Troilus Gold reports positive assay results at Troilus project, Quebec

VANCOUVER – Troilus Gold Corp. [TLG-TSX; CHXMF-OTCQX] reported positive assay results from the continuing 11,000-metre drill campaign at its 100%-owned Troilus project, north-central, Quebec, Canada, which aims to expand and identify higher-grade mineralization to the northern and southern extents of zone 87, the larger of two formerly mined pits.

Results reported today are among the thickest and most continuous high grades identified at the Project and includes the single highest-grade interval ever drilled at the Troilus Mine site. Furthermore, a new shallow and high-grade panel of mineralization has been defined at the border of the Z87 PEA pit shell, which was not modelled in the Preliminary Economic Assessment nor considered as part of the pre-feasibility engineering work.

This new panel West of Z87 has thus far been identified over a 300-metre strike length and remains open at depth and towards the Gap Zone. The company will work on defining the impact of this shallow high-grade material, and intends to shift its engineering focus to deliver a Definitive Feasibility Study.

Z87 intercept highlights returned 4.38 g/t AuEq (gold equivalent) over 46 metres, including 22.48 g/t AuEq over 1 metres and 154.27 g/t AuEq over 1 metres; 2.52 g/t AuEq over 25 metres, including 12.36 g/t AuEq over 3 metres and 3.15 g/t AuEq over 6 metres; 2.04 g/t AuEq over 17 metres, including 4.95 g/t AuEq over 5 metres; and 1.28 g/t AuEq over 61.6 metres, including 2.17 g/t AuEq over 9 metres and 2.79 AuEq over 5.7 metres.

Shallow Mineralization Identifies New High-grade Ore Trend at Z87: Drill holes 87-410 and 87-411 discovered a new high-grade, at-surface, mineralized structure, returning 2.52 g/t AuEq over 25 metres (54m to 71m down-hole), including 12.36 g/t AuEq over 3 metres and 3.15 g/t AuEq over 6 metres as well as 2.04 g/t AuEq over 17 metres (22m to 39m down-hole), including 4.95 g/t AuEq over 5 metres, all located entirely outside the PEA pit shell.

The mineralized panel currently has an interpreted minimum strike length of 300 metres, 200 metres of which extend southward beyond the limits of the Z87 pit shell modelled in the PEA and remains open in all directions.

High-Grade at Depth Confirms and Expands Z87 Main Zone 290 metres South of the PEA Pit: Drill hole 87-417 intercepted the single best metre ever drilled at Troilus, 154.27 g/t AuEq over 1 metre, within an exceptional interval of 4.38 g/t AuEq over 46 metres. This interval lies 265 metres outside of the PEA pit shell, occurring at a vertical depth of less than 400 metres from surface, and supports the opportunity for additional high-grade material down-dip and along strike of the current resource.

Hole 87-416 intercepted 1.28 g/t AuEq over 61.6 metres, including 2.17 g/t AuEq over 9 metres and 2.79 AuEq over 5.7 metres. This hole was drilled up-dip of previously reported hole 87-415 which intersected 1.27 g/t AuEq over 101 metres, including 3.31 g/t AuEq over 20 metres, and confirms consistent mineralization at depth beyond the PEA pit shell.

Justin Reid, CEO, commented: “We are thrilled about the exceptional high-grade drill results announced today, including those defining a brand new, shallow mineralized panel located just beyond the pit shell modelled in our PEA. We expect these results to have a significant impact on the economic modelling of the project since we believe both the grades and widths of the new discovery in Z87, along with its proximity to the main deposit, have the potential to immediately enhance the project’s grade profile, notwithstanding any further definition. It also reconfirms the imperative for ongoing exploration efforts across the project as part of our commitment to deliver value to all our shareholders, as these have consistently expanded the orebody across all main zones. As a result of these positive technical developments, coupled with cost and timing considerations, management has refocused its engineering efforts towards a definitive feasibility study which we expect to deliver in H2 2023 following the completion of the Z87 panel drilling. This decision allows our exploration team to continue drilling and further define areas of mineralization along this corridor that remain open to expansion, including today’s high-grade discovery. Management believes its decision to focus on delivering a feasibility study, rather than the anticipated pre-feasibility study will ultimately result in the delivery of a better, more accurate economic study to its stakeholders.”

The company has opted to proceed to a feasibility study from the PEA completed in August 2020, rather than bridging those engineering studies with a Pre-Feasibility Study as previously planned.

Earlier this year, the company announced the results of extensive metallurgical testwork completed by Eriez and Base Met Labs, which confirmed high recoveries across all zones of the orebody.

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