Troilus Mining Corp · TSX:TLG
Troilus Mining — Troilus Gold — Investor Presentation (June 2020)
43 slides from Troilus Mining's investor presentation, Jun 23, 2020
Slide 1: The Troilus Gold Project: A New Life for the Former Troilus Gold Mine
TSX: The Troilus Gold Project TLG A New Life for the Former Troilus Gold Mine OTCQB: Corporate Presentation – June 23, 2020 CHXMF
Slide 2: Cautionary Language & Legal Disclaimers
Cautionary Language & Legal Disclaimers Statements and certain information contained in this presentation and any documents Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability; incorporated by reference may constitute “forward-looking statements” within the me
Slide 3: Troilus Gold Corp. - An Introduction
Troilus Gold Corp. - An Introduction Two years of exploration success grows Troilus into one of the largest undeveloped gold deposits in North America Then: Now: ▪ Former gold and ▪ Troilus was acquired in 2017 with a resource copper open-pit mine of 2.05 Moz AuEq (Ind.) and 0.7 Moz AuEq (Inf.) (199
Slide 4: Capital Structure & Analyst Coverage
Capital Structure & Analyst Coverage ✓Tight capital structure ✓Strong cash position ✓Increasing visibility Basic Shares Analyst Coverage Outstanding: ~114M Richard Gray Cormark TSX: TLG Options/Warrants: Tyron Breytenbach Stifel|GMP 250k / 26M Tom Gallo Canaccord Cash: ~C$11.1M* Jacques Wortman Laur
Slide 5: Strong Institutional & Insider Ownership
Strong Institutional & Insider Ownership Confidence in Troilus’ future demonstrated by growing insider ownership Shareholder Distribution Retail Troilus Insider Institutional & Corporate Ownership: (Apogee, Don Smith, Middlefield, Mackenzie, AGF, Goodman, Dundee, ~10% Sun Valley, Delbrook, O3 Mining
Slide 6: A Strong Foundation for Value Creation
A Strong Foundation for Value Creation LOW RISK ✓ LARGE & ✓ MAJOR ✓ GROWING INFRASTRUCTURE JURISDICTION GOLD DEPOSIT IN PLACE Former operating gold Gold resources (Ind.) Roads, power, tailings, etc, mine with active mining grow ~129% since 2017. inherited from former lease in Quebec, Exploration wor
Slide 7: Restart Underway Post-COVID Shutdown
Restart Underway Post-COVID 19 Shutdown Strong Balance Sheet • $25 million bought deal closed June 23, 2020 and $12.8 million private placement closed February 28, 2020 • Ample cash reserves to fund operations and key deliverables through 2021 Restart of Operations at Site • Gradual reopening at sit
Slide 8: Low-Risk Jurisdiction: Quebec, Canada
Low-Risk Jurisdiction: Quebec, Canada Canada is one of the largest and most favourable mining nations in the world ||8 8
Slide 9: Favourable Jurisdiction for Mine Permitting & Development
Favourable Jurisdiction for Mine Permitting & Development Recent Permitting Timelines of Projects Near Troilus “Plan Nord” Permit 25-year Government Project ESIA filed Time for Permit Awarded plan for natural Lac Bloom (iron mine) Dec 2006 Feb 2008 14 months resources sector Osisko (gold mine) Sept
Slide 10: Frotêt Evans Greenstone Belt
Frotêt Evans Greenstone Belt Long-term district-wide potential. Troilus is the largest mineral claims holder in the Frotêt-Evans Greenstone Belt, which remains significantly underexplored compared to the Abitibi. | 10
Slide 11: Land Position Expanded by +68,000ha in Q1 2020
Land Position Expanded by +68,000ha in Q1 2020 Troilus becomes the largest mineral claims holder in the highly prospective Frôtet-Evans Greenstone Belt Former Claims 16,000 hectares Current Claims 16,185 ha 84,600 ha || 11 11 *See press release dated April 28, 2020 for further detail.
Slide 12: Troilus Project - Location & Accessibility
Troilus Project - Location & Accessibility Road access via “Route du Nord” (managed by Quebec Transport Ministry and James Bay Energy Society) Nearest airport in Chibougamau (~170km south of Troilus) | 12
Slide 13: The Troilus Gold Mine (1996-2010)
The Troilus Gold Mine (1996-2010) Advantages of a Former Mine Site ✓ Active Mining Lease Maintained from production era ✓ Permitted Tailings Facility Currently reclaimed and revegetated ✓ +85km of Power Lines Maintained by Hydro-Quebec J4 Pit ✓ +40km of Roads and river crossings Z87 Pit J4 pit Z87 p
Slide 14: Extensive Inherited Infrastructure
Extensive Inherited Infrastructure Existing infrastructure is expected to positively impact economics and timeline of the project* | 14 *Please refer to the cautionary language on slide 2 related to the completion of a technical study.
Slide 15: Former Mine Site & Mineral Resource Area
Former Mine Site & Mineral Resource Area Allongé J Zone Z87 Z87 South Southwest NI 43-101 Mineral Resource (Nov. 2019) Indicated: 4.71 Moz AuEq @ 0.92 g/t Inferred: 1.76 Moz AuEq @ 1.04 g/t Near-term Resource Growth Targets +20km Mag Low Geophysics Trend | 15
Slide 16: Troilus Geology & Mineralized Zones Overview
Troilus Geology & Mineralized Zones Overview Current Mineral Resource Zones: ▪ Z87 ▪ J Zone (J4, J5) ▪ Z87 South Near-term Resource Growth Targets: ▪ Allonge ▪ Southwest Zone | 16
Slide 17: Mineral Resource Growth 2016-2019
4.71 Moz 129% growth in 24 months* AuEq @ 0.92 g/t 3.92 Moz 2016 AuEq J5 pit Z87 pit ~300m 200m 2.05 Moz AuEq 1.76 Moz 2019 Zone Zone Zone AuEq @ 1.04 g/t J5 J4 Z87 / Z87 South 1.17 Moz AuEq ~500m 0.7 Moz AuEq Indicated Indicated Indicated Inferred Inferred Inferred 200m OPEN OPEN OPEN OPEN 2016¹ 20
Slide 18: 2019 Mineral Resource - Grade Distribution
2019 Mineral Resource - Grade Distribution Above 0.3 g/t AuEq (open pit) & above 0.9 g/t AuEq (underground) NE SW 525m J5 495m Z87 South J4 g/t AuEq. Z87 UG 0.3 – 0.5 870m from 0.5 – 0.9 surface Limit of Resource Shell > 0.9 Classification Tonnes Gold Gold Copper Silver Contained Contained Contained
Slide 19: 2019 Mineral Resource - Open Pit
2019 Mineral Resource - Open Pit Above 0.6 g/t AuEq NE SW 230m 180m J5 Z87 g/t Aueq. South 525m 495m 0.3 – 0.5 0.5 – 0.9 J4 Z87 > 0.9 Tonnage AuEq Au Cu Ag Contained Contained Contained Contained Classification (Mt) (g/t) (g/t) (%) (g/t) AuEq Gold Copper Silver 0.60 g/t OP (Moz) (Moz) (Mlb) (Moz) To
Slide 20: 2019 Mineral Resource - Open Pit
2019 Mineral Resource - Open Pit Above 0.9 g/t AuEq NE SW 230m 180m J5 Z87 g/t Aueq. South 525m 495m 0.3 – 0.5 J4 Z87 0.5 – 0.9 > 0.9 Tonnage AuEq Au Cu Ag Contained Contained Contained Contained Classification (Mt) (g/t) (g/t) (%) (g/t) AuEq Gold Copper Silver 0.90 g/t OP (Moz) (Moz) (Mlb) (Moz) To
Slide 21: 2019 Mineral Resource - Underground
2019 Mineral Resource - Underground ▪ Remodeled Z87 Undergound in 2019 with improved geological understanding ▪ Results: Improved grade from 1.5 g/t to 1.86 g/t, tonnage decreases 24% and ounces increase - without drilling! ▪ Same exercise currently being applied to the rest of the deposit NE SW 350
Slide 22: Recent Exploration Success & Near-Term Growth Targets
Recent Exploration Success & Near-Term Growth Targets Longitudinal Section (facing east) Future Drill Significant Expansion in 2019: New Discovery Target Below and on strike with in 2020: former open pits: +1km mineralized trend confirmed to date Active Mining Lease J Zone Z87 Z87 South Allongé Form
Slide 23: J Zone Expansion: Low-Risk, High-Reward Drilling
J Zone Expansion Section N14250 Low-Risk, High-Reward Drilling Finding gold for under $5/oz AuEq | 23 * For a summary of complete results, please see press release dated May 7, 2019
Slide 24: Z87 South Expansion
Z87 South Expansion ▪ Z87 South mineralization has broadened over 600m along strike and over 350m down dip ▪ Remains OPEN Z87 South Quartz-chlorite sulfide-rich veinlets in a sericitized and silicified felsic dike 495m OPEN OPEN Z87 Underground Py-Po-Sph layers parallel to the 870m from Surface volc
Slide 25: New Gold Zone at Surface in Southwest Zone
New Gold Zone at Surface in Southwest Zone ▪ 3.5kms from main mineral zones and accessible via existing road ▪ 2,500m drilled in late 2019 identifies sizeable new gold zone at surface ▪ 2.87g/t AuEq over 17m, within 2.26 g/t AuEq over 24m (TLG-ZSW19-177) ▪ 6,000m drilled in Feb 2020 ▪ 1.56 g/t AuEq
Slide 26: Southwest Zone – Resource Growth Target
Southwest Zone – Resource Growth Target +1km mineralized trend confirmed to date Southwest * For complete results, please see press releases dated January 28, 2020, April 14, 2020 and May 14, 2020 | 26
Slide 27: Southwest Zone Drill Results (May 2020)
Southwest Zone Drill Results (May 2020) ▪ 13.28 g/t AuEq over 1m, incl. 1.18 g/t AuEq/21m (TLG-ZSW20-181) ▪ 16.1 g/t AuEq over 1.1m, incl. 1.33 g/t AuEq/5m and 1.43 g/t AuEq/5m (TLG-ZSW20-186) ▪ 46.40 g/t AuEq over 1m (TLG-ZSW20-190) | 27 * For complete results, please see press releases dated May 1
Slide 28: Southwest Zone Drill Results (April 2020)
Southwest Zone Drill Results (April 2020) One of the best holes ever drilled on the property: ▪ 1.56 g/t AuEq over 73m, incl. 2.05 g/t AuEq over 48m; 1.23 g/t AuEq over 6m from surface; 0.98 g/t AuEq over 13m incl. 1.9g/t AuEq over 3m and 2.17 g/t AuEq over 2.2m (TLG-ZSW20-189) ▪ 1.02 g/t AuEq over
Slide 29: Southwest Zone Drill Results (April 2020)
Southwest Zone Drill Results (April 2020) ▪ 2.26 g/t AuEq over 24m, incl. 2.87 g/t AuEq/17m (TLG-ZSW19-177) ▪ 1.02 g/t AuEq over 31.7m, incl. 2.31 g/t AuEq/7m (TLG-ZSW19-173) ▪ 1.40 g/t AuEq over 17m, incl. 6.87 g/t AuEq/1m, 3.67 g/t AuEq/2m and 1.97 g/t AuEq/2m 2.51 g/t AuEq over 5m, incl. 10.78 g/
Slide 30: Southwest Zone Drill Results (January 2020)
Southwest Zone Drill Results (January 2020) | 30 * For complete results, please see press release dated January 28, 2020
Slide 31: High-Grade Gold Trend
High-Grade Gold Trend ~30g/t gold Research program initiated in May 2019 with Western/Laval Universities to study gold on the property and at a regional scale. Troilus contributes $750k over 3 years, receives 36% back from tax incentives with the possibility of NSERC & grants matching funding 4:1. T
Slide 32: Committed to Sustainable Development
Committed to Sustainable Development At Troilus, we are committed to creating value for our shareholders while operating in a safe, socially and environmentally responsible manner, contributing to the prosperity of our employees and our local communities while respecting human rights, cultures, cust
Slide 33: Stakeholder Engagement
Stakeholder Engagement Signed Pre-Development Agreement (PDA) with the Cree Nation of Mistissini, the Grand Council of the Crees (Eeyou Istche) and the Cree Nation in July 2018¹ ▪ Establishes the framework for the on-going and mutually beneficial relationship regarding business and employment opport
Slide 34: Troilus Development Plan 2020
Troilus Development Plan 2020 Recent Milestones Updated Mineral Resource Estimate - Nov 2019 Acquisition of claims from 03 Mining Inc. (Osisko) Submission of application for pit dewatering permit Baseline studies (to be included in EIA 2020) New Gold Zone identified in Southwest Zone Upcoming Cataly
Slide 35: Troilus Gold – Led by a Proven Team
Troilus Gold – Led by a Proven Team An accomplished management team with a history of successful mine development and strong shareholder return Senior Management Quebec Team Justin Reid, CEO & Director Daniel Bergeron, VP Quebec Operations Paul R. Pint, President Jacqueline Leroux, Director of Envir
Slide 36: Board of Directors
Board of Directors Diane Lai, ICD.D, MBA - Chairperson Seasoned executive and entrepreneur with +20 yrs of global marketing experience Andrew Mark Cheatle, P.Geo. FGS, MBA 30 yrs of international mining experience; consulting Geologist; former CEO of PDAC Jamie Horvat, M.Sc. +20 yrs of experience in
Slide 37: Troilus is Significantly Undervalued
Troilus is Significantly Undervalued Enterprise Value / Gold Equivalent Ounce Source: GMP Securities. Market data as at April 14, 2020; AuEq mineral resources calculated using LT consensus prices of US$1,327/oz Au, US$18.37/oz Ag, US$3.15/lb Cu, US$1.11/lb Zn, US$0.97/lb Pb and US$9.11/lb Mo. Compan
Slide 38: Global “Discovery Deficit”
Global “Discovery Deficit” Benefiting companies that are successfully investing in exploration Troilus is finding gold for <$5/oz AuEq Average Global Gold Equivalent Discovery Costs: 1990-2001: $14/oz 2002-2009: $34/oz 2010-2017: $174/oz | 38 Chart Source: SNL, GFMS, Paradigm Capital Inc.
Slide 39: Troilus Gold Corp. – Key Takeaways
Troilus Gold Corp. – Key Takeaways Low-risk jurisdiction; Prolific Mining District Former operating gold mine with active mining lease in Quebec, Canada Large and Growing Gold Mineral Resources Robust geological approach is delivering significant low-cost gold growth Significant Infrastructure in Pl
Slide 40: Thank You
Thank You Corporate Headquarters 400-36 Lombard Street Toronto, Ontario M5C 2X3 Investor Contact Paul Pint, President +1 (416) 602-1050 paul.pint@troilusgold.com
Slide 41: Mineral Resource Summary – All Zones
Mineral Resource Summary – All Zones Gold Contained Contained Contained Contained Tonnes Gold Copper Silver (Mt) Equiv. (g/t) (%) (g/t) Gold Copper Silver AuEq (g/t) (Moz) (Mlb) (Moz) (Moz) Total Open Pit & Underground Indicated 159.06 0.92 0.78 0.09 1.19 3.97 301.15 6.07 4.71 Inferred 52.74 1.04 0.
Slide 42: Mineral Resource - Sensitivities & Assumptions
Mineral Resource - Sensitivities & Assumptions Cut-off Tonnes Gold Gold Copper Silver Contained Contained Contained Contained AuEq (Mt) Equiv. (g/t) (%) (g/t) Gold Copper Silver AuEq (g/t) (g/t) (Moz) (Mlb) (Moz) (Moz) Z87 Underground Resources Indicated 1.5 10,246 2.35 2.06 0.18 1.46 679,879 40,274
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