Troilus Gold reports positive assays at Southwest zone

Troilus Gold (TSX: TLG) has reported assay results from two holes completed at the Southwest zone, 3.5 km northeast of the existing deposit within the 160-sq.-km Troilus project.

The drill highlights include 73 metres of 1.56 grams per tonne gold-equivalent in hole 20-189 and 6 metres of 1.23 grams per tonne gold-equivalent from the same hole, as well as 14 metres of 1.02 grams gold-equivalent from hole 20-185. The 73-metre long intercept starts at 193 metres downhole.

According to the company, these intersections suggest geological similarities between the Southwest zone and the main Z87 deposit.

“We believe that the results we are seeing from the Southwest zone provide further evidence that the Troilus property has the potential to host a large, regional-scale gold mineralizing system and remains materially underexplored,” Justin Reid, the company’s CEO, said in a news release. “The Troilus team is excited to further expand our knowledge of this system by applying our evolving geological model to this area and the rest of the property.”

Reid added that the Southwest zone remains open – additional assays are pending. Results to date have traced this area of mineralization, first reported in January, over a 1 km trend.

The Z87 pit at the site produced almost 2 million oz. gold in the past. Indicated resources at the project stand at 159.1 million tonnes grading 0.92 gram gold gold-equivalent for a total of 4.71 million gold-equivalent oz., with additional inferred resources of 52.7 million tonnes at 1.04 grams gold-equivalent for a further 1.76 million ounces.

The resources include both an open pit and underground component and are contained within the Z87 and J zones.

The Troilus project is within the Frotet-Evans greenstone belt and is approximately 170 km north of Chibougamau.

At press time, Troilus was trading at 75¢ a share within a 52-week trading range of 42¢ and 90¢. The company has 89 million common shares outstanding for a $66.4-million market capitalization.