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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 Feb 15, 2024 3:25pm
154 Views
Post# 35882586

Probe v Troilus

Probe v TroilusJust using the TMX website numbers, Probe has 166.7 million shares out for a market cap of $216 million at $1.30 per share.
Counting Troilus' RSUs there are 285 million out - not counting warrants.At 58 cents that gives you a market cap of $165 million.
There is no way Probe should be worth $50 million more than Troilus.

Probe just released an updated Prelim. Economic Assessment. They did one in 2021 where capex was C$353 and sustaining capex of C$602 million. The new numbers are capex of C$602 million and sustaining capex of C$818 million over a 12.5 year mine life.

Over the mine life, Probe will produce 2.1 million oz from open pit and 1.1 million oz underground for 3.2 million ounces. Annual production will average 255,000 ounces with a milling rate of 15,500 tonnes/day and a mill head grade of 1.3 g/t.

That capex increase from 2021 is a killer. Things could change on that front because everyone in their Val D'Or district talks and talks and talks about using underutilized milling capacity (Agnico). So far, Agnico seems open to the idea of contract milling for these small fry, but absolutely uninterested in giving any of these minnows any help with raising equity. Maybe next bull market things will change.

Meanwhile, Troilus is about 2 or 3 years further along the Lassonde curve. Capex payback is (hopefully) in the vicinity of 2 and-a-bit years versus 4 years for Probe. Troilus should be worth a $50 million premium to Probe, not a discount.

I will refrain from commenting why this is so. You're welcome.
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