The stocks in the junior mining sector have been dealing with challenges in the last few years as inflationary pressures are making it more difficult to advance development prospects. As a result, fewer gold projects have advanced the development of the next generation of large gold mines. Troilus Gold Corp (TLG) is a successful exploration and development stock that has been able to navigate challenging market conditions. The Company is advancing one of the largest undeveloped gold and copper deposits in all of North America.
Its flagship asset, the past-producing Troilus Mine, is a key component of the story. Troilus secured the property in a bargain acquisition deal completed during a slump in sentiment for the sector. TLG was thus positioned as an exploration stock with strong discovery potential a. Several years of active exploration work delivered on this promise while building shareholder value, as it has continued to systematically advance and de-risk the asset toward a potential mine restart.
A Quality Asset in a Lower Risk Jurisdiction
The Troilus project is located within an established gold-producing district of northern Quebec, the Frôtet-Evans Greenstone Belt. The mine previously operated by Inmet Mining Corp. produced more than 2 million ounces of gold and 70,000 tonnes of copper during a fourteen-year span that ended in 2010. TLG eventually acquired the property in 2017 as a Brownfield exploration prospect.
There is also the infrastructure advantage based on the previous mining history. Service roads and camp facilities, a 50MW electrical substation, a permitted tailings facility and a water treatment plant, are already in place and can be incorporated into the new mine plan. This added intrinsic value for the project in turn contributes value to the Troilus Gold stock price (TSX: TLG) for shareholders. An expanded development scenario also contributes to the value proposition for TLG’s stock as the potential for active mining and cash flow generation draws closer.
There are numerous large gold mining projects already established in the Province of Quebec. The exceptional geology is one obvious advantage. The government of Quebec also provides financial incentives to attract mining and exploration companies like TLG to the province. The mining sector is the primary source of economic growth in many communities and new development is welcomed. All exploration stocks in a district may gain in value from a significant discovery nearby and therefore the favorable jurisdiction provides a virtuous feedback loop.
Canada is also considered to be a favorable jurisdiction for resource companies, established among the top nations worldwide for mining output. It is fitting that the Toronto Stock Exchange is a premier market for resource sector companies like TLG. The market provides an opportunity for junior mining stocks to efficiently raise capital to advance their projects.
Strong Corporate Leadership for TLG Builds Greater Appeal for the Stock
Experienced speculators in the junior mining sector understand the importance of strong management to advance projects with a mine development strategy. An effective management team aims to achieve successful resource definition and secure access to financial liquidity. TLG has been able to attract institutional interests to purchase and hold large blocks of stock. TLG recently closed a bought-deal public offering to raise more than $15 million in critical funding for the next stages to advance the project.
In tandem with mine development ambitions, management is also focused on the responsible development of its project. TLG has engaged in consultations with local and First Nations communities. Sustainability best practices are in place to ensure the protection of the surrounding environment as the project advances. Troilus’ dedication to creating value its stock rising in value for its shareholders is balanced with the commitment to building prosperity for the entire community. This approach attracts broad-based support to move the project forward.
Talented and proactive management has allowed the company to advance the Troilus project, now approaching a construction decision. Where other projects have foundered due to environmental concerns and a lack of trust from nearby communities, TLG has built strong relationships with local communities by upholding its commitment to the responsible development of its project and open, honest, and transparent communication. Ambitions to increase the stock value are closely tied to securing positive decisions in this process and are supported by the company’s overarching goal of continuing to create long lasting shareholder value.
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