Troilus Gold (TSX: TLG; US-OTC: SKREF) has initiated a 20,000-metre drill program at its flagship 1,073-sq.-km Troilus gold project in Quebec's Frotet-Evans greenstone belt.
The program is designed to upgrade existing resources and grow mineralization across the past-producing property.
Although the drilling is scheduled to take place by year-end, Troilus Gold chief executive Justin Reid said, "drilling will aggressively continue through 2021 as well."
In July, the company published an updated mineral resource estimate for the asset, with 177.3 million indicated tonnes grading 0.75 gram gold per tonne, 0.08% copper and 1.17 grams silver per tonne, and 116.7 million inferred tonnes at 0.73 gram gold, 0.07% copper and 1.04 grams silver.
The majority of the existing resources are contained near the historic Z87 and J pits. The Southwest zone, a new discovery announced in January, could host additional near-surface, higher-grade material, the company says, so additional drilling is planned for the area.
"It is our expectation that with more drilling, we have the potential to identify additional resources that could further contribute to the economic forecast of the future mine, in terms of life of mine and/or daily production capacity," Reid said.
Earlier this month, Troilus announced the results of a preliminary economic assessment (PEA) on the project. The early-stage study defined a 22-year, 35,000-tonne-per-day open pit and underground mine, with a 9,000-tonne-per-day sub-surface portion starting up in the eighth year.
The resulting operation would produce an average of 246,000 oz. gold in the first 14 years. With all-in sustaining costs estimated at US$1,051 per oz. gold and an initial capital outlay of US$333 million, the after-tax net present value estimate for the project is US$576 million, at a 5% discount rate, with a 22.9% internal rate of return, based on a US$1,475 per oz. gold price.