quarterly update triumph gold corp. (tsxv: tig)...7 triumph gold corp. tsv tig recommendation - buy...

Triumph Gold Corp. (TSXV: TIG)Recommendation - BUYTarget Price - $1.55

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QUARTERLY UPDATE

2Triumph Gold Corp. | TSXV: TIG | Recommendation - BUY | Target Price - $1.55

Freegold Mountain Keeps Getting BiggerTriumph Gold Corp. (TSXV: TIG) is a Vancouver-based junior resource company engaged in the explo-ration and development of Gold, Copper and Silver properties in the Yukon, Canada. Triumph Gold is focused on advancing its flagship Freegold Mountain project located in the Dawson Range and covers a highly prospective section of the Big Creek fault zone. The Freegold Mountain project is endowed with three significant mineral deposits. This includes the Nucleus Au deposit, the Revenue Cu-Au-Mo-Ag deposit, and the Tinta Hill poly-metallic vein system, as well as numerous other gold showings iden-tified by geophysics and confirmed with trenching and drilling. The company also has a 100% interest in its newly acquired Andalusite Peak discovery in British Columbia.

A Vote Of Confidence From Goldcorp and A Private Hong Kong FundTriumph has a strong investor base, with their single largest shareholder, Goldcorp Inc. (“Goldcorp”), holding 19.999% of total shares outstanding. Goldcorp’s position signals their confidence in Triumph Gold’s projects and management. Recently, a private Hong Kong fund invested approximately $2.5 MM in the company. Additionally, three existing shareholders participated in the offering, including Goldcorp, to maintain their ownership share of the company.

Blue Sky Potential in the 50+ Moz Tintina Gold beltThe 2018 exploration program targeted 18,000 m of drilling and has expanded significantly, identify-ing several gold rich Porphyry style mineralizations as well as breccia targets. Drilling has encountered good gold grades in breccia style mineralization at WAu and Porphyry style mineralization at Revenue East and Keirsten Zones. The company has also drilled three additional areas - the Blue Sky Zone, the Guder Zone and the Granger Zone – some of the results from which are pending.

We Expect Freegold Mountain To Host 5+ Moz Gold By 2020According to the resource estimate completed in 2015, the Freegold Mountain project hosts 2.2 Moz of gold together with silver, copper, molybdenum, lead and zinc in total resources (using a 0.6 gt/ cut-off for Nucleus and 0.5 g/t cut-off for Revenue and Tinta). We expect this resource to more than dou-ble over the next three years, given the exploration success at the existing zones, as well as discovery of multiple new zones at Freegold Mountain. We like Triumph’s exposure to the extensive Dawson Range, which hosts multiple world-class producing mines and several large, undeveloped gold and base metal deposits.

Increasing Our Target Price from C$ 1.35 per share to C$1.55 per shareTriumph Gold Corp is a Vancouver based mining company with their flagship project in the advanced exploration stage in Canada’s Yukon Territory. We are increasing our 12-month Price Target for TIG to C$ 1.55 per share from C$ 1.35 per share based on significant drilling success in 2018 that has expand-ed the newly discovered WAu Breccia target of high gold grades to 130x200x65 m. Using specific grav-ity of 2.8 and average gold grade of 1.3 g/t, we conservatively expect the WAu breccia to host 150,000 - 175,000 oz of recoverable gold. In our initial coverage of Triumph Gold, we used C$ 135/oz (average valuation of comparable companies). Using C$ 100/oz in the ground valuation, the WAu breccia could easily add $15 MM to the market capitalization of TIG. We maintain our BUY recommendation and areincreasing our target price from C$ 1.35 per share to C$ 1.55 per share.


Triumph Gold has targeted an 18,000 m diamond drill program on its flagship Freegold Mountain property, and is focused on identifying new porphyry and epithermal mineralization within a 6 km long soil and geophysical anomaly that envelops the Revenue and Nucleus deposit areas.

Drilling in 2018 has targeted breccia hosted mineralization near the Revenue diatreme as well as adja-cent porphyry style mineralization at Revenue East, and the porphyry style Keirsten Zone, identified in 2017. Porphyry style mineralization has also been identified in a number of locations beyond Revenue East, to the east in the Blue Sky Zone, and to the west at Revenue West and in the Guder Zone. The released results cover just one third of the completed drilling.

The company will release more drill results from three additional areas: the Blue Sky Zone, the Guder Zone and the Granger Zone, where drilling is now complete but results are pending. Triumph has two rigs drilling approximately 4,000 m in the Nucleus deposit area, one of which will be moved to the Irene epithermal vein area once drilling at the Nucleus deposit is complete.

WAu Breccia Target - A New Target On The Southeast Corner Of The Revenue DiatremeThe WAu Au-Ag-Cu-Mo breccia is located near the SE corner of the Revenue diatreme. This breccia was first intersected in 2011 when two drill holes encountered 1.40 g/t Au, 9.2 g/t Ag, 0.21% Cu and 0.032% Mo over 76.34 m and 0.86 g/t Au, 10.3 g/t Ag, 0.36% Cu and 0.120% Mo over 41.95 m and in 2017 re-sulted in 1.18 g/t Au, 8.3 g/t Ag, 0.24% Cu and 0.013% Mo over 40.0 m. The company did not drill any additional holes in this breccia until the 2018 exploration drilling program.

Five drill holes in 2018 tested the breccia modelled by company geologists as an east-west striking, south dipping body. These drill holes confirmed the continuity and grade of the breccia over a 130 m strike length, and to a depth of at least 200 m. The breccia is open to depth and to the west beneath the Revenue diatreme.

Table 1 - WAu Breccia Target - Drill Result 2018

2018 EXPLORATION DRILLING

Drill hole From To Length (m) Au (g/t) Ag (g/t) Cu (%) Mo (%) AuEq* CuEq*

RVD18-03 52.0 232.0 180.0 0.307 5.7 0.162 0.02 0.825 0.501

Including 60.0 132.0 72.0 0.538 13.72 0.302 0.013 1.327 0.807

RVD18-04 47.0 122.0 75.0 0.334 2.57 0.161 0.013 0.741 0.451

Including 92.0 122.0 30.0 0.513 4.38 0.276 0.013 1.138 0.691

And 173.0 181.4 8.4 0.178 0.48 0.134 0.013 0.515 0.313

RVD18-08 105.0 233.0 128.0 0.639 2.1 0.169 0.037 1.271 0.773

Including 169.3 201.0 31.8 0.748 7.33 0.367 0.018 1.602 0.974

Including 216.5 218.0 1.5 27.2 0 0.096 0.03 27.62 16.783

RVD18-11 47.2 161.5 114.3 0.389 2.53 0.159 0.007 0.746 0.454

Including 62.5 105.5 43.0 0.806 6.03 0.329 0.009 1.502 0.912

RVD18-15 82.0 190.9 108.9 0.234 0.66 0.101 0.035 0.715 0.434

Including 100.0 120.2 20.2 0.394 2.33 0.175 0.053 1.18 0.717


Blue Sky - A Potential Company MakerThe Blue Sky Zone covers a broad area extending 2.3 km east of Revenue to the eastern margin of the anomaly. This zone had returned respectable results in 2017 of 1.01 g/t Au and 0.285% Cu over 57 m, and was tested again during the 2018 exploration program. Drilling in 2018 has further delineated the gold-rich porphyry-style mineralization in the Blue Sky Zone. The best intercept was RVD18-17 with 125.1 m of 1.24 g/t Gold, 7.0 g/t Silver, 0.31% Copper and 0.01% Molybdenum contained within 202.1 m of 0.87 g/t Gold, 5.8 g/t Silver, 0.26% Copper and 0.01% Molybdenum. Drill hole RVD18-16 also in-tercepted 94.5 m at 1.53 g/t Gold, 5.8 g/t Silver, 0.28% Copper and 0.01% Molybdenum. If Blue Sky can be expanded to increase in size with these grades, the impact for Triumph Gold would be substantial.

The Blue Sky Zone, based on the 2017 drilling and the 3 holes just released has delineated a high-grade, gold-rich mineralization over a 180 m area that is open in all directions and to depth. Highlights from the first three drill holes at Blue Sky from 2018 drilling are included in Table 2.

Table 2 - Results from Blue Sky Porphyry

BLUE SKY PORPHYRYDrill hole From To Length (m) Au (g/t) Ag (g/t) Cu (%) Mo (%) AuEq* CuEq*

RVD18-05 375.0 524.3 149.3 0.30 2.50 0.15 0.02 0.72 0.44

Including 484.8 524.3 39.5 0.68 5.00 0.25 0.03 1.38 0.84

Including 508.8 524.3 15.5 0.81 6.00 0.27 0.03 1.63 0.99

RVD18-16 170.5 265.0 94.5 1.53 5.80 0.28 0.01 2.18 1.33

Including 241.5 258.0 16.5 3.44 10.20 0.46 0.03 4.60 2.80

RVD18-17 287.0 489.1 202.1 0.87 5.80 0.26 0.01 1.50 0.91

Including 310.5 435.6 125.1 1.24 7.00 0.31 0.01 1.93 1.17

Happy Creek Gold

Blue Sky Keirsten6 km Multi-Element Soil Anomaly

South Facing View

Diatreme Granger Nucleus


FIGURE 2 - 2018 Drill Locations Blue Sky


FIGURE 3 - 2018 Cross Section Holes RVD18-16 and RVD18-17 at Blue Sky

Other TargetsAs part of the 2018 exploration program, Triumph tested for near surface oxide gold on the eastern part of the Revenue diatreme, and intersected 28.96m @ 0.342 g/t Au in hole RVD18-09 compared to 0.64 g/t Au over 68m from 36m in 2017 (RVD17-10). Significant higher-grade gold and copper was in-tersected in an underlying and previously unknown supergene blanket (e.g. RVD18-10 with 19.81m @ 0.887 g/t Au, 2.7 g/t Ag, and 0.16% Cu) that consists of chalcocite on fractures and coating pyrite, which has been identified elsewhere at Revenue East, e.g. in the upper portion of the WAu breccia.

2018 drilling extended the mineralization at the Revenue east westwards by 110 m and the same min-eralization was also identified on the northeast edge of the Revenue diatreme for greater than 200 m north of the main body of porphyry mineralization.

The Keirsten Zone is a target, located under the overburden between the Revenue and Nucleus de-posits. Drilling in 2017 tested the core of a porphyry style alteration and veining in a granodiorite


porphyry host rock from 193 m to the end of the hole at 603.50 m. The 2018 drill campaign expanded the zone however copper and gold mineralization intersected in the 2018 drilling is mostly low grade.

The recently announced WAu Breccia southeast of the diatreme showed encouraging results that strongly suggest higher grade possibilities for the zone. During the off season, the company reloggedmuch of the core that justified re-testing the area in 2017. Based on the success of that hole, two more were drilled into the area this year, resulting in 72 m of 1.33g/t gold equivalent.

Table 3 - Results from Revenue Diatreme and Porphyry

REVENUE EAST DIATREMEDrill hole From To Length (m) Au (g/t) Ag (g/t) Cu (%) Mo (%) AuEq* CuEq*

RVD18-02 111.0 125.0 14.0 0.05 4.43 0.19 0.01 0.53 0.32

And 198.0 242.0 44.0 0.41 1.90 0.09 0.06 1.08 0.66

Including 231.5 239.0 7.5 1.39 4.60 0.30 0.06 2.50 1.52

RVD18-09 70.1 99.1 29.0 0.34 0.00 0.03 0.00 0.39 0.24

RVD18-10 91.4 111.3 19.8 0.89 2.69 0.16 0.01 1.24 0.76

And 146.0 157.0 11.0 1.56 6.66 0.22 0.00 2.04 1.24

RVD18-12 27.4 30.5 3.1 0.34 0.00 0.13 0.00 0.58 0.35

REVENUE EAST PORPHYRYDrill hole From To Length (m) Au (g/t) Ag (g/t) Cu (%) Mo (%) AuEq* CuEq*

RVD18-01 134.5 201.0 66.5 0.19 2.06 0.10 0.01 0.44 0.27

RVD18-02 8.0 17.5 9.5 0.59 2.53 0.17 0.00 0.94 0.57

And 37.0 57.1 20.1 0.18 2.84 0.16 0.01 0.54 0.33

RVD18-07 102.4 103.6 1.2 0.41 10.00 0.52 0.04 1.74 1.05

RVD18-13 13.0 103.1 90.1 0.17 0.62 0.11 0.01 0.47 0.29

Including 51.0 61.0 10.0 0.34 2.58 0.18 0.02 0.84 0.51


FIGURE 4 - 2018 Exploration Program Drill Locations


FIGURE 5 - Revenue East and Keirsten Zone Drill Results, 2017

The 2017 exploration work focused on testing four newly identified porphyry targets. A 13,000 m pro-gram was completed in 2017 on Nucleus (4,000 m drilling), Revenue and the adjacent Blue Sky Zone (5,000 m drilling, the Generation Zone (2,000 m drilling) and at the soil and geophysical anomaly that extends 2 km along strike between the Nucleus and Revenue deposit areas (2,000 m drilling).

Of note in the company’s recent release are the successful WAu Breccia highlights going back to the Blue Sky Zone that returned respectable results in 2017 of 1.01 g/t Au and 0.285% Cu over 57 m. If Blue Sky can be expanded to increase in size with these grades, the results for the company, and the impact in the marketplace, would be substantial.

2017 EXPLORATION DRILLING


FIGURE 5 - Revenue East and Keirsten Zone Drill Results, 2017

The Freegold Mountain Project Already Has A Large NI 43-101 Compliant ResourceAn NI 43-101 report on the Freegold Mountain project was completed in December 2014. The project has 800,000 oz Gold, 900,000 oz Silver, 41.3 Mlbs Copper in Indicated Resources and an additional 1.4 Moz Gold, 13.4 Moz Silver, 262.4 Mlbs Copper, 82.9 Mlbs Molybdenum, 47.1 Mlbs Lead and 67.2 Mlbs Zinc in the inferred category.

Major Gold Producer Goldcorp Is The Single Largest Shareholder With A 19.99% InterestSenior gold producers are always looking for juniors with large discoveries to acquire and mine. Most major gold producers invest in several juniors to hedge their risk. Goldcorp is a key player in the Yukon after its $520 MM purchase of Kaminak Resources in 2016. Goldcorp is also the single largest share-holder of Triumph Gold. Over 55% of Triumph’s shares are held by institutional investors, 19.999%


FIGURE 6 - Location on Freegold Mountain Project compared to Goldcorp’s Coffee Creek

held by Goldcorp, and 8.7% of the total shares outstanding held by Directors and Officers. Goldcorp’s position as the single largest shareholder demonstrates their confidence in Triumph’s management team and the potential of the Freegold Mountain Project. In the recently announced financing, a pri-vate Hong Kong fund invested $2.5 MM, again demonstrating the quality of Freegold Mountain project and its potential to significantly expand.

Over 50 Moz Gold Discovered in the Tintina Gold Belt over the Last 20 YearsThe Tintina Gold Belt, also known as the Tintina Gold Province or TGP, is an arcuate 200-km-wide 1,200-km-long metallogenic province, extending from northern British Columbia into southwestern Alaska. The TGP is bound by the Tintina-Kaltag fault systems on the north and the Denali-Fairwell fault systems on the south. The province includes a large number of gold deposits - Pogo, Fort Knox, True North, Donlin Creek, and Shotgun and remains a prime area for gold exploration.


Over the last 20 years, the TGP region of Alaska has experienced accelerated gold exploration, devel-opment, and mining activity (Fort Knox and True North mines in the west near Fairbanks, and the Pogo mine in the east). Some of the gold deposits in the Tintina Gold Belt are worth mentioning: the Dublin Gulch Mine (4.8 Moz Indicated and 1.5 Moz Inferred Gold), The Fort Knox Mine (+7 Moz gold produced till date and 1.5 Moz in Proven and Probable Reserves), the Donlin Creek deposit (+39 Moz M&I Gold), the Livengood deposit (8.1 Moz gold), the White Gold deposit (1.4 Moz gold - recently taken over by Kinross Gold Corp), and the Pogo Mine (5.6 Moz gold).

NEAR-TERM CATALYSTS• More results from the now 2.85 km strike mineralized porphyry with a 450 m strike of high grade mineralization.

• Drill results from the Blue Sky Zone, the Guder Zone and the Granger Zone as well as the Irene vein. Trenching as well as soils are being done on other areas of the property late in the season.

Comprehensive Research Equity Rating Scale:Buy – Annual expected rate of return exceeds 12% or the expected return is commensurate with riskHold – Annual expected rate of return is between 5% and 12%Sell – Annual expected rate of return is below 5% or the expected return is not commensurate with riskSuspended or Rating N/A— Coverage and ratings suspended until more information can be obtainedfrom the company regarding recent events.

Disclaimers and DisclosureThe opinions expressed in this report are the true opinions of the analyst about this company and industry. Any “forward looking statements” are our best estimates and opinions based upon information that is publicly available and that we be-lieve to be correct, but we have not independently verified with respect to truth or correctness. There is no guarantee that our forecasts will materialize. Actual results will likely vary. Comprehensive Research “CR” and its shareholders may or may not own any shares of the subject company, may or may not make a market or offer shares for sale of the subject compa-ny, and may or may not have any investment banking business with the subject company. The analyst does not own any shares of the subject company, does not make a market or offer shares for sale of the subject company, does not have any investment banking business with the subject company. Fees were paid by TIG to CR. The purpose of the fee is to subsidize the high costs of research and dissemination. CR takes steps to ensure independence including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct. Additionally, ana-lysts may not trade in any security under coverage. Our full editorial control of all research, timing of release of the reports, and release of liability for negative reports are protected contractually. To further ensure independence, CR has agreed to a minimum coverage term including an initial report and three updates. Coverage cannot be unilaterally terminated. Distri-bution and dissemination of our reports utilizes multiple channels, including but not limited to: email, databases, targeted advertising, subscription, outsourced advertising, audio/visual presentations, and social media.

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quarterly update triumph gold corp. (tsxv: tig)...7 triumph gold corp. tsv tig recommendation - buy...

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