Analysts at three firms have repeated their ‘Buy’ ratings for Troilus Gold Corp (TSX:TLG, OTCQX:CHXMF) after the Canadian miner reported positive assay results from the Connector Zone at its Troilus gold-copper project located in Quebec, Canada.
The Connector Zone is a target located between two previously-mined pits, Z87 and J4, and the latest results demonstrated high-grade mineral continuity extending on a north, north-west trend between the two pits, according to Troilus.
These results earned the stock a repeat ‘Buy’ rating and price target of C$2.50 from analysts at Laurentian Bank Securities Equity Research. Troilus’ Toronto-listed shares are currently trading at C$0.69.
READ: Troilus Gold reports positive assay results from Connector Zone, located between two previously mined open pits at its gold-copper project
In a note to clients, Laurentian’s analysts wrote that the success of drilling at the Connector Zone, particularly the drilling of one of the most consistent high-grade holes in the project’s history, appeared to validate management’s decision to include the near-surface high-grade structures in the Feasibility Study expected in the second half of 2023.
“We concur with TLG management’s view that these high-grade zones could have a meaningful impact on the final mine plan sequencing and overall project economics,” they wrote.
Analysts at Sprott Equity Research noted while Troilus’ focus was on de-risking its large ounce base with the drill bit and engineering, the emerging theme is value creation on simple, low-hanging fruit where iterative improvements continue to stack up.
As such, they said they maintained their ‘Buy’ rating and price target of C$1.85 per share.
Haywood Capital Markets analysts awarded the stock a ‘Buy’ and price target of C$1.25, noting that its valuation remains among the cheapest of its peers trading at 0.1x P/NAV compared to 0.4x.
“We are encouraged by the recent drill results from the Connector Zone and the near doubling of the share price since November 2022,” they wrote in a note to clients.
“Although the actual tonnage in the zone remains modest, the addition of ounces will help to upgrade the overall open pit resource.”
Troilus Gold is a Canada-based junior mining company focused on the systematic advancement and de-risking of the former gold and copper Troilus Mine toward production
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