Valuation pathway and potential re-rate

Justin Reid, President and CEO of Troilus Mining Corp. (TSX: TLG) (OTCQX: CHXMF) (FSE: CM5R), joins me for a comprehensive update on their recent name change from Troilus Gold due to them having a project of scale with a substantial copper component, at the Gold-Copper Troilus Project located in northcentral Quebec, Canada. 

The potential for large future copper production, in concert with the gold and silver, has been integral in building out the capital stack with ECAs and MCAs, getting offtake agreements in place, and in bringing in key investors into the most recent capital raise.  In addition, we discuss the advancement of basic and detailed engineering studies, get an update on the permitting progress, review peer comparisons on valuations, and discuss the exploration success at the Southwest Zone and the upcoming regional drill program,

We start off noting that at present there are already 13 million gold equivalent ounces in all categories in place at the deposit; but that the 22 year projected mine life and robust economics are only factored on roughly half of these resources at present.

On November 19, 2025,Troilus Mining announced that it has increased its previously announced debt financing mandate from US$700 million to up to US$1 billion. The upsizing of the mandate reflects the strength of current commodity markets and the material uplift in project economics relative to the conservative assumptions used in the Feasibility Study. It also underscores the continued confidence of the Company’s lending partners and Troilus’ growing strategic importance as one of North America’s next major copper-gold mines.

On November 14, 2025, Troilus Mining announced that it has closed its previously announced bought deal public offering, including exercise of the over allotment option issuing 133,722,000 common shares of the Company at a price of $1.29 per Common Share for aggregate gross proceeds of $172,501,380. The net proceeds from the sale of the Offered Shares will be used by the Company to fund ongoing pre-development activities, debt repayment, and for working capital and general corporate purposes.

Basic engineering of the Project led by engineering partner BBA Inc has now mostly been completed, and is moving on to detailed engineering.  Following the completion of trade-off studies and process flowsheet definition earlier this year, the focus shifted to cost estimation, procurement, and execution planning. Major deliverables - including capital cost estimates, vendor evaluations, and project execution plans - are now well advanced, supporting a targeted construction decision in 2026. Key trade-off studies were conducted, resulting in design improvements to support scalability, operational robustness, and energy efficiency, with minimal impact to capex.

Construction Readiness and Commissioning Preparation

• Layouts of construction facilities have been developed to optimize logistics and cost planning.
• Review of 3D models for the Project’s process plant, dry comminution circuit, and site infrastructure is over 30% complete.
• Commissioning systems have been identified and sequenced to ensure a structured transition from construction to operations.

Switching over to the permitting progress, on June 25th the Company announced that it had officially filed the Environmental and Social Impact Assessment (“ESIA”) with both the Government of Québec and the Government of Canada. The submission of the ESIA marks a major milestone in the development of the Troilus Project, representing the culmination of over five years of comprehensive baseline studies, robust technical evaluations, and meaningful engagement with Indigenous and local communities. Permitting should time out with remaining economic studies and engineering for a construction decision in 2026.

Wrapping up we discussed all the infill and expansion drilling at the Southwest Zone this year that will continue into next year, which has continued to hit increased grades over broad intercepts.  Raising the grade profile of this key area positively impacts the first 5 years of mining in the development scenario.  Justin also highlights regional drilling opportunities that the exploration team will pursue in 2026.

If you have any questions for Justin regarding Troilus Gold, then please email them over to me at Shad@kereport.com.

• In full disclosure, Shad is a shareholder of Troilus Gold at the time of this recording, and may choose to buy or sell shares at any time.

Click here to follow along with the latest news from Troilus Gold

For more market commentary & interview summaries, subscribe to our Substacks:

The KE Report: https://kereport.substack.com/

Shad’s resource market commentary: https://excelsiorprosperity.substack.com/

Investment disclaimer:

This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security. Investing in equities and commodities involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.