PRECIOUS METALS

Troilus gets better rap from Haywood than Homer

Troilus Gold (CN:TLG) says it will restart a gold and copper mine in Val d’Or, Québec, with historic production of 2 million ounces of gold and 70,000 tonnes of copper.

In better shape than Troy at least: Troilus will have some work to do to clean up the mine's pit

In better shape than Troy at least: Troilus will have some work to do to clean up the mine's pit

If the company can get that far, it'll be doing better than the son of Priam in the Illiad and hero of Shakespeare's Troilus and Cressida, who was dumped by Cressida and then killed by legendary Greek warrior Achilles in the Homeric version. 

The developer, helmed by Aguia Resources (AU:AGR) managing director Justin Reid, joined the TSX-V in January after selling off coal, uranium and another gold project in 2017 and changing its name to that of the Quebec brownfield project. 

Haywood analyst Pierre Vaillancourt found promise in the Troilus mine itself, which was shuttered in 2010. 

"Troilus Gold Corp is inheriting a deposit with a total underground resource of 1.8 million ounces grading 1.5g/t Au," he said.

"Management is planning on developing this resource as a low grade, high volume underground mine, similar to Agnico Eagle's (CN:AEM) Goldex mine." 

Vaillancourt said further exploration this year could up the resource by more than 30%.

His estimates for the project are a C$400 million (US$317 million) restart cost for an 119,000oz per annum mine with a post-tax IRR of 17.3%, although a gold price of US$1,400 per ounce is used to get this return.  

Haywood gives Troilus a buy rating and target price of C$3.25 per share, a 66% increase on its current level of C$1.96/share.

The Troilus board is overseen by Copper One (CN:CUO) chairman Scott Moore, and it includes former Canadian foreign minister Pierre Pettigrew as a director.  

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.