Justin Reid, CEO of Troilus Gold Corp. (TSX: TLG) (OTCQX: CHXMF), joins us to review the $50 million transaction with Sayona Mining (ASX: SYA.AX), and the recent high-grade gold intercepts from the Connector Zone.
The Company announced on Nov 17th, that it has closed its previously announced asset sale of 1,824 claims to a subsidiary of Sayona Mining Limited for consideration of 184,331,797 million ordinary shares of Sayona issued at a price of C$0.217 per share, representing an aggregate value of C$40 million. In addition, Troilus has been granted a 2% net smelter returns royalty on all mineral products from the transferred claims (which can be bought back for an additional $20 million). Troilus has issued a total of 9,883,163 Common Shares of Troilus to Sayona in a private placement, at a price of C$0.49 per share for aggregate gross proceeds to Troilus of C$4,842,749.87. This is after announcing in October a non-brokered private placement from Sayona Mining for 10,525,000 Common Shares of Troilus at a price of C$0.49 per share for aggregate gross proceeds to Troilus of $5,157,250. This takes Sayona Mining up to a 9.3% stakeholder in Trolius Gold Corp.
We then transitioned over to some of the high-grade exploration results near surface coming from the Connector Zone from the recently completed 11,000-metre drill program designed to expand connecting the gap between the formerly mined Z87 and J open pits. Drill Hole # 87-422 started from surface and returned 1.75 g/t AuEq over 138m, including 3.58 g/t AuEq over 38m and 5.19 g/t AuEq over 21m. Drill Hole # 87-419 returned 1.35 g/t AuEq over 98m, including 2.89 g/t AuEq over 33m and 55.46 g/t AuEq over 1m. These higher grade intercepts exhibit the potential for significant growth of indicated and inferred resources well above the average grade of the Troilus deposit, and should improve the front-end economics of the mine plan.
The exploration team has roughly 30,000 more meters of drilling focused at the Connector Zone and X22 Zone and Z87 hanging wall over the next 3 months, that won’t make it into the upcoming Resource Estimate update in early 2023, but will factor into the Feasibility Study planned for later in 2023.
If you have any questions for Justin regarding Troilus Gold, then please email us at either Fleck@kereport.com and Shad@kereport.com.
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