VANCOUVER, BC / ACCESSWIRE / November 22, 2023 / Rover Metals Corp. (TSXV:ROVR)(OTCQB:ROVMF)(FSE:4XO) (“Rover” or the “Company“) is pleased to announce it has conducted a successful meeting with the Bureau of Landa Management (“BLM”) and numerous other U.S. government agencies to discuss the Project Description for the Let’s Go Lithium (“LGL”) project. Rover updated the original project description to address environmental concerns expressed by the agencies. The Project Description, is in effect, an executive summary of the Company’s Plan of Operations (the “Plan”) for the LGL project. The meeting was held to solicit feedback as the Company moves to finalize its Plan.
LGL Plan of Operations
Rover has been working with McGinley and Associates, dba UES (“UES”) since August 2023 to produce a water table flow model across the subject claim blocks. Although still in draft form, the water table flow model, developed by UES’ Principal Hydrologist – Dwight Smith PE, PG, CHg, and team, is an integral part of Rover’s new Plan. Following the Company’s release of July 24, 2023, the BLM, and supporting U.S. government agencies voiced their concerns to Rover about regional hydrology flow systems in the area. The revised plan has been developed to explicitly address the agencies environmental concerns, de-risking future regulatory challenges and potential for adverse environmental impacts. Further to the Company’s release of October 5, 2023, approximately 80% of the Company’s intended future exploration activities will occur on the recently acquired October mining claims.
Judson Culter, CEO at Rover Metals, states, “UES continues to help Rover to ensure that there will be no impact to the critical water tables and sensitive biological resources in the Amargosa basin. Dwight Smith has over 20 years of hydrogeology experience working in the Amargosa basin. Rover and UES have obtained a copy of the Plan of Operations and Environmental Assessment study that the neighbouring mine, operated by Lhoist North America, is operating under. Lhoist has been mining in the area for over 50 years, and their Plan of Operations was mostly recently updated in 1992. Management at Rover, and UES, feel confident that sustainable lithium mining can be supported in the Amargosa Valley.“
A Call for Battery Recycling Partnerships and Joint Ventures
Management at Rover has met with the Nevada State Governor’s Office to discuss developing partnerships with EV battery recycling companies in the city of Las Vegas. Management of the company will be continuing to pursue high-level joint venture opportunities at the state level in H1 of 2024.
The eastern Amargosa Valley has been slated for solar farm energy development by the BLM. Solar energy, in addition to the existing hydro energy infrastructure in the area, allows for new development opportunities like EV raw materials battery recycling. Rover is seeking inbound requests to partner with recycling technology companies. Please contact info@rovermetals.com with inquiries. The LGL project is a one and half hour drive from the city of Las Vegas, one of the fastest growing cities in the U.S.
Rover is a publicly traded junior mining company that trades on the TSXV under symbol ROVR, on the OTCQB under symbol ROVMF, and on the FSE under symbol 4XO. The Company has a diverse portfolio of mining resource development projects with varying exploration timelines. Its critical mineral projects include lithium, zinc, and copper. Its precious metals projects include gold and silver. The Company is exclusive to the mining jurisdictions of the U.S. and Canada.
You can follow Rover on its social media channels:
This news release contains statements that constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause Rover’s actual results, performance, achievements, or developments in the industry to differ materially from the anticipated results, performance, or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur. There can be no assurance that such statements prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Any factor could cause actual results to differ materially from Rover’s expectations. Rover undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates, opinions, or other factors, should change.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.
Binance, the world’s largest cryptocurrency exchange, will pay more than $4 billion in a plea agreement with the U.S. government, FOX Business has confirmed.
Prosecutors said CEO Changpeng Zhao will plead guilty in Seattle federal court Tuesday to violating U.S. law in a settlement that resolves a years-long criminal investigation, the Wall Street Journal first reported.
Binance faces three criminal charges for violating U.S. anti-money laundering law, a conspiracy charge and violating the International Emergency Economic Powers Act, court records show.
Zhao, who founded Binance in 2017 and guided it to a dominant position in cryptocurrency markets, will step down from the company and plead guilty to causing a financial institution to violate the Bank Secrecy Act. He has agreed to pay a $50 million fine, which will be credited against sums paid to the Commodity Futures Trading Commission (CFTC), prosecutors said.
Changpeng Zhao, chief executive officer of Binance, speaks during an interview in Tokyo, Japan, on Thursday, Jan. 11, 2018. (Akio Kon/Bloomberg via Getty Images / Getty Images)
The plea agreement calls for Zhao’s resignation as CEO and bars him from any present or future involvement in operating or managing the cryptocurrency exchange.
Binance agreed to pay a $1.81 billion criminal fine within 15 months of sentencing. Prosecutors said the company also consented to a $2.51 billion order of forfeiture.
The firm’s former chief compliance officer Samuel Lim will also be charged as part of the settlement, Reuters reported.
Changpeng Zhao, founder and chief executive officer of Binance, attends the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France June 16, 2022. (REUTERS/Benoit Tessier/File Photo / Reuters Photos)
Attorney General Merrick Garland and Treasury Secretary Janet Yellen are scheduled to appear at a Justice Department press conference at 3 p.m. ET to announce “cryptocurrency enforcement actions.”
The SEC in June filed a civil complaint against Binance and its founder, Zhao, accusing them of creating Binance.US as part of a “web of deception” to evade securities laws aimed at protecting U.S. investors. That same month, Binance.US laid off around 50 employees, a source told Reuters at the time.
DOJ prosecutors asked the company in December 2020 to provide internal records about its anti-money laundering efforts, along with communications involving Zhao, who founded the company in 2017.
The Binance Exchange website on a laptop computer arranged in Dobbs Ferry, New York, on Saturday, Feb. 20, 2021. (Getty / Getty Images)
The CFTC in March filed civil charges against Binance, alleging it failed to implement an effective anti-money laundering program to detect and prevent terrorist financing. Citing internal communications, CFTC alleged that Binance officers and employees acknowledged the platform had facilitated “potentially illegal activities.”
In February 2019, Binance’s former Chief Compliance Officer Lim received information on transactions by the militant Palestinian group Hamas on Binance, the CFTC wrote.
Binance has also seen a number of recent executive exits. Its global head of product, Mayur Kamat, resigned in September and its chief strategy officer, Patrick Hillmann, left in July.
The crypto giant and the industry at large have fallen under greater scrutiny from regulators after the collapse of Binance’s one-time chief rival, FTX, last November.
FOX Business’ Susan Li, Breck Dumas and Reuters contributed to this report.
Vancouver, British Columbia–(Newsfile Corp. – November 20, 2023) – Goldshore Resources Inc. (TSXV: GSHR) (OTCQB: GSHRF) (FSE: 8X00) (“Goldshore” or the “Company“) is pleased to announce that it has closed its previously announced private placement (the “Private Placement“), for aggregate gross proceeds of $3.75 million. The Company issued the following securities:
(i) 37,500,000 units of the Company (“Units“) at a price of $0.10 per Unit. Each Unit consists of one common share (each, a “Common Share“) and one common share purchase warrant (each whole warrant, a “Warrant“); and
(ii) Each Warrant will entitle the holder thereof to purchase one Common Share (a “Warrant Share“) at an exercise price of $0.13 per Warrant Share for the next thirty-six (36) months until November 17, 2026.
The net proceeds from the Private Placement will be used to continue to advance the Moss Gold Project through development of a new resource model and a new mineral resource estimation; in addition to continuing the engineering and metallurgical studies being done on various leach methodologies (including heap leach) and ultimately factoring this new information into a preliminary economic assessment, along with working capital and general corporate purposes.
In connection with the Private Placement, the Company paid a finder’s fee of 1,008,000 Units to Eventus Capital Corp. There were no cash finder’s fees paid in connection with the Private Placement.
The securities issued pursuant to the Private Placement, and any Common Shares issued on exercise of Warrants, are subject to a four-month and one day hold period under applicable securities laws in Canada and TSX Venture Exchange (“TSXV“) hold period, as applicable, expiring on March 18, 2024.
Certain directors and officers of the Company have participated in the Private Placement. Brett A. Richards, a director and officer of the Company, subscribed for 900,000 Units; Marlis Yassin, an officer of the Company, subscribed for 100,000 Units; Victor Cantore, a director of the Company, subscribed for 750,000 Units; Shawn Khunkhun, a director of the Company, subscribed indirectly for 250,000 Units; Joanna Pearson, a director of the Company, subscribed for 100,000 Units; and Peter Flindell, an officer of the Company, subscribed for 300,000 Units (collectively, the “Related Party Participation“). The Related Party Participation constitutes a “related party transaction” as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“). Pursuant to sections 5.5(a) and 5.7(1)(a), the Company is exempt from obtaining a formal valuation and minority approval of the Company’s shareholders in respect of the Related Party Participation due the fair market value of the Related Party Participation being below 25% of the Company’s market capitalization for the purposes of MI 61-101.
The Company will file a material change report in respect of closing of the Private Placement. However, the material change report will be filed less than 21 days prior to the closing of the Private Placement, which is consistent with market practice and the Company deems reasonable in the circumstances.
Issuance of RSUs
The Company has also issued 600,000 restricted share units (“RSUs“) to Kyle Hickey, a director of the Company. The RSUs will fully vest on November 17, 2024, one year from the date of grant. Once vested, each RSU represents the right to receive one Common Share, the equivalent cash value thereof, or a combination of the two, at the Company’s discretion. The issuance of RSUs have been made in accordance with the Company’s Omnibus Incentive Plan (the “Plan“) that was approved by the Company’s directors on November 8, 2022. The Plan remains subject to the approval of the shareholders of the Company at its next Annual General and Special Meeting. Any grants of share-based compensation made under the Plan prior to approval of the Plan by shareholders, including the aforementioned grant of the RSUs and the grant of RSUs noted below, will be subject to the approval of disinterested shareholders at the next Annual General and Special Meeting of the Company. The Company anticipates holding its next Annual General and Special Meeting of shareholders on January 23, 2024.
Early Warning Disclosure
The Company has been advised that following the: (i) acquisition as part of the Private Placement by Brian Paes-Braga (“Acquiror”) of 15,000,000 Units, issued for a price of $0.10 per Unit for total consideration paid by Acquiror of $1,500,000, and (ii) grant by the Company of 600,000 RSUs to Acquiror, the Acquiror has beneficial ownership, control or direction of 15,675,000 Common Shares representing 6.34% of the issued and outstanding Common Shares, and would have beneficial ownership, control or direction of 31,275,000 Common Shares representing 11.90% of the Common Shares on a partially diluted basis assuming the exercise of Warrants and settlement of RSUs. The Acquiror has beneficial ownership of 15,000,000 Warrants representing 17.73% of the issued and outstanding Warrants. The Acquiror has beneficial ownership of 600,000 RSUs representing 12.84% of the issued and outstanding RSUs. Prior to the Private Placement, the Acquiror had beneficial ownership, direction or control of 675,000 Common Shares, representing 0.27% of the issued and outstanding Common Shares. The Company has been advised that the Acquiror acquired these securities for investment purposes and their acquisition will be disclosed in an early warning report to be filed under the Company’s SEDAR+ profile. The Acquiror may in the future acquire or dispose of securities of the Company through the market, privately or otherwise, as circumstances or market conditions warrant.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
About Goldshore
Goldshore is an emerging junior gold development company and owns 100% of the Moss Gold Project located in Ontario. The Company is well-financed and supported by an industry-leading management group, board of directors, and advisory board. Goldshore is well positioned to advance the Moss Gold Project through the next stages of exploration and development.
For More Information – Please Contact:
Brett A. Richards President, Chief Executive Officer and Director Goldshore Resources Inc.
This news release contains statements that constitute “forward-looking statements” within the meaning of Canadian securities laws. Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.
Forward-looking statements in this news release include, among others, statements relating to expectations regarding the exploration and development of the Moss Gold Project, use of proceeds related to the Private Placement, filing of a material change report with respect to the Private Placement, shareholder meetings and other statements that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: the Company may require additional financing from time to time in order to continue its operations which may not be available when needed or on acceptable terms and conditions acceptable; compliance with extensive government regulation; domestic and foreign laws and regulations could adversely affect the Company’s business and results of operations; the stock markets have experienced volatility that often has been unrelated to the performance of companies and these fluctuations may adversely affect the price of the Company’s securities, regardless of its operating performance.
The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.
MONTREAL, Nov. 20, 2023 /CNW/ – Aya Gold & Silver Inc. (TSX: AYA) (OTCQX: AYASF) (“Aya” or the “Corporation”) is pleased to announce new high-grade drill exploration results at Boumadine in the Kingdom of Morocco. The new results confirm the large, high-grade mineralized zones in the central and northern portions of the Main Trend, which remains open in all directions.
The Corporation has also added 4 permits to Boumadine, which now has a total surface footprint of 78 square kilometers (“km²”).
Key Highlights1
Definition of new high-grade mineralization from the infill drilling program:
BOU-DD23-180 intersected 1,039 grams per tonne (“g/t”) silver equivalent (“AgEq”) over 23.5 meters (“m”) (6.41 g/t Au, 116 g/t Ag, 4.7% Zn, 0.6% Pb and 0.4% Cu)
BOU-DD23-184 intersected 474 g/t AgEq over 30.1m (2.57 g/t Au, 85 g/t Ag, 2.2% Zn, 0.6% Pb and 0.1% Cu), including 3.2m at 1,339 g/t AgEq and 3.4m at 1,169 g/t AgEq
BOU-DD23-172 intersected 2,689 g/t AgEq over 3.7m (22.03 g/t Au, 531 g/t Ag, 1.3% Zn, 0.3% Pb and 0.2% Cu)
BOU-DD23-186 intersected 442 g/t AgEq over 16.6m (1.85 g/t Au, 150 g/t Ag, 1.9% Zn, 0.3% Pb and 0.1% Cu), including 2.7m at 1,088 g/t AgEq
BOU-DD23-176 intersected 202 g/t AgEq over 30.6m (1.42 g/t Au, 20 g/t Ag, 0.6% Zn, 0.3% Pb and 0.05% Cu)
BOU-DD23-178 intersected 613 g/t AgEq over 9.5m (2.70 g/t Au, 49 g/t Ag, 4.2% Zn, 1.8% Pb and 0.2% Cu), including 2.3m at 1,476 g/t AgEq
Acquisition of two mining permits totaling 15.8 km² north-east and south-west of Boumadine.
Acquisition of one mining and one exploration permit for a total of 20.0 km² west of Boumadine.
“The acquisition of new permits is core to our strategy of consolidating our land position, and the four permits provide additional upside potential in the vicinity of the Boumadine Main Trend,” said Benoit La Salle, President & CEO. “Today’s high-grade drilling results including BOU-DD23-180 and BOU-DD23-184 confirm both continuity of the Main Trend and its potential from surface and over a very wide area. Following the positive metallurgical test results, our team is now focused on completing the remaining 20% of the expanded drill program and delivering the Q1-2024 Boumadine resource estimate.”
__________________________________
1All intersections are in core lengths; Ag equivalent is based on a 100% recovery with the following ratios: 1g/t Au: 93.4 g/t Ag; 1% Cu: 130.4 g/t Ag; 1% Pb: 31.8 g/t Ag; 1% Zn: 54.1 g/t Ag
Table 1 – Significant Intercepts from Boumadine Drill Exploration Program (Core Lengths)
DDH No.
Section
Zone
From (m)
To (m)
Au (g/t)
Ag (g/t)
Length* (m)
Cu (%)
Pb (%)
Zn (%)
Mo (g/t)
Ag Eq** (g/t)
BOU-DD23-172
8550N
Para
141.5
146.1
4.59
99
4.6
0.1
0.9
2.3
135
694
BOU-DD23-172
8550N
Main
151.8
155.5
22.03
531
3.7
0.2
0.3
1.3
9
2689
BOU-DD23-172
8550N
Para
163.5
169.2
2.61
100
5.7
0.1
0.1
4.1
8
589
Including
165.2
168.6
3.96
150
3.4
0.2
0.2
6.4
11
902
BOU-DD23-173
8025N
Main
203.5
214.1
1.60
22
10.6
0.0
0.1
1.2
6
246
BOU-DD23-176
8275N
Main
69.1
99.7
1.42
20
30.6
0.0
0.3
0.6
8
202
BOU-DD23-178
8275N
Main
166.4
175.9
2.70
49
9.5
0.2
1.8
4.2
36
613
Including
165.4
167.7
6.49
125
2.3
0.3
1.3
12.3
4
1476
BOU-DD23-179
8225N
Main
70.3
82.2
1.52
8
11.9
0.0
0.5
1.4
18
246
BOU-DD23-180
8375N
Para
127.7
136.5
1.27
21
8.8
0.0
0.5
2.5
17
298
BOU-DD23-180
8375N
Main
165.1
188.6
6.41
116
23.5
0.4
0.6
4.7
3
1039
BOU-DD23-180
8375N
Para
248.5
282.4
0.64
24
33.9
0.0
0.3
0.5
5
128
BOU-DD23-184
8225N
Main
104.8
134.9
2.57
85
30.1
0.1
0.6
2.2
15
474
Including
104.8
108.0
6.69
528
3.2
0.1
0.8
2.6
8
1339
Including
130.5
133.9
5.65
120
3.4
0.2
1.6
8.1
91
1169
BOU-DD23-186
8175N
Main
37.8
54.4
1.85
150
16.6
0.1
0.3
1.9
8
442
Including
45.4
48.1
6.03
381
2.7
0.2
0.5
1.7
12
1088
BOU-DD23-187
8225N
Main
183.6
193.3
1.27
33
9.7
0.0
0.2
1.9
33
271
BOU-DD23-189
8175N
Main
92.5
97.3
4.00
126
4.8
0.1
1.5
1.4
14
642
Including
94.3
97.3
5.95
179
3.0
0.2
2.2
1.2
15
896
BOU-DD23-189
8175N
Para
103.1
114.7
1.38
68
11.6
0.1
0.1
2.9
33
366
BOU-DD23-191
8175N
Main
158.5
169.5
1.61
30
11.0
0.1
0.2
3.4
12
377
Including
158.5
167.5
1.87
33
9.0
0.1
0.2
3.7
7
423
BOU-DD23-198
8675N
Para
185.8
196.1
2.59
63
10.3
0.2
0.2
2.1
6
451
Including
185.8
189.4
6.21
144
3.6
0.5
0.4
3.7
5
1006
BOU-DD23-200
8175N
Main
244.3
248.5
3.47
80
4.2
0.3
0.1
1.0
19
506
BOU-DD23-202
8675N
Main
349.2
355.2
4.31
129
6.0
0.1
0.6
1.4
41
645
Including
352.3
354.0
10.11
339
1.7
0.3
1.2
2.8
54
1522
*
True width remains undetermined at this stage; all values are uncut.
**
Ag equivalent is based on a 100% recovery with the following ratio: 1 g/t Au: 93.4 g/t Ag; 1% Cu:130.4 Ag; 1% Pb: 31.8 Ag; 1% Zn: 54.1 Ag.
2023 Exploration Results
To date, 159 diamond drill holes (“DDH”) for a total of 61,312m have been completed at Boumadine in 2023 (Figure 2 and Appendix 2). Both infill and exploration drilling were conducted on strike along the Main Trend (South, Central, and North Zones).
Most results have been received for drill holes up to BOU-DD23-203 (Table 1, Figure 4, Figure 5, and Appendix 1).
Results received since September 2023 confirm the high grade of the north and central sections of the Main Trend, notably with holes BOU-DD23-180 and BOU-DD23-184 intersecting large, mineralized zones.
The main mineralization generally consists of 1m to 4m wide (locally reaching over a 10m width) N340- oriented massive sulphide lenses/veins sharply dipping eastward (> 70°). The massive sulphide veins (>80%) are mainly composed of pyrite, with variable proportions of sphalerite, galena, and chalcopyrite. Figure 3 presents the results of the Boumadine Main Zone on a longitudinal section along the deposit, defining ore shoots shallowly dipping toward south, in both the Central and South Zones.
Next Steps
The 76,000m drilling program is 80% complete and is expected to be completed at year-end 2023. The Corporation expects to publish an NI 43-101 compliant resource by the end of Q1-2024.
Fieldwork will commence on the new permits in 2024 and will combine a hyperspectral survey, ground geophysics, mapping and prospecting.
Technical Information
Aya has implemented a quality control program to comply with best practices in sampling and analysis of drill core. Drill core samples were transported in sealed bags for analysis at Afrilab laboratory in Marrakech. Standards of different grades and blanks were inserted every 20 samples in addition to the standards, blanks and pulp duplicate inserted by Afrilab.
Qualified Person
The scientific and technical information contained in this press release have been reviewed by David Lalonde, B. Sc, Head of Exploration, Qualified Person, for accuracy and compliance with National Instrument 43-101.
About Aya Gold & Silver Inc.
Aya Gold & Silver Inc. is a rapidly growing, Canada-based silver producer with operations in the Kingdom of Morocco.
The only TSX-listed pure silver mining company, Aya operates the high-grade Zgounder Silver Mine and is exploring its properties along the prospective South-Atlas Fault, several of which have hosted past-producing mines and historical resources. Aya’s Moroccan mining assets are complemented by its Tijirit Gold Project in Mauritania, which is being advanced to feasibility.
Aya’s management team maximizes shareholder value by anchoring sustainability at the heart of its production, resource, governance, and financial growth plans.
Forward-Looking Statements
This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”), which reflects management’s expectations regarding Aya’s future growth and business prospects (including the timing and development of new deposits and the success of exploration activities) and other opportunities. Wherever possible, words such as “confirm”, “potential”, “complete”, “expect” “extend”, “belief”, and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might”, “will”, or are “likely” to be taken, occur or be achieved, have been used to identify such forward-looking information. Specific forward-looking statements in this press release include, but are not limited to, statements and information with respect to the exploration and development potential of Boumadine and the advancement of and success of the exploration program at Boumadine , and timing for the release of the Company’s disclosure in connection with the foregoing. Although the forward-looking information contained in this press release reflect management’s current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Aya cannot be certain that actual results will be consistent with such forward-looking information. Such forward-looking statements are based upon assumptions, opinions and analysis made by management in light of its experience, current conditions, and its expectations of future developments that management believe to be reasonable and relevant but that may prove to be incorrect. These assumptions include, among other things, the ability to obtain any requisite governmental approvals, the accuracy of Mineral Reserve and Mineral Resource Estimates (including, but not limited to, ore tonnage and ore grade estimates), silver price, exchange rates, fuel and energy costs, future economic conditions, anticipated future estimates of free cash flow, and courses of action. Aya cautions you not to place undue reliance upon any such forward-looking statements.
The risks and uncertainties that may affect forward-looking statements include, among others: the inherent risks involved in exploration and development of mineral properties, including government approvals and permitting, changes in economic conditions, changes in the worldwide price of silver and other key inputs, changes in mine plans (including, but not limited to, throughput and recoveries being affected by metallurgical characteristics) and other factors, such as project execution delays, many of which are beyond the control of Aya, as well as other risks and uncertainties which are more fully described in Aya’s 2022 Annual Information Form dated March 31, 2023, and in other filings of Aya with securities and regulatory authorities which are available on SEDAR at www.sedar.com. Furthermore, Aya’s corporate update of May 28, 2020 regarding the materiality of its assets as well as to studies regarding non-material assets remains applicable as at the date hereof. Aya does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs, and opinions change. Nothing in this document should be construed as either an offer to sell or a solicitation to buy or sell Aya securities. All references to Aya include its subsidiaries unless the context requires otherwise.
Appendix 1 – Full Drill Results from Boumadine (core lengths)
DDH No.
Section
Zone
From (m)
To (m)
Au (g/t)
Ag (g/t)
Length* (m)
Cu (%)
Pb (%)
Zn (%)
Mo (g/t)
Ag Eq** (g/t)
BOU-DD23-165
8125N
Para
280.1
282.1
4.69
84
2.0
0.3
0.1
0.3
47
589
BOU-DD23-165
8125N
Para
297.0
298.0
0.37
24
1.0
0.0
0.1
2.6
8
209
BOU-DD23-165
8125N
Para
333.0
333.5
0.26
42
0.5
0.0
1.3
4.1
7
327
BOU-DD23-165
8125N
Main
462.7
463.7
0.36
12
1.0
0.0
0.1
0.2
4
60
BOU-DD23-165
8125N
Para
546.2
546.9
0.60
25
0.7
0.0
0.5
0.6
4
127
BOU-DD23-166
8850N
Para
140.0
141.0
0.32
43
1.0
0.0
0.1
0.8
2
119
BOU-DD23-166
8850N
Para
141.7
142.5
0.09
48
0.8
0.0
0.3
0.6
9
99
BOU-DD23-167
8025N
NSR
0.0
163.4
0.00
0
163.4
0.0
0.0
0.0
0
0
BOU-DD23-168
8325N
Para
125.4
126.4
4.35
16
1.0
0.0
0.4
0.8
1
480
BOU-DD23-170
8025N
Para
67.3
68.9
0.36
23
1.6
0.0
0.2
0.3
85
84
BOU-DD23-170
8025N
Main
86.5
87.6
2.59
63
1.1
0.1
0.3
0.6
304
382
BOU-DD23-170
8025N
Para
124.3
126.5
0.48
4
2.2
0.0
0.1
0.5
8
84
BOU-DD23-172
8550N
Para
128.3
130.1
0.26
23
1.8
0.0
0.6
0.7
68
108
BOU-DD23-172
8550N
Para
141.5
146.1
4.59
99
4.6
0.1
0.9
2.3
135
694
BOU-DD23-172
8550N
Main
151.8
155.5
22.03
531
3.7
0.2
0.3
1.3
9
2689
BOU-DD23-172
8550N
Para
163.5
169.2
2.61
100
5.7
0.1
0.1
4.1
8
589
Including
165.2
168.6
3.96
150
3.4
0.2
0.2
6.4
11
902
BOU-DD23-172
8550N
Para
244.8
245.6
1.29
41
0.8
0.0
0.2
0.4
3
194
BOU-DD23-173
8025N
Para
127.4
128.6
0.54
16
1.2
0.0
0.1
0.4
15
95
BOU-DD23-173
8025N
Main
203.5
214.1
1.60
22
10.6
0.0
0.1
1.2
6
246
Including
209.3
214.1
2.67
32
4.8
0.1
0.2
2.0
8
407
BOU-DD23-174
8025N
Main
287.1
290.3
1.90
40
3.2
0.1
0.2
0.3
19
260
Including
288.1
289.3
4.04
80
1.2
0.3
0.3
0.3
27
530
BOU-DD23-174
8025N
Para
435.0
435.5
3.29
126
0.5
0.2
0.7
0.3
4
492
BOU-DD23-175
8025N
Para
108.1
108.8
0.28
21
0.7
0.1
0.5
2.4
12
205
BOU-DD23-175
8025N
Para
183.6
187.0
0.05
45
3.4
0.0
5.7
1.5
9
317
BOU-DD23-175
8025N
Main
269.3
270.3
0.16
16
1.0
0.0
1.5
2.1
22
195
BOU-DD23-176
8275N
Para
45.3
46.0
0.54
13
0.7
0.0
0.1
5.1
15
347
BOU-DD23-176
8275N
Para
49.5
50.6
0.47
8
1.1
0.0
0.1
0.3
6
73
BOU-DD23-176
8275N
Main
69.1
99.7
1.42
20
30.6
0.0
0.3
0.6
8
202
BOU-DD23-177
8850N
Main
31.9
34.8
3.40
120
2.9
0.0
1.5
0.1
17
494
BOU-DD23-177
8850N
Para
43.0
44.0
0.76
29
1.0
0.0
0.7
0.7
24
160
BOU-DD23-178
8275N
Para
113.1
117.5
2.32
28
4.4
0.0
0.3
1.3
4
333
BOU-DD23-178
8275N
Para
132.1
132.8
0.39
40
0.7
0.0
1.6
2.2
2
251
BOU-DD23-178
8275N
Para
139.5
142.0
1.21
46
2.5
0.0
0.4
1.9
6
280
BOU-DD23-178
8275N
Para
151.8
152.7
0.76
12
0.9
0.0
0.2
0.3
2
107
BOU-DD23-178
8275N
Para
156.1
158.3
2.66
59
2.2
0.2
0.1
0.2
5
348
BOU-DD23-178
8275N
Main
166.4
175.9
2.70
49
9.5
0.2
1.8
4.2
36
613
Including
165.4
167.7
6.49
125
2.3
0.3
1.3
12.3
4
1476
BOU-DD23-179
8225N
Para
22.4
22.9
0.66
64
0.5
0.0
1.5
5.3
75
467
BOU-DD23-179
8225N
Para
24.5
25.0
0.73
33
0.5
0.1
0.5
2.8
16
271
BOU-DD23-179
8225N
Para
38.0
38.6
0.39
12
0.6
0.0
0.1
1.0
8
110
BOU-DD23-179
8225N
Para
44.0
47.4
1.17
28
3.4
0.0
0.1
1.1
17
203
BOU-DD23-179
8225N
Main
70.3
82.2
1.52
8
11.9
0.0
0.5
1.4
18
246
BOU-DD23-180
8375N
Para
104.7
105.6
0.40
24
0.9
0.0
0.9
2.3
1
217
BOU-DD23-180
8375N
Para
127.7
136.5
1.27
21
8.8
0.0
0.5
2.5
17
298
Including
129.4
133.5
2.18
31
4.1
0.1
0.3
3.4
28
440
BOU-DD23-180
8375N
Para
144.6
148.2
0.69
18
3.6
0.0
0.3
0.8
5
141
BOU-DD23-180
8375N
Para
155.6
156.4
0.59
24
0.8
0.0
0.3
2.2
107
217
BOU-DD23-180
8375N
Para
157.3
157.9
0.49
12
0.6
0.0
0.2
1.8
11
161
BOU-DD23-180
8375N
Para
159.8
160.3
2.62
67
0.5
0.1
0.5
3.7
7
538
BOU-DD23-180
8375N
Main
165.1
188.6
6.41
116
23.5
0.4
0.6
4.7
3
1039
BOU-DD23-180
8375N
Para
248.5
282.4
0.64
24
33.9
0.0
0.3
0.5
5
128
BOU-DD23-180
8375N
Para
296.0
297.0
0.64
8
1.0
0.0
0.0
0.1
11
73
BOU-DD23-180
8375N
Para
301.0
302.0
0.42
12
1.0
0.0
0.3
0.5
6
88
BOU-DD23-181
8025N
Main
345.1
345.9
0.99
48
0.8
0.1
2.4
2.6
3
376
BOU-DD23-181
8025N
Para
357.2
358.3
0.34
59
1.1
0.2
6.1
7.5
3
717
BOU-DD23-181
8025N
Para
480.2
480.7
0.35
33
0.5
0.0
1.3
0.9
34
159
BOU-DD23-181
8025N
Para
537.1
538.3
0.03
136
1.2
0.0
0.4
0.2
8
163
BOU-DD23-182
8275N
Para
145.3
145.9
0.74
24
0.6
0.0
0.9
1.4
45
202
BOU-DD23-182
8275N
Para
177.9
181.0
0.50
30
3.1
0.0
1.0
2.4
12
243
BOU-DD23-182
8275N
Main
189.2
192.0
0.82
23
2.8
0.1
2.0
1.2
31
248
BOU-DD23-182
8275N
Para
196.2
199.2
0.67
17
3.0
0.0
0.8
1.6
7
198
BOU-DD23-182
8275N
Para
201.2
205.4
0.43
16
4.2
0.0
0.6
2.1
4
190
BOU-DD23-183
8025N
Para
105.8
107.0
1.02
48
1.2
0.1
0.0
0.0
3
160
BOU-DD23-183
8025N
Para
287.7
288.7
0.64
7
1.0
0.0
0.3
0.1
6
85
BOU-DD23-183
8025N
Para
364.9
366.2
0.38
16
1.3
0.1
0.1
0.2
7
75
BOU-DD23-183
8025N
Main
507.6
514.0
0.80
23
6.4
0.0
0.4
0.6
10
146
Including
508.2
510.0
1.85
20
1.8
0.1
0.3
0.6
10
244
BOU-DD23-184
8225N
Para
59.7
60.2
0.52
33
0.5
0.0
0.6
4.6
40
358
BOU-DD23-184
8225N
Main
104.8
134.9
2.57
85
30.1
0.1
0.6
2.2
15
474
Including
104.8
108.0
6.69
528
3.2
0.1
0.8
2.6
8
1339
Including
130.5
133.9
5.65
120
3.4
0.2
1.6
8.1
91
1169
BOU-DD23-184
8225N
Para
135.9
136.9
0.36
12
1.0
0.0
0.3
5.7
9
369
BOU-DD23-185
8375N
Para
143.4
145.4
0.56
24
2.0
0.0
0.5
1.0
11
148
BOU-DD23-185
8375N
Para
175.6
176.5
4.97
252
0.9
0.4
2.7
8.5
16
1314
BOU-DD23-185
8375N
Main
204.6
210.9
0.16
1
6.3
0.0
0.0
0.1
11
26
BOU-DD23-185
8375N
Para
244.3
244.8
0.14
46
0.5
0.0
1.1
1.6
11
182
BOU-DD23-186
8175N
Main
37.8
54.4
1.85
150
16.6
0.1
0.3
1.9
8
442
Including
45.4
48.1
6.03
381
2.7
0.2
0.5
1.7
12
1088
BOU-DD23-187
8225N
Para
62.4
62.9
0.25
102
0.5
0.0
1.1
2.2
9
285
BOU-DD23-187
8225N
Para
157.4
157.9
0.97
77
0.5
0.0
1.8
2.8
20
378
BOU-DD23-187
8225N
Para
165.2
167.2
0.23
29
2.0
0.0
0.3
0.8
6
104
BOU-DD23-187
8225N
Para
168.2
169.1
0.24
34
0.9
0.0
2.0
1.6
12
206
BOU-DD23-187
8225N
Main
183.6
193.3
1.27
33
9.7
0.0
0.2
1.9
33
271
Including
188.9
192.3
2.19
44
3.4
0.1
0.2
3.6
61
462
BOU-DD23-187
8225N
Para
195.4
196.5
0.44
16
1.1
0.0
0.3
1.4
6
146
BOU-DD23-188
8275N
Para
9.0
10.0
0.03
56
1.0
0.0
9.8
0.7
9
407
BOU-DD23-188
8275N
Para
104.3
105.0
0.14
40
0.7
0.0
0.2
0.7
4
103
BOU-DD23-188
8275N
Para
179.2
180.2
0.32
36
1.0
0.0
0.4
1.6
9
168
BOU-DD23-188
8275N
Para
185.5
186.0
7.80
162
0.5
0.3
0.3
0.7
117
978
BOU-DD23-188
8275N
Para
190.9
191.4
0.47
41
0.5
0.0
1.0
3.1
8
289
BOU-DD23-188
8275N
Para
194.7
195.3
0.42
44
0.6
0.1
0.8
2.1
7
231
BOU-DD23-188
8275N
Main
216.8
218.8
1.37
26
2.0
0.0
0.3
0.3
5
188
BOU-DD23-188
8275N
Para
238.9
239.4
0.38
50
0.5
0.0
0.9
2.2
2
237
BOU-DD23-188
8275N
Para
280.6
283.4
0.39
36
2.8
0.0
0.2
1.2
27
149
BOU-DD23-189
8175N
Para
77.5
78.4
0.37
36
0.9
0.1
0.8
2.7
13
251
BOU-DD23-189
8175N
Para
89.3
90.4
0.38
24
1.1
0.0
0.3
0.7
6
110
BOU-DD23-189
8175N
Main
92.5
97.3
4.00
126
4.8
0.1
1.5
1.4
14
642
Including
94.3
97.3
5.95
179
3.0
0.2
2.2
1.2
15
896
BOU-DD23-189
8175N
Para
100.2
101.2
0.35
20
1.0
0.0
0.0
0.1
12
61
BOU-DD23-189
8175N
Para
103.1
114.7
1.38
68
11.6
0.1
0.1
2.9
33
366
BOU-DD23-190
8375N
Para
26.7
27.6
0.18
42
0.9
0.0
1.5
2.8
26
259
BOU-DD23-190
8375N
Main
249.1
250.9
0.14
79
1.8
0.0
0.7
1.2
56
183
BOU-DD23-191
8175N
Para
122.8
123.5
0.22
37
0.7
0.0
0.3
5.1
1
343
BOU-DD23-191
8175N
Para
140.9
142.0
1.08
12
1.1
0.0
0.2
0.6
1
154
BOU-DD23-191
8175N
Main
158.5
169.5
1.61
30
11.0
0.1
0.2
3.4
12
377
Including
158.5
167.5
1.87
33
9.0
0.1
0.2
3.7
7
423
BOU-DD23-192
8225N
Para
11.4
13.8
0.22
54
2.4
0.0
0.1
0.2
1
91
BOU-DD23-192
8225N
Para
127.2
127.7
0.64
63
0.5
0.0
1.3
3.2
4
343
BOU-DD23-192
8225N
Main
226.1
230.8
1.75
41
4.7
0.1
0.2
0.4
19
241
Including
228.1
230.8
2.31
58
2.7
0.1
0.3
0.5
12
323
BOU-DD23-192
8225N
Para
338.2
339.3
14.62
1
1.1
0.0
0.0
0.0
9
1371
BOU-DD23-194
8275N
Para
76.5
77.2
2.91
632
0.7
0.1
1.2
2.0
4
1063
BOU-DD23-194
8275N
Para
200.7
201.7
9.14
84
1.0
0.4
0.2
0.4
31
1024
BOU-DD23-194
8275N
Main
240.3
240.9
0.30
35
0.6
0.2
1.2
7.1
35
513
BOU-DD23-194
8275N
Para
277.6
278.7
0.41
19
1.1
0.0
1.2
1.5
20
179
BOU-DD23-195
8175N
Para
80.4
81.3
0.41
40
0.9
0.0
0.2
0.4
1
110
BOU-DD23-195
8175N
Para
84.6
85.4
0.51
36
0.8
0.0
1.2
2.3
4
245
BOU-DD23-195
8175N
Para
175.0
175.9
0.17
40
0.9
0.0
0.9
2.6
5
227
BOU-DD23-195
8175N
Main
185.0
185.5
0.75
44
0.5
0.0
1.5
3.9
1
376
BOU-DD23-195
8175N
Para
213.7
214.6
0.57
32
0.9
0.0
0.7
1.2
7
176
BOU-DD23-196
8225N
Para
15.3
16.3
0.56
16
1.0
0.0
0.1
0.2
19
82
BOU-DD23-196
8225N
Para
37.7
38.8
0.03
52
1.1
0.0
0.3
1.1
6
128
BOU-DD23-196
8225N
Para
85.6
86.4
4.83
112
0.8
0.0
0.4
0.7
1
614
BOU-DD23-196
8225N
Para
168.3
168.8
0.61
32
0.5
0.0
0.2
5.3
24
386
BOU-DD23-196
8225N
Para
215.2
216.4
1.75
19
1.2
0.1
2.6
1.4
25
351
BOU-DD23-196
8225N
Main
253.7
254.5
0.57
43
0.8
0.0
0.3
3.2
35
282
BOU-DD23-196
8225N
Para
407.9
408.5
0.52
79
0.6
0.0
0.2
1.6
5
224
BOU-DD23-198
8675N
Para
44.5
45.0
1.85
118
0.5
0.0
1.2
2.7
1
477
BOU-DD23-198
8675N
Para
71.0
73.1
1.66
41
2.1
0.0
1.0
2.9
44
392
BOU-DD23-198
8675N
Para
185.8
196.1
2.59
63
10.3
0.2
0.2
2.1
6
451
Including
185.8
189.4
6.21
144
3.6
0.5
0.4
3.7
5
1006
BOU-DD23-198
8675N
Para
271.3
273.4
1.85
16
2.1
0.0
1.5
0.3
8
255
BOU-DD23-198
8675N
Para
310.3
311.6
1.67
139
1.3
0.0
1.0
0.3
28
345
BOU-DD23-198
8675N
Main
323.3
326.0
1.50
58
2.7
0.0
0.2
0.2
29
216
BOU-DD23-198
8675N
Para
370.2
371.2
0.22
40
1.0
0.0
0.2
0.3
2
85
BOU-DD23-198
8675N
Para
374.4
375.4
0.45
20
1.0
0.0
0.1
0.1
5
72
BOU-DD23-198
8675N
Para
378.6
381.1
2.11
48
2.5
0.0
0.9
2.5
83
415
BOU-DD23-200
8175N
Para
135.5
136.3
1.87
25
0.8
0.0
0.1
0.2
4
214
BOU-DD23-200
8175N
Main
244.3
248.5
3.47
80
4.2
0.3
0.1
1.0
19
506
Including
244.3
246.3
5.37
124
2.0
0.5
0.1
0.6
18
736
BOU-DD23-200
8175N
Para
258.0
259.0
0.67
24
1.0
0.0
0.5
3.1
11
275
BOU-DD23-200
8175N
Para
295.2
295.7
0.63
55
0.5
0.0
0.3
4.1
53
349
BOU-DD23-201
8225N
Para
94.7
95.4
0.12
47
0.7
0.0
0.4
0.8
4
116
BOU-DD23-201
8225N
Para
209.1
210.0
0.49
28
0.9
0.0
1.4
1.5
5
201
BOU-DD23-201
8225N
Para
231.7
232.4
0.42
20
0.7
0.0
0.5
1.2
9
142
BOU-DD23-201
8225N
Para
242.4
246.6
2.59
39
4.2
0.1
0.2
0.7
9
341
Including
242.4
244.0
5.06
77
1.6
0.3
0.3
0.3
8
613
BOU-DD23-201
8225N
Main
315.0
316.0
0.30
32
1.0
0.1
0.8
4.7
19
357
BOU-DD23-202
8675N
Para
95.5
96.7
1.06
48
1.2
0.0
0.5
2.2
15
286
BOU-DD23-202
8675N
Para
104.9
105.4
1.59
110
0.5
0.0
3.0
7.9
5
786
BOU-DD23-202
8675N
Para
223.1
226.0
3.61
67
2.9
0.1
0.3
2.8
18
583
BOU-DD23-202
8675N
Para
227.8
229.2
0.58
11
1.4
0.0
0.1
0.3
19
85
BOU-DD23-202
8675N
Para
239.0
239.5
2.48
42
0.5
0.1
0.5
11.3
37
909
BOU-DD23-202
8675N
Para
242.6
243.2
0.72
24
0.6
0.0
0.6
2.3
21
238
BOU-DD23-202
8675N
Para
250.8
251.3
0.43
36
0.5
0.0
1.1
3.5
3
308
BOU-DD23-202
8675N
Para
266.6
267.4
0.22
35
0.8
0.0
2.8
2.4
15
277
BOU-DD23-202
8675N
Main
349.2
355.2
4.31
129
6.0
0.1
0.6
1.4
41
645
Including
352.3
354.0
10.11
339
1.7
0.3
1.2
2.8
54
1522
BOU-DD23-202
8675N
Para
418.8
422.2
1.56
39
3.4
0.0
0.5
0.7
2
240
BOU-DD23-203
8175N
Para
100.1
101.8
0.23
59
1.7
0.0
0.9
1.5
3
191
BOU-DD23-203
8175N
Para
207.4
207.9
0.46
91
0.5
0.1
1.9
4.3
6
435
BOU-DD23-203
8175N
Para
269.5
270.0
1.06
41
0.5
0.0
0.9
2.4
4
300
BOU-DD23-203
8175N
Para
280.7
281.7
0.32
20
1.0
0.0
0.4
0.5
9
92
BOU-DD23-203
8175N
Main
282.7
285.9
2.00
55
3.2
0.1
0.1
0.2
12
269
BOU-DD23-203
8175N
Para
289.5
290.6
0.42
12
1.1
0.0
0.3
1.2
10
124
BOU-DD23-203
8175N
Para
332.2
332.7
0.41
20
0.5
0.0
0.3
4.7
9
324
BOU-DD23-203
8175N
Para
373.2
374.3
0.03
89
1.1
0.2
0.8
1.2
7
201
*
True width remains undetermined at this stage; all values are uncut.
**
Ag equivalent is based on a 100% recovery with the following ratio; 1 g/t Au: 93.4 g/t Ag; 1% Cu: 130.4 Ag; 1% Pb: 31.8 Ag; 1% Zn: 54.1 Ag.
Appendix 2 – New Drillhole Coordinates of 2023 Boumadine Exploration Program (completed holes)
A respected analyst report has recently commented on the value proposition of EMX Royalty. The decision seems to have merit based on this week’s recent news announcement on the 3rd Quarter Results for 2023. A projected 12-month price point of C$5.75 was the target by the analyst. At the present EMX Royalty is trading at C$2.22. We highly regard EMX Royalty, we’ve been long-term shareholders since 2016/17. In our opinion EMX Royalty is a legacy company that you buy and pass along to your children. It’s the Goose that keeps laying the Golden Egg.
Highlights from Q3 2023 include the following:
EMX earned approximately $1,955,000 in royalty revenue from the Gediktepe Mine as production continued from the oxide gold deposit. Partner Lidya Madencilik Anayi ve Ticaret A.S. (“Lidya”) also notified EMX that it has completed an internal Feasibility Study for development of the underlying polymetallic sulfide deposit. A decision regarding financing and construction for the sulfide project is pending.
The Caserones (effective) royalty distribution for Q3 totaled approximately $1,741,000. Lundin Mining Corporation (“Lundin”), in connection with their acquisition of fifty-one percent (51%) of the issued and outstanding equity of SCM Minera Lumina Copper Chile SpA (see Lundin news release dated July 13, 2023), filed a technical report on SEDAR titled “NI 43-101 Technical Report on the Caserones Mining Operation, Atacama Region, Chile” that included current mineral resource and reserve estimates. Lundin also provided Caserones H1 production and H2 production guidance.
Leeville revenue earned by EMX totaled approximately $773,000 from royalty production that totaled 403 ounces of gold. Q3 2023 marked another strong quarter of Leeville royalty production along with robust gold prices.
EMX recognized $568,000 in royalty revenue from the Balya property in Q3 2023 which included $212,000 from Q2 production and $356,000 from Q3 production subsequently received. Production began to ramp up again in Q2 2023 with 99,185 tonnes of mineralized material produced from Balya North. Production continued to accelerate in Q3 2023, with 161,133 tonnes of mineralized material produced according to calculations provided by Esan at the end of Q3.
EMX received $134,000 from Gold Bar South for royalty revenue earned in Q1 2023 and Q2 2023, and earned royalty revenue of $59,000 from Q3 2023 production, which was subsequently received.
AbraSilver Resource Corp. (“AbraSilver”) reported final results from the Phase III drill program at the Diablillos silver-gold royalty property. Phase III drill holes will be incorporated into an updated mineral resource estimate to be included in the Diablillos PFS scheduled for completion in H2 of 2023. As part of its ongoing PFS work, AbraSilver also reported on positive results from metallurgical optimization test work conducted for the Oculto deposit.
Arizona Sonoran Copper continued to report infill drilling results from the Parks-Sayler porphyry copper royalty property. Subsequent to quarter-end, Arizona Sonoran announced updated mineral resource estimates for the Parks-Sayler deposit, which is partially covered by an EMX royalty, as well as other deposits that constitute its Cactus Project.
Exploration drilling by South32 at the Hermosa Project’s Peake prospect returned mineralized intercepts covered by EMX’s Hardshell royalty property that included the best copper intercept to date of 139 meters averaging 1.88% copper, 0.51% lead, 0.34% zinc, and 52 g/t silver (true width not reported).
EMX’s U.S. royalty generation portfolio progressed with 13 partner-funded work programs consisting of five drill programs, the expansion of properties through the staking of new claims, and the permitting of key projects in preparation for three additional drill programs to be conducted in Q4 2023 and early 2024. EMX has 39 projects in partnership in the western U.S and received various option, AAR, and management fee payments during the quarter.
Scout Discoveries Corp. (“Scout”) (a private Idaho company) and EMX closed on an amended transaction, originally announced in Q1 2023 (see EMX news release dated March 8, 2023) for the sale of EMX’s Erickson Ridge, South Orogrande, Lehman Butte, and Jackknife precious and base metal projects to Scout.
In Canada, EMX executed two new agreements to partner the Jean Lake property to Canada Nickel Company, and the Ear Falls property to Beyond Lithium. EMX and its partners conducted summer field programs to continue advancing the properties in the portfolio. EMX received $104,000 in cash payments during the quarter from partnered projects.
In Chile, Pampa Metals announced assay results from its initial three hole drill program totaling 1,957 meters at the Buena Vista target on the Block 4 property. Anomalous copper, molybdenum and precious metals were intercepted, indicative of shallow levels of a porphyry system. Elsewhere within the portfolio, EMX was notified by Pampa Metals that it was abandoning the Arrieros, Redondo-Veronica, Cerro Blanco, Cerro Buena Aries, and Block 3 properties, resulting in EMX gaining 100% control of each property. These properties are now available for partnership.
In Northern Europe the Company continued to develop and advance its portfolio of projects, with summer field programs continuing on numerous properties in Q3 2023. EMX has 37 projects in partnership with other companies in Northern Europe. New partnerships were established for the Bamble and Flåt battery metals projects in Norway (Londo Nickel plc) and the Njuggträskliden and Mjövattnet battery metals projects in Sweden (Kendrick Resources plc).
The Company optioned the Copperhole Creek project in Queensland, Australia to Lumira Energy LTD, a private Australian company. The agreement provides EMX with a 2.5% NSR royalty interest, cash and equity payments, work commitments and other considerations. In conjunction with the transaction, Lumira Energy intends to establish a public listing on the Australian Securities Exchange (ASX) by mid-year 2024.
Also in Q3 2023 in Australia, partner companies executed drill programs comprising over 5,000 meters on three EMX royalty properties (Yarrol, Mt Steadman and Koonenberry) and field programs continued to advance the Queensland Gold and Copperhole Creek projects.
Royalty generation programs continued in the Balkans and in Morocco in Q3 2023, where multiple exploration license applications have been filed by the Company. Surface sampling programs commenced on several new exploration licenses awarded to EMX in Morocco targeting a variety of styles of mineralization. EMX also continued to assess projects and opportunities in the Balkans.
Investment Updates
As at September 30, 2023, the Company had marketable securities of $6,830,000 (December 31, 2022 – $9,966,000), and $5,313,000 (December 31, 2022 – $4,591,000) in private investments. The Company will continue to generate cash flow by selling certain of its investments when appropriate.
OUTLOOK
The 2023 year will continue to see revenue and other income coming from our cash flowing royalties, including Leeville and Gold Bar South in Nevada, Gediktepe and Balya in Turkey, and Timok in Serbia, and our effective royalty interest on Caserones in Chile. As in previous years, production royalties will continue to be complemented by option, advance royalty, and other pre-production payments from partnered projects across the global asset portfolio.
The Company will continue to strengthen its balance sheet over the course of the year by looking to retire portions of our long-term debt, continuing to evaluate equity markets, and the ongoing monetization of the Company’s marketable securities.
EMX is well positioned to identify and pursue new royalty and investment opportunities, while further filling a pipeline of royalty generation properties that provide opportunities for additional cash flow, as well as exploration, development, and production success.
Marketing Consulting Services
The Company is also pleased to announce that it has entered into an agreement with LFG Equities Corp. (“LFG”), an independent contractor with a business address at 402-9140 Leslie St., Richmond Hill, ON, L4B 0A9. Commencing on September 10th, 2023 for an initial term of six months, under the terms of the Agreement, LFG will provide marketing consulting services to the Company to communicate to the financial community information about EMX by way of newsletters and be paid US$50,000 plus applicable taxes.
QUALIFIED PERSONS
Michael P. Sheehan, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified and approved the above technical disclosure on North America, Latin America, and Strategic Investments. Eric P. Jensen, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified and approved the above technical disclosure on Europe, Turkey, and Australia.
About EMX. EMX is a precious, base and battery metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”, and also trade on the Frankfurt exchange under the symbol “6E9”. Please see www.EMXroyalty.com for more information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Forward-Looking Statements
This news release may contain “forward looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended September 30, 2022 (the “MD&A”), and themost recently filed Annual Information Form (“AIF”) for the year ended December 31, 2021, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedarplus.ca and on the SEC’s EDGAR website at www.sec.gov.
1Adjusted revenue and other income and adjusted cash provided by operating activities are non-IFRS financial measures with no standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Refer to the “Non-IFRS financial measures” section on page 24 of the Q3-2023 MD&A for more information on each non-IFRS financial measure.
Be sure to perform your due diligence, we are biased.
Physical uranium gained ground in October, while uranium miners declined; most commodities suffered in October but uranium continued to show resilience to macroeconomic factors.
YTD, uranium is up 54.16%; senior and junior uranium miners have risen 44.85% and 32.77%, respectively.
Uranium demand has been primarily driven by increased utility contracting, which we believe provides strong support and sustainability to higher price level.
Looking ahead to 2040, utilities have 1.5 billion pounds of cumulative uncovered uranium requirements.
The nuclear fuel supply chain continues to move away from Russia.
The strength in the uranium price has improved the revenue and profit for producers and raised the prospects for further mine restarts and new builds.
*Performance for periods under one year not annualized. Sources: Bloomberg and Sprott Asset Management LP. Data as of October 31, 2023. You cannot invest directly in an index. Included for illustrative purposes only. Past performance is no guarantee of future results.
Uranium Hits $74, Standing Firm at 12-Year Price High
The U3O8 uranium spot price gained 1.51% in October, increasing from US$73.38 to $74.48 per pound as of October 31, 2023.1 Uranium has posted a stellar 54.16% year-to-date return as of October 31, 2023, and continued to show strength and diversification relative to other commodities, which declined 7.26% (as measured by the BCOM Index).A higher uranium price is improving the prospects for further mine restarts and new builds.
While other commodities suffered in October largely due to China’s economic weakness, a persistently strong U.S. dollar (USD) and other macroeconomic factors, uranium continues to demonstrate its lower economic sensitivity. U3O8 contracting by utilities in 2023 is not largely dependent on general inflation, rising interest rates, etc. These characteristics may strengthen uranium investments’ uncorrelated performance relative to major asset classes, other commodities and enhance portfolio diversification.
Over the longer term, physical uranium and uranium equities have demonstrated significant outperformance against broad asset classes, particularly other commodities. For the five years ended October 31, 2023, the U3O8 spot price has risen a cumulative 162.28% compared to 25.76% for the broader commodities index (BCOM), as shown in Figure 1.
Figure 1. Physical Uranium and Uranium Stocks Have Outperformed Other Asset Classes Over the Past Five Years (10/31/2018-10/31/2023)
Source: Bloomberg and Sprott Asset Management. Data as of 10/31/2023. Uranium Miners are measured by the Northshore Global Uranium Mining Index (URNMX index); the S&P 500 TR Index measures U.S. Equities; the U308 Spot Price is from TradeTech; U.S. Bonds are measured by the Bloomberg Barclays US Aggregate Bond Index (LBUSTRUU); Commodities are measured by the Bloomberg Commodity Index (BCOM); and the U.S. Dollar is measured by DXY Curncy Index. Definitions of the indices are provided in the footnotes. You cannot invest directly in an index. Included for illustrative purposes only. Past performance is no guarantee of future results.
Uranium Supply: A Sellers’ Market
At the start of October, uranium had appreciated significantly by the end of September, posting its most impressive month since September 2021. The uranium spot price rose to its highest level before the Fukushima Daiichi power plant disaster in 2011, when it was $73 per pound. October saw yet another high, despite intra-month volatility, with the spot price reaching $74.48.
We believe the U3O8 spot price is well supported in holding to higher price levels not seen in over a decade. The World Nuclear Association’s (WNA) biennial Nuclear Fuel Report noted that world nuclear reactor requirements are forecasted to nearly double by 2040, from 171 to 338 MM U3O8e pounds per annum. Understanding of a future demand-supply imbalance is gaining acceptance and is fueling improved sentiment toward uranium.World nuclear reactor requirements are forecasted to nearly double by 2040.
Uranium demand has been primarily driven by increased utility contracting, which we believe provides strong support and sustainability to higher price levels. These end-user utilities have acquiesced to paying higher uranium prices, which has more impact on pricing than outside financial entities.
Utilities and uranium producers generally contract in the term market, representing uranium sold under long-term, multi-year contracts with deliveries starting a year or more after the agreement is made. These term contracts do not generally only have a fixed price associated with the purchase/sale of uranium. The price for the amount bought/sold may include a fixed price, but more recently, they have a variable price with reference to the market price at the time of delivery. These market reference prices generally have floors and caps that are set at the beginning of the contract. Also, the term contracts may vary in quantities, and utilities have had the option to flex the amount they receive either up or down. Industry media have been reporting the evolution of contracting terms, which includes a reduced number of contracts with flexible quantities, increases in the use of market reference pricing versus fixed pricing, and increases in the prices set at the floors and caps. We believe these contract changes between utilities and uranium producers highlight that we are in a sellers’ market and bolster the case for uranium and uranium miners. Furthermore, it is important to note that nuclear power plants require very large capital investments and that fuel costs related to U3O8 are just 4-8% of their ongoing costs.6 Overall, demand for uranium is inelastic, which means that higher prices are not likely to curtail demand.
Contracts on Pace to Reach Replacement Rate
Thus far in 2023, U3O8 term contracting has already surpassed 2022’s full-year contracting level. 2022 had the highest amount of term contracting in a decade, at 125 MM pounds. 2023’s full-year contracting is on track to be the first year in over a decade to reach the annual replacement rate. Term contracting had been below the replacement rate for the past decade as excess global uranium inventories were drawn down. The era of uranium inventory destocking is behind us as utilities are increasingly focused on the security of supply.
Looking ahead to 2040, utilities have 1.5 billion pounds of cumulative uncovered uranium requirements. As a result, we believe we are still in the early innings of the contracting cycle. Geopolitical risks related to the nuclear fuel supply chain remain heightened. French President Macron’s recent visits to Kazakhstan, Uzbekistan and Mongolia in search of uranium partnerships and investments is a prime example of the strategic importance of securing uranium supplies.
Moving Away from Russian Supply Chains
The nuclear fuel supply chain continues to move away from Russia. Orano SA announced that it will spend $1.8 billion to expand its uranium enrichment plant in France by over 30%.7 Russia accounts for 39% of the global capacity to enrich uranium. Although no sanctions have been levied against Russian services to date, utilities are self-sanctioning by not signing any new contracts with Russian entities. In the U.S., the White House also sent Congress an enrichment request for $2.2 billion in October.8 We believe that forthcoming additional capacity in enrichment (and conversion via ConverDyn) coupled with an industry shift in enrichment from underfeeding to overfeeding may allow utilities to focus more on contracting for future uncovered reactors’ uranium requirements.
Uranium Miners Developments
While the price of physical uranium held firm in October, uranium miners retreated. The broad sector of uranium miners fell by 3.67%,2 while junior uranium miners lost 4.47% on profit taking following several months of outsized gains.3 Nonetheless, the strength in the uranium price has improved the revenue and profit for producers and raised the prospects for further mine restarts and new builds. To this end, there were a couple of positive developments in October.
enCore Energy Corp. (enCore) announced that it had received approval to renew the Radioactive Materials License for its processing plants.9 enCore reaffirmed its plan to resume uranium production at its Rosita plant before the end of November 2023. enCore also plans to restart its Alta Mesa plant in early 2024. These restarts are located in Texas and should help kickstart the revival of U.S. domestic uranium production (see Figure 2). Especially since the U.S.’s domestic uranium production in the first half of 2023 was merely 10,000 pounds of U3O8, relative to annual requirements of approximately 50 million pounds.
Australian uranium miner Boss Energy Ltd. announced its commencement of mining operations at its Honeymoon project10, which has the capacity to produce 2.45 million pounds of U3O8 per year. The project began production in 2011 but was placed on care and maintenance in 2013. This project remains on time and budget for production starting in Q4 2023.
Figure 2. Sources of Uranium for US Nuclear Power Plants 1950 to 2022
Source: EIA. U.S. Energy Information Administration: Monthly Energy Review, Table 8.2, June 2023 Note: data withheld for U.S. power plant purchases from domestic suppliers in 2019 and for domestic production in 2020 to avoid disclosure of individual company data. Included for illustrative purposes only. Past performance is no guarantee of future results.
Regarding new uranium mines, Global Atomic Corporation announced that it finalized its third Letter of Intent (LOI) for the sale of uranium from its Dasa project in Niger. This brings the total contracted volume to 1.5 million pounds of U3O8 per annum over the project’s first five years of operations. This may be seen as a vote of confidence in the company given that just a few months ago, the coup d’état in Niger forced Global Atomic to announce delays of 6-12 months in the first production at Dasa to early 2026.11
With global uranium mine production well short of the world’s uranium reactor requirements, the supply deficit building over the next decade, a decade of underinvestment in supply, and future supply inhibited by long lead times and capital intensity, we believe that restarts and new mines in development are of critical importance. The uranium price target as an incentive level for further restarts and greenfield development is a moving target, and we believe that we will need higher uranium prices to incentivize enough production to meet forecasted deficits. Over the long term, increased demand in the face of an uncertain uranium supply is likely to continue to support a sustained bull market (Figure 3).
Note: A “bull market” refers to a condition of financial markets where prices are generally rising. A “bear market” refers to a condition of financial markets where prices are generally falling. Source: TradeTech Data as of 10/31/2023. TradeTech is the leading independent provider of uranium prices and nuclear fuel market information. The uranium prices in this chart dating back to 1968 is sourced exclusively from TradeTech; visit https://www.uranium.info/. Included for illustrative purposes only. Past performance is no guarantee of future results.
1
The U3O8 uranium spot price is measured by a proprietary composite of U3O8 spot prices from UxC, S&P Platts and Numerco. For periods before July 2021 data is from TradeTech LLC.
2
The North Shore Global Uranium Mining Index (URNMX) was created by North Shore Indices, Inc. (the “Index Provider”). The Index Provider developed the methodology for determining the securities to be included in the Index and is responsible for the ongoing maintenance of the Index. The Index is calculated by Indxx, LLC, which is not affiliated with the North Shore Global Uranium Miners Fund (“Existing Fund”), ALPS Advisors, Inc. (the “Sub-Adviser”) or Sprott Asset Management LP (the “Adviser”).
3
The Nasdaq Sprott Junior Uranium Miners™ Index (NSURNJ™) was co-developed by Nasdaq® (the “Index Provider”) and Sprott Asset Management LP (the “Adviser”). The Index Provider and Adviser co-developed the methodology for determining the securities to be included in the Index and the Index Provider is responsible for the ongoing maintenance of the Index. The Adviser will provide certain services in connection with the Index including contributing inputs in connection with the eligibility and proce
4
The Bloomberg Commodity Index (BCOM) is a broadly diversified commodity price index that tracks prices of futures contracts on physical commodities and is designed to minimize concentration in any one commodity or sector. It currently has 23 commodity futures in six sectors.
5
The S&P 500 or Standard & Poor’s 500 Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies.
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Past performance is no guarantee of future results. You cannot invest directly in an index. Investments, commentary and statements are that of the author and may not be reflective of investments and commentary in other strategies managed by Sprott Asset Management USA, Inc., Sprott Asset Management LP, Sprott Inc., or any other Sprott entity or affiliate. Opinions expressed in this commentary are those of the author and may vary widely from opinions of other Sprott affiliated Portfolio Managers or investment professionals.
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Vancouver, British Columbia–(Newsfile Corp. – November 13, 2023) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX”) is pleased to report results for the quarter ended September 30, 2023 (“Q3-2023”). The Company’s filings for the quarter are available on SEDAR at www.sedarplus.ca, on the U.S. Securities and Exchange Commission’s website at www.sec.gov, and on EMX’s website at www.EMXroyalty.com. Financial results were prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board.
HIGHLIGHTS FOR Q3-2023
Financial Updates for the Three Months Ended September 30, 2023
Revenue and other income for the three months ended September 30, 2023 (“Q3 2023”) was $12,925,000 (2022 – $7,206,000). Adjusted revenue and other income1 of $14,526,000 (2022 – $9,319,000) included $1,601,000 (2022 – $2,113,000) in revenue for the Company’s share of royalty revenue from the Caserones Mine (effective) royalty interest in Chile.
Net income for the three months ended September 30, 2023 was $2,443,000 (2022 – loss of $12,878,000).
Cash provided by operating activities for the three months ended September 30, 2023 was $7,527,000 (2022 – $846,000). Adjusted cash1 provided by operating activities for the three months ended September 30, 2023 was $9,268,000 (2022 – $2,719,000).
As at September 30, 2023, EMX had cash of $21,587,000 (December 31, 2022 – $15,508,000), investments, long-term investments and loans receivable valued at $12,739,000 (December 31, 2022 – $14,561,000) and loans payable of $41,927,000 (December 31, 2022 – $40,489,000).
Corporate Updates
Execution of Updated Timok Royalty Agreement
EMX executed an amended and restated royalty agreement on September 1, 2023 for its Timok royalty property with Zijin (Europe) International Mining Company Ltd., a wholly owned subsidiary of Zijin Mining Group Ltd (“Zijin”). EMX and Zijin have agreed that the Timok royalty will consist of a 0.3625% Net Smelter Return (“NSR”) royalty that is uncapped and cannot be repurchased or reduced. The royalty covers Zijin’s Brestovac exploration permit area (including the Cukaru Peki Mining licenses), as well as portions of Zijin’s Jasikovo-Durlan Potak exploration license north of the currently active Bor Mine license (see EMX news release dated September 5, 2023). Cukaru Peki represents one of the premier copper and gold discoveries in the world in the past 10 years and is a top tier royalty asset for EMX.
Subsequent to the execution of the amended and restated royalty agreement, EMX received $6,676,000 in royalty proceeds from its Timok royalty property with Zijin which included $1,590,000 from 2021, $3,200,000 from 2022, and $1,890,000 up to June 30, 2023 (see EMX news release dated September 12, 2023). From that point forward EMX will continue to receive quarterly production royalty payments on an ongoing basis.
Execution of Acquisition Agreement for New Royalties with Franco-Nevada
EMX executed a binding term sheet with Franco-Nevada Corporation (“Franco-Nevada”) for the joint acquisition of newly created precious metals and copper royalties sourced by EMX (see EMX news release dated August 1, 2023). Franco-Nevada will contribute 55% (up to $5,500,000) and EMX will contribute 45% (up to $4,500,000) towards the royalty acquisitions, with the resulting royalty interests equally split (i.e. 50/50). The initial term is for three years, or until the maximum contributions totaling $10,000,000 from both companies have been met, and may be extended if mutually agreed by both companies. The agreement allows EMX to direct a large amount of capital towards the royalty generation aspect of its business model, and Franco-Nevada to participate in exploration stage royalty financing opportunities identified by EMX.
Royalty Acquisition and Royalty Generation Updates
During Q3 2023, the Company’s royalty business was active in North America, South America, Europe, Turkey, Australia and Morocco. The Company spent $4,769,000 (2022 – $5,269,000) on royalty acquisition and generation costs and recovered $1,140,000 (2022 – $3,247,000) from partners. Royalty acquisition and generation costs include exploration related activities, technical services, project marketing, land and legal costs, as well as third party due diligence for acquisitions. Included in revenue and other income was $1,409,000 in option, advance royalty, and other pre-production payments related to existing partnered projects as a result of royalty generation activities. The Company also completed seven new property agreements across the portfolio, including two in Canada, two in Norway, two in Sweden and one in Australia, while continuing to replace partnered properties with new royalty generation projects.
Producing Royalties
6
Advanced Royalties
11
Exploration Royalties
149
Royalty Generation Properties
120
Figure 1. EMX’s royalty and mineral property portfolio
EMX earned approximately $1,955,000 in royalty revenue from the Gediktepe Mine as production continued from the oxide gold deposit. Partner Lidya Madencilik Anayi ve Ticaret A.S. (“Lidya”) also notified EMX that it has completed an internal Feasibility Study for development of the underlying polymetallic sulfide deposit. A decision regarding financing and construction for the sulfide project is pending.
The Caserones (effective) royalty distribution for Q3 totaled approximately $1,741,000. Lundin Mining Corporation (“Lundin”), in connection with their acquisition of fifty-one percent (51%) of the issued and outstanding equity of SCM Minera Lumina Copper Chile SpA (see Lundin news release dated July 13, 2023), filed a technical report on SEDAR titled “NI 43-101 Technical Report on the Caserones Mining Operation, Atacama Region, Chile” that included current mineral resource and reserve estimates. Lundin also provided Caserones H1 production and H2 production guidance.
Leeville revenue earned by EMX totaled approximately $773,000 from royalty production that totaled 403 ounces of gold. Q3 2023 marked another strong quarter of Leeville royalty production along with robust gold prices.
EMX recognized $568,000 in royalty revenue from the Balya property in Q3 2023 which included $212,000 from Q2 production and $356,000 from Q3 production subsequently received. Production began to ramp up again in Q2 2023 with 99,185 tonnes of mineralized material produced from Balya North. Production continued to accelerate in Q3 2023, with 161,133 tonnes of mineralized material produced according to calculations provided by Esan at the end of Q3.
EMX received $134,000 from Gold Bar South for royalty revenue earned in Q1 2023 and Q2 2023, and earned royalty revenue of $59,000 from Q3 2023 production, which was subsequently received.
AbraSilver Resource Corp. (“AbraSilver”) reported final results from the Phase III drill program at the Diablillos silver-gold royalty property. Phase III drill holes will be incorporated into an updated mineral resource estimate to be included in the Diablillos PFS scheduled for completion in H2 of 2023. As part of its ongoing PFS work, AbraSilver also reported on positive results from metallurgical optimization test work conducted for the Oculto deposit.
Arizona Sonoran Copper continued to report infill drilling results from the Parks-Sayler porphyry copper royalty property. Subsequent to quarter-end, Arizona Sonoran announced updated mineral resource estimates for the Parks-Sayler deposit, which is partially covered by an EMX royalty, as well as other deposits that constitute its Cactus Project.
Exploration drilling by South32 at the Hermosa Project’s Peake prospect returned mineralized intercepts covered by EMX’s Hardshell royalty property that included the best copper intercept to date of 139 meters averaging 1.88% copper, 0.51% lead, 0.34% zinc, and 52 g/t silver (true width not reported).
EMX’s U.S. royalty generation portfolio progressed with 13 partner-funded work programs consisting of five drill programs, the expansion of properties through the staking of new claims, and the permitting of key projects in preparation for three additional drill programs to be conducted in Q4 2023 and early 2024. EMX has 39 projects in partnership in the western U.S and received various option, AAR, and management fee payments during the quarter.
Scout Discoveries Corp. (“Scout”) (a private Idaho company) and EMX closed on an amended transaction, originally announced in Q1 2023 (see EMX news release dated March 8, 2023) for the sale of EMX’s Erickson Ridge, South Orogrande, Lehman Butte, and Jackknife precious and base metal projects to Scout.
In Canada, EMX executed two new agreements to partner the Jean Lake property to Canada Nickel Company, and the Ear Falls property to Beyond Lithium. EMX and its partners conducted summer field programs to continue advancing the properties in the portfolio. EMX received $104,000 in cash payments during the quarter from partnered projects.
In Chile, Pampa Metals announced assay results from its initial three hole drill program totaling 1,957 meters at the Buena Vista target on the Block 4 property. Anomalous copper, molybdenum and precious metals were intercepted, indicative of shallow levels of a porphyry system. Elsewhere within the portfolio, EMX was notified by Pampa Metals that it was abandoning the Arrieros, Redondo-Veronica, Cerro Blanco, Cerro Buena Aries, and Block 3 properties, resulting in EMX gaining 100% control of each property. These properties are now available for partnership.
In Northern Europe the Company continued to develop and advance its portfolio of projects, with summer field programs continuing on numerous properties in Q3 2023. EMX has 37 projects in partnership with other companies in Northern Europe. New partnerships were established for the Bamble and Flåt battery metals projects in Norway (Londo Nickel plc) and the Njuggträskliden and Mjövattnet battery metals projects in Sweden (Kendrick Resources plc).
The Company optioned the Copperhole Creek project in Queensland, Australia to Lumira Energy LTD, a private Australian company. The agreement provides EMX with a 2.5% NSR royalty interest, cash and equity payments, work commitments and other considerations. In conjunction with the transaction, Lumira Energy intends to establish a public listing on the Australian Securities Exchange (ASX) by mid-year 2024.
Also in Q3 2023 in Australia, partner companies executed drill programs comprising over 5,000 meters on three EMX royalty properties (Yarrol, Mt Steadman and Koonenberry) and field programs continued to advance the Queensland Gold and Copperhole Creek projects.
Royalty generation programs continued in the Balkans and in Morocco in Q3 2023, where multiple exploration license applications have been filed by the Company. Surface sampling programs commenced on several new exploration licenses awarded to EMX in Morocco targeting a variety of styles of mineralization. EMX also continued to assess projects and opportunities in the Balkans.
Investment Updates
As at September 30, 2023, the Company had marketable securities of $6,830,000 (December 31, 2022 – $9,966,000), and $5,313,000 (December 31, 2022 – $4,591,000) in private investments. The Company will continue to generate cash flow by selling certain of its investments when appropriate.
OUTLOOK
The 2023 year will continue to see revenue and other income coming from our cash flowing royalties, including Leeville and Gold Bar South in Nevada, Gediktepe and Balya in Turkey, and Timok in Serbia, and our effective royalty interest on Caserones in Chile. As in previous years, production royalties will continue to be complemented by option, advance royalty, and other pre-production payments from partnered projects across the global asset portfolio.
The Company will continue to strengthen its balance sheet over the course of the year by looking to retire portions of our long-term debt, continuing to evaluate equity markets, and the ongoing monetization of the Company’s marketable securities.
EMX is well positioned to identify and pursue new royalty and investment opportunities, while further filling a pipeline of royalty generation properties that provide opportunities for additional cash flow, as well as exploration, development, and production success.
Marketing Consulting Services
The Company is also pleased to announce that it has entered into an agreement with LFG Equities Corp. (“LFG”), an independent contractor with a business address at 402-9140 Leslie St., Richmond Hill, ON, L4B 0A9. Commencing on September 10th, 2023 for an initial term of six months, under the terms of the Agreement, LFG will provide marketing consulting services to the Company to communicate to the financial community information about EMX by way of newsletters and be paid US$50,000 plus applicable taxes.
QUALIFIED PERSONS
Michael P. Sheehan, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified and approved the above technical disclosure on North America, Latin America, and Strategic Investments. Eric P. Jensen, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified and approved the above technical disclosure on Europe, Turkey, and Australia.
About EMX. EMX is a precious, base and battery metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”, and also trade on the Frankfurt exchange under the symbol “6E9”. Please see www.EMXroyalty.com for more information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Forward-Looking Statements
This news release may contain “forward looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended September 30, 2022 (the “MD&A”), and themost recently filed Annual Information Form (“AIF”) for the year ended December 31, 2021, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedarplus.ca and on the SEC’s EDGAR website at www.sec.gov.
1Adjusted revenue and other income and adjusted cash provided by operating activities are non-IFRS financial measures with no standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Refer to the “Non-IFRS financial measures” section on page 24 of the Q3-2023 MD&A for more information on each non-IFRS financial measure.
On November 6, 2023 Dolly Varden Silver (TSXV:DV) (OTC:DOLLF) released drill results from the Wolf Vein and – 1.5 kilometers to the north – the Moose Vein.
DV Silver is developing its 100% held Kitsault Valley Project located in The Golden Triangle of British Columbia, Canada, 25kms by road to tide water.
“The Golden Triangle is so named because it hosts some of the richest gold ore bodies in the world, as well as abundant silver, nickel and copper deposits,” confirms BC Business. It has 1.2 billion ounces silver estimated reserves, with 214 million proven and probable.
Three Take-aways from the November 6, 2023 drill results:
1. High grade silver continues at depth 2. Discovery of significant quantities of base metals 3. Moose Vein demonstrating similar metallic profile to Wolf Vein
Wolf Vein Highlights:
DV23-375, Southwest Extension step-out: 461g/t AgEq* (296g/t Ag, 1.68% Pb, 3.01% Zn) over 26.99 meters, including 2,260g/t AgEq* (1,475g/t Ag, 10.65% Pb, 12.00% Zn) over 0.50 meter from an 81-meter step-out.
DV23-379, Southwest Extension infill: 287g/t AgEq* (247g/t Ag, 0.40% Pb, 0.73% Zn) over 18.21 meters, including 1,170g/t AgEq (1,125g/t Ag, 0.14% Pb, 1.09% Zn) over 0.50 meters.
Moose Vein highlights:
DV23-371: 712 g/t Ag over 1.00 meter within a 7.55 meters length interval averaging 269 g/t Ag
1AgEq is calculated using $US1650/oz Au, $US20/oz Ag, $US0.90/lb Pb and $US1.10/lb Zn, assays are uncut
“The results we are seeing from the Wolf Vein continue to demonstrate depth continuity of the high-grade silver mineralization as well as an increase in base metal content,” stated Shawn Khunkhun, President and CEO of Dolly Varden Silver. “Drill hole DV23-375 has extended the plunge length to over 950 meters with increased thickness of the potentially underground bulk-mineable mineralization and it remains wide open for expansion. With over 70 drill holes remaining to be assayed and announced we eagerly await their results.”
When Dolly Varden purchased the Homestake Ridge Property from Fury, the primary objective was to consolidate assets, add size and scale. But Khunkhun and the DV Silver geological team are also exploring a hunch that two metallic zones are connected. DV needed to control both assets to meaningfully explore the hunch.
“What is special about the November 6, 2023 drill results is that these are big intercepts,” Khunkhun told Guy Bennett, the CEO of Global Stocks News (GSN). “We’re talking about an almost 27-meter intercept, grading at 461g/t of silver equivalent.”
This is the first time during Khunkhun’s tenor as CEO, that DV has reported silver equivalencies.
“Along with 296 grams of silver, we have a significant lead and zinc kicker,” confirmed Khunkhun. “As we go deeper, this base metal zone may continue to add value to the deposit. We believe the Wolf Vein is potentially amenable to underground bulk mining.”
Bulk mining generally has lower mining costs associated with it, allowing for a lower cut off grade bringing in more material, increasing the tonnage per day and number of ounces mined.
“Some of these old, narrow vein deposits don’t work in the modern era,” Khunkhun told GSN. “You don’t want to be chasing narrow veins, hand sorting material. Our goal is that Dolly Varden Silver will be an efficient, highly mechanized mine with a low All-In-Sustaining-Cost (AISC).”
“We’ve already have a kilometer of plunge length at Wolf,” Khunkhun continued. “When we step out, we get solid hits like this. Why did Hecla put in $10 million last week? I suspect they are seeing the same potential we see at Wolf. Hecla’s goal is to increase silver production in Canada.”
About 47% of DV Silver is owned by institutional investors (Fury – 22%; Hecla 15%; Eric Sprott – 9%).
“I audition the institutional shareholders,” KhunKhun explained to GSN. “We have various entities throwing money at us at higher prices. It’s tempting to take the money. But I don’t want some hedge fund spontaneously deciding to rotate out of silver into uranium. It’s valuable to have stakeholders who share our long-term vision – like Hecla, Fury and Sprott.”
On November 6, 2023, Maurice Jackson, Founder and CEO of Proven & Probable conducted an interview with Mr. Khunkhun. Proven & Probable specialises in simplifying geological data. DV Silver sponsors the website, and Mr. Jackson is a long-term shareholder in DV Silver.
“We are very happy to welcome Hecla’s increased ownership stake,” Khunkhun told Mr. Jackson, “Hecla has demonstrated it is a sticky shareholder. They’re looking for the end product. The $10 million strategic investment raised their stake from 10% to about 15%. We’re happy to leverage their financial and technical contributions.”
A total of 51,454 meters was completed during 2023 in 115 drill holes at the Dolly Varden and Homestake Ridge areas with 23,923 of those from the Dolly Varden Project area.
The Contractor’s drills have been demobilized and the exploration camp has been winterized. The November 6, 2023 release includes eight holes from Wolf and four holes from Moose. A total of 31 holes for 15,860 meters were drilled at Wolf in 2023.