprised nobody else has mentioned the Osino takeover, so I will. The headline number is Cdn$287 million ( US $214 at .746 exch. rate). Half cash, half shares in Dundee. Osino had been trading in the $1 - $1.10 level with outside moves to 90 c and $1.20. The company is just about fully permitted for a mine in Namibia, probably the best address in Africa.

At Denver, the CEO Heye Daun was expecting to have a finance package complete by year-end, debt and a small stream, to be supplemented by an equity raise of undetermined size in the New Year. 

The company has some exploration targets that could be interesting (recently 40 meters of 6 g/t) but the main show is the Twin Hills project: 3.1 million oz Indicated and Inferred, but "still growing". I think his Denver presentation said 250,000 meters of drilling completed. Production is supposed to be 175,000 oz/yr for first five, dropping thereafter. 

Grade is 1.1 g/t and capex US$365 million for an after-tax NAV of US$480 million. So the grade is about 50% better than Troilus, and the resources about 1/4 those of Troilus. With 162-odd million shares outstanding, Osino had been trading at a market cap of Cdn$160-$175 million versus Troilus in the vicinity of C$100-$110 million. Osino had been expecting to start construction mid-2024, so let's say they were ballpark a year to 18 months further along the curve than Troilus.

If TLG were to snag a similar headline $ deal of $287 million, it would be a little less than a buck a share. I would dearly like to believe that the 12 or 13 million ounces in Quebec should command a higher price than US$214 million, but I also have a suspicion that the mining community is vastly more interested in gram+ ore than .7. But as metal has pointed out, Artemis is doing just fine, market-wise, with similar thin material.  Anyway, this Osino deal shows there's some flicker of interest for viable projects. 
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