TSX:AMB
www.aubullion.com
HAYDEN, ID,
June 4, 2013 /CNW/ - Americas
Bullion Royalty Corp. (TSX: AMB) (the "Company") is pleased to
report that Midway Gold Corp. ("Midway") announced the receipt of a
Class 1 Air Quality Operating Permit to Construct (AQPCQ) required
for production at its Pan Gold Project in Nevada. According to Midway's news
release of May 30, 2013 the public
comment period for the Pan draft environmental impact statement is
closed and the response was overwhelmingly positive. The permitting
schedule at Pan continues to remain on track for a fall 2013 record
of decision by the U.S. Bureau of Land Management. Americas Bullion
holds a sliding scale royalty on the Pan Project under which a 4%
Gross Production Royalty is payable when gold is above USD
$450/oz.
According to the release, Midway received the
Class 1 Air Quality Control Permit upon a determination by the
Bureau of Air Pollution Control that no adverse air quality impacts
are expected from the proposed operations. The air quality permit
was issued following a 30-day public comment period for the
AQOPC.
Pan Gold Project, Nevada
According to Midway, the Pan Project represents nearly a
US$100 million capital investment in
a part of Nevada that welcomes new
investment and associated economic opportunities (see Midway
Feasibility Study dated December 19,
2011). Geologically, the project is an oxidized,
Carlin-style gold deposit mineable by shallow, open pit methods and
treatable by heap leaching. Midway's Feasibility Study dated
December 19, 2011 shows the after-tax
NPV 5% of the project ranging from $123
million at $1,200/oz gold to
$344 million at $1,900/oz gold. The after-tax IRR grows from 32%
to 79% using the same gold price range (see Midway press release
dated November 15, 2011).
Based on Midway's news release of November 15, 2011, the Pan Project has proven
reserves of 487,000 oz gold at a grade of 0.60 g/t and probable
reserves of 377,000 oz gold at a grade of 0.51 g/t, for a total of
864,000 oz gold at a grade of 0.56 g/t, using updated NI 43‐101
compliant mineral reserve estimates. The mine plan used by Midway
in the feasibility study is based on producing 17,000 short tons of
ore per day over an 8-year period and assumes 75% recoveries, with
production exceeding 81,000 oz gold per annum. Based on this mine
plan, Americas Bullion calculates that the annual cash flow to the
Company from its Pan royalty would, assuming a $1,600/oz gold price, be $5.2 million (from which advance royalty payments
of approximately $1,000,000 to date,
would be deducted from the first year's payment). Also, the Company
determined that total royalty payments over the eight-year period
would exceed $41 million (see the
Company's press release dated December 5,
2011).
The technical content of this news release has
been reviewed and approved by Michael
Maslowski, BSc, CPG, the Company's Chief Operating Officer
and a Qualified Person as defined by National Instrument
43‐101.
About Midway Gold Corp.
Midway Gold Corp. is a precious metals company with a vision to
explore, design, build and operate gold mines in a manner
accountable to all stakeholders while assuring return on
shareholder investments.
Americas Bullion Royalty Corp.
Americas Bullion Royalty Corp. focuses on acquiring precious metal
royalties and streaming assets which provide revenue as well as
lower risk exposure to shareholders through project diversity in
stable, mining-friendly jurisdictions. The Company's existing
portfolio is highlighted by Gross in-kind Royalties on Midway
Gold's Pan and Gold Rock deposits, as well as 2 separate royalties
encompassing more than 34 square miles at Barrick Gold's Bald
Mountain project in Nevada.
The Company holds additional royalties including
Net Smelter Return Royalties on the Taylor Silver project and a
portion of the Tonkin Springs project also in Nevada. The Company's royalty holdings
comprise more than 100,000 acres located primarily in Nevada, with 7 of the projects located in
Wyoming, Oregon, California and Mexico. Current royalty revenue is expected to
accelerate as early as 2014 as several of these projects commence
production. Americas Bullion Royalty Corp.'s prime royalty
portfolio is unique in the mineral royalty industry due to its
ability to receive the majority of projected revenues
in-kind (gold bullion as opposed to cash), its concentration
of gross royalties with no exposure to operator cost, as well as
its security of title with no buyback or buyout provisions. The
Company continues to advance or monetize other assets including its
significant Yukon property
holdings, security holdings and the Taylor Mill in Nevada.
No stock exchange, securities commission or
other regulatory authority has approved or disapproved the
information contained herein. This press release contains
projections and forward-looking information that involve various
risks and uncertainties regarding future events. Such
forward-looking information can include without limitation
statements based on current expectations involving a number of
risks and uncertainties and are not guarantees of future
performance. There are numerous risks and uncertainties that could
cause actual results and Americas Bullion's plans and objectives to
differ materially from those expressed in the forward-looking
information. Actual results and future events could differ
materially from those anticipated in such information. These and
all subsequent written and oral forward-looking information are
based on estimates and opinions of management on the dates they are
made and are expressly qualified in their entirety by this notice.
Except as required by law, Americas Bullion assumes no obligation
to update forward-looking information should circumstances or
management's estimates or opinions change.
SOURCE Americas Bullion Royalty Corp.