Troilus updates mine life, engineering principles, costs for flagship project in new report
Toronto- and Frankfurt-listed Troilus Mining Corporation finds in an updated technical report on the Troilus gold/copper project, in Québec, improved economic fundamentals compared with a May 2024 feasibility study, with an extended mine life, higher copper production and more advanced level of engineering, design and cost definition.
The technical report outlines a large-scale, 26-year mine life with an after-tax net present value (NPV) of $3.2-billion - based on long-term metal prices of $3 600/oz of gold, $5/lb of copper and $50/oz of silver.
The report estimates the Troilus project to have an internal rate of return (IRR) of 22% and payback period of 3.6 years once operational, with life-of-mine payable production estimated at 5.6-million ounces of gold, 472-million pounds of copper and 10.8-million ounces of silver. This equates to average payable production of 251 000 oz/y of gold, 20.1-million pounds of copper a year and 466 000 oz/y of silver.
This reinforces the Troilus project's position as one of Canada's largest undeveloped gold and copper projects.
At current metal prices of $4 500/oz of gold, after-tax NPV increases to $4.7-billion, IRR widens to 28% and the payback period reduces to three years.
Troilus estimates the project can generate after-tax cashflow of more than $6.9-billion over its lifetime.
The project requires initial capital of about $1.4-billion, reflecting a substantially more advanced and fully defined project design, supported by about 95 000 engineering hours having been done and market-validated pricing having been incorporated.
Troilus confirms that the gold room has been advanced into initial construction rather than deferred as was the case previously. This will enable gravity-recovered gold to be poured as doré from the outset of operations, supporting earlier cash generation and working capital during ramp-up.
