Troilus Gold Corp. (“Troilus” or the “Company”, TSX: TLG; OTCQX:
CHXMF) today releases an open letter to shareholders from the
Company’s President and Chief Executive Officer, Justin Reid. While
a copy of the letter is presented in this press release, the
original document can be found on our website HERE.
Dear Shareholders,
2021 was an intensive year of work by the
Troilus team as it continued to solidify the foundations and
advance our mining project, which we believe has the potential to
be a cornerstone Canadian mine for decades to come. On all fronts,
our project and our team have never been in a stronger position.
First and foremost, we had great success with the drill bit and in
the field, while our expanded engineering team has been busy
calculating trade-offs and analyzing options to achieve the optimal
design plan for the Troilus mine. At a local level, our environment
and community relations team has been working with local
communities and First Nations to set the stage for the start of our
permitting process. Along the way, we have shared these positive
developments using a myriad of new outreach programs and platforms
which has greatly expanded our communications reach. Environmental,
social and governance (ESG) continues to be a top priority, with
the knowledge that the decisions we make today have the potential
for long term positive impact across the entire lifespan of the
Troilus mine and beyond for our employees, our shareholders, and
our communities. I am pleased to elaborate on some of our major
accomplishments of 2021, below:
Exploration Success: ~100,000 metres
drilled
At the start of 2021 we targeted 7,000 metres of
drilling per month over the winter with the goal of releasing an
updated mineral resource estimate to support a Pre-Feasibility
Study (PFS) by the end of 2021. As it turned out, the more we
drilled, the more mineralization we found. Our understanding of the
geology at Troilus continues to improve and evolve. In 2021, we
drilled ~100,000 metres, over 50% of which were drilled in the
newly discovered Southwest Zone, where we identified some of the
best grades ever at Troilus. This zone continues to be a priority
growth target, with results suggesting a much broader system well
beyond the existing mineral envelope which remains open at depth
and in all directions.
2021’s drill program also identified a new
hanging wall in the J Zone, demonstrating mineral continuity over a
700m strike length parallel to the main ore body. We expect this
new zone to have a meaningful impact on the economic modelling of
the mine project given that it is located within the PEA pit shell
in areas that were previously considered waste rock due to lack of
data.
As a result of our continued exploration
success, the PFS is now targeted for release in mid-2022 and will
include an updated mineral resource estimate that will reflect the
2021 drill campaign.
Engineering: Well-Positioned for
Upcoming PFS
Our engineering team is well advanced on the
Pre-Feasibility Study, which is targeted for release in mid-2022.
In August 2021, we were pleased to announce that mining industry
veteran Richard Harrisson had joined Troilus as our Chief Operating
Officer. Richard’s extensive and successful track record as a mine
builder, operator and team leader in the Canadian mining sector
speaks for itself. He has a proven engineering pedigree that has
included mine design, construction, permitting, operations, and
challenging turnarounds for mining companies including Agnico,
Premier Gold, Xstrata, Cambior and Aur Resources. His experience
and leadership capabilities will be a key factor in our ability to
deliver a successful mine restart at Troilus. We see his confidence
in the Troilus project as a hugely positive indicator for the
future of the operation.
Ongoing Consolidation and Exploration of
the Frôtet-Evans Greenstone Belt
In May 2021, the shareholders of UrbanGold
Minerals voted overwhelmingly in favour of an amalgamation with
Troilus in an all-share transaction, expanding our land package by
another 35,000 hectares. This added several highly prospective new
targets to our regional exploration portfolio and solidified our
strategic land position in the region with a contiguous property of
142,000 hectares. Although regional exploration will continue to be
a secondary focus for the Troilus geological team, it provides
shareholders with longer-term blue-sky potential across the
property.
Sustainable Development: A Continued
Priority
ESG continued to be a major focus for Troilus in
2021, building on the four corners of the Sustainability Policy we
launched in 2020: People, Environment, Health & Safety and
Communities. We are in the unique position of building on a
positive legacy from the previous operation when the Troilus mine
operated from 1996 to 2010 and taking advantage of new technology
and initiatives to design a mine and operation that will be
sustainable throughout its lifespan and beyond.
In 2021, we developed our first ESG scorecard
which we used as a basis to publish our first Annual Sustainability
Report. We are committed to creating a mining project and a
workplace that values diversity, respects the local environment,
minimizes its carbon footprint using renewable energy, supports and
enhances communities and protects the health and wellbeing of our
employees.
We are the first mining company in Quebec to
obtain the ECOLOGO Certification for the Responsible Development of
Mineral Exploration Companies and remain committed to operating in
accordance with the ECOLOGO standards.
Financings & Corporate
Visibility
Strong support from new and existing
shareholders in 2021 allowed us to continue our development
progress and end the year with a strong balance sheet. In June, we
announced a bought deal financing of $35 million which was
subsequently upsized and closed at $42.5 million. In July, we
announced a $11.5 million private placement on the same terms from
the government of Québec, through Investissement Québec
(“IQ”) and Fonds Capital Ressources Naturelles et Énergie and
Fonds de solidarité des travailleurs du Québec (“FTQ”). Eric
Girard, Minister of Finance and Minister of Economy and Innovation
commented at the time of the investment, “The mining potential of
Nord-du-Québec and our mining industry are key to the sustainable
recovery of Québec’s economy. That’s why we are helping Troilus
carry out its gold project, which is expected to generate
significant economic benefits and create good jobs in the
region.”
Meeting investors and stakeholders in person
continued to be a challenge in 2021, but our management team
maintained an active marketing calendar participating in virtual
conferences, hosting guests at site when public health regulations
allowed and taking advantage of a myriad of creative new outreach
platforms to share ongoing developments in the Troilus story.
We also upgraded to the OTCQX, the top market
tier on the OTC platform in the US, and significantly increased our
trading volumes in Europe.
Priority on Health &
Safety
Rather than fading away in 2021, COVID-19 became
an ongoing fixture in our lives. The health and well-being of
everyone who works for us or visits our site continues to be a top
priority. Our team navigated this new reality without missing a
beat, keeping employees and communities safe and constantly
monitoring the guidance from public health authorities. Employees
with corporate office roles have continued to work productively
from home while diligent screening and physical measures at site
kept our staff in the field safe and healthy during a very busy
year.
Looking Ahead to 2022
We are looking forward to some significant
milestones on the horizon for 2022 that will be the result of all
the hard work our team has put in over the last year. Our planned
milestones include:
- An updated mineral
resource estimate and inaugural reserve estimate which will capture
the excellent results from our 2021 drilling;
- Completion of
Pre-Feasibility Study;
- Start of the
federal and provincial Environmental and Social Impact Assessment
process which will include extensive community consultations;
- Regional
exploration activities, compiling results from last year’s surface
work program and expanding on them to identify initial scout
drilling locations on some of the highly prospective targets across
our land bank;
- Ongoing monitoring
and evaluation of the rapidly advancing ESG landscape to ensure the
Troilus project is developed in a responsible and sustainable
manner for the benefit of all stakeholders;
- Strategic analysis
of any new opportunities that demonstrate potential to create value
for Troilus shareholders.
We want to extend our heartfelt thanks to the
institutional and individual shareholders who have continued to
support us through 2021. We strongly believe that there is
significant value still to be unlocked in Troilus and that the
major de-risking events that will occur this year have the
potential to re-rate our valuation to better reflect the
outstanding outlook for the Troilus project.
Kind Regards,
Justin ReidPresident, CEO and DirectorTroilus
Gold Corp.
About Troilus Gold Corp.
Troilus Gold Corp. is a Canadian-based junior
mining company focused on the systematic advancement and de-risking
of the former gold and copper Troilus Mine towards production. From
1996 to 2010, the Troilus Mine produced +2 million ounces of gold
and nearly 70,000 tonnes of copper. Troilus is located in the
top-rated mining jurisdiction of Quebec, Canada, where is holds a
strategic land position of 1,420 km² in the Frôtet-Evans Greenstone
Belt. Since acquiring the project in 2017, ongoing exploration
success has demonstrated the tremendous scale potential of the gold
system on the property with significant mineral resource growth.
The Company is advancing engineering studies following the
completion of a robust PEA in 2020, which demonstrated the
potential for the Troilus project to become a top-ranked gold and
copper producing asset in Canada. Led by an experienced team with a
track-record of successful mine development, Troilus is positioned
to become a cornerstone project in North America.
For more information:
Caroline ArsenaultVP Corporate
Communications+1 (647) 407-7123info@troilusgold.com
Cautionary Note Regarding
Forward-Looking Statements and Information
Mineral Resources that are not Mineral Reserves
do not have demonstrated economic viability; the estimate of
Mineral Resources in the updated Mineral Resource statement may be
materially affected by environmental, permitting, legal, title,
taxation, socio-political, marketing, or other relevant issues.
There is no certainty that the Indicated Mineral Resources will be
converted to the Probable Mineral Reserve category, and there is no
certainty that the updated Mineral Resource statement will be
realized.
The PEA is preliminary in nature, includes
inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them
that would enable them to be categorized as mineral reserves, and
there is no certainty that the PEA will be realized. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability. The PEA is subject to a number of risks and
uncertainties. See below and the Company’s latest technical report
available on SEDAR for more information with respect to the key
assumptions, parameters, methods and risks of determination
associated with the foregoing.
This press release contains “forward-looking
statements” within the meaning of applicable Canadian securities
legislation. Forward-looking statements include, but are not
limited to, statements regarding the impact of the ongoing drill
program and results on the Company, the possible economics of the
project and the Company’s understanding of the project; the
development potential and timetable of the project; the estimation
of mineral resources; realization of mineral resource estimates;
the timing and amount of estimated future exploration; the
anticipated results of the Company’s ongoing 2022 drill program and
their possible impact on the potential size of the mineral resource
estimate; costs of future activities; capital and operating
expenditures; success of exploration activities; the anticipated
ability of investors to continue benefiting from the Company’s low
discovery costs, technical expertise and support from local
communities. Generally, forward-looking statements can be
identified by the use of forward-looking terminology such as
“plans”, “expects” or “does not expect”, “is expected”, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “continue”,
“anticipates” or “does not anticipate”, or “believes”, or
variations of such words and phrases or statements that certain
actions, events or results “may”, “could”, “would”, “will”, “might”
or “will be taken”, “occur” or “be achieved”. Forward-looking
statements are made based upon certain assumptions and other
important facts that, if untrue, could cause the actual results,
performances or achievements of Troilus to be materially different
from future results, performances or achievements expressed or
implied by such statements. Such statements and information are
based on numerous assumptions regarding present and future business
strategies and the environment in which Troilus will operate in the
future. Certain important factors that could cause actual results,
performances or achievements to differ materially from those in the
forward-looking statements include, amongst others, currency
fluctuations, the global economic climate, dilution, share price
volatility and competition. Forward-looking statements are subject
to known and unknown risks, uncertainties and other important
factors that may cause the actual results, level of activity,
performance or achievements of Troilus to be materially different
from those expressed or implied by such forward-looking statements,
including but not limited to: there being no assurance that the
exploration program will result in expanded mineral resources;
risks and uncertainties inherent to mineral resource estimates; the
impact the COVID 19 pandemic may have on the Company’s activities
(including without limitation on its employees and suppliers) and
the economy in general; the impact of the recovery post COVID 19
pandemic and its impact on gold and other metals; the receipt of
necessary approvals; general business, economic, competitive,
political and social uncertainties; future prices of mineral
prices; accidents, labour disputes and shortages; environmental and
other risks of the mining industry, including without limitation,
risks and uncertainties discussed in the most recent Technical
Report and in other continuous disclosure documents of the Company
available under the Company’s profile at www.sedar.com. Although
Troilus has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. Troilus does
not undertake to update any forward-looking statements, except in
accordance with applicable securities laws.
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