Delta Resources (TSX-V: DLTA) (OTC: DTARF) received a significant investment from Troilus Gold (TSX: TLG) (OTCQX: CHXMF) in December 2022. This exciting news for the company and its shareholders was due to the high Grade Gold intercepts announced in October 2022 where Delta intersected 5.92 g/t Au over 31 Metres at the Delta 1 property in Thunder Bay, Ontario. 

Canada has long been one of the world's most prolific jurisdictions in the world for gold mining, concentrated in Ontario and Quebec. The geological landscape is rich in mineral deposits and has attracted some of the best mining companies and investors in the world. Troilus Gold's investment in Delta Resources speaks to the resurgence of the gold market as well as both companies' dedication to credible, high-quality mining exploration opportunities.

Delta Resources Exploration Projects

Delta Resources is a mineral exploration company. Currently, it has two properties being explored for gold and base metals: the Delta-1 project in Thunder Bay, Ontario and the Delta-2 project in Chibougamau, Quebec.

Delta-1 Project Summary

The first site, the Delta-1 project, is in the Thunder Bay area of Ontario. Delta-1 is a gold exploration project within the Shebandowan Greenstone Belt. While greenstone belts host numerous mineral deposits, they are particularly promising for gold exploration.

Despite its promising geologic location, the Delta-1 property has been poorly explored in the past and has been dormant since 2003. Based on the crustal-scale structures and multiple phases of gold mineralization in the zone, the project has the potential to be a major gold deposit. The priority at the start of the project is exploratory drilling, and the results from drill campaigns thus far have supported this optimistic hypothesis of discovering a new large scale gold deposit.

Gold assays are measured in grams of mineral per tonne (g/t). Some consider that gold assays that report anything above 2 g/t are considered worthy of further work. The chip sampling at the Delta-1 project returned assays ranging from 1.4 to 13.8 g/t. Drill results which were published in October 2022 and in hole 18 in particular, which internally is known as D1-22-18, hit 5.92 g/t gold over 31.0 meters, including 14.80 g/t Au over 11.9 meters and 72.95 g/t Au over 2.2 meters. Based on initial exploration and its stratification, the Delta-1 project initially showed similar characteristics to the Moss Lake Gold Deposit owned by Goldshore Resources (TSX-V:GSHR) which hosts 121.7 million tons of near surface ore grading 1.1 grams per ton of gold or almost 5 Million ounces of Gold, however, with its higher grade intercepts, the Delta project looks to be of much higher grade.

Background on Troilus Gold

Troilus Gold is a Canadian based company focusing on restarting and expanding the former gold and copper mining project on the 43,500-hectare Troilus mine. Underdeveloped, with plenty of expansion potential, the Troilus mine is located in Val-d’Or, Quebec. Though the mine was first explored in the 1950s, it wasn’t until the turn of the century that mining activity started to pick up there. 

In 2010, when the price of metals dropped, the operations came to a stop. Over the next few years, the property was passed between companies, and it wasn’t until 2017 that Troilus Gold acquired the land. Continued exploration and prospecting have revealed impressive results. In 2020, it was predicted that the Troilus property could yield almost 250,000 ounces of gold annually. This could position the Troilus Gold project among the top mines in the region. 

The Troilus Gold Investment Into Delta Resources

Troilus Gold and Delta Resources are aligned in the mission to reinvigorate the gold and copper mining scene in Quebec andOntario as they reopen and explore new areas in their respective projects. Both mining companies are public, and they prioritize growing shareholder value. 

Details of the Investment

On December 15, 2022, Delta Resources issued three million units to Troilus Gold Corporation. Each unit includes one national flow-through common share and half of a common share purchase warrant for aggregate proceeds of $420,000. 

What It Means for Troilus Gold

For the team at Troilus Gold, investing in Delta Resources gives the company a share in the success of the exploration of the Delta-1 Gold project in Ontario. Not only will Troilus Gold reap the benefits of the investment over time (the share price has nearly doubled since we published our last article on Delta) when Delta shares appreciate, but the investment provides some diversification from the company's current Quebec-based operations and allows them some exposure and diversification in Ontario.  

The Significance of the Investment for Delta Resources

For Delta Resources, the investment is a vote of confidence from a peer company in the Canadian gold mining scene. Both Delta-1 and Delta-2 are developing rapidly, with exploration work showing impressive results. While the product of Delta’s exploration should speak for itself, the support from Troilus Gold will fuel continued project expansion. The investment proceeds will mostly go to drilling in the Delta-1 project in Ontario. Shareholders of either company should see this investment as a very bullish signal for the Delta 1 project. 

Expand Your Portfolio With Delta Resources

With the support from Troilus Gold, Delta Resources can further its exploration in Ontario where it has already reported high grade gold intercepts. In fact, in February 2023, Delta reported visuals on hole 30 which is approximately 300 metres east of hole 18. As the company waits for the assay results, the company is anticipating an even higher-grade intercept than hole 18. Any result higher in grade to hole 18 can put Delta in the spotlight for gold explorers in Canada. The additional funding led by Troilus will make it possible to expand drilling efforts in 2023 and provide increased value to shareholders as more information comes out with positive results. 

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