(Kitco News) – Gold will rally in the second half of the year as the Fed resumes its rate cuts, but the real story right now is the massive impact that President-elect Donald Trump’s tariff threats are having on global silver stocks, according to TD Securities’ Senior Commodity Strategist Daniel Ghali.
In a Jan. 7 interview, Ghali said that investors need to take notice of an unprecedented situation that’s unfolding in the silver market right now.
“It’s hard to see it in flat prices, but over the last month there’s been a huge disruption in precious metals markets where the threat of universal tariffs on metals is leading traders around the world to bring metal in from London and other global venues into the U.S., only to hedge against the risk that tariffs will be implemented on precious metals,” he said. “Historically they haven’t – precious metals have been considered money in effect – but if they were to be subject to tariffs, then traders holding short positions against metal that they actually hold somewhere else in the world would be subject to substantial losses.”
“In order to hedge against that risk, they’re bringing metal into the U.S.”
Ghali clarified that he’s not talking about contracts or other financial instruments, but actual, physical metal that is being brought en masse into the United States, and the implications are profound.
“This could inadvertently lead to a stock-out in the world’s largest metal vaulting system for silver in London,” he said. “This is the biggest story in commodity markets right now. Silver markets seem to be just completely sleepwalking into a potential stock-out.”
“A stock-out is a moment in time where the inventories of the metal cross a critical threshold below which the [market] structure is challenged,” Ghali explained. “If you think about how the world trades physical precious metals, the global venue for that is sitting in London but most people actually use U.S.-based contracts to hedge price risks. So the challenge here is that the threat of universal tariffs is leading metal to go from the world’s largest venue into the U.S., depleting that inventory buffer that traders use for over-the-counter transactions every day.”
“And mind you, we are now in a fourth consecutive year of very substantial deficits in silver,” he added. “This trend of depleting inventories was already set up, and this is simply something that’s accelerating that process.”
Galley agreed that this scenario could only be very price-positive for silver.
“I think there is the potential for explosive price action in silver if we do meet that critical threshold,” he said. “We’ve seen glimpses of this in other commodities over the last few years. Copper last year had a very substantial rally on a similar theme, and in previous years, palladium was a really good example of a market with a similar setup. Silver markets today just appear to be completely sleepwalking into this setup.”
Ghali acknowledged that current silver prices in no way reflect the seriousness of the situation. “I also think it’s a very under-covered story,” he said. “This is something that could potentially be very significant, but macro investors are just completely flat in silver markets, and nobody’s really paying attention to this.”
For investors who do want to stay on top of the situation, Ghali said there is credible information on silver stocks, but the data won’t tell you exactly how quickly the buffer is being depleted.
“The LBMA, which are the custodians of the metal, publish some data on their vaults on a monthly basis, so you can certainly follow that,” he said, but warned that “a lot of work has to be put in in order to estimate how much of that metal is actually freely available for purchase.”
“There might be a billion ounces sitting in the London vaults, but only 300 million of that is actually freely available for purchase, according to our estimates.”
Asked where TD sees silver prices going in response to this scenario, Ghali was very bullish. “We think that silver is going to end your closer to $40 an ounce, so a substantial gain from today’s prices,” he said.
Turning to gold, Ghali said the situation with the yellow metal is also interesting, as some key support is returning to the market.
“We thought there were some signs of exuberance heading into U.S. elections,” he said. “If you think about the setup back then, you had central bank buying activity substantially slowing,” he noted. “Macro funds – who buy gold to trade the Fed outlook, the global economy and so on – were holding extreme long position sizes. At the same time, the physical market had ground to a complete halt, there was a complete buyer’s strike.”
But today, he’s seeing signs that the buyers strike has finally ended. “We think there’s a strong correlation between currency depreciation pressures in Asia and the strength of the physical market,” Ghali said. “Clearly, the threat of tariffs on China has led to some currency depreciation pressures there, and there are signs that the physical market is finally reigniting again. That could lead to more central bank buying activity, but also institutional and retail buying out of Asia, which has been one of the big missing pieces for gold prices to continue making gains.”
Asked if he expects to see a decoupling of the gold and silver price due to the two metals being driven by very different macro and market factors, he said the opposite is more likely to occur.
“Investment flows which are correlated between gold and silver tend to drive the overwhelming variation in the supply-demand balance for silver,” Ghali said. “Silver is overwhelmingly an industrial metal, solar has been a bigger contributor to total demand growth over the last few years in a very significant way, and so there is a decoupling that’s happening behind the scenes. But I actually would argue this is going to be a recoupling, in the sense that silver is trading extremely cheaply relative to gold, so from a long-term perspective, there’s a long way to go for silver only to catch up to gold’s price performance.”
Ghali is also optimistic about the gold rally resuming in 2025, though he expects this will only happen in the second half.
“We think gold is going to be fairly range-bound,” he said. “There’s going to be opportunities to trade it both ways throughout the course of the year, but we are expecting the Fed to remain on a prolonged pause in the first half of the year, and that could constrain some of these macro fund positions, which have subsided since the U.S. election but still remain bloated.”
“But towards the latter half of the year, we think the Fed is going to resume its cutting cycle more aggressively than is currently priced into markets, and so there could be some opportunities to buy gold throughout the year.”
Gold prices saw a strong run-up on Tuesday, with spot gold spiking as high as $ 2,670.15 per ounce shortly before noon EST before pulling all the way back to $2,650 per ounce.
Spot gold last traded at $2,655.66 per ounce for a gain of 0.27% on the session.
Silver has encountered firm resistance at $30.30 over the last few days, and after failing once again to breach that level shortly after the North American market open, it slid to a session low of $29.789 around 12:40 pm EST.
Spot silver last traded at $29.933 for a loss of 0.31% on the daily chart.
Ernest Hoffman is a Crypto and Market Reporter for Kitco News. He has over 15 years of experience as a writer, editor, broadcaster and producer for media, educational and cultural organizations. Ernest began working in market news in 2007, establishing the broadcast division of CEP News in Montreal, Canada, where he developed the fastest web-based audio news service in the world and produced economic news videos in partnership with MSN and the TMX. He has a Bachelor’s degree Specialization in Journalism from Concordia University. You can reach Ernest at 1-514-670-1339.
Vancouver, British Columbia–(Newsfile Corp. – January 8, 2025) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (the “Company” or “EMX”) is pleased to announce that it has executed four separate option agreements (the “Agreements”), all dated January 7, 2025, with Pacific Ridge Exploration Ltd. (TSXV: PEX) (“Pacific Ridge” or “PEX”) for the Ripsey West, Royston, Red Star, and Mineral Hill projects (the “Projects” or individually a “Project”) located in Arizona, Nevada, Utah, and Wyoming, respectively. The Agreements provide EMX with cash payments, an equity stake in PEX, and required work commitments on the Projects during the earn-in period. Additionally, upon earn-in for a given Project, a 3% net smelter return (“NSR”) royalty, annual advance royalty (“AAR”) payments, and milestone payments provide a strong foundation for future upside as the Projects advance.
The Ripsey West Project is a shallow copper porphyry target in central Arizona’s Laramide copper province with exploration potential for both supergene and hypogene mineralization. The Royston Project in western Nevada targets a late Triassic-early Jurassic copper porphyry system. Of note, porphyries of this age have not traditionally been explored for in the region, even though this age of magmatic activity generally displays a stronger gold affinity than Laramide systems. The Red Star Project is a copper porphyry target adjacent to the historical Star mining district in Utah, and has added potential for skarn, manto, and carbonate-replacement deposit (CRD) styles of mineralization. The Mineral Hill Project in eastern Wyoming is centered on an alkaline intrusive complex, which displays both epithermal and copper-gold porphyry exploration potential.
EMX acquired the Projects through the staking of open ground after recognizing overlooked opportunities in districts with historical exploration. EMX’s track record of organically generating new targets in historical mining districts underscores the strength of the Company’s project generation business model.
Commercial Terms Overview (all dollar amounts in USD). Under the terms of the Agreements, subject to the approval of the TSX Venture Exchange, Pacific Ridge can earn 100% interest in each Project over a five-year option period by satisfying the following terms on a per-Project basis: a) upon receipt of regulatory approval, Pacific Ridge will pay $60,000 in cash and issue 200,000 Pacific Ridge shares (on a post 10:1 consolidation basis), and b) Pacific Ridge will also make option payments totaling $180,000, issue 1,175,000 additional shares, and complete $2,250,000 in exploration expenditures over the five-year term of the option agreement.
Upon option exercise by Pacific Ridge, EMX will retain a 3% NSR royalty on each applicable Project; 1% of the royalty may be bought back by first completing an initial 0.5% royalty buyback for a payment of $1,000,000 to the Company prior to the eighth anniversary of the Effective Date of the Agreement. If the first buyback is completed, then the remaining 0.5% of the royalty buyback can be purchased any time prior to production for $3,000,000. Pacific Ridge will also make AAR payments of $25,000 per Project, which will increase by $10,000 per year until reaching a cap of $75,000 per year. In addition, Pacific Ridge will make Project milestone payments consisting of: a) $500,000 upon completion of a Preliminary Economic Assessment, b) $1,000,000 upon completion of a Pre-Feasibility study, and c) $2,000,000 upon completion of a Feasibility Study.
Project Overviews
Ripsey West: The Ripsey West Project spans over 2,161 hectares and consists of 36 unpatented mining claims and eight state exploration leases in central Arizona’s prolific Laramide copper province. Historical exploration by Conoco, Bear Creek, Noranda, BHP, Freeport-McMoRan, and others concentrated on altered and mineralized outcrops adjacent to EMX’s primary target area. These outcrops display distal chlorite-epidote and sericitic alteration over a broad footprint measuring approximately four by six kilometers, with a central zone of moderate sericitic alteration. Locally, structurally controlled zones exhibit strong sericitic alteration and variable copper mineralization. Through a detailed compilation of historical drilling and an iterative structural study, EMX determined that the district has undergone significant tilting of approximately 90 degrees. The historically explored area represents distal alteration and mineralization, along the paleo-eastern margin of the tilted and dismembered porphyry copper system, whereas EMX’s Ripsey West Project targets the core of the system several kilometers to the west. Exploration by a previous partner included two drill holes totaling 649 meters which primarily tested the depth to bedrock. Beneath the post-mineral alluvium, the alteration in the drill holes matches well with the predictive interpretation of the system, but left the target and the core of the porphyry system untested at depth.
Red Star: The Red Star Project covers 3,005 hectares and consists of unpatented mining claims adjacent to the historical Star mining district in Beaver County, Utah. Geologic observations indicate that the source of polymetallic fissure veins and replacements in the Star mining district may be a concealed porphyry copper system. Although historical workers explored for the source porphyry, they misunderstood the timing relationships between the exposed mineralization and intrusive rocks in the area as well as erroneously mapped normal faults as thrust faults. Structural reinterpretation and geochemical zonation patterns in outcropping stratigraphy indicate a westward vector towards a down-faulted block, or blocks, within the Red Star Project. The strongest copper and pathfinder geochemical anomalies occur at the western side of the exposed Paleozoic sedimentary package, coincident with the highest abundance of prospects in the Star district. Recent geophysical datasets, including drone magnetics, induced polarization (IP), and magnetotelluric (MT) surveys, are supportive of a target in the same area independently predicted by geological and geochemical vectors. The abundance of Paleozoic carbonate rocks in the host stratigraphy indicates potential for skarn, manto, and CRD-style mineralization at the Red Star Project, in addition to the target Cu-Mo porphyry.
Royston: The Royston Project spans over 1,830 hectares and consists of 227 unpatented mining claims northwest of Tonopah, Nevada. The Royston Project represents a compelling porphyry prospect within a belt of Jurassic to late Triassic intrusive rocks in the western US, which are underexplored with respect to copper mineralization. Surface exposures and historical drilling reveal a significant zone of quartz-pyrite-sericite “QSP” style alteration in porphyry dikes and surrounding host rocks. Subsequent geological, geochemical, and geophysical work advanced EMX’s understanding of the system and led to the identification of strong vectors based on system-scale zoning of alteration and mineralization. A reconnaissance reverse-circulation (“RC”) drilling campaign was recently conducted which further validated the target concept and outlined a robust porphyry system which has undergone significant post-mineral tilting. Two of the RC drill holes were cased for re-entry with a core rig due to the shallow intersections of intense QSP (-clay) alteration with increasing base metal mineralization downhole. Follow-up core drilling will target the high temperature core of the porphyry system, which has not previously been intersected in drilling.
Mineral Hill: The Mineral Hill Project in eastern Wyoming spans over 600 hectares across 77 unpatented and 19 patented mining claims. The Project is centered on a zoned Eocene-age alkaline intrusive complex with an outer ring, interior intrusive zones, and a central breccia. Historical mining in the late 19th and early 20th centuries produced gold from alluvial deposits, gold and silver from the Treadwell Mine, and gold and copper from the Interocean Mine. EMX and previous partners recognized that the gold and silver mineralization at the Treadwell Mine is associated with lower-temperature adularia-bearing potassic alteration and is consistent with epithermal-style mineralization. In contrast, the gold and copper mineralization at the Interocean Mine is associated with higher-temperature potassic alteration mineral assemblages (including potassium feldspar and biotite), consistent with a porphyry system. Reconnaissance drill programs with previous partners confirmed these two distinct mineralization styles, but never followed up on initial drill results. Mineral Hill’s proximity to significant historical producers, such as the Homestake and Wharf mines, highlights the potential for additional discoveries in this productive belt.
EMX and Pacific Ridge look forward to commencing work on the Projects.
This transaction is another example of the execution of EMX’s business model in providing turn-key and drill ready exploration projects to its partner companies in exchange for royalty interests.
Comments on Adjacent or nearby Districts, Mines, and Deposits. The districts, mines and deposits discussed in this news release provide context for EMX’s projects, which occur in similar geologic settings, but this is not necessarily indicative that the Company’s projects host similar tonnages or grades of mineralization.
Michael P. Sheehan, CPG, a Qualified Person as defined by National Instrument 43-101 and employee of the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.
About EMX. EMX is a precious and base 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”. Please see www.EMXroyalty.com for more information. For further information contact:
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, 2024 (the “MD&A”), and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2023, 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.
Vancouver, British Columbia–(Newsfile Corp. – January 8, 2025) – Emperor Metals Inc. (CSE: AUOZ) (OTCQB: EMAUF) (FSE: 9NH) (“Emperor“) is pleased to share additional results from its 2024 drilling program. The program included 8,166 meters of drilling across 19 new drill holes, and assays of approximately 8,000 meters of historical core. To date, 70% of the new drilling assays have been reported, but only 35% of the total assays for the 2024 season (combined 2024 drilling and historical core resampling). All assays should be finalized by mid-February.
CEO John Florek commented: “The intersection of broad zones of multi-gram gold (Au) mineralization with visible gold within theconceptual open-pit model is highly encouraging for future open-pit mining economics. These results highlight significant opportunities in poorly drilled areas within the defined conceptual open-pit model. This reinforces the potential to optimize and expand the currently understood boundaries of potentially viable mining for this deposit. This additional high-grade mineralization, once fully defined, will be vital to increasing our open-pit head grade for potential future mining and our upcoming Mineral Resource Estimate (MRE) expected in Q1 of 2025.”
Highlights:
DQ24-11 intersects 24.8 meters (m) of 1.8 g/t Au and 56.1 m of 0.5 g/t Au which expands on the low-grade bulk tonnage in the Conceptual Open Pit.
DQ24-12 intersected 21.7 m of 7.2 g/t Au within a broader interval of 38.3 m of 4.1 g/t Au within an area of limited drilling in Emperor’s conceptual open pit model.
DQ24-12 intersects 23.5 m of 1.2 g/t Au (within a broader interval of 68.3 m of 0.6 g/t Au) (see Figure 1 and 2).
Full results for DQ24-10 to DQ24-11 and partial results for DQ24-12 have been released from SGS Laboratories (see Table 1 intercept highlights). These results continue to identify significant potential for resource expansion within and along strike of the open pit concept through previously unidentified low grade bulk tonnage zones and discoveries of high-grade lenses containing visible gold within the conceptual open-pit model (Figure 1 and 2).
Emperor is targeting a multi-million-ounce resource in a combination of conceptual open pit and underground mining scenarios. The Property hosts a historical inferred mineral resource estimate of 727,000 ounces of gold at a grade of 5.42 g/t Au.1,2 Emperor is committed to delivering a new Mineral Resource Estimate in Q1 of 2025.
The 2024 drilling continues to validate low-grade bulk-tonnage and high-grade mineralization inside and external to the conceptual open-pit concept.
DQ24-11
Emperor is encouraged by the intersection of multiple mineralized zones in DQ24-11, highlighting significant expansion potential. Notably, Drillhole DQ24-11, located within the conceptual open-pit concept area, revealed a broad interval of 56.1 meters grading 0.5 g/t Au in the hanging wall mafic volcanics, which host previously identified high-grade gold lenses. This zone exhibited moderate to strong shearing and pervasive alteration with carbonate and silica, accompanied by 2-5% pyrite throughout the interval.
Below the conceptual open-pit, Drillhole DQ24-11 intersected a broad zone of interlayered mafic, ultramafic, and quartz-feldspar porphyries within the footwall of the deposit. This interval included 24.8 meters grading 1.8 g/t Au, hosted in highly altered, mineralized mafic volcanics with 1-3% pyrite mineralization. The zone exhibits significant shearing and structural weakness, characterized by mineralized, brecciated mafic volcanic flows, altered and sheared fuchsite-bearing ultramafic rocks, and intrusions of altered quartz-feldspar porphyries. These features underscore the expansion potential of this zone and the robust, well-endowed mineralization identified along its 2.8 km strike length to date.
DQ24-12
Drillhole DQ24-12 intersected multiple zones of continuous low-grade, bulk-tonnage gold mineralization. Most notably, within the conceptual open-pit environment, it encountered 68.3 meters grading 0.6 g/t Au, including a higher-grade interval of 23.5 meters at 1.2 g/t Au. This mineralization, hosted in altered and locally brecciated quartz-feldspar porphyries containing 1-3% pyrite, represents incremental bulk-tonnage gold that will contribute significantly to the upcoming Q1 mineral resource model.
An exciting discovery within the conceptual open-pit environment revealed a 38.3-meter zone grading 4.1 g/t Au, including a high-grade interval of 21.7 meters at 7.2 g/t Au, in an area previously modeled as lower-grade mineralization. This zone contained visible gold, with an exceptional interval reporting 2.5 meters at 57.8 g/t Au (see Figure 3). The presence of visible gold not only validates previously reported positive metallurgical results (Press Release dated November 19, 2024) but also highlights the potential to significantly enhance the deposit’s grade through closer drill spacing. This improvement is expected to positively impact the project’s overall economics.
These findings are expected to make a significant contribution to the upcoming Q1 mineral resource estimate. A total of 35% of the assays for the 2024 season has been reported to date. By focusing on near-surface drilling for open-pit mining, Emperor aims to economically expand its resource base at lower grades compared to underground mining by targeting near-surface drilling.
Deposits in the region with currently active open pits have been economic at grades equal 0.30 g/t Au (see Agnico Eagles press release dated Feb 15, 2024 – Detour Lake Deposit cut-off grade, pg. 52.)
Strategic Plan
The 2024 drilling campaign at Emperor’s Duquesne West Gold Project in Quebec continues to identify extensive low-grade bulk tonnage zones surrounding the previously known high grade areas. These latest results further solidify the project’s immense potential and underscore the company’s commitment to unlocking substantial value for its shareholders.
The 2024 season leverages advanced exploration techniques to test several scenarios to add ounces and/or expand the footprint:
1) Explore Lower Grade Discoveries: Target additional discoveries within the host rock containing high-grade gold lenses, focusing on the conceptual open-pit model.
2) Increase the Thickness of the High-Grade Lenses: Incorporate previously unaccounted lower-grade gold from the margins of high-grade lenses to enhance their overall thickness.
3) Expand Mineralized Zones: Extend the lateral footprint of mineralized zones along strike and dip.
4) Discover New Zones: Explore potential new zones not yet included in the conceptual open-pit model, with a particular focus on eastward expansion.
These latest results continue to build on the strong momentum generated by last year’s drilling program and confirm the presences of extensive low grade bulk tonnage zones surrounding the known high-grade regions.
Table 1 – Intercept Highlights- Host Structures are interpreted to be steeply dipping and true widths are generally estimated to 90%.
Hole No.
From (m)
To (m)
Interval (m)
Au (g/t Au)
DQ24-101
92.3
94.3
2
0.13
94.3
95.9
1.6
0.53
Wt. Avg.
3.6
0.3
DQ24-101
104.1
105.5
1.4
0.49
105.5
106.9
1.4
0.12
Wt. Avg.
2.8
0.3
Hole No.
From (m)
To (m)
Interval (m)
Au (g/t Au)
DQ24-111
162.1
163.1
1
0.81
163.1
164.45
1.35
0.17
164.45
165.8
1.35
0.48
165.8
168
2.2
0.5
168
170.2
2.2
0.24
170.2
171.2
1
2.25
171.2
172.2
1
0.13
Note2
172.2
173.2
1
0.005
173.2
174.2
1
0.51
174.2
175.2
1
1.04
175.2
176.2
1
0.27
176.2
177.2
1
0.89
177.2
178.2
1
0.03
178.2
179.2
1
0.03
179.2
180.2
1
0.93
180.2
181.2
1
1.67
181.2
182.2
1
0.39
182.2
183.2
1
1.18
183.2
184.2
1
0.91
184.2
185.2
1
0.68
185.2
186.2
1
0.08
186.2
187.2
1
1.11
187.2
188.2
1
1.17
188.2
189.2
1
0.09
189.2
190.2
1
0.07
190.2
191.2
1
0.05
191.2
192.2
1
0.19
192.2
193.2
1
0.9
193.2
194.2
1
0.26
Note2
194.2
195.2
1
0.005
Note2
195.2
196.2
1
0.005
Note2
196.2
197.2
1
0.005
Note2
197.2
198.2
1
0.005
Note2
198.2
199.2
1
0.005
Note2
199.2
200.2
1
0.005
Note2
200.2
201.2
1
0.005
201.2
202.2
1
0.1
202.2
203.2
1
0.01
203.2
204.2
1
0.06
Note2
204.2
205.2
1
0.005
205.2
206.2
1
0.01
206.2
207.2
1
0.005
Note2
207.2
208.2
1
0.005
208.2
209.2
1
0.01
209.2
210.2
1
0.23
210.2
211.2
1
0.005
211.2
212.2
1
1.05
212.2
213.2
1
4.33
213.2
214.2
1
0.07
214.2
215.2
1
0.04
215.2
216.2
1
0.6
216.2
217.2
1
0.62
217.2
218.2
1
2.14
Wt. Avg.
56.1
0.5
Including (170.2 to188.2 m)
18
0.7
Including (179.2 to188.2 m)
9
0.9
Including (179.2 to188.2 m)
7
1.3
DQ24-111
233.2
234.2
1
0.21
234.2
235.2
1
0.28
235.2
236.2
1
0.54
236.2
237.2
1
0.46
Wt. Avg.
4
0.4
DQ24-111
349.3
350.3
1
0.75
350.3
351.3
1
0.02
Note2
351.3
352.3
1
0.005
Note2
352.3
353.3
1
0.005
353.3
354.3
1
0.06
354.3
355.3
1
0.81
355.3
356.3
1
1.47
356.3
357.3
1
0.73
357.3
358.3
1
0.25
358.3
359.3
1
0.11
359.3
360.3
1
0.03
360.3
361.3
1
0.06
361.3
362.3
1
0.11
362.3
363.3
1
0.06
363.3
364.3
1
0.03
Note2
364.3
365.3
1
0.005
365.3
366.3
1
0.02
366.3
367.3
1
0.03
367.3
368.3
1
0.23
368.3
369.3
1
0.55
369.3
370.3
1
0.04
370.3
371.3
1
0.06
371.3
372.3
1
0.02
372.3
373.3
1
0.05
373.3
374.3
1
0.15
374.3
375.3
1
0.63
375.3
376.3
1
0.65
376.3
377.3
1
1.37
377.3
378.3
1
0.02
378.3
379.3
1
0.14
379.3
380.3
1
0.41
380.3
381.3
1
0.04
381.3
382.3
1
0.3
382.3
383.3
1
0.28
Wt. Avg.
34
0.3
Including (349.3 to358.3 m)
9
0.5
Including (374.3 to383.3 m)
9
0.4
Including (354.3 to358..3 m)
4
0.8
Including (354.3 to357..3 m)
3
1.0
DQ24-111
432.6
433.6
1
0.51
433.6
434.6
1
5.52
434.6
435.6
1
3.71
435.6
436.6
1
0.89
436.6
437.6
1
0.31
437.6
438.6
1
2.21
Wt. Avg.
6
2.2
DQ24-111
466.3
467.3
1
0.39
467.3
468.3
1
1.53
468.3
469.3
1
0.33
469.3
470.3
1
0.25
470.3
471.3
1
0.15
471.3
472.3
1
0.1
472.3
473.3
1
0.18
Wt. Avg.
7
0.4
DQ24-111
510.5
513
2.5
0.24
513
515.5
2.5
3.23
Wt. Avg.
5
1.7
DQ24-111
580.2
581.65
1.45
0.49
Note2
581.65
583.3
1.65
0.005
583.3
585.2
1.9
0.31
Wt. Avg.
5
0.3
DQ24-111
614.5
615.5
1
0.21
615.5
616.5
1
0.2
616.5
617.5
1
0.06
617.5
618.5
1
0.74
618.5
619.7
1.2
0.26
619.7
621.1
1.4
0.17
621.1
622.5
1.4
0.02
622.5
623.5
1
0.005
623.5
624.5
1
0.21
624.5
625.5
1
0.1
Note2
625.5
626.5
1
0.005
626.5
627.5
1
0.03
627.5
628.5
1
2.41
628.5
629.5
1
26.63
629.5
630.5
1
11.82
630.5
631.5
1
0.02
631.5
632.5
1
0.05
632.5
633.5
1
0.12
633.5
635.3
1.8
0.04
635.3
636.3
1
0.5
636.3
637.3
1
0.62
637.3
638.3
1
0.31
638.3
639.3
1
0.21
Wt. Avg.
24.8
1.8
Including (617.5 to 638.5 m)
20.8
2.1
Including (617.5 to 638.5 m)
10.8
3.9
Including (627.5 to 630.5 m)
3
13.6
DQ24-111
729.6
730.6
1
0.54
730.6
731.6
1
0.61
731.6
732.9
1.3
0.15
Wt. Avg.
3.3
0.4
Hole No.
From (m)
To (m)
Interval (m)
Au (g/t Au)
DQ24-121
155.5
156.5
1
4.65
156.5
157.5
1
8
157.5
158.6
1.1
1.13
158.6
161.1
2.5
1.34
161.1
163.6
2.5
0.01
163.6
166.1
2.5
0.04
Note2
166.1
168.3
2.2
0.005
168.3
170.6
2.3
1.97
170.6
173.1
2.5
1.09
173.1
174.55
1.45
0.78
174.55
176
1.45
0.49
176
177
1
0.18
177
178
1
0.49
178
179
1
0.75
179
180
1
0.03
180
181.8
1.8
0.06
Note2
181.8
183.6
1.8
0.005
183.6
184.6
1
0.1
184.6
185.6
1
0.81
185.6
186.6
1
0.04
186.6
187.6
1
0.11
187.6
188.6
1
0.05
188.6
189.6
1
0.06
189.6
190.6
1
0.09
190.6
191.6
1
0.04
191.6
192.6
1
0.02
192.6
193.6
1
0.02
193.6
194.6
1
1.88
194.6
195.6
1
0.1
195.6
196.6
1
0.18
196.6
197.6
1
0.01
197.6
198.6
1
0.05
198.6
199.6
1
0.03
199.6
200.6
1
0.05
200.6
201.6
1
0.21
201.6
202.6
1
0.52
202.6
203.6
1
0.84
203.6
204.6
1
0.59
204.6
205.6
1
0.43
205.6
206.6
1
0.04
206.6
207.6
1
0.05
207.6
208.6
1
0.07
208.6
209.6
1
0.02
209.6
210.6
1
0.03
210.6
211.6
1
0.02
211.6
212.6
1
0.01
212.6
213.6
1
0.05
213.6
214.6
1
2.13
214.6
215.6
1
0.02
215.6
216.6
1
0.04
216.6
217.6
1
0.005
217.6
218.8
1.2
0.06
218.8
221.3
2.5
0.03
221.3
223.8
2.5
1.23
Wt. Avg.
68.3
0.6
Including (155.5 to 179 m)
23.5
1.2
Including (155.5 to 161.1 m)
5.6
3.1
DQ24-121
258.8
261.3
2.5
0.39
261.3
263.8
2.5
0.13
263.8
266.3
2.5
0.02
Note2
266.3
268.8
2.5
0.005
268.8
271.3
2.5
0.01
Note2
271.3
273.8
2.5
0.005
273.8
275.4
1.6
0.02
275.4
276.4
1
6.77
276.4
277.4
1
1.65
277.4
278.4
1
0.09
278.4
279.4
1
0.06
279.4
280.4
1
0.02
280.4
281.7
1.3
0.02
281.7
283.05
1.35
1.47
283.05
284.4
1.35
0.07
284.4
286.9
2.5
0.01
286.9
289.4
2.5
57.8
289.4
291.9
2.5
0.005
291.9
294.1
2.2
0.13
294.1
295.1
1
0.13
295.1
296.1
1
0.09
296.1
297.1
1
0.21
Wt. Avg.
38.3
4.1
Including (275.4 to 297.1 m)
21.7
7.2
Including (275.4 to 289.4 m)
14
11.1
DQ24-121
346.4
347.4
1
0.4
347.4
348.4
1
0.13
348.4
349.4
1
0.06
349.4
350.4
1
0.28
350.4
351.4
1
0.02
351.4
352.6
1.2
1.1
352.6
354.9
2.3
0.13
354.9
355.9
1
0.09
355.9
356.9
1
0.56
356.9
357.9
1
0.23
357.9
360.4
2.5
0.32
360.4
361.9
1.5
0.05
361.9
362.9
1
1.14
362.9
363.9
1
0.32
363.9
364.9
1
1.22
364.9
365.9
1
0.74
Note2
365.9
366.9
1
0.005
366.9
368.1
1.2
0.29
Wt. Avg.
21.7
0.4
Including (351.4-365.9 m)
14.5
0.5
Including (193.6-365.9 m)
4
0.9
1Host Structures are interpreted to be steeply dipping and true widths are generally estimated to 90%.
2Value reported below detection limit of <0.01. Value was numerically halved to assign a real number.
Quality Assurance and Control
The Quality Assurance and Quality Control (QAQC) was conducted by Technominex, a geological contractor hired by Emperor Metals, which adheres to CIM Best Practices Guidelines for exploration related activities conducted at its facility in Rouyn Noranda, Quebec. The QA/QC procedures are overseen by a Qualified Person on site.
Emperor Metals QA/QC protocols are maintained through the insertion of certified reference material (standards), blanks and lab duplicates within the sample stream totaling approximately one QA/QC sample per 7 samples. Drill core is cut in-half with a diamond saw, with one-half placed in sealed bags with appropriate tags and shipped to the SGS Sudbury laboratory and the other half retained on site in the original core box. A dispatch list consists of 88 or 176 samples along with their corresponding QA/QC samples for a single batch. This allows complete batches (88 samples) for fire assay. A file for sample tracking records tags used and weights of sample bags shipped to the SGS Lakefield. Shipment is done by Manitoulin Transport and coordination by Technominex staff in Rouyn-Noranda
The third-party laboratory, SGS prep laboratory in Sudbury Ontario, processes the shipment of samples using standard sample preparation (code PRP91) and produces pulps from the specified samples. The pulps are then sent off to SGS Burnaby for analysis. Chain of custody is maintained from the drill to the submittal into the laboratory preparation facility all the way to analysis at the SGS Burnaby B.C. laboratory.
Analytical testing is performed by SGS laboratories in Burnaby, British Columbia. The entire sample is crushed to 75% passing 2mm, with a split of 500g pulverized to 85% passing 75 microns. Samples are then analyzed using Au – ore grade 50g Fire Assay, ICP-AES with reporting limits of 0.01 -100 part per million (ppm). High grade gold analysis based on the presence of visible gold or a fire assay result exceeding 100 ppm, are analyzed by Au – metallic screening, 1kg screened to 106μm, 50g fire assay, gravimetric, AAS or ICP-AES of entire plus fraction and duplicate analysis of minus fraction. Reporting limit 0.01ppm.
About the Duquesne West Gold Project
The Duquesne West Gold Property is located 32 km northwest of the city of Rouyn-Noranda and 10 km east of the town of Duparquet, Quebec, Canada. The property lies within the historic Duparquet gold mining camp in the southern portion of the Abitibi Greenstone Belt in the Superior Province.
Under an Option Agreement, Emperor agreed to acquire a 100% interest in a mineral claim package comprising 38 claims covering approximately 1,389 ha, located in the Duparquet Township of Quebec (the “Duquesne West Property”) from Duparquet Assets Ltd., a 50% owned subsidiary of Globex Mining Enterprises Inc. (GMX-TSX). For further information on the Duquesne West Property and Option Agreement, see Emperor’s press release dated Oct. 12, 2022, available on SEDAR.
The Property hosts a historical inferred mineral resource estimate of 727,000 ounces of gold at a grade of 5.42 g/t Au.1,2 The mineral resource estimate predates modern Canadian Institute of Mining and Metallurgy (CIM) guidelines and a Qualified Person on behalf of Emperor has not reviewed or verified the mineral resource estimate, therefore it is considered historical in nature and is reported solely to provide an indication of the magnitude of mineralization that could be present on the property. The gold system remains open for resource identification and expansion.
A reinterpretation of the existing geological model was created using AI and Machine Learning. This model shows the opportunity for additional discovery of ounces by revealing gold trends unknown to previous workers and the potential to expand the resource along significant gold- endowed structural zones.
Multiple scenarios exist to expand additional resources which include:
1 Watts, Griffis, and McOuat Consulting Geologists and Engineers, Oct. 20, 2011, Technical Report and Mineral Resource Estimate Update for the Duquesne-Ottoman Property, Quebec, Canada, for XMet Inc.
2 Power-Fardy and Breede, 2011. The Mineral Resource Estimate (MRE) constructed in 2011 is considered historical in nature as it was constructed prior to the most recent CIM standards (2014) and guidelines (2019) for mineral resources. In addition, the economic factors used to demonstrate reasonable prospects of eventual economic extraction for the MRE have changed since 2011. A qualified person has not done sufficient work to consider the MRE as a current MRE. Emperor is not treating the historical MRE as a current mineral resource. The reader is cautioned not to treat it, or any part of it, as a current mineral resource.
QP Disclosure
The technical content for the Duquesne West Project in this news release has been reviewed and approved by John Florek, M.Sc., P.Geol., a Qualified Person pursuant to CIM guidelines.
About Emperor Metals Inc.
Emperor Metals Inc. is an innovative Canadian mineral exploration company focused on developing high-quality gold properties situated in the Canadian Shield. For more information, please refer to SEDAR (www.sedar.com), under the Company’s profile.
ON BEHALF OF THE BOARD OF DIRECTORS
s/ “John Florek”
John Florek, M.Sc., P.Geol President, CEO and Director Emperor Metals Inc.
Certain statements made and information contained herein may constitute “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian and United States securities legislation. These statements and information are based on facts currently available to the company and there is no assurance that the actual results will meet management’s expectations. Forward-looking statements and information may be identified by such terms as “anticipates,” “believes,” “targets,” “estimates,” “plans,” “expects,” “may,” “will,” “could” or “would.”
Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and reserves, the realization of resource and reserve estimates, metal prices, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes and other matters. While the company considers its assumptions to be reasonable as of the date hereof, forward-looking statements and information are not guarantees of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The company does not undertake to update any forward-looking statements or information except as may be required by applicable securities laws.
Vancouver, British Columbia–(Newsfile Corp. – January 7, 2025) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (the “Company” or “EMX”) is pleased to announce the purchase of a 0.625% NSR royalty interest covering all minerals produced from the Urasar gold-copper project in northern Armenia, which is wholly owned and being advanced by Hayasa Metals Inc. (“Hayasa”, (TSXV: HAY), formerly Fremont Gold Ltd. Further to a Joint Acquisition Agreement between EMX and Franco-Nevada Corporation (“Franco”) entered into in 2023 (see EMX News Release dated August 1, 2023), Franco has also acquired a 0.625% NSR royalty.
Commercial Terms Overview. EMX and Franco will pay Hayasa a combined US$1 million (with EMX contributing US$450,000 and Franco contributing US$550,000 in accordance with the terms of the Joint Acquisition Agreement) in exchange for:
A 1.25% NSR royalty interest to be shared evenly between EMX and Franco (i.e. each company will receive a 0.625% NSR royalty interest) that covers the Urasar project licenses and a surrounding area of interest; and
500,000 share purchase warrants, which can be exercised on a one-for-one basis for common shares of Hayasa within 18 months at a strike price of C$0.22 per share (EMX and Franco will each receive 250,000 of the share purchase warrants).
As part of the transaction, EMX and Franco will have a right of first refusal in respect of any royalty, stream or similar interest on Urasar.
Overview of the Urasar Project. The Urasar gold-copper project was acquired by Hayasa in 2023 by direct acquisition of an exploration license from the Armenian government following an assessment of the Tethyan Metallogenic Belt by Hayasa that was led by Dennis Moore. Mr. Moore is a well-known and accomplished explorer who is credited with the discoveries of the Tocantinzinho and Cuiu Cuiu gold deposits in Brazil.
The Urasar project is positioned along a regional structural zone that juxtaposes an older package of ophiolitic rocks with younger volcanic and volcaniclastic rocks. Gold and copper mineralization are localized along the contact zones throughout the Urasar exploration license and elsewhere in the region. Urasar saw historic copper production by the French during World War I and was later explored by the Soviets in the 1920’s, 1930’s and 1950’s. Several Soviet era resources were defined (in accordance with the Soviet reporting systems at the time), but virtually no work has been completed since. The styles of mineralization at Urasar bear resemblance to the styles of mineralization in the Sokt gold deposit, the largest developed gold deposit in Armenia. Further information on the project is summarized on Hayasa’s website.
Armenia has seen recent exploration and development efforts by other western companies, including Orion Mine Finance and Osisko Gold Royalties, who are working to develop the Amulsar gold project in southern Armenia. In addition to its modern mining code and favorable fiscal regime, Armenia currently has over ten active metals mines, and mining is a significant contributor to its GDP.
EMX believes that Urasar has potential to become a significant discovery based upon the historical work done on the property, new surface geochemical and geophysical data collected by Hayasa, and overall geological characteristics. The royalty acquisition at Urasar represents the first co-investment between EMX and Franco as part of their Joint Acquisition Agreement.
Comments on Historical Mineral Resources. EMX does not consider the historical mineral resources defined at Urasar during the Soviet era to be compliant with NI 43-101 standards, nor is EMX treating the historic resources as current resources on the project. They are discussed here strictly for their historical context and should not be relied upon until they can be confirmed.
Comments on Nearby Mines and Deposits. The mines and deposits discussed in this news release provide context for EMX’s projects, which occur in similar geologic settings, but this is not necessarily indicative that the Company’s projects host similar styles, tonnages or grades of mineralization.
Dr. Eric P. Jensen, CPG, a Qualified Person as defined by National Instrument 43-101 and employee of the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.
About EMX. EMX is a precious and base 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”. 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, 2024 (the “MD&A”), and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2023, 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.
Vancouver, British Columbia–(Newsfile Corp. – January 6, 2025) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (the “Company” or “EMX”) is pleased to announce that the Company has entered into a Royalty Agreement (the “Agreement”) with Minera Pampa de Cobre S.A.C. (“MPC”), a Peruvian company focused on restarting production at the Chapi copper mine located south of the city of Arequipa in Peru (the “ChapiMine“). MPC is owned indirectly by a privately held Canadian company, Quilla Resources Inc. (“Quilla”).
Pursuant to the terms of the Agreement, EMX will acquire a royalty interest of up to 2% of Net Smelter Returns (“NSR“) on minerals produced from the approximately 26,000 hectare property (“Property Royalty”) owned by MPC (see Figure 1), as well as up to a 2% NSR royalty from any minerals that are produced from outside the Property Royalty area, but that are processed at the Chapi Mine processing facilities (“Facilities Royalty”). The Agreement also includes a two-kilometer area of interest (“AOI”) around the Property Royalty area, and any property acquired by MPC within this AOI will also be subject to an NSR royalty of up to 2% (“AOI Royalty”). As consideration for the acquisition of the first 1% of the NSR interests, the Company has paid MPC the amount of US$3,000,000. A second 1% NSR interest can be acquired by EMX, at the election of MPC, for an additional US$7,000,000 until February 28, 2025. The Property Royalty is perpetual and cannot be reduced. The Facilities Royalty and the AOI Royalty will be reduced by half (to either 0.5% NSR or 1% NSR – depending on the MPC election) on July 1, 2034.
EMX’s right to receive royalty payments will be secured by a guarantee from Quilla, and by various personal property and real property security instruments in Peru. EMX’s security interests will be subordinated to those of Hartree Partners, LP (“Hartree”), acting as the first lien lender to MPC and Quilla, in accordance with an intercreditor agreement entered into between EMX, Hartree, MPC, and Quilla.
EMX is excited by the addition of a high-quality copper royalty to the portfolio that has excellent upside development and exploration potential located in the prolific Paleocene-Eocene copper-molybdenum porphyry belt of Southern Peru.
Background on Quilla
Quilla is a newly formed Canadian company that recently (December 2024) acquired MPC from Nexa Resources S.A. (NYSE: NEXA), one of the world’s top zinc producers with operations in Brazil and Peru. Quilla was founded by Victor Gobitz and a select group of shareholders looking to rapidly build an intermediate-sized base metals company. Mr. Gobitz is a senior mining executive who will be transitioning from his role as President and General Manager for the world class Antamina mine in Peru to lead Quilla. Mr. Gobitz has worked with a number of companies in Peru over recent years including Rio Alto Mining, Compañía Minera Milpo (now Nexa Resources Peru), and Compañía de Minas Buenaventura, and from his deep knowledge of the mining industry in Peru has assembled an experienced and accomplished team to quickly execute on Quilla’s plans to restart copper production at Chapi.
Background on the Chapi Mine1
The Chapi Mine is located in southern Peru’s Moquegua and Arequipa Departments at an elevation of approximately 2,750 meters, and has ready access approximately 50 kilometers south-southeast from the city of Arequipa. Historical, small-scale copper production, which is poorly documented, occurred intermittently from the 1930s through the early 1980s. Subsequently, between 2006 and 2012 the Chapi Mine produced approximately 5,000 to 8,500 tonnes per annum, initially of copper sulphates from open-pit and underground mining and heap leaching, and later copper cathodes from open-pit mining, heap leaching, and SX-EW (solvent extraction-electrowinning) processing. The grades mined during 2006-2012 were reported as 0.59% – 1.04% copper. The operations were halted in 2012 due to declining copper prices and operational challenges that were mainly related to insufficient ore control on materials delivered to the leach pads.
The historical Chapi Mine is comprised of two principal open pits, underground workings, a crushing and grinding circuit, heap leach pads, a solvent extraction plant, an electrowinning copper cathode plant, and related infrastructure including mine camp, office facilities, water supply, and power. Since 2012, Chapi has been maintained under care and maintenance with the principal permits for mining operations remaining in place under a temporary suspension.
Chapi Geology and Exploration Upside2
The deposits at Chapi are comprised of sandstone-hosted copper mineralized mantos, partially oxidized and secondarily enriched, that are related to a series of porphyry intrusions. The Chapi Mine lies between, and directly along trend from, some of the world’s largest producing porphyry copper deposits, including Cerro Verde and the Cuajone-Quellaveco-Toquepala cluster (refer to inset in Figure 1). All of these deposits and districts, as well as others, comprise the Paleocene-Eocene Cu-Mo porphyry belt of Southern Peru, and contribute to making Peru the second ranked copper producer in the world.
The ~26,000 hectare land package owned by MPC, and subject to EMX’s royalty interests, includes historical resources based on an extensive drill database that delineates the well-mineralized, leachable manto horizons at Chapi, which are open for potential resource expansion from both open pit and underground exploitation. Porphyritic intrusions, intimately associated with the mineralized mantos, have low-grade copper mineralization in sericitic-altered zones, but also have exploration potential for higher-grade copper mineralization within the porphyry system. Further, although gold assays in the drill database are limited in number, those that are present suggest that gold, not recovered by the historical mining operations, might have wider exploration potential.
Additional, potentially leachable copper-oxide and chalcocite drill-defined mineralization, as well as primary sulphide mineralization, occurs at the Pampa Negra and Candelaria projects, related to porphyritic intrusions and associated supergene manto horizons that are covered by the Property Royalty or by the AOI Royalty. Furthermore, early-stage exploration targets at San Jose (with drilling), and Justicia prospect areas (no drilling) show evidence of porphyry-style mineralization with some evidence for oxidation of primary sulphides. These deposits provide upside potential for processing at the existing Chapi plant subject to further drilling, engineering, and permitting.
Chapi Restart Plans
Quilla’s near-term plan is to restart Chapi Mine operations utilizing the SX-EW process circuit which is designed to produce a nominal 10,000 tonnes per annum of copper cathode, with the option to potentially increase capacity in the future. Initially, the restart plan is contingent on additional drilling and metallurgical test work, updated resource and reserve modelling, rehabilitation of the mining and leach-processing infrastructure, and updated environmental and other permits. Quilla and MPC have raised the necessary capital to complete the Chapi restart program, and anticipate initial production in H1 2026.
Comments on Mines and Districts in the Region. The mines and districts in the region of the Chapi Mine property, which include Cerro Verde and the Cuajone-Quellaveco-Toquepala cluster, provide geological context for EMX’s Chapi royalty property. However, this is not necessarily indicative that the Chapi royalty property hosts similar styles, grades, or tonnages of mineralization.
Comments on Chapi Background, Geology, and Exploration Upside. EMX has not verified the historical information and data from the previous Chapi operators, but believes this information and data to be reliable and relevant. Updated information and data will result from Quilla’s restart program technical work.
Dean D. Turner, CPG, a Qualified Person as defined by National Instrument 43-101 and consultant to the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.
About EMX – EMX is a precious and base 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”. 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, 2024 (the “MD&A”), and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2023, 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.
Figure 1. EMX’s Chapi royalty property and AOI, southeast Peru.
1 Background and production information taken from internal, proprietary reports and documents by historical operators, as well as “Memoria Anual” reports filed with the Peruvian government by historical operator Compañia Minera Milpo S.A.A.
2 Geology and exploration upside taken from EMX’s due diligence field review and review of internal, proprietary reports and documents from historical operators, as well as “Memoria Anual” reports filed with the Peruvian government by historical operator Compañia Minera Milpo S.A.A.
Vancouver, British Columbia–(Newsfile Corp. – January 2, 2025) – MAX RESOURCE CORP. (TSXV: MAX) (OTC Pink: MXROF) (FSE: M1D2) (“Max” or the “Company“) is pleased to announce that, further to its news release on December 12, 2024, Max Iron Brazil Ltd. (“Max Brazil“), subsidiary of the Company, the TSX Venture Exchange (“TSXV”) has conditionally approved the non-brokered private placement of up to 30,000,000 ordinary shares in the capital of Max Brazil (the “Ordinary Shares“) at a price of AUD $0.10 per Ordinary Share for aggregate gross proceeds of up to AUD $3,000,000 (the “Offering“).
The net proceeds of the Offering will be used for the advancement of the Florália DSO Hematite Project located 67-km east of Belo Horizonte, Minas Gerais, Brazil, and for general working capital purposes. There are no finder’s fees paid in connection with the completion of the Offering.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such an offer, solicitation or sale would be unlawful.
In addition, Max Brazil has now commenced inaugural drill programs at its Florália DSO Hematite Project, consisting of approximately 1,500 metres of diamond drilling and 1,000 metres conducted by a mobile power auger rig.
About Max Resource Corp.
The Company’s wholly owned Sierra Azul Project sits along the Colombian portion of the world’s largest producing copper belt (Andean belt), with world-class infrastructure and the presence of global majors (Glencore and Chevron). Max has an Earn-In Agreement (“EIA”) with Freeport-McMoRan Exploration Corporation (“Freeport”), a wholly owned affiliate of Freeport-McMoRan Inc. (“NYSE: FCX”) relating to the Sierra Azul Project. Under the terms of the EIA, Freeport has been granted a two-stage option to acquire up to an 80% ownership interest in the Sierra Azul Project by funding cumulative expenditures of C$50 million and making cash payments to Max of C$1.55 million. Max is the operator of the initial stage. The USD $4.2 million 2024 exploration program for the Sierra Azul Project is funded by Freeport.
The Company’s Florália DSO Hematite Project is located 67-km east of Belo Horizonte, Minas Gerais, Brazil’s largest iron ore producing State. Max’s technical team has significantly expanded the Florália hematite geological target from 8-12mt at 58% Fe to 50-70mt at 55%-61% Fe, with an additional hematite/itabirite geological target of 130- 170mt at 51%-55% Fe.
Max cautions investors the potential quantity and grade of the iron ore is conceptual in nature, and further cautions there has been insufficient exploration to define a mineral resource, and Max is uncertain if further exploration will result in the target being delineated as a mineral resource.
Hematite mineralization tonnage potential estimation is based on in situ high-grade outcrops and interpreted and modelled magnetic anomalies. Density value used for the estimate is 2.8t/m³. Hematite sample grades range between 55-61% Fe. Hematite/itabirite mineralization tonnage potential estimation is based on in situ hematite/itabirite outcrop interpreted and modelled magnetic anomalies. Density value used for the estimate is 2.5t/m3. Hematite/itabirite sample grades range between 51-55% Fe. The 58 channel samples were collected for chemical analysis from in situ outcrops in previously mined slopes of industrial materials. Channel samples weighed in average 14 kg. Chemical analysis was performed at ALS Laboratories. Metal Oxides are determined using XRF analysis. Fusion disks are made with pulped samples and the addition of a borate-based flux. Max did not insert standards or blanks in the assay stream and is relying on ALS’s lab QA/QC.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this new release, other than statements of historical facts, that address events or developments that the Company expects to occur, are 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. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Forward looking statements in this news release include the anticipated use of proceeds of the Offering. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by applicable securities laws, 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 UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES
KELOWNA, BC / ACCESSWIRE / December 31, 2024 / Diamcor Mining Inc. (TSX-V:DMI)(OTCQB:DMIFF)(FRA:DC3A) (“Diamcor” or the “Company”), a well-established Canadian diamond mining company with a proven history in the mining, exploration, and sale of rough diamonds, announces that the Company intends to complete a term loan financing (the “Financing”) of up to CAD$1,000,000. Term loans under the Financing will be unsecured, carry an annual interest rate of 15%, and the Company will issue a total of 400,000 common shares in its authorized share capital for every CAD$100,000 of principal advanced under the Financing by participants/lenders pursuant to policy 5.1 of the TSX Venture Exchange Corporate Finance Manual. There will be no warrant issued as part of the Financing. The principal and interest of the term loans will be due and payable on the 12-month anniversary of the closing date. As has been the case in other recent financings completed by the Company, Management and key shareholders are expected to participate in this Financing.
The proceeds of the Financing will be used to advance efforts aimed at processing material at significantly higher volumes in 2025 at the Company’s Krone-Endora at Venetia Project (the “Project”), the advancement of work programmes previously underway, expansion into the greater portions of the Project, and for general corporate purposes. The Company also notes that it is in advanced discussions with various larger industry groups and financiers on the provision of larger non-dilutive facilities to support future growth, and further details will be provided when available in the coming weeks. As a result of the above, the Company will not be proceeding with the financing previously announced on October 30, 2024.
The Financing is subject to regulatory approval of the TSX Venture Exchange along with completion of all definitive documentation and filings as required. All securities issued pursuant to the above will be subject to a hold period of four months plus one day following the closing.
About Diamcor Mining Inc.
Diamcor Mining Inc. is a fully reporting publicly traded Canadian diamond mining company with a well-established proven history in the mining, exploration, and sale of rough diamonds. The Company’s primary focus is on the development of its Krone-Endora at Venetia Project which is co-located and directly adjacent to De Beers’ Venetia Diamond Mine in South Africa. The Venetia diamond mine is recognized as one of the world’s top diamond-producing mines, and the deposits which occur on Krone-Endora have been identified as being the result of shift and subsequent erosion of an estimated 50M tonnes of material from the higher grounds of Venetia to the lower surrounding areas in the direction of Krone and Endora. The Company focuses on the acquisition and development of mid-tier projects with near-term production capabilities and growth potential and uses unique approaches to mining that involves the use of advanced technology and techniques to extract diamonds in a safe, efficient, and environmentally responsible manner. The Company has a strong commitment to social responsibility, including supporting local communities and protecting the environment.
About the Krone-Endora at Venetia Project
Diamcor acquired the Krone-Endora at Venetia Project from De Beers Consolidated Mines Limited, consisting of the prospecting rights over the farms Krone 104 and Endora 66, which represent a combined surface area of approximately 5,888 hectares directly adjacent to De Beers’ flagship Venetia Diamond Mine in South Africa. The Company subsequently announced that the South African Department of Mineral Resources had granted a Mining Right for the Krone-Endora at Venetia Project encompassing 657.71 hectares of the Project’s total area of 5,888 hectares. The Company has also submitted an application for a mining right over the remaining areas of the Project. The deposits which occur on the properties of Krone and Endora have been identified as a higher-grade “Alluvial” basal deposit which is covered by a lower-grade upper “Eluvial” deposit. These deposits are proposed to be the result of the direct-shift (in respect to the “Eluvial” deposit) and erosion (in respect to the “Alluvial” deposit) of an estimated 1,000 vertical meters of material from the higher grounds of the adjacent Venetia Kimberlite areas. The deposits on Krone-Endora occur with a maximum total depth of approximately 15.0 metres from surface to bedrock, allowing for a very low-cost mining operation to be employed with the potential for near-term diamond production from a known high-quality source. Krone-Endora also benefits from the significant development of infrastructure and services already in place due to its location directly adjacent to the De Beers Venetia Mine, which is widely recognised as one of the top producing diamond mines in the world.
Qualified Person Statement:
Mr. James P. Hawkins (B.Sc., P.Geo.) is Manager of Exploration & Special Projects for Diamcor Mining Inc., and the Qualified Person in accordance with National Instrument 43-101 responsible for overseeing the execution of Diamcor’s exploration programmes and a Member of the Association of Professional Engineers and Geoscientists of Alberta (“APEGA”). Mr. Hawkins has reviewed this press release and approved of its contents.
This press release contains certain forward-looking statements. While these forward-looking statements represent our best current judgement, they are subject to a variety of risks and uncertainties that are beyond the Company’s ability to control or predict and which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Further, the Company expressly disclaims any obligation to update any forward looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.
WE SEEK SAFE HARBOUR
Neither 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.
For the latest standardized performance and holdings of Sprott Uranium ETFs, please visit the individual website pages: URNM and URNJ. Past performance is no guarantee of future results.
Key Takeaways
Uranium Market Consolidation: Thus far in 2024, the uranium spot price has stabilized between $80 to $90 per pound after a significant 88.54% increase in 2023. This phase indicates a healthy correction within a bullish market cycle.
Miners’ Catch-Up: Uranium miners have shown improved performance, catching up to gains in the spot price.
Long-Term Contracting Trends: Long-term uranium contract prices point to higher uranium prices as contract ceilings reach $130 per pound.
Geopolitical Impacts and Demand: Geopolitical tensions and supply uncertainties persist, influencing uranium supply dynamics. Despite these challenges, global demand remains robust, driven by nuclear reactor restarts and new builds, supporting a sustained bullish outlook for uranium.
Artificial Intelligence and the Need for Electricity
Global electricity demand is estimated to increase by 165% by 2050.2 Surging energy consumption in the East is driven by the urbanization and industrialization of developing countries, while the rise of artificial intelligence (AI), data centers, electrification and reshoring is driving demand in the West.
Figure 1.
Source: Boston Consulting Group, the Impact of Electricity. Data as of 12/31/2023.
Globally, data centers’ electricity demand is forecasted to grow 258% from 2023 to 2030.3 Growing demand from global data centers is expected to increase from 1.2% of global electricity supply to 4.1%.4 AI data centers require much more electricity for computing, cooling and other IT infrastructure compared to traditional data centers because of:
Higher computational demands from complex algorithms and large datasets
Increased workloads and demand for real-time data from continuous, intense computational workloads running 24/7
Densely packed servers requiring significant power for cooling requirements
To support the growth of AI, Silicon Valley is increasingly turning to nuclear energy. Firms like Google, Amazon and Microsoft have signed deals to purchase power from nuclear energy providers.5 The benefits of such arrangements are twofold. First, data centers will have access to the reliable baseload power provided by nuclear energy to run their energy-intensive operations. Second, nuclear energy is one of the cleanest forms of energy, and by going nuclear, tech companies can still progress toward their corporate net zero carbon emissions pledges, even as their energy footprints expand.
Why Uranium Miners?
We believe we are in the early stages of a sustained uranium bull market. An already positive outlook was given an additional boost at the COP28 conference in December 2023, where more than 20 nations agreed to triple nuclear energy capacity by 2050. The pledge grew to 31 countries after the COP29 conference in November 2024. Uranium miners stand to benefit from the growing acceptance of nuclear energy.
We anticipate that the uranium supply-demand imbalance will continue through at least 2040. Demand for uranium may outstrip supply and reach a cumulative deficit of 1 billion pounds by 2040. The uranium market may see a cumulative deficit of 2.1 billion pounds when factoring in global net zero pledges.
Figure 2. Uranium Supply and Demand Estimates (2008-2040E)
Source: UxC and Cameco Corp. Data as of 9/30/2024.
Higher uranium prices and more investment in uranium miners are needed to reduce the expected supply shortfall and meet current and future demand. Our focus is on uranium miners, which are upstream in the supply chain. Miners may be less susceptible to some geopolitical risks and may benefit as Western governments seek to secure critical supply chains by incentivizing domestic expansion for uranium miners.
In November 2024, Russia imposed restrictions on the export of enriched uranium to the U.S. This development has the potential to meaningfully impact downstream nuclear companies, such as utilities and enriched uranium importers, as Russia controls about 44% of global uranium enrichment capacity.6
Figure 3. Uranium Miners’ Market Capitalizations Have Grown with Increased Investment7(2020-2024)
Source: Indxx and Bloomberg. Data as of 10/31/24.
2025 May Provide an Attractive Entry Point for Uranium Miners
After years of growth, uranium miners took a healthy pause amidst the broader uranium bull market. Off recent highs, spot uranium prices spent much of 2024 between $80 and $90 per pound before moving lower to $75 to $80 in Q4. Uranium miners tend to offer leverage to the price of uranium (see Figure 4), outperforming in rising markets while underperforming in falling markets. However, as a group, uranium miners showed resiliency in 2024, having outperformed the spot market as of the time of this writing.
Figure 4. Uranium Miners vs. Spot Uranium (2014-2024)
Source: Bloomberg and TradeTech LLC. Data from 9/30/2014 to 9/30/2024. World Uranium Equities measured by URAX Index, which tracks the performance of stocks globally that conduct business with uranium. URAX and Uranium Spot denominated in U.S. dollars.
Despite the bull market pause, the underlying fundamentals for uranium improved with positive support from technology companies, accelerating supply and demand constraints, and continued advancement on the political front. Among market developments in 2024 were:
The ban of importing Russian-enriched uranium by the United States by no later than 2027. This action was met with a preemptive Russian ban on exporting enriched uranium to the United States.
The announcement of plans to restart the Palisades Nuclear Plant in Michigan8 and Three Mile Island in Pennsylvania.9
Talen Energy’s announcement of its sale of a nuclear-powered data center to Amazon.10
Meta’s requests for proposals to identify nuclear energy developers to help the company meet its AI innovation and sustainability objectives.11
We believe 2025 may represent an attractive buying opportunity for investors amid increasingly positive fundamentals.
Sprott Uranium Miners ETF (Ticker: URNM)
URNM provides focused pure-play12 exposure to uranium mining equities. Pure-play companies devote at least 50% of their assets to the uranium mining industry, including mining, exploration, development and production of uranium, holding physical uranium, owning uranium royalties or engaging in other non-mining activities supporting the uranium mining industry.
Only13 U.S.-listed ETF to provide targeted pure-play exposure to senior and junior uranium miners and physical uranium
Aggregate weight of 82.5% of the index is assigned to uranium miners, explorers, developers and producers
An aggregate weight of 17.5% of the index is allocated to entities that hold physical uranium, uranium royalties or other non-mining assets
Traditional market portfolios may provide very little, if any, exposure to uranium miners. Investors may consider adding URNM to existing portfolios to:
Diversify energy exposure traditionally allocated to the oil and gas sector
Provide growth potential as part of a thematic or growth allocation
URNM Is Part of the Sprott Critical Materials Suite of ETFs
Footnotes
1
Source: Boston Consulting Group, the Impact of Electricity.
2
Source: IEA World Energy Outlook 2023 Net Zero Emissions Scenario.
3
Source: International Energy Agency, World Energy Outlook 2023.
4
Source: International Energy Agency, World Energy Outlook 2023.
The term “pure-play” relates directly to the exposure that the Fund has to the total universe of investable, publicly listed securities in the investment strategy.
13
Based on Morningstar’s universe of Natural Resources Sector Equity ETFs as of 9/30/2024.
TORONTO, Dec. 19, 2024 /CNW/ – Franco-Nevada Corporation (“Franco-Nevada” or the “Company“) (TSX: FNV) (NYSE: FNV) is pleased to announce that its wholly-owned subsidiary, Franco-Nevada (Barbados) Corporation (“FNB“), has entered into a precious metals stream (the “Stream“) with reference to specific production from Sibanye-Stillwater Limited’s (“Sibanye-Stillwater“) Marikana, Rustenburg and Kroondal mining operations (the “Stream Area“) located on the Western Limb of the Bushveld Complex in South Africa. The Stream is primarily comprised of a gold component for the life of mine (“LOM“) and a platinum component for approximately 25 years supporting a more stable gold equivalent ounce (“GEO“) delivery profile to FNB over this period.
“We are excited to partner with Sibanye-Stillwater and gain exposure to production from this fully integrated, long life, platinum group metal (“PGM“) complex,” said Paul Brink, President & CEO of Franco-Nevada. “The Bushveld complex represents a unique and essential source of PGMs, with Sibanye-Stillwater’s Western Limb operations currently providing approximately 15% of global platinum supply. The combination of extensive resources, established infrastructure, and a large pipeline of extension projects, operated by a leading global PGM producer, makes for a high-quality stream with very long-life potential. This immediately cash flowing transaction, along with our recent Cascabel and Yanacocha deals, provide both meaningful medium and long-term growth.”
Neal Froneman, CEO of Sibanye-Stillwater said, “We are pleased to have concluded this US$500 million (R8.8bn) Stream with Franco-Nevada which unlocks further value from our SA PGM operations, a core part of our business, bolstering our balance sheet. By primarily streaming gold, which is a single component of the diverse production mix at our SA PGM operations, we retain significant leverage to higher PGM prices, which we anticipate. The support from Franco-Nevada underscores the quality and long-term viability of our PGM assets. We welcome this opportunity to continue to build our relationship with Franco-Nevada.”
Transaction Highlights:
Immediate Precious Metals Growth: The Stream will deliver immediate cash flow from a diversified production base in South Africa, a seasoned mining jurisdiction. The Stream is expected to generate a stable GEO profile over the next 20 years based off the platinum, palladium, rhodium and gold (“4E PGM“) production profile shown in the chart below. This profile is based on Sibanye-Stillwater’s board-approved ore reserve LOM as at December 31, 2023 for its existing operations and includes certain pre-feasibility and feasibility stage projects being studied, which leverage existing infrastructure (the “Replacement Projects“). The Stream GEO profile is comprised of approximately 70% gold and 30% platinum deliveries1 at consensus commodity prices with a 45+ year LOM.
Proven Operator and Significant Invested Capital in an Integrated Complex: Sibanye-Stillwater’s Western Limb operations benefit from extensive existing infrastructure consolidated through the merger of three prior operators, which has unlocked numerous synergies. The complex is expected to operate at the lower half of the PGM cost curve2. These operations consist of the Marikana, Rustenburg, and Kroondal operations and a total of 13 underground mines. The mines are supported by Sibanye-Stillwater’s concentrators and smelter and refining complex. Sibanye-Stillwater is a leader in South African mine safety and has committed to continuous safety improvements. The operations have strong relationships with their Black Economic Empowerment (“BEE“) partners and local communities.
Long Reserve Lives with Extensive Resources: The Stream is referenced to production from the Stream Area, which extends over 500 km2 of Sibanye-Stillwater’s Western Limb operations in South Africa. The Stream Area assets have a mine life up to 2070 including ore Reserves and Replacement Projects, based on current projections. Sibanye-Stillwater has the potential to sustain higher production levels for longer, with 4E PGM Measured and Indicated (“M&I“) Resources of 182 Moz inclusive of the 34 Moz of 4E PGM Reserves3, providing extensive long-term optionality.
Operations Benefit from a Unique and Diversified Basket of Metals: Sibanye-Stillwater’s Western Limb operations currently produce approximately 15% of the world’s platinum supply4. In addition, they produce palladium, rhodium and gold as primary 4E PGM components and a significant amount of chrome and other by-products, including approximately 28% of current global iridium and ruthenium supply4. The latter are both important to data storage and chip manufacturing and with platinum to a potential future hydrogen economy. By-products provide a more diversified basket price to the operations compared to many other global PGM producers. By-products contributed approximately 18% of Sibanye-Stillwater’s SA PGM revenue basket in H1 2024 with potential to expand this component of the business.
Gold Deliveries linked to PGM Production: For approximately the first 25 years5, gold deliveries are linked to the volume of 4E PGM ounces produced. This reference to the overall production of these key metals helps ensure that gold deliveries are aligned with Sibanye-Stillwater’s PGM production, mitigating variations in gold grade between deposits.
Key Transaction Terms:
Gold Stream Parameters
Stream deliveries to FNB are based on production from the Steam Area, according to the following schedule:
Gold ounces equal to 1.1% of 4E PGM ounces contained in concentrate until delivery of 87.5 koz of gold, then
Gold ounces equal to 0.75% of 4E PGM ounces contained in concentrate until total delivery of 237 koz of gold, then
80% of gold contained in concentrate for the remaining LOM.
Platinum Stream Parameters
Stream deliveries to FNB are based on platinum production from the Stream Area, according to the following schedule:
1.0% of platinum contained in concentrate until the delivery of 48 koz of platinum, then
Step-up to 2.1% of platinum contained in concentrate until total delivery of 294 koz of platinum, then
No further platinum deliveries.
Additional Considerations
Effective start date of the Stream is September 1, 2024 with funding of the $500 million deposit anticipated in the next few weeks and first delivery approximately 45 days after closing of the transaction
Gold and platinum ounces delivered will be subject to an ongoing payment of 5% of spot prices respectively to Sibanye-Stillwater. In the case of gold, the ongoing payment will increase to 10% following completion of the 4E PGM link (after the delivery of 237 koz of gold to FNB)6
Deliveries will be based on production from the mining operations from the Stream Area and exclude surface tailings retreatment, except in certain circumstances
Corporate guarantees will be provided to FNB by Sibanye-Stillwater and the Marikana, Rustenburg and Kroondal operations’ operating companies, amongst others
FNB will maintain a right of first refusal on future streams and royalties related to the Stream Area
The transaction is subject to customary closing conditions, including the approval from the South African Reserve Bank
Medium-Term Production Profile
Figure 1.: Sibanye-Stillwater’s Western Limb Production (Metal in Concentrate) details a 20-year production profile from Sibanye-Stillwater’s Western Limb PGM operations based on reserve LOM declared at the end of 2023 and in addition, includes the Replacement Projects (including the Kroondal depth extension projects, E3, E4, and Saffy projects)7. Sibanye-Stillwater’s total reserve LOM plan based on 34 Moz of 4E PGM Mineral Reserves (100% basis) extends production beyond this period to 2070 at a reduced rate due to its long life K4 project at the Marikana operation.
Sibanye-Stillwater’s Western Limb Production (Metal in Concentrate)
Figure 1. (CNW Group/Franco-Nevada Corporation)
Source: Sibanye-Stillwater Note: Production profiles of the first three data sets (in blue shade) are based on Mineral reserves declared as at December 31, 2023 on a 100% basis and excludes existing tailings reprocessing. Projects included represent E4, E3 deepening, Saffy Deeps and Kroondal depth extension (Siphumelele UG2). Price assumptions to support the attached profile are US$923/oz pt, US$1,055/oz pd, US$4,350/oz rh US$1,925/oz gold. The approved total Mineral reserve LOM 4E prill split has been disclosed in the Reserve and resources supplement available at https://www.sibanyestillwater.com/news-investors/reports/annual/2023/. Platinum ranges from a prill split of approximately 58.1% – 63.6% and gold ranges from approximately 0.6% – 7.1% depending on MER versus UG2 and varies by SA PGM operation.
Pandora Royalty
Franco-Nevada and Sibanye-Stillwater have agreed to convert the 5% net profit interest that Franco-Nevada holds on the Pandora property to a 1% net smelter return royalty. Sibanye-Stillwater’s Pandora property forms a portion of its Marikana operations and includes the currently operating E3 decline. Three of the Replacement Projects being studied fall on a portion of the Pandora royalty ground.
Financing the Transactions
Franco-Nevada intends to finance the Stream from cash on hand, with approximately $1.3 billion in cash and cash equivalents and $2.3 billion in available capital as at September 30, 2024.
Franco-Nevada Corporate Summary
Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the Toronto and New York stock exchanges.
About Sibanye-Stillwater
Sibanye-Stillwater is a multinational mining and metals processing group with a diverse portfolio of operations, projects and investments across five continents. The Group is also one of the foremost global recyclers of PGM autocatalysts and has interests in leading mine tailings retreatment operations.
Sibanye-Stillwater is one of the world’s largest primary producers of platinum, palladium, and rhodium and is a top tier gold producer. It also produces and refines iridium, ruthenium, nickel, chrome, copper and cobalt. The Group has recently begun to diversify its asset portfolio into battery metals mining and processing and increase its presence in the circular economy by growing its recycling and tailings reprocessing exposure globally. For more information refer to www.sibanyestillwater.com.
Sibanye-Stillwater Mineral Resources and Mineral Reserves
Sibanye-Stillwater’s Mineral Resources and Mineral Reserves are estimates at a particular date (as at December 31, 2023), and are affected by fluctuations in mineral prices, the exchange rates, operating costs, mining permits, changes in legislation and operating factors. Sibanye-Stillwater reports its Mineral Resources and Mineral Reserves in accordance with the rules and regulations promulgated by each of the United States Securities and Exchange Commission (SEC) and the JSE at all managed operations, development, and exploration properties.
Additional Information
Information relating to the Sibanye-Stillwater PGM assets contained in this news release has been provided by Sibanye-Stillwater.
Scientific and technical information included in this news release has been reviewed by Gregory Snow, P Eng, Senior Manager, Geology of Franco-Nevada, a non-independent qualified person under National Instrument 43-101.
Forward-Looking Statements
This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to future events or future performance, including the expected timing of closing the transaction, the expected future performance of Sibanye-Stillwater’s South African PGM assets and the Stream, and production and mine life estimates relating to Sibanye-Stillwater’s South African PGM assets. In addition, statements relating to reserves and resources, gold equivalent ounces (“GEOs”) and mine life are forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates and assumptions are accurate and that such reserves and resources, GEOs or mine life will be realized. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budgets”, “potential for”, “scheduled”, “estimates”, “forecasts”, “predicts”, “projects”, “intends”, “targets”, “aims”, “anticipates” or “believes” or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Franco-Nevada to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual events or results to differ materially from any forward-looking statement, including, without limitation: fluctuations in the prices of the primary commodities that drive royalty and stream revenue (gold, platinum group metals, copper, nickel, uranium, silver, iron ore and oil and gas); fluctuations in the value of the Canadian and Australian dollar, Mexican peso, and any other currency in which revenue is generated, relative to the U.S. dollar; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; the adoption of a global minimum tax on corporations; regulatory, political or economic developments in any of the countries where properties in which Franco-Nevada holds a royalty, stream or other interest are located or through which they are held; risks related to the operators of the properties in which Franco-Nevada holds a royalty, stream or other interest, including changes in the ownership and control of such operators; relinquishment or sale of mineral properties; influence of macroeconomic developments; business opportunities that become available to, or are pursued by Franco-Nevada; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; whether or not the Company is determined to have “passive foreign investment company” (“PFIC”) status as defined in Section 1297 of the United States Internal Revenue Code of 1986, as amended; potential changes in Canadian tax treatment of offshore streams; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; access to sufficient pipeline capacity; actual mineral content may differ from the reserves and resources contained in technical reports; rate and timing of production differences from resource estimates, other technical reports and mine plans; risks and hazards associated with the business of development and mining on any of the properties in which Franco-Nevada holds a royalty, stream or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious disease; the impact of the COVID-19 (coronavirus) pandemic; and the integration of acquired assets. The forward-looking statements contained in this press release are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Franco-Nevada holds a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or operators of such underlying properties; no material adverse change in the market price of the commodities that underlie the asset portfolio; the Company’s ongoing income and assets relating to determination of its PFIC status; no material changes to existing tax treatment; the expected application of tax laws and regulations by taxation authorities; the expected assessment and outcome of any audit by any taxation authority; no adverse development in respect of any significant property in which Franco-Nevada holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in production; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance. In addition, there can be no assurance as to the outcome of the ongoing audit by the CRA or the Company’s exposure as a result thereof. Franco-Nevada cannot assure investors that actual results will be consistent with these forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.
For additional information with respect to risks, uncertainties and assumptions, please refer to Franco-Nevada’s most recent Annual Information Form filed with the Canadian securities regulatory authorities on www.sedar.com and Franco-Nevada’s most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov. The forward-looking statements herein are made as of the date of this press release only and Franco-Nevada does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law.
______________________________________
1 Assuming current projections of 4E PGM production based on Reserves and Replacement Projects at consensus commodity prices
2 Combined costs (excluding by-products) following the Marikana K4 mine ramp-up
3 Attributable M&I Resource of 1.0 Bt at 4.3 g/t 4E PGM grade for 142 Moz 4E PGM (182 Moz 4E PGM on a 100% basis) and attributable Inferred Resources of 227.5 Mt at 4.6 g/t 4E PGM grade for 33.7 Moz 4E PGM (41.7 Moz on a 100% basis) as at December 31, 2023. Attributable Reserves of 231 Mt at 3.6 g/t 4E PGM grade for 26.5 Moz 4E PGM (33.9 Moz 4E PGM on a 100% basis) as at December 31, 2023. M&I Resources are inclusive of Reserves.
4 Based on 2023 production per Sibanye-Stillwater’s public disclosure and total 2023 supply per Johnson Matthey PGM market report (May 2024)
5 Assuming current projections of 4E PGM production based on Reserves and Replacement Projects currently being studied by Sibanye-Stillwater
6 The ongoing payments are subject to reduction in certain circumstances
7 The development and timing of these replacement projects is subject to achieving positive commercial and economic outcomes from the feasibility studies underway.
As of December 18th, 2024 the DSI for gold is 48, for silver 21. The highest value for gold based on the DSI showed 89 back in May of this year. On the same day silver reached a peak DSI of 90. Those numbers are not good enough to make a major top in either gold or silver. For example, it took a DSI of 96 to mark the top for silver in April of 2011 and a DSI of 95 on January 21, 1980 to mark the all-time high for silver. In my view gold and silver are going to go a lot higher not far off. I expect silver to break its all time high of $50.75 in the next six months or so. Once silver makes a new all-time high I think it will be off to the races.
Tax Loss Silly Season is that six week or so period starting in November and running into just before Christmas when investors clean out the stocks they own that have gone down the most to be able to write off the losses for the current year. It’s the worst time of the year to sell and the best time of the year to buy. Since so many junior lottery tickets have been hammered this year there has been a lot of carnage in the space due to the lack of liquidity and the sheer number of punters willing to take anything on offer for their shares.
But all things change.
The ten-week period from the middle of December each year into the end of February is seasonally the best time of the year for gold and silver. In the past five days, gold has gone down about $130 or over 5%. Now looks to be a good buying opportunity if Trump isn’t whacked between now and a month from now. If he gets whacked, it would be an extraordinary opportunity as the US moves into a civil war.
