VANCOUVER, BC, May 26, 2021 /CNW/ - Elemental Royalties
Corp. ("Elemental" or "the Company") (TSXV: ELE)
(OTCQX: ELEMF) notes the recent announcement from Austral Gold
Limited ("Austral") (ASX: AGD) (TSXV: AGLD) that in the
course of an ongoing delineation program at its Amancaya mine it
has discovered another new mineralized zone.
Elemental holds a 2.25% NSR royalty at Amancaya, which generated
US$1.9 million of revenue in 2020,
and expects approximately 50,000 gold equivalent ounces sold in
20211. Additionally, Elemental notes recent developments
at its Karlawinda, Mercedes, and Panton royalties.
Austral Defining Two New Veins at the Amancaya Mine
- Austral have released further exploration results as they drill
out extensions to the Main Vein at Amancaya. Results continue to
define mineralisation to potentially extend the Resource Estimate
of the system mined to date at shallower levels, with highlights
that include:
-
- 1.24m @ 7.46g/t from 217.8m (DAM016)
- 1.58m @ 6.08g/t from 231.1m (DAM019)
- 1.89m @ 5.41g/t from 309.4m (DAM025)
- More significantly, Austral are starting to define two new
veins parallel to, and on either side of the Main Vein (see Figure
below). The first of these to the northeast of the Main Vein was
first reported in January in DAM008, with results of 30m @ 4.04g/t including 4.14m @ 23.5g/t.
- New drilling on this earlier discovered 'East Vein' has
returned the following intersections:
-
- 1.82m @ 3.11g/t from 377.5m (DAM016)
- 4.27m @ 7.81g/t from 249.8m (DAM019)
- Notably, DAM016 also intersected a total of more than
25m of intermittently mineralised
material below the intersection noted above. This thick zone is
consistent with the 30m mineralised
breccia zone in January's DAM008 about 50m away, which provides further encouragement
for larger volumes of lower grade mineralised material.
- With the recent drilling, the East Vein is also now determined
to have a NW trend, parallel to the southern portion of the Main
Vein, and so will be expected to intersect the north-south trending
northern portion below the current mine development; and, so is
likely to be easily accessible from the existing and planned
workings of the adjacent Main Vein.
- Another new vein, the 'West Vein', has been discovered through
drilling on the other side of the mine workings with the following
results:
-
- 2.41m @ 10.2g/t from 20.3m (DAM024)
- 1.17m @ 25.0g/t from 52.6m (DAM026)
- The West Vein also trends NW, parallel to the southern portion
of the Main Vein; and is enticing with such shallow intersections
of higher grades for possible initial open pit extraction; and for
the untested potential below. Surface mapping also appears to show
the vein and breccia system returning to a north south direction,
to the south of the recent West Vein drilling, perhaps presenting a
further exploration target.
- A further drilling program is planned to test both new veins
and their relationship to the Main Vein mineralisation.
Richard Evans, Elemental's Senior
Vice President, Technical, said: "It is still early in testing
of the new mineralisation at Amancaya but this discovery
significantly increases both the complexity of the system and the
volume of potentially mineralised material in the immediate
vicinity of the existing mine workings. The new veins are
interpreted by Austral to occur in a large volume of brecciated
material on both sides of the Main Vein, with indications now of
the Amancaya Mine being centred on a significant dilatant jog in
the structure."
Karlawinda Construction on Track
Capricorn Metals ("Capricorn") (ASX: CMM) announced that
concreting and civil earthworks have been completed at the
processing plant, the ball mill has been delivered to site, the
majority of processing equipment and steelwork has been delivered,
construction of the Tailings Storage Facility is underway, and
mining has commenced in the Bibra open pit.
Development costs are in line with budget, with the available
funding balance including a 29% contingency allowance. First gold
production continues to be expected in Q2 2021.
Elemental acquired an uncapped 2% NSR royalty from South32 in
February 2021.
Capricorn has also commenced a near pit exploration program,
targeting the conversion of Inferred Resources to Indicated
immediately to the west of the current A$1,600 Bibra pit, to support potential pit
expansions and production increases.
Equinox Acquires Mercedes Mine
On December 16, 2020 Equinox Gold
(TSX: EQX) (NYSE-A: EQX) and Premier Gold Mines announced that the
companies had entered into a definitive agreement whereby Equinox
Gold would acquire all of the outstanding shares of Premier. The
acquisition was completed on April 7,
2021 and the combined entity has a market capitalisation of
approximately US$2.7 billion.
The focus at Mercedes is currently on the promising,
fast-evolving Diluvio/Lupita/San Martin system while also
implementing continued exploration, underground development, and
mill maintenance programs with the intention of returning to full
annual production of approximately 80,000 to 90,000 ounces. Equinox
have guided gold production at Mercedes of 30,000 to 35,000 ounces
from April 7, 2021 to December 31, 2021.
Elemental acquired an existing uncapped 1% NSR royalty on
Mercedes in 2018. Royalty revenue is due to Elemental after the
earlier of: (a) the date on which 450,000 ounces of gold equivalent
have been produced after July 28,
2016 or (b) the sixth anniversary of that date (July 28, 2022). Elemental expects that as a
result of the COVID-19 stoppages, the start of royalty payments are
likely to be payable from July 28,
2022.
Red Emperor Resources Acquires Panton Project
Red Emperor Resources NL ("Red Emperor") (ASX: RMP) (AIM: RMP)
announced that it intends to acquire Great Northern Palladium Pty
Ltd ("GNP") the private company which owns 80% of the Panton
project, and holds an option over the remaining 20%.
Concurrent to the acquisition, Red
Emperor intends to complete a A$10
million equity fundraising, providing a strong financial
position to advance the Panton PGM project.
Panton has a Measured and Indicated JORC Resource of 12.2Mt @
2.46g/t Pd, 2.25g/t Pt, 0.3g/t Au, 0.26% Ni, 0.07% Cu for 963koz Pd
and 878koz Pt; and an Inferred JORC Resource of 2.2Mt @ 2.0g/t Pd,
1.9g/t Pt, 0.3g/t Au. 0.31% Ni, 0.11% Cu, for 139koz Pd and 129koz
Pt2.
Red Emperor are building a strong
team, with former Stillwater Mining Company Managing Director
Mick McMullen to be appointed as a
strategic adviser and experienced company director, Justin Tremain, to join the Board; and engaging
a geologist who worked on the original Mineral Resource Estimate
delineation drilling.
Elemental acquired an existing uncapped 0.5% NSR royalty on
Panton in 2017.
On behalf of Elemental Royalties Corp.
Frederick Bell
CEO and
Director
Elemental is a proud member of Discovery Group. For more
information please visit: www.discoverygroup.ca or contact
604-653-9464.
TSX.V: ELE | OTCQX: ELEMF | ISIN: CA28619L1076
About Elemental Royalties
Elemental is a gold-focused royalty company listed on the TSX-V
in Canada and provides investors
with lower risk precious metals exposure through a portfolio of
nine high-quality royalties. This enables investors to
benefit from ongoing royalty revenue, future exploration upside and
low operating costs. Elemental's experienced team seeks to secure
royalties in advanced precious metals projects, run by established
operators, from its pipeline of identified opportunities.
Qualified Person
Richard Evans, FAusIMM, is Senior
Vice President Technical for Elemental, and a qualified person
under National Instrument 43-101 – Standards of Disclosure for
Mineral Projects, has reviewed and approved the scientific and
technical disclosure contained in this press release.
Neither the TSX-V nor its Regulation Service Provider (as
that term is defined in the policies of the TSX-V.) accepts
responsibility for the adequacy or accuracy of this press
release.
1 Elemental has included certain
performance measures in this press release that do not have any
standardized meaning prescribed by International Financial
Reporting Standards (IFRS). The Company's royalty revenue is
converted to an attributable gold equivalent ounce basis by
dividing the royalty revenue received in a period by the average
gold price for the same respective period. The presentation of this
non-IFRS measure is intended to provide additional information and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. Other
companies may calculate these non-IFRS measures differently. The
production forecast was derived using information that is available
in the public domain as at the date hereof, which included guidance
and estimates prepared and issued by management of the operators of
the mining operations in which Elemental holds an interest. The
production forecast is sensitive to the performance and operating
status of the underlying mines. None of the information has been
independently verified by Elemental and maybe subject to
uncertainty. There can be no assurance that such information is
complete or accurate.
2 Panoramic Resources Ltd.'s
ASX announcements dated September 30,
2015, titled "Mineral Resources and Ore Reserves at
June 30, 2015", The ASX announcement
is prepared in accordance with the JORC Code and is available on
Panoramic's website at
https://panoramicresources.com/asx-announcements/.
Cautionary note regarding forward-looking statements
This release contains certain "forward looking statements" and
certain "forward-looking information" as defined under applicable
Canadian securities laws. Forward-looking statements and
information can generally be identified by the use of
forward-looking terminology such as "may", "will", "should",
"expect", "intend", "estimate", "anticipate", "believe",
"continue", "plans" or similar terminology.
Forward-looking statements and information include, but are not
limited to, statements with respect to the future growth and
development of the Company. Forward-looking statements and
information are based on forecasts of future results, estimates of
amounts not yet determinable and assumptions that, while believed
by management to be reasonable, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Forward-looking statements and information are
subject to various known and unknown risks and uncertainties, many
of which are beyond the ability of Elemental to control or predict,
that may cause Elemental's actual results, performance or
achievements to be materially different from those expressed or
implied thereby, and are developed based on assumptions about such
risks, uncertainties and other factors set out herein, including
but not limited to: the requirement for regulatory approvals and
third party consents, the impact of general business and economic
conditions, the absence of control over the mining operations from
which Elemental will receive royalties, including risks related to
international operations, government relations and environmental
regulation, the inherent risks involved in the exploration and
development of mineral properties; the uncertainties involved in
interpreting exploration data; the potential for delays in
exploration or development activities; the geology, grade and
continuity of mineral deposits; the impact of the COVID-19
pandemic; the possibility that future exploration, development or
mining results will not be consistent with Elemental's
expectations; accidents, equipment breakdowns, title matters, labor
disputes or other unanticipated difficulties or interruptions in
operations; fluctuating metal prices; unanticipated costs and
expenses; uncertainties relating to the availability and costs of
financing needed in the future; the inherent uncertainty of
production and cost estimates and the potential for unexpected
costs and expenses, commodity price fluctuations; currency
fluctuations; regulatory restrictions, including environmental
regulatory restrictions; liability, competition, loss of key
employees and other related risks and uncertainties. Elemental
undertakes no obligation to update forward-looking information
except as required by applicable law. Such forward-looking
information represents management's best judgment based on
information currently available. No forward-looking statement can
be guaranteed and actual future results may vary materially.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements or information.
SOURCE Elemental Royalties Corp.