Laurentian Bank Securities analysts were positive on Troilus Gold Corp (TSX:TLG, OTCQX:CHXMF)’s assay results from the final 22 holes drilled at the X22 Zone on its Troilus gold project in Quebec, as drilling continues to demonstrate the continuity of the mineralization, which starts near surface, and the analysts believe there is a tendency for the grade to improve with depth.
In an update to clients, though, they noted the key catalysts for the company’s stock are pending, with the focus now being on the updated mineral resource estimate (MRE), which they believe is imminent and will represent a significant increase over the prior resource estimate given the successful drill campaigns at the Southwest, X22, and Connector zones in 2022-2023.
“The more significant catalyst will be the Feasibility Study (FS), now expected by late Q4 or early Q1/24, and we continue to expect that the early years of the FS mine plan will see increased contribution from the higher grade X22, Connector and Southwest zones,” the analysts wrote.
They added that their valuation excludes any benefit from the project’s high-grade zones, which could materially change their target price and rating on the stock.
Analysts at Laurentian Bank maintained their ‘Buy’ rating and C$2.50 target price on Troilus Gold shares.
Contact Sean at sean@proactiveinvestors.com