Analysts at Laurentian Bank Securities have repeated their ‘Buy’ rating and C$2.50 price target for Troilus Gold Corp (TSX:TLG, OTCQX:CHXMF) following the release of assay results from Zone X22 at the company’s Troilus project in Quebec.
Troilus shares are currently trading at C$0.72.
The company on Tuesday released assay results that continued to highlight the strong continuity of mineralization at X22, which the analysts said could potentially result in a meaningful contribution to overall project economics when Troilus releases its Feasibility Study (FS) in the second half of 2023.
“Today’s assay results highlight continuity and some higher-grade hits,” the analysts wrote in a note to clients.
“[They] represent a bit of a mixed bag of 1) assays from high-grade structures (hole 030), 2) continuity of mineralization up-dip from a prior interval (hole 015), and 3) an extension of mineralization closer to the Z87 pit (hole 006).”
The analysts noted that Troilus would release the remaining assays from drilling at X22 and the Connector Zone over the next few weeks for inclusion in the upcoming FS.
“We continue to expect that the early years of the FS mine plan will see increased contribution from these zones and the Southwest Zone,” they wrote.
“Our valuation excludes any benefit from these high-grade zones as we await the other model inputs from the FS.”
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