Troilus Mining triples project value to $3.2 billion as financing nears completion

Troilus Mining has announced that the estimated value of its namesake copper-gold project in Quebec has more than tripled, reaching an after-tax net present value of $3.2 billion. The significant increase in valuation is attributed to detailed engineering work, an expansion of mineral reserves, and the adoption of higher metal price assumptions in the latest technical report. The updated figures position the asset as a major development project in North America, with the company indicating that final project financing is expected to be secured within the coming weeks.

The new technical report outlines an after-tax internal rate of return of 22 per cent and a payback period of 3.6 years, supporting a 26-year operating life. These base-case economics are based on long-term price assumptions of $3,600 per ounce for gold, $5 per pound for copper, and $50 per ounce for silver. This represents a substantial improvement over the May 2024 feasibility study, which projected an after-tax net present value of $884.5 million and a 14 per cent internal rate of return for a 22-year operation processing 50,000 tonnes per day.

Desjardins Capital Markets mining analyst Allison Carson described the updated report as a significantly derisked baseline for the company ahead of the development phase. She noted that key catalysts include the completion of project financing by the end of the year and permitting updates expected in the first quarter of next year. Troilus, which is based in Toronto, anticipates that construction will commence next year, with first ore targeted for September 2029 and commercial production beginning in March 2030.

Initial capital costs are now estimated at approximately $1.43 billion, reflecting a more advanced project definition supported by around 95,000 hours of engineering. Life-of-mine operating costs are estimated at $19.21 per tonne of ore processed. All-in sustaining costs are calculated at about $1,340 per ounce of payable gold, net of copper and silver credits. CEO Justin Reid stated that the results reinforce the company’s position as one of the most compelling large-scale gold-copper development projects in the region.

In an interview, Reid explained that the updated report serves as a cleansing statement as the company finalises the remaining pieces of its financing. He confirmed that debt arrangements with export credit agencies are in place, with documentation being finalised to present a fully funded deal to the market. Following this, the company expects to deliver credit committee approval and further permitting updates.

The latest mine plan is based on 478 million tonnes of reserves grading 0.44 grams of gold per tonne, 0.05 per cent copper, and 0.92 grams of silver per tonne. This equates to contained metal of 6.7 million ounces of gold, 568 million pounds of copper, and 14.2 million ounces of silver. The reserve tonnage is approximately 26 per cent larger than in the 2024 feasibility study. Payable production over the life of the operation is expected to reach 5.63 million ounces of gold, 472 million pounds of copper, and 10.88 million ounces of silver.

The project is located about 120 kilometres north of Chibougamau in north-central Quebec, on the site of a former mine that operated between 1996 and 2010. Troilus acquired the asset in 2017. Existing infrastructure includes all-weather roads, a 50-megawatt substation, more than 60 kilometres of high-voltage power lines, a permitted tailings facility, and water-treatment infrastructure. The company has also begun a 40,000-metre exploration program on its 435-square-kilometre land package to expand resources beyond the current mine plan.

Troilus shares rose 1.3 per cent to C$2.36 in Toronto on Wednesday, valuing the company at approximately C$1.3 billion. The stock has traded between 95 cents and C$2.47 over the past year.