Abitibi Metals boosts resource by 62% at B26 polymetallic deposit in Quebec
Indicated resources increased to 11.3 million tonnes from 6.9 Mt.
Troilus Gold (TSX: TLG) is raising C$22 million ($16 million) for exploration at the former Troilus gold-copper mine near Val d’Or, Quebec. The company hopes eventually to reopen the mine.
The bought deal is headed by Haywood Securities and Desjardins Capital Markets. The underwriters have agreed to purchase 48.6 million units of the company at a price of C$0.35 per unit; 7.4 million traditional flow-through shares at C$0.405 per share; and 4.8 million Quebec flow-through shares at C$0.42 per share.
Each unit will consist of one common share of the company and one-half of a share purchase warrant exercisable at a price of C$0.45 per share for a period of 24 months after the offer closes.
The underwriters have also been granted an over-allotment option of up to an additional 15% of offered securities in any combination.
The Troilus mine began production in 1996 and reached commercial production the following year. During its life, the mine produced 2 million oz. of gold and about 154.3 million lb. of copper. The mill capacity was doubled to 20,000 t/d by 2005. The pits were mined out in April 2009, but milling continued to June 2010. The plant was sold three months later, and the camp was dismantled.
The company completed a feasibility study for a new open pit and mill in 2024. It supports a 50,000 t/d mill and open pit mine with a life of 22 years. Over that time, the annual output would be 244,600 oz. gold, 17.3 million lb. copper and 446,700 oz. silver.
Troilus estimates the proven and probable reserves are 380 million tonnes containing 7.26 million oz. gold equivalent. The average grade is 0.49 g/t gold, 0.058% copper, and 1.0 g/t silver, or 0.59 g/t gold equivalent.
Pre-production capital costs will be C$1.07 billion followed by sustaining capital of C$276.6 million.
