VANCOUVER, BC, Dec. 7, 2023 /CNW/ – Uranium Royalty Corp. (NASDAQ: UROY) (TSX: URC) (“URC” or the “Company“) is pleased to report President and Chief Executive Officer, Scott Melbye, presented his views at the COP 28 Net-Zero Nuclear Pavilion in a panel discussion addressing the sustainability of the uranium sector. The panel was part of the United Nations Conference on Climate Change in Dubai, United Arab Emirates and hosted by the World Nuclear Association and Emirates Nuclear Energy Corporation. While at COP 28, URC demonstrated its support to the Net Zero Nuclear Industry Pledge, as one of 120 industry signatories.
The Net Zero Nuclear Industry Pledge, launched at COP 28 on December 5, 2023, commits to industry support for a tripling of global nuclear capacity by 2050. Twenty-two countries, including the United States, the United Kingdom, France, the United Arab Emirates, Japan, South Korea, and Canada, made the same declaration to tripling nuclear energy capacity by 2050 from a 2020 base in support of their net-zero commitments. The declaration recognizes the importance of extending lifetimes of existing reactors and supporting development and construction of nuclear reactors such as small modular and other advanced reactors for power generation.
Scott Melbye stated: “As a capital provider to miners and developers globally that can help fill this growing demand for uranium, we are excited about the government and industry commitment to support the tripling of nuclear energy by 2050. This growing demand for clean energy has reinforced nuclear power as an indispensable solution in global efforts to curb climate change.”
About Uranium Royalty Corp.
Uranium Royalty Corp. (URC) is the world’s only uranium-focused royalty and streaming company and the only pure-play uranium listed company on the NASDAQ. URC provides investors with uranium commodity price exposure through strategic acquisitions in uranium interests, including royalties, streams, debt and equity in uranium companies, as well as through trading of physical uranium.
Forward Looking Statements
Certain statements in this news release may constitute “forward looking information” and “forward looking statements”, as defined under applicable Canadian and U.S. securities laws (“forward looking statements”), including market expectations and the Company’s strategy and business plans, which ultimately remains the subject of the Company’s discretion. Forward looking statements include statements that address or discuss activities, events or developments that the Company expects or anticipates may occur in the future. When used in this news release, words such as “estimates”, “expects”, “plans”, “anticipates”, “will”, “believes”, “intends” “should”, “could”, “may” and other similar terminology are intended to identify such forward looking statements. Forward looking statements reflect the current expectations and beliefs of the Company’s management. These statements involve significant uncertainties, known and unknown risks, uncertainties and other factors and, therefore, actual results, performance or achievements of the Company and its industry may be materially different from those implied by such forward looking statements. They should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from such forward looking statements, including, without limitation, risks inherent to royalty companies, any failures by counterparties to perform their respective obligations, market conditions, share price, uranium price volatility and risks related to the operators of the projects underlying the Company’s existing and proposed interests and those other risks described in filings with Canadian securities regulators and the U.S. Securities and Exchange Commission. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should exercise caution in relying upon forward looking statements and the Company undertakes no obligation to publicly revise them to reflect subsequent events or circumstances, except as required by law.
VANCOUVER, BC / ACCESSWIRE / December 5, 2023 /Stillwater Critical Minerals Corp. (TSXV:PGE)(OTCQB:PGEZF) (the “Company” or “Stillwater”) is pleased to provide an update on diamond drilling completed at the Company’s flagship Stillwater West Ni-PGE-Cu-Co + Au project in Montana in 2023, and other initiatives.
Figure 1 – Significant sulphide mineralization in hole CM2023-06 from approximately 865 to 888 feet (263.7 to 270.7 meters) depth as part of a broader mineralized interval from approximately 841 to 919 feet (256.4 to 280.1 meters) depth which tested a large and previously untested geophysical anomaly.More
Highlights – Stillwater West
The 2023 drill campaign focused on expansion of the NI 43-101-compliant resources, announced on January 25, 2023 (the “2023 Resource”), with particular focus on expanding recent high-grade discoveries at Chrome Mountain at the west end of the nine-kilometer-long resource area.
Six holes totaling 2,310 meters were completed within and outside of the current resource area, west and south of the current DR-Hybrid deposit, as part of a planned multi-phase program.
Multiple new mineralized zones were intercepted (see Figure 1 above and September 12, 2023, release).
Results include identification and expansion of the N series of sulphide-rich mineralized structures parallel to high-grade nickel sulphide mineralization first discovered by the Company in drill holes CM2021-05 and CM2020-04.
Drilling in 2023 intercepted the N2 and N3 mineralized zones in parallel to high-grade mineralization in CM2021-05, which is now known as N1. As reported May 3, 2022, N1 returned 13.2 meters grading 2.89% Recovered Nickel Equivalent1 (“NiEq”) (2.31% Ni, 1.51 g/t 4E, 0.35% Cu, and 0.115% Co), starting at 37.6 meters and is contained within 400.8 meters of continuous battery and precious metal mineralization.
N series structures and associated high-grade mineralization are now understood to be part of a series of north-south trending structures that crosscut the layered sequence and Platreef-style mineralization of the Stillwater Igneous Complex.
Drilling also confirmed nickel and copper sulphide mineralization in a large and previously untested geophysical anomaly which forms part of a string of untested anomalies extending over 12 kilometers along strike.
All core has now been submitted to the lab for assay with results expected over the coming weeks.
Mineralized zones were predicted by the updated exploration model, demonstrating the Company’s success in advancing the first ever detailed geologic model of the lower Stillwater Igneous Complex.
The 2023 drill campaign is the first campaign funded by the strategic investment made by Glencore PLC in June 2023, and the first to apply updated geological models which incorporate similar geology from South Africa’s Platreef district under the direction of Dr. Danie Grobler, who joined the team in May of 2022 as Vice-President of Exploration.
Drilling for 2024 is now being planned to continue expansion around known mineralization at the existing resource areas, at recent discoveries including the N series structures, and also more broadly across the 32-kilometer-long project.
Michael Rowley, Stillwater President and CEO, stated, “We continue to advance new sulphide-rich discoveries at our flagship Stillwater West project as we apply geologic models from South Africa’s giant polymetallic nickel sulphide mines to similar geology at our Stillwater West project. Recent work is identifying additional styles of mineralization, and we look forward to expanding further on these exciting developments as they advance. Overall, the Stillwater district remains underexplored – and therefore wide open for significant expansion of known mineralization – despite having produced critical and strategic minerals such as nickel, copper, palladium, platinum and chrome for over a century. We look forward to reporting assay results and providing updated analysis as we work with our partners at Glencore PLC and the US Geological Survey to advance primary domestic supply of nine of the commodities identified as critical by the US Government. Additional news is expected from our Kluane and Drayton-Black Lake projects, carbon sequestration studies, and other initiatives including continued work on government funding channels.”
Dr. Danie Grobler, Stillwater Vice-President of Exploration, said “Drilling in 2023 focused on intersecting several of the north-south trending high-grade and high-tenor nickel sulphide mineralized N-structures recognized during the 2022 field season. A 100% target intercept rate was achieved due to predictability and good correlation of the N-structure orientations within the 3D structural model developed by the team including results from a 2023 ground magnetic survey across Chrome Mountain. The first two holes intersected both of the sulphide-rich N1 and N2 structures at shallow depth. Drillhole CM2023-03 intersected an approximately 20-meter-thick zone of nickel sulphide mineralization at a depth of 223 meters from surface. All three of these holes also intersected a PGE+Ni+Cu mineralized pegmatoidal pyroxenite layer at its predicted position within the geological model. Drillhole CM2023-04 intersected disseminated, net-textured to semi-massive nickel sulphide mineralization from approximately 100 to 180 meters depth. In addition to the above, drillholes CM2023-05 and CM2023-06 both intersected zones of net-textured to semi-massive nickel and copper sulphide mineralization associated with a previously untested large shallow electromagnetic anomaly at Chrome Mountain. This anomaly forms part of a string of untested anomalies found near the footwall contact zone which runs more than 12 kilometers along strike from west of Chrome Mountain to Iron Mountain in the east. Visual inspection of the 2023 core shows many similarities to Stillwater’s CZ deposit, located approximately five kilometers to the east, which contains the highest nickel grades in the 2023 declared resource. This exciting discovery is expected to form a priority target for the upcoming 2024 campaign.”
Upcoming Events – Clean Energy and Precious Metals Virtual Investor Conference and AMEBC Core Shack
Stillwater Critical Minerals President & CEO, Michael Rowley, will present live on December 5th at 10am ET | 1pm PT with a Q&A to follow. Mr. Rowley is also available for one-on-one meetings following the event. For more information and to register click here.
The Company looks forward to displaying core from the 2023 drill season at the upcoming AMEBC Mineral Roundup event held in Vancouver, BC from January 22 to 25, 2024. For more information click here.
Government Funding
The Company continues to work with Cornell University under a Department of Energy grant, as announced February 14, 2023, and separately with the US Geological Survey on other programs at Stillwater West. In addition, the Company is actively pursuing other US government initiatives relating to developing domestic supply of critical minerals and will make further announcements as information becomes available.
Kluane PGE-Ni-Cu Project Update
Geological mapping, drone LiDAR and imagery acquisition, claim staking, and prospecting and rock sampling programs were completed in 2023 at the Company’s 100%-owned Kluane PGE-Ni-Cu project in Yukon, Canada, with field work funded in part by a Yukon Mineral Exploration Program grant. Follow-up work including completion of detailed geologic maps over priority areas and the advancement targets for later campaigns is on-going.
The Company has also begun to formally examine potential opportunities for carbon capture at the Kluane project with an initial focus on developing a procedure to identify and map rocks for their potential to sequester carbon based on existing data sources, remote sensing and imagery.
The Kluane project consists of a large 260 km2 land position containing the Spy, Ultra and Catalyst properties, all of which occur within the Kluane Mafic-Ultramafic Belt; a system of PGE-Ni-Cu deposits which are part of a sequence of mafic-ultramafic rocks that extends through the Yukon from northern British Columbia to central Alaska. Located near the Alaska Highway, the Kluane project properties are on trend with the Wellgreen Ni-Cu-PGE deposit.
Drayton – Black Lake
Heritage Mining (“Heritage”, CSE: HML) continues to meet the requirements of the earn-in agreement announced November 29, 2021, by the completion of exploration work on the Company’s district-scale Drayton-Black Lake gold project in Ontario, and the issuance of shares and cash to the Company. Results are pending from Heritage’s recent drill campaigns, and follow-up exploration programs are now being planned for 2024.
The Drayton-Black Lake Project site is located in northwestern Ontario in the Abrams‐Minnitaki Lake Archean greenstone belt approximately 25 kilometers east of the town of Sioux Lookout, Ontario. Access and infrastructure are excellent, featuring direct road access, and proximity to rail and power. Heritage Mining compiled the significant project database as part of advancing the substantial exploration potential of the project including demonstrated high-grade gold in drill results and bulk samples across more than 30 kilometers of underexplored strike in a geologic setting that is shared with Treasury Metals’ adjacent development-stage Goliath Gold Complex project. Work since the 1990s has proven more than 14 million ounces of gold in the broader district in this emerging and highly active gold belt lead by New Gold’s Rainy River mine and other deposits, and Heritage is effectively applying geological models and exploration methods that have been successful elsewhere in the district.
About Stillwater Critical Minerals Corp.
Stillwater Critical Minerals (TSX.V: PGE | OTCQB: PGEZF) is a mineral exploration company focused on its flagship Stillwater West Ni-PGE-Cu-Co + Au project in the iconic and famously productive Stillwater mining district in Montana, USA. With the addition of two renowned Bushveld and Platreef geologists to the team and a strategic investment by Glencore, the Company is well positioned to advance the next phase of large-scale critical mineral supply from this world-class American district, building on past production of nickel, copper, and chromium, and the on-going production of platinum group and other metals by neighboring Sibanye-Stillwater. An expanded NI 43-101 mineral resource estimate, released January 2023, delineates a compelling suite of critical minerals contained within five Platreef-style nickel and copper sulphide deposits at Stillwater West, which host a total of 1.6 billion pounds of nickel, copper and cobalt, and 3.8 million ounces of palladium, platinum, rhodium, and gold, and remains open for expansion along trend and at depth.
Stillwater also holds the high-grade Black Lake-Drayton Gold project adjacent to Treasury Metals’ development-stage Goliath Gold Complex in northwest Ontario, currently under an earn-in agreement with Heritage Mining, and the Kluane PGE-Ni-Cu-Co critical minerals project on trend with Nickel Creek Platinum‘s Wellgreen deposit in Canada‘s Yukon Territory.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Michael Rowley, President, CEO & Director – Stillwater Critical Minerals
1 – Recovered Nickel Equivalents (“NiEq”) are presented for comparative purposes using long-term metal prices (all USD): $8.00/lb nickel (Ni), $4.00/lb copper (Cu), $24.00/lb cobalt (Co), $1,000/oz platinum (Pt), $2,200/oz palladium (Pd), $1,800/oz gold (Au), and $10,000/oz rhodium (Rh). NiEq is determined as follows: NiEq% = [Ni% x recovery] + [Cu% x recovery x Cu price/ Ni price] + [Co% x recovery x Co price / Ni price] + [Pt g/t x recovery / 31.103 x Pt price / Ni price / 2,204 x 100] + [Pd g/t x recovery / 31.103 x Pd price / Ni price / 2,204 x 100] + [Au g/t x recovery / 31.103 x Au price / Ni price / 2,204 x 100]. In the above calculations: 31.103 = grams per troy ounce, 2,204 = lbs per metric tonne, and 100 and 0.01 convert assay results reported in % and g/t. The following recoveries have been assumed for purposes of the above equivalent calculations: 85% for Ni and 90% for all other listed metals, based on recoveries at similar nearby operations.
Quality Control and Quality Assurance
Mr. Mike Ostenson, P.Geo., is the qualified person for the purposes of National Instrument 43-101 for the Montana property, and he has reviewed and approved the technical disclosure contained in this news release.
Ms. Debbie James, P.Geo., is the qualified person for the purposes of National Instrument 43-101 for the Yukon and Ontario properties, and she has reviewed and approved the technical disclosure contained in this news release.
Forward-Looking Statements
This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Stillwater Critical Minerals 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 or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Stillwater Critical Minerals and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
Neither the 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.
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Vancouver, British Columbia, Dec. 01, 2023 (GLOBE NEWSWIRE) — Terra Balcanica Resources Corp. (“Terra” or the “Company”) (CSE:TERA) announces the intent to complete a non-brokered, private placement (“Private Placement”) for gross proceeds of up to $150,000 through the issuance of up to 3,750,000 common shares (“Common Shares”) at a purchase price of $0.04 per share.
The Common Shares will be offered by way of prospectus exemptions in Canada and the Common Shares sold in the Private Placement will be subject to a hold period of four months plus one day. The Closing Date is expected to occur on or about December 11th, 2023, subject to regulatory approvals, including the approval by the CSE and certain other customary conditions including, but not limited to, execution of subscription agreements between the Company and the subscribers. The Private Placement will be utilized for opportunities in the critical battery metal exploration space in the Western Balkans.
About the Company Terra Balcanica is a polymetallic exploration company targeting large-scale mineral systems in the Balkans of southeastern Europe. The Company has 90% interest in the Viogor-Zanik Project in eastern Bosnia and Herzegovina, 100% of the Kaludra and Ceovishte mineral exploration licences in Serbia. The Company emphasizes responsible engagement with local communities and stakeholders. It is committed to proactively implementing Good International Industry Practice (GIIP) and sustainable health, safety and environmental management.
ON BEHALF OF THE BOARD OF DIRECTORS
Terra Balcanica Resources Corp. Aleksandar (Alex) Mišković President and CEO
This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of any of the words “will”, “intends” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. The Company does not undertake to update these forward-looking statements, except as required by law.
VANCOUVER, BC, Nov. 28, 2023 /CNW/ – Uranium Royalty Corp. (NASDAQ: UROY) (TSX: URC) (“URC” or the “Company“) is pleased to announce the publication of its inaugural 2023 Sustainability Report. This report presents the Company’s approach and performance on sustainability initiatives and outlines sustainability strategy and goals for the future.
FY23 Sustainability Report Highlights
Bolstered the Company’s strong due diligence process through strengthened focus on sustainability-related risks of operators, reviewing 100% of deals with the Company’s enhanced sustainability due diligence approach;
Strengthened the Company’s corporate risk management function;
Approved Sustainability Policy, Anti-Corruption Policy and Corporate Disclosure Policy to reinforce the Company’s commitment to sustainability and strong corporate governance;
Achieved executive-management diversity of 33% female and 33% ethnically-diverse representation; and
Donated approximately US$48,000 to local community programs.
Scott Melbye, the Company’s Chief Executive Officer, stated: “I am proud to present our inaugural 2023 Sustainability Report for Uranium Royalty Corp., the first and only pure play uranium royalty company. As a relatively young company, we are proud of our growing portfolio of 20 interests on 18 development, advanced, permitted and producing uranium projects in key uranium jurisdictions. As the first company to apply the successful royalty and streaming business model exclusively to the uranium sector, we leverage our first-mover advantage through providing needed capital to producing, developing, and next generation uranium mining companies. This supports our mission to fuel a cleaner tomorrow through carbon-free nuclear energy.”
He continued, “As a royalty company, we play an important role in promoting sustainability and innovation in mining. We carefully screen and seek to select operators who share our principles of responsible environmental stewardship and strong community support, and we strive to develop long-term relationships based on mutual commitment to those principles.”
About Uranium Royalty Corp.
Uranium Royalty Corp. (URC) is the world’s only uranium-focused royalty and streaming company and the only pure-play uranium listed company on the NASDAQ. URC provides investors with uranium commodity price exposure through strategic acquisitions in uranium interests, including royalties, streams, debt and equity in uranium companies, as well as through trading of physical uranium.
Forward Looking Statements
Certain statements in this news release may constitute “forward looking information” and “forward looking statements”, as defined under applicable Canadian and U.S. securities laws (“forward looking statements”), including market expectations and the Company’s strategy and business plans, which ultimately remains the subject of the Company’s discretion. Forward looking statements include statements that address or discuss activities, events or developments that the Company expects or anticipates may occur in the future. When used in this news release, words such as “estimates”, “expects”, “plans”, “anticipates”, “will”, “believes”, “intends” “should”, “could”, “may” and other similar terminology are intended to identify such forward looking statements. Forward looking statements reflect the current expectations and beliefs of the Company’s management. These statements involve significant uncertainties, known and unknown risks, uncertainties and other factors and, therefore, actual results, performance or achievements of the Company and its industry may be materially different from those implied by such forward looking statements. They should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from such forward looking statements, including, without limitation, risks inherent to royalty companies, any failures by counterparties to perform their respective obligations, market conditions, share price, uranium price volatility and risks related to the operators of the projects underlying the Company’s existing and proposed interests and those other risks described in filings with Canadian securities regulators and the U.S. Securities and Exchange Commission. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should exercise caution in relying upon forward looking statements and the Company undertakes no obligation to publicly revise them to reflect subsequent events or circumstances, except as required by law.
Edmonton, Alberta–(Newsfile Corp. – November 22, 2023) – Grizzly Discoveries Inc. (TSXV: GZD) (FSE: G6H) (OTCQB: GZDIF) (“Grizzly” or the “Company”) is pleased to announce the first assay results for rock samples collected from the newly staked mineral claims in the Marshall Lake to Eholt area of Greenwood. These are some of the first geochemical results from several batches of samples, that the Company expects to receive additional results for over the coming months, for work conducted at the Marshall Lake area, Midway, Sappho-Lexington, Imperial and Beaverdell target areas within the Greenwood Precious and Battery Metals Project.
In addition, results will also be forthcoming from prospecting and sampling that have been conducted at the Robocop Property following up on copper-cobalt anomalous soils identified in work over the last two years.
Highlights:
A total of 92 rock grab samples were collected from outcrop and mineralized dump material across the new claims staked in August (highlighted in blue in Figures 1 and 2) yielding 21 samples with >0.5 grams per tonne (g/t) gold (Au) up to 154.5 g/t Au, along with high silver (Ag) up to 205 g/t Ag and high copper (Cu) up to 8.44 percent (%) Cu (Figures 1 and 2).
Rock grab samples from showings and mineralized dumps in the Marshall Lake area returned 11 samples with >0.5 g/t Au up to 154.5 g/t Au including 4 samples with >8.95 g/t Au up to 154.5 g/t Au. The high Au values are often accompanied by high Cu in the 0.1 to 0.6% range. The anomalous values are associated with high sulphide material in what appears to be gossanous skarnified sedimentary rocks (Figure 3).
Rock grab samples from the exploration areas of the Great Laxey showing and west of the Emma showings returned significant Cu values with up to 1.235% Cu and 8.44% Cu respectively. The area west of the Emma showings and old workings has also provided grab samples with high Au and Ag values including 4 samples with 2.13 g/t Au up to 17.55 g/t Au, 107 g/t Ag up to 205 g/t Ag and 0.98% Cu up to 8.44% Cu (Figures 1 and 2).
Sulphide mineralization at Great Laxey and west of the Emma historical workings is associated with skarnified sedimentary rocks and intrusions. The west Emma area may also show alteration patterns consistent with intermediate to high sulphidation epithermal mineralization.
Brian Testo, President and CEO of Grizzly Discoveries stated “We are excited with the new results to date from the new mineral claims and we are planning follow-up exploration including extensive soil and rock sampling programs along with ground geophysical surveys. Much of newly staked ground has seen little exploration and evaluation since the 1990’s. We also are looking forward to pursuing a number of high grade gold – silver – copper showings and historical mines with drilling in the New Year along with additional exploration for significant battery metal prospects in our current 165,000+ acre land holdings in the Greenwood District. We have barely scratched the surface in terms of exploration!“
Figure 1: Initial Gold Results Rock Sampling 2023 – New Mineral Claims.
As the Company awaits drilling permits from the BC Government, significant ground based prospecting and sampling programs have been executed at the newly staked Marshall Lake claims as well as at a number of other exploration target areas including Midway, Imperial, Sappho-West Lexington and Beaverdell areas (Figure 4). A total of more than 800 rock samples and 3,800 soil samples have been collected during the 2023 field season. Results will be announced as they are received and interpreted over the coming weeks.
Update on Drilling:
Drilling will initially be focused at the historical Midway Mine (Figure 4) but the intent is that eventually the Company will complete new drilling in 2024 at Midway, Imperial, Copper Mountain (Mable Jenny, Coronation and Prince of Wales targets), and potentially the Sappho areas, depending upon the timing of the receipt of drill permits, additional funding and weather permitting. We eagerly await drilling permits from the BC Ministry of Energy Mines and Petroleum Resources. The permit applications were submitted initially in January-February of this year and the Company is now awaiting final comments and any required conditions or changes resulting from the recently completed 30 day notification periods. Archaeological and biological surveys are being conducted where required.
Summary of 2023 Exploration at Greenwood:
An extensive rock and soil sampling program along with new geological mapping during 2023 has been conducted in preparation for drilling. The work has yielded two new showings identified near the historical Midway Mine including up 5.64 g/t Au from a showing 400 m to the north of the Midway Mine and a second showing along an apparent fault structure with 4.19 g/t Au from a grab sample collected about 375 m to the west of the Midway Mine. At least 6 new areas with anomalous gold (> 100 ppb Au), silver or copper in soils have been identified across the Midway Mine Property with the results from follow up exploration in progress (See Company News Release Dated October 12, 2023). A summary of all the Midway results will be provided once all the results are received.
Figure 4: Grizzly active exploration target areas 2023.
To date, gold-silver-base metal mineralization appears to be related to veins and stockworks at contacts between altered ultramafic-carbonate rocks (listwanites) in contact with diorite intrusions in a complex structural setting, with the intersections of structures playing a key role in the localization of alteration.
At the historical Imperial Mine area, a total of 50 new rock grab and rock chip samples were collected from the Imperial showing area, with 6 samples returning greater than 1 (g/t) gold (Au) up to 12.1 g/t Au and 8 samples retuning greater than 40 g/t silver (Ag) up to 469 g/t Ag (Figure 4). The samples define a targeted north – south strike length of over 170 m for future drilling. The samples show significant amounts of lead (Pb), zinc (Zn) and Cu with several samples yielding greater than 2% combined base metals (See Company News Release Dated October 12, 2023). Geological mapping is in progress and ground geophysical surveys are planned prior to conducting drilling at this target.
The Copper Mountain area continues to yield excellent results from a number of showings including the Coronation and Prince of Wales historical mines along with the Mabel Jenny area (Figure 4). A total of 9 of 14 rock grab and chip samples collected this year from a new zone discovered late in 2022 has yielded greater than 1 g/t Au up to 13.75 g/t Au (along with up to 61.9 g/t Ag) and up to 0.475% Cu and 2.93% Zn (See Company News Release Dated October 12, 2023). The discovery was made along a new logging road cut late in 2022 and appears to demonstrate quartz vein stockwork mineralization in an altered diorite over a strike length of more than 400 m when combined with anomalous samples from 2022.
Geological and prospecting crews have concluded prospecting, geological mapping, rock and soil sampling within the Greenwood Project area and have conducted an initial pass at the new mineral claim area staked August 1, 2023 (See Company News Release dated September 7, 2023). A number of existing showings and parts or extensions to known showings have been acquired with the staking of the new mineral claims including but not limited to Marshall Lake, Sylvester K, the Great Laxey, Eholt and lands adjacent to and surrounding the historical Phoenix Mine. Results from the initial sampling programs on these new claims will be released as they are received.
The geological and prospecting crew has made several discoveries of sulphide, quartz vein zones and skarn on the new claims (Figures 1 and 2). Sulphide showings associated with skarn at Marshall Lake hosted in Triassic Brooklyn Formation sedimentary rocks including limestone that has been intruded by diorite. The showings have been trenched and bulk sampled in the past (1960’s to 1970’s) yielding significant copper, silver and gold. Little to no modern exploration has been performed at the Marshall Lake target as well as a number of other showings in the Brooklyn sequence such as the Great Laxey.
The goal is to have a pipeline of high priority precious metal and battery metal targets that are all permitted and ready for a long 2024 drilling campaign in order to prioritize these assets into those that can deliver future mineral resources with additional drilling, eventually leading to some form of economic studies and scenarios that might be able to take advantage of local toll treating opportunities that exist in the Greenwood – Republic region.
Quality Assurance and Control
Rock and soil samples were analyzed at ALS Global Laboratories (Geochemistry Division) in Vancouver, Canada (an ISO/IEC 17025:2017 accredited facility). Gold was assayed using a fire assay with atomic emission spectrometry and gravimetric finish when required (+10 g/t Au). Rock grab and rock chip samples from outcrop/bedrock are selective by nature and may not be representative of the mineralization hosted on the project.
The sampling program was undertaken by Company personnel under the direction of Michael B. Dufresne, M.Sc., P.Geol., P.Geo. A secure chain of custody is maintained in transporting and storing of all samples.
The technical content of this news release and the Company’s technical disclosure has been reviewed and approved by Michael B. Dufresne, M. Sc., P. Geol., P.Geo., who is the Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.
ABOUT GRIZZLY DISCOVERIES INC.
Grizzly is a diversified Canadian mineral exploration company with its primary listing on the TSX Venture Exchange focused on developing its approximately 72,700 ha (approximately 180,000 acres) of precious and base metals properties in southeastern British Columbia. Grizzly is run by highly experienced junior resource sector management team, who have a track record of advancing exploration projects from early exploration stage through to feasibility stage.
On behalf of the Board,
GRIZZLY DISCOVERIES INC. Brian Testo, CEO, President
Suite 363-9768 170 Street NW Edmonton, Alberta T5T 5L4
Neither the 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.
Caution concerning forward-looking information
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Drilling is now underway at the Guayabales Project’s Trap porphyry target (“Trap”) with the objective of following up on the 2022 discovery hole TRC-1, which intersected 102.20 metres of gold-silver-copper mineralization averaging @ 1.53 g/t gold equivalent.
Trap is located approximately three kilometres to the northeast of the Company’s flagship Apollo porphyry system (“Apollo”) and is significantly larger than Apollo in dimensions measuring approximately 2 kilometres by 2 kilometres in area.
The mineralization styles and geochemical signatures encountered at Trap are very similar to those observed at the Apollo system, namely porphyry vein and alteration systems being overprinted by subsequent carbonate base metal (“CBM”) sheeted vein systems.
High-grade assay results have been received from a short hole drill program at Apollo. The aim of the program was designed to provide important data for block modelling by infilling the shallowest portion of the dip of the system as it moves under cover, with results including:
130.45 metres @ 2.17 g/t gold equivalent from 119.90 metres downhole in APC-80.
98.75 metres @ 2.71 g/t gold equivalent from 132.35 metres downhole in APC-82.
Drilling in the southern part of Apollo into the porphyry halo located outside of the high-grade brecciated porphyry system has cut shallow, lower grade mineralization while extending the maximum known dimensions of the brecciated porphyry to 560 metres (previously 520 metres). The system remains open to the west, north and at depth. Assay results include:
109.15 metres @ 0.46 g/t gold equivalent from 7 metres downhole in APC-75.
Drilling continues at the Guayabales project with four rigs currently in operation and a backlog of assay results expected in short order. Assay results outstanding include a series of directional drill holes at Apollo as well as initial results from the ME target area.
Ari Sussman, Executive Chairman commented: “Trap is an extremely exciting target, one which we did not appreciate appropriately when the discovery hole was drilled in mid-2022 as our geological knowledge of the Guayabales project was only in its infancy. After careful review, it is now clear that the 2022 Trap discovery hole is hosted in a long and continuous zone of quartz diorite porphyry with overprinting styles of mineralization similar to those observed at Apollo. Trap possesses all the characteristics of a potentially large porphyry system, and we look forward to seeing what transpires from our drilling program now underway.”
TORONTO, Nov. 22, 2023 /CNW/ – Collective Mining Ltd. (TSX: CNL) (OTCQX: CNLMF) (“Collective” or the “Company”) is pleased to announce that is has commenced drilling at the Trap target (“Trap”) and assay results for seven holes drilled in the Apollo porphyry system (“Apollo). Apollo and Trap are both targets within the Company’s flagship Guayabales project located in Caldas, Colombia. Presently, there are four diamond drill rigs operating at the Guayabales project as part of the Company’s planned 42,000 metre drilling program for 2023.
Details (See Table 1-4 and Figures 1-2)
This press release outlines details of the Trap target and results from seven holes drilled within and peripheral to the Apollo system.
Trap Target
The Company announces that drilling is now underway at the Trap target in the northern portion of the Guayabales project. Trap is located approximately three kilometres to the northeast of the Apollo Porphyry system in the largest porphyry intrusion centre outlined to date at the Guayabales project.
On September 27, 2022, grass roots reconnaissance drilling at Trap resulted in a porphyry discovery with drill hole TRC-1 assaying 102.20 metres @ 1.53 g/t gold equivalent (Table 1) including:
16.10 metres @ 2.63 g/t gold equivalent from 250.20 metres downhole related to a copper- gold-silver porphyry style mineralization (Table 2).
14.70 metres @ 2.00 g/t gold equivalent from 289.00 metres downhole related to gold-silver rich CBM style mineralization (Table 3).
Mineralization styles and metal geochemistry at Trap is very similar to the Apollo porphyry system in terms of gold, silver, and copper (see Tables 2 and Table 3). Hole TRC-1 intersected porphyry style mineralization (see Table 2, downhole depths from 250.2 metres to 266.30 metres) with secondary biotite, hydrothermal magnetite (up to 0.5%) in veinlets, albite, chlorite, chalcopyrite (up to 1.0 % and replacing the magnetite) and pyrite (up to 1.3%). Below this at 289.00 metres downhole, the hole entered into a polymetallic, CBM mineralization phase enveloped by strong sericite alteration. The sheeted carbonate veins host gold, silver, lead and zinc with sulphides including sphalerite (up to 0.5%), galena (up to 0.2%), pyrite (up to 2.0%), copper oxides, quartz, and carbonates.
Table 1: Assay Results for TRC-1 (announced September 27, 2022)
Hole #
From (m)
To (m)
Length (m)
Au (g/t)
Ag (g/t)
Cu (%)
Mo (%)
AuEq (g/t*)
TRC-1
233.80
336.00
102.20
1.26
12
0.09
0.003
1.53
Incl
259.10
269.00
9.90
3.00
25
0.25
0.007
3.65
and incl
294.50
303.70
9.20
1.82
31
0.07
0.003
2.27
*AuEq (g/t) is calculated as follows: (Au (g/t) x 0.95) + (Ag (g/t9 x 0.014 x 0.95) + (Cu (%) x 1.96 x 0.95) utilizing metal prices of Cu – US$4.00/lb, Ag – $20/oz and Au – US$1,400/oz and recovery rates of 95% for Au, Ag and Cu. Recovery rate assumptions are speculative as no metallurgical work has been completed to date. True widths are unknown, and grades are uncut. (See press release dated September 27, 2022)
Table 2: Individual Assay Results from Within Trap Hole TRC-1 Highlighting Porphyry Style Mineralization (Low Values of Zinc and Lead mineralization)
Hole #
From (m)
To (m)
Length (m)
Au (g/t)
Ag (g/t)
Cu (%)
Zn (%)
Pb (%)
TRC-1
250.20
250.80
0.60
0.61
37
0.15
0.01
0.03
250.80
251.40
0.60
1.95
37
0.34
0.01
–
251.40
252.10
0.70
1.64
50
0.30
0.01
–
252.10
252.80
0.70
1.46
33
0.30
0.01
–
252.80
253.50
0.70
1.41
25
0.25
0.01
–
253.50
254.20
0.70
2.27
21
0.29
0.01
–
254.20
255.00
0.80
0.18
3
0.04
–
–
255.00
255.80
0.80
0.28
2
0.04
0.01
–
255.80
256.60
0.80
0.25
8
0.03
0.02
–
256.60
257.20
0.60
0.40
12
0.03
0.05
0.01
257.20
257.80
0.60
0.40
12
0.05
0.08
–
257.80
258.40
0.60
0.51
11
0.02
0.01
–
258.40
259.10
0.70
0.84
21
0.05
0.01
–
259.10
259.80
0.70
1.33
24
0.13
0.01
–
259.80
260.40
0.60
1.15
13
0.11
0.01
–
260.40
261.00
0.60
1.60
26
0.13
0.03
0.01
261.00
261.60
0.60
1.37
14
0.12
0.01
–
261.60
262.30
0.70
0.99
12
0.10
0.01
–
262.30
263.00
0.70
11.12
62
0.47
0.01
–
263.00
263.70
0.70
3.39
21
0.16
0.07
–
263.70
264.30
0.60
2.21
36
0.19
0.24
0.01
264.30
265.00
0.70
2.25
24
0.21
0.02
–
265.00
265.65
0.65
4.06
79
0.38
0.11
–
265.65
266.30
0.65
7.70
39
0.50
0.02
–
Table 3: Assay Results for Within Trap Hole TRC-1 Highlighting Later Stage CBM Style Vein Overprinting Mineralization (Zinc and Lead Enriched Mineralization)
Hole #
From (m)
To (m)
Length (m)
Au (g/t)
Ag (g/t)
Cu (%)
Zn (%)
Pb (%)
TRC-1
289.00
289.80
0.80
1.14
4
0.22
0.01
–
289.80
290.40
0.60
1.62
4
0.21
0.04
–
290.40
291.00
0.60
1.19
19
0.06
0.61
0.01
291.00
291.70
0.70
1.44
17
0.26
0.08
–
291.70
292.50
0.80
1.03
20
0.17
0.07
–
292.50
293.20
0.70
0.90
20
0.05
0.05
0.01
293.20
293.90
0.70
0.72
8
0.01
0.16
0.07
293.90
294.50
0.60
1.41
29
0.08
0.84
–
294.50
295.20
0.70
2.11
37
0.11
1.53
0.01
295.20
295.80
0.60
3.13
37
0.10
0.22
0.01
295.80
296.40
0.60
1.36
30
0.03
0.02
0.03
296.40
297.00
0.60
1.16
21
0.04
0.08
0.10
297.00
297.60
0.60
0.90
14
0.07
0.03
0.02
297.60
298.20
0.60
1.29
69
0.16
0.52
0.16
298.20
299.00
0.80
2.82
21
0.07
0.04
0.03
299.00
299.70
0.70
0.95
16
0.07
0.06
0.04
299.70
300.60
0.90
1.36
17
0.04
0.04
0.01
300.60
301.20
0.60
1.32
5
0.01
0.01
–
301.20
301.70
0.50
1.48
10
0.01
0.06
0.05
301.70
302.20
0.50
1.80
49
0.06
0.40
0.26
302.20
303.00
0.80
3.79
81
0.08
0.54
0.40
303.00
303.70
0.70
1.34
18
0.11
0.09
0.01
Apollo Drilling
Three holes were drilled from Pad 12 in order to better outline the shallowest portion of the dip of the system for block modelling. High-grade and shallow brecciated porphyry mineralization was intersected in holes APC-80, APC-82 and APC-84 (see Table 4) and was fringed to the north by lower grade and peripheral mineralization. These three holes have added grade and volume at shallow levels to the Apollo system with assay results as follows:
130.45 metres @ 2.17 g/t gold equivalent from 119.90 metres downhole in APC-80.
98.75 metres @ 2.71 g/t gold equivalent from 132.35 metres downhole in APC-82.
53.70 metres @ 0.67 g/t gold equivalent from 120.00 metres downhole in APC-84.
Additionally, from Pad 3, drillhole APC-75, APC-77 and APC-79 (see Table 4) were fanned in southerly directions to test for the potential of the low-grade halo of mineralization surrounding the main brecciated high-grade Apollo system. These holes were drilled so that the Company can begin to assess the potential of the low-grade halo and its potential to positively impact future mining scenarios as well as determining the eastern boundary of the Apollo intrusion. Assay results are as follows:
109.15 metres @ 0.46 g/t gold equivalent from 7.00 metres downhole in APC-75.
36.10 metres @ 0.36 g/t gold equivalent from 52.40 metres downhole in APC-77.
As a result of drill holes APC-75 and APC-77, the maximum known strike of the Apollo system has been extended by 40 metres and now measures 560 metres in length.
Finally, a seventh hole, APC-76 was drilled to the west from Pad 5 with the objective of intersecting a deep zone of the brecciated porphyry. Unfortunately, the hole was abandoned at a shallow depth before reaching the target zone when it entered a fault zone and encountered mechanical problems.
Table 4: Assay Results for Apollo Drilling
Hole #
From (m)
To (m)
Length (m)
Au (g/t)
Ag (g/t)
Cu (%)
Mo (%)
WO3 (%)
AuEq (g/t*)
APC-75
7.00
116.15
109.15
0.27
6
0.05
0.002
0.01
0.46
Incl
109.75
116.15
6.40
3.42
9
0.04
0.003
–
3.54
and
302.25
337.05
34.80
0.23
21
0.06
0.005
–
0.66
Incl
333.40
335.10
1.70
3.87
351
0.07
0.003
–
9.21
APC-76
Hole abandoned due to technical issues
APC-77
52.40
88.50
36.10
0.08
10
0.07
0.003
–
0.36
APC-79
no significant interval; drilled outside the Apollo intrusion
APC-80
119.90
250.35
130.45
1.30
33
0.19
0.001
0.03
2.17
incl
139.00
155.30
16.30
2.72
23
0.05
0.002
0.01
3.11
and incl
159.05
173.10
14.05
0.87
55
0.16
0.002
0.26
2.76
and incl
213.50
250.35
36.85
2.57
16
0.13
0.001
–
2.95
APC-82
70.00
105.80
35.80
0.46
8
0.01
–
–
0.58
and
132.35
231.10
98.75
1.27
52
0.39
–
0.03
2.71
incl
152.20
175.05
22.85
1.27
22
0.06
–
0.02
1.69
and incl
175.05
204.65
29.60
1.81
82
0.75
0.001
0.09
4.43
and incl
204.65
231.10
26.45
1.42
79
0.54
0.001
0.01
3.42
APC-84
120.00
173.70
53.70
0.51
10
0.02
0.001
–
0.67
Incl
147.50
166.20
18.70
1.05
15
0.02
0.001
–
1.29
and
257.60
269.25
11.65
0.93
5
0.03
0.002
0.01
1.08
*AuEq (g/t) is calculated as follows: (Au (g/t) x 0.97) + (Ag (g/t) x 0.016 x 0.88) + (Cu (%) x 1.79 x 0.90)+ (Mo (%)*11.62 x 0.85) + (WO3 (%)*6.54 x 0.50) utilizing metal prices of Cu – US$3.85/lb, Ag – US$24/oz Mo – US$25/lb, WO3 – US$31,000/t and Au – US$1,475/oz and recovery rates of 97% for Au, 88% for Ag, 85% for Mo, 50% for WO3 and 90% for Cu. Recovery rate assumptions for gold are based on metallurgical results announced on October 17, 2023. Recovery rates for copper, molybdenum, tungsten and silver are speculative as limited metallurgical work has been completed to date on these metals. True widths are unknown, and grades are uncut.
Exploration Drill Program and Assay Update
Diamond drilling at the Guayabales project now totals 123 drill holes (approximately 48,751 meters) completed and assayed. The 2023 Phase II drilling program is advancing on schedule with assay results reported for 52 holes and an additional ten holes awaiting assay results from the lab.
The Company now has four diamond drill rigs operating within the Guayabales project area with the following objectives for the remainder of 2023:
Expanding the Apollo porphyry system both laterally and vertically. The Company is currently advancing with directional drilling utilizing two rigs aimed at expanding the Apollo system at depth, to the west and north.
Drill test the Trap target in the northern portion on the Guayabales project. Three widely spaced reconnaissance holes were completed at Trap in 2022 with the discovery hole, TRC-1 assaying 102.2 metres @ 1.53 g/t gold equivalent and containing similar mineralization to the Apollo porphyry system. Follow up drilling is now underway and initial assay results are expected in due course.
Figure 1: Plan View of Targets Generated at the Guayabales Project, Highlighting the Trap Target Where Drilling has Now Commenced (CNW Group/Collective Mining Ltd.)
Figure 2: Plan View of the Apollo System Highlighting Assay Results For Drill Holes Announced in This Release (CNW Group/Collective Mining Ltd.)
About Collective Mining Ltd.
To see our latest corporate presentation and related information, please visit www.collectivemining.com
Founded by the team that developed and sold Continental Gold Inc. to Zijin Mining for approximately $2 billion in enterprise value, Collective Mining is a copper, silver, and gold exploration company with projects in Caldas, Colombia. The Company has options to acquire 100% interests in two projects located directly within an established mining camp with ten fully permitted and operating mines.
The Company’s flagship project, Guayabales, is anchored by the Apollo system, which hosts the large-scale, bulk-tonnage and high-grade copper-silver-gold Apollo porphyry system. The Company’s near-term objective is to drill the shallow portions of the Apollo system, continue to expand the overall dimensions of the system, which remains open in most directions and test newly generated grassroots targets.
Management, insiders and close family and friends own nearly 45% of the outstanding shares of the Company and as a result, are fully aligned with shareholders. The Company is listed on the TSX under the trading symbol “CNL” and on the OTCQX under the trading symbol “CNLMF”.
Qualified Person (QP) and NI43-101 Disclosure
David J Reading is the designated Qualified Person for this news release within the meaning of National Instrument 43-101 (“NI 43-101”) and has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same. Mr. Reading has an MSc in Economic Geology and is a Fellow of the Institute of Materials, Minerals and Mining and of the Society of Economic Geology (SEG).
Technical Information
Rock, soils and core samples have been prepared and analyzed at SGS and ALS laboratory facilities in Medellin, Colombia and Lima, Peru. Blanks, duplicates, and certified reference standards are inserted into the sample stream to monitor laboratory performance. Crush rejects and pulps are kept and stored in a secured storage facility for future assay verification. No capping has been applied to sample composites. The Company utilizes a rigorous, industry-standard QA/QC program.
Information Contact:
Follow Executive Chairman Ari Sussman (@Ariski73) and Collective Mining (@CollectiveMini1) on Twitter.
FORWARD-LOOKING STATEMENTS
This news release contains “forward-looking information” within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking information and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussion with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often, but not always using phrases such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-looking information. In this news release, forward-looking information relate, among other things, to: anticipated advancement of mineral properties or programs; future operations; future recovery metal recovery rates; future growth potential of Collective; and future development plans.
These forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business. Management believes that these assumptions are reasonable. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others: risks related to the speculative nature of the Company’s business; the Company’s formative stage of development; the Company’s financial position; possible variations in mineralization, grade or recovery rates; actual results of current exploration activities; conclusions of future economic evaluations; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, precious and base metals or certain other commodities; fluctuations in currency markets; change in national and local government, legislation, taxation, controls regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formation pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); and title to properties, as well as those risk factors discussed or referred to in the annual information form of the Company dated April 7, 2022. Forward-looking information contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements and there may be other factors that cause results not to be anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information.
Collective Mining Ltd. Logo (CNW Group/Collective Mining Ltd.)
MONTREAL, Nov. 20, 2023 /CNW/ – Aya Gold & Silver Inc. (TSX: AYA) (OTCQX: AYASF) (“Aya” or the “Corporation”) is pleased to announce new high-grade drill exploration results at Boumadine in the Kingdom of Morocco. The new results confirm the large, high-grade mineralized zones in the central and northern portions of the Main Trend, which remains open in all directions.
The Corporation has also added 4 permits to Boumadine, which now has a total surface footprint of 78 square kilometers (“km²”).
Key Highlights1
Definition of new high-grade mineralization from the infill drilling program:
BOU-DD23-180 intersected 1,039 grams per tonne (“g/t”) silver equivalent (“AgEq”) over 23.5 meters (“m”) (6.41 g/t Au, 116 g/t Ag, 4.7% Zn, 0.6% Pb and 0.4% Cu)
BOU-DD23-184 intersected 474 g/t AgEq over 30.1m (2.57 g/t Au, 85 g/t Ag, 2.2% Zn, 0.6% Pb and 0.1% Cu), including 3.2m at 1,339 g/t AgEq and 3.4m at 1,169 g/t AgEq
BOU-DD23-172 intersected 2,689 g/t AgEq over 3.7m (22.03 g/t Au, 531 g/t Ag, 1.3% Zn, 0.3% Pb and 0.2% Cu)
BOU-DD23-186 intersected 442 g/t AgEq over 16.6m (1.85 g/t Au, 150 g/t Ag, 1.9% Zn, 0.3% Pb and 0.1% Cu), including 2.7m at 1,088 g/t AgEq
BOU-DD23-176 intersected 202 g/t AgEq over 30.6m (1.42 g/t Au, 20 g/t Ag, 0.6% Zn, 0.3% Pb and 0.05% Cu)
BOU-DD23-178 intersected 613 g/t AgEq over 9.5m (2.70 g/t Au, 49 g/t Ag, 4.2% Zn, 1.8% Pb and 0.2% Cu), including 2.3m at 1,476 g/t AgEq
Acquisition of two mining permits totaling 15.8 km² north-east and south-west of Boumadine.
Acquisition of one mining and one exploration permit for a total of 20.0 km² west of Boumadine.
“The acquisition of new permits is core to our strategy of consolidating our land position, and the four permits provide additional upside potential in the vicinity of the Boumadine Main Trend,” said Benoit La Salle, President & CEO. “Today’s high-grade drilling results including BOU-DD23-180 and BOU-DD23-184 confirm both continuity of the Main Trend and its potential from surface and over a very wide area. Following the positive metallurgical test results, our team is now focused on completing the remaining 20% of the expanded drill program and delivering the Q1-2024 Boumadine resource estimate.”
__________________________________
1All intersections are in core lengths; Ag equivalent is based on a 100% recovery with the following ratios: 1g/t Au: 93.4 g/t Ag; 1% Cu: 130.4 g/t Ag; 1% Pb: 31.8 g/t Ag; 1% Zn: 54.1 g/t Ag
Table 1 – Significant Intercepts from Boumadine Drill Exploration Program (Core Lengths)
DDH No.
Section
Zone
From (m)
To (m)
Au (g/t)
Ag (g/t)
Length* (m)
Cu (%)
Pb (%)
Zn (%)
Mo (g/t)
Ag Eq** (g/t)
BOU-DD23-172
8550N
Para
141.5
146.1
4.59
99
4.6
0.1
0.9
2.3
135
694
BOU-DD23-172
8550N
Main
151.8
155.5
22.03
531
3.7
0.2
0.3
1.3
9
2689
BOU-DD23-172
8550N
Para
163.5
169.2
2.61
100
5.7
0.1
0.1
4.1
8
589
Including
165.2
168.6
3.96
150
3.4
0.2
0.2
6.4
11
902
BOU-DD23-173
8025N
Main
203.5
214.1
1.60
22
10.6
0.0
0.1
1.2
6
246
BOU-DD23-176
8275N
Main
69.1
99.7
1.42
20
30.6
0.0
0.3
0.6
8
202
BOU-DD23-178
8275N
Main
166.4
175.9
2.70
49
9.5
0.2
1.8
4.2
36
613
Including
165.4
167.7
6.49
125
2.3
0.3
1.3
12.3
4
1476
BOU-DD23-179
8225N
Main
70.3
82.2
1.52
8
11.9
0.0
0.5
1.4
18
246
BOU-DD23-180
8375N
Para
127.7
136.5
1.27
21
8.8
0.0
0.5
2.5
17
298
BOU-DD23-180
8375N
Main
165.1
188.6
6.41
116
23.5
0.4
0.6
4.7
3
1039
BOU-DD23-180
8375N
Para
248.5
282.4
0.64
24
33.9
0.0
0.3
0.5
5
128
BOU-DD23-184
8225N
Main
104.8
134.9
2.57
85
30.1
0.1
0.6
2.2
15
474
Including
104.8
108.0
6.69
528
3.2
0.1
0.8
2.6
8
1339
Including
130.5
133.9
5.65
120
3.4
0.2
1.6
8.1
91
1169
BOU-DD23-186
8175N
Main
37.8
54.4
1.85
150
16.6
0.1
0.3
1.9
8
442
Including
45.4
48.1
6.03
381
2.7
0.2
0.5
1.7
12
1088
BOU-DD23-187
8225N
Main
183.6
193.3
1.27
33
9.7
0.0
0.2
1.9
33
271
BOU-DD23-189
8175N
Main
92.5
97.3
4.00
126
4.8
0.1
1.5
1.4
14
642
Including
94.3
97.3
5.95
179
3.0
0.2
2.2
1.2
15
896
BOU-DD23-189
8175N
Para
103.1
114.7
1.38
68
11.6
0.1
0.1
2.9
33
366
BOU-DD23-191
8175N
Main
158.5
169.5
1.61
30
11.0
0.1
0.2
3.4
12
377
Including
158.5
167.5
1.87
33
9.0
0.1
0.2
3.7
7
423
BOU-DD23-198
8675N
Para
185.8
196.1
2.59
63
10.3
0.2
0.2
2.1
6
451
Including
185.8
189.4
6.21
144
3.6
0.5
0.4
3.7
5
1006
BOU-DD23-200
8175N
Main
244.3
248.5
3.47
80
4.2
0.3
0.1
1.0
19
506
BOU-DD23-202
8675N
Main
349.2
355.2
4.31
129
6.0
0.1
0.6
1.4
41
645
Including
352.3
354.0
10.11
339
1.7
0.3
1.2
2.8
54
1522
*
True width remains undetermined at this stage; all values are uncut.
**
Ag equivalent is based on a 100% recovery with the following ratio: 1 g/t Au: 93.4 g/t Ag; 1% Cu:130.4 Ag; 1% Pb: 31.8 Ag; 1% Zn: 54.1 Ag.
Figure 1: Location of New Boumadine Permits (CNW Group/Aya Gold & Silver Inc)
Figure 2 – Surface Plan of Boumadine Property with Magnetic Data (Residual Total Field) and 2023 Drill Holes (CNW Group/Aya Gold & Silver Inc)
2023 Exploration Results
To date, 159 diamond drill holes (“DDH”) for a total of 61,312m have been completed at Boumadine in 2023 (Figure 2 and Appendix 2). Both infill and exploration drilling were conducted on strike along the Main Trend (South, Central, and North Zones).
Most results have been received for drill holes up to BOU-DD23-203 (Table 1, Figure 4, Figure 5, and Appendix 1).
Results received since September 2023 confirm the high grade of the north and central sections of the Main Trend, notably with holes BOU-DD23-180 and BOU-DD23-184 intersecting large, mineralized zones.
The main mineralization generally consists of 1m to 4m wide (locally reaching over a 10m width) N340- oriented massive sulphide lenses/veins sharply dipping eastward (> 70°). The massive sulphide veins (>80%) are mainly composed of pyrite, with variable proportions of sphalerite, galena, and chalcopyrite. Figure 3 presents the results of the Boumadine Main Zone on a longitudinal section along the deposit, defining ore shoots shallowly dipping toward south, in both the Central and South Zones.
Figure 3 – Longitudinal View of Boumadine Main Zone (CNW Group/Aya Gold & Silver Inc)
Figure 4 – Surface Plan of Central & North Zones with New 2023 DDH Results (CNW Group/Aya Gold & Silver Inc)
Next Steps
The 76,000m drilling program is 80% complete and is expected to be completed at year-end 2023. The Corporation expects to publish an NI 43-101 compliant resource by the end of Q1-2024.
Fieldwork will commence on the new permits in 2024 and will combine a hyperspectral survey, ground geophysics, mapping and prospecting.
Technical Information
Aya has implemented a quality control program to comply with best practices in sampling and analysis of drill core. Drill core samples were transported in sealed bags for analysis at Afrilab laboratory in Marrakech. Standards of different grades and blanks were inserted every 20 samples in addition to the standards, blanks and pulp duplicate inserted by Afrilab.
Qualified Person
The scientific and technical information contained in this press release have been reviewed by David Lalonde, B. Sc, Head of Exploration, Qualified Person, for accuracy and compliance with National Instrument 43-101.
About Aya Gold & Silver Inc.
Aya Gold & Silver Inc. is a rapidly growing, Canada-based silver producer with operations in the Kingdom of Morocco.
The only TSX-listed pure silver mining company, Aya operates the high-grade Zgounder Silver Mine and is exploring its properties along the prospective South-Atlas Fault, several of which have hosted past-producing mines and historical resources. Aya’s Moroccan mining assets are complemented by its Tijirit Gold Project in Mauritania, which is being advanced to feasibility.
Aya’s management team maximizes shareholder value by anchoring sustainability at the heart of its production, resource, governance, and financial growth plans.
Forward-Looking Statements
This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”), which reflects management’s expectations regarding Aya’s future growth and business prospects (including the timing and development of new deposits and the success of exploration activities) and other opportunities. Wherever possible, words such as “confirm”, “potential”, “complete”, “expect” “extend”, “belief”, and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might”, “will”, or are “likely” to be taken, occur or be achieved, have been used to identify such forward-looking information. Specific forward-looking statements in this press release include, but are not limited to, statements and information with respect to the exploration and development potential of Boumadine and the advancement of and success of the exploration program at Boumadine , and timing for the release of the Company’s disclosure in connection with the foregoing. Although the forward-looking information contained in this press release reflect management’s current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Aya cannot be certain that actual results will be consistent with such forward-looking information. Such forward-looking statements are based upon assumptions, opinions and analysis made by management in light of its experience, current conditions, and its expectations of future developments that management believe to be reasonable and relevant but that may prove to be incorrect. These assumptions include, among other things, the ability to obtain any requisite governmental approvals, the accuracy of Mineral Reserve and Mineral Resource Estimates (including, but not limited to, ore tonnage and ore grade estimates), silver price, exchange rates, fuel and energy costs, future economic conditions, anticipated future estimates of free cash flow, and courses of action. Aya cautions you not to place undue reliance upon any such forward-looking statements.
The risks and uncertainties that may affect forward-looking statements include, among others: the inherent risks involved in exploration and development of mineral properties, including government approvals and permitting, changes in economic conditions, changes in the worldwide price of silver and other key inputs, changes in mine plans (including, but not limited to, throughput and recoveries being affected by metallurgical characteristics) and other factors, such as project execution delays, many of which are beyond the control of Aya, as well as other risks and uncertainties which are more fully described in Aya’s 2022 Annual Information Form dated March 31, 2023, and in other filings of Aya with securities and regulatory authorities which are available on SEDAR at www.sedar.com. Furthermore, Aya’s corporate update of May 28, 2020 regarding the materiality of its assets as well as to studies regarding non-material assets remains applicable as at the date hereof. Aya does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs, and opinions change. Nothing in this document should be construed as either an offer to sell or a solicitation to buy or sell Aya securities. All references to Aya include its subsidiaries unless the context requires otherwise.
Appendix 1 – Full Drill Results from Boumadine (core lengths)
DDH No.
Section
Zone
From (m)
To (m)
Au (g/t)
Ag (g/t)
Length* (m)
Cu (%)
Pb (%)
Zn (%)
Mo (g/t)
Ag Eq** (g/t)
BOU-DD23-165
8125N
Para
280.1
282.1
4.69
84
2.0
0.3
0.1
0.3
47
589
BOU-DD23-165
8125N
Para
297.0
298.0
0.37
24
1.0
0.0
0.1
2.6
8
209
BOU-DD23-165
8125N
Para
333.0
333.5
0.26
42
0.5
0.0
1.3
4.1
7
327
BOU-DD23-165
8125N
Main
462.7
463.7
0.36
12
1.0
0.0
0.1
0.2
4
60
BOU-DD23-165
8125N
Para
546.2
546.9
0.60
25
0.7
0.0
0.5
0.6
4
127
BOU-DD23-166
8850N
Para
140.0
141.0
0.32
43
1.0
0.0
0.1
0.8
2
119
BOU-DD23-166
8850N
Para
141.7
142.5
0.09
48
0.8
0.0
0.3
0.6
9
99
BOU-DD23-167
8025N
NSR
0.0
163.4
0.00
0
163.4
0.0
0.0
0.0
0
0
BOU-DD23-168
8325N
Para
125.4
126.4
4.35
16
1.0
0.0
0.4
0.8
1
480
BOU-DD23-170
8025N
Para
67.3
68.9
0.36
23
1.6
0.0
0.2
0.3
85
84
BOU-DD23-170
8025N
Main
86.5
87.6
2.59
63
1.1
0.1
0.3
0.6
304
382
BOU-DD23-170
8025N
Para
124.3
126.5
0.48
4
2.2
0.0
0.1
0.5
8
84
BOU-DD23-172
8550N
Para
128.3
130.1
0.26
23
1.8
0.0
0.6
0.7
68
108
BOU-DD23-172
8550N
Para
141.5
146.1
4.59
99
4.6
0.1
0.9
2.3
135
694
BOU-DD23-172
8550N
Main
151.8
155.5
22.03
531
3.7
0.2
0.3
1.3
9
2689
BOU-DD23-172
8550N
Para
163.5
169.2
2.61
100
5.7
0.1
0.1
4.1
8
589
Including
165.2
168.6
3.96
150
3.4
0.2
0.2
6.4
11
902
BOU-DD23-172
8550N
Para
244.8
245.6
1.29
41
0.8
0.0
0.2
0.4
3
194
BOU-DD23-173
8025N
Para
127.4
128.6
0.54
16
1.2
0.0
0.1
0.4
15
95
BOU-DD23-173
8025N
Main
203.5
214.1
1.60
22
10.6
0.0
0.1
1.2
6
246
Including
209.3
214.1
2.67
32
4.8
0.1
0.2
2.0
8
407
BOU-DD23-174
8025N
Main
287.1
290.3
1.90
40
3.2
0.1
0.2
0.3
19
260
Including
288.1
289.3
4.04
80
1.2
0.3
0.3
0.3
27
530
BOU-DD23-174
8025N
Para
435.0
435.5
3.29
126
0.5
0.2
0.7
0.3
4
492
BOU-DD23-175
8025N
Para
108.1
108.8
0.28
21
0.7
0.1
0.5
2.4
12
205
BOU-DD23-175
8025N
Para
183.6
187.0
0.05
45
3.4
0.0
5.7
1.5
9
317
BOU-DD23-175
8025N
Main
269.3
270.3
0.16
16
1.0
0.0
1.5
2.1
22
195
BOU-DD23-176
8275N
Para
45.3
46.0
0.54
13
0.7
0.0
0.1
5.1
15
347
BOU-DD23-176
8275N
Para
49.5
50.6
0.47
8
1.1
0.0
0.1
0.3
6
73
BOU-DD23-176
8275N
Main
69.1
99.7
1.42
20
30.6
0.0
0.3
0.6
8
202
BOU-DD23-177
8850N
Main
31.9
34.8
3.40
120
2.9
0.0
1.5
0.1
17
494
BOU-DD23-177
8850N
Para
43.0
44.0
0.76
29
1.0
0.0
0.7
0.7
24
160
BOU-DD23-178
8275N
Para
113.1
117.5
2.32
28
4.4
0.0
0.3
1.3
4
333
BOU-DD23-178
8275N
Para
132.1
132.8
0.39
40
0.7
0.0
1.6
2.2
2
251
BOU-DD23-178
8275N
Para
139.5
142.0
1.21
46
2.5
0.0
0.4
1.9
6
280
BOU-DD23-178
8275N
Para
151.8
152.7
0.76
12
0.9
0.0
0.2
0.3
2
107
BOU-DD23-178
8275N
Para
156.1
158.3
2.66
59
2.2
0.2
0.1
0.2
5
348
BOU-DD23-178
8275N
Main
166.4
175.9
2.70
49
9.5
0.2
1.8
4.2
36
613
Including
165.4
167.7
6.49
125
2.3
0.3
1.3
12.3
4
1476
BOU-DD23-179
8225N
Para
22.4
22.9
0.66
64
0.5
0.0
1.5
5.3
75
467
BOU-DD23-179
8225N
Para
24.5
25.0
0.73
33
0.5
0.1
0.5
2.8
16
271
BOU-DD23-179
8225N
Para
38.0
38.6
0.39
12
0.6
0.0
0.1
1.0
8
110
BOU-DD23-179
8225N
Para
44.0
47.4
1.17
28
3.4
0.0
0.1
1.1
17
203
BOU-DD23-179
8225N
Main
70.3
82.2
1.52
8
11.9
0.0
0.5
1.4
18
246
BOU-DD23-180
8375N
Para
104.7
105.6
0.40
24
0.9
0.0
0.9
2.3
1
217
BOU-DD23-180
8375N
Para
127.7
136.5
1.27
21
8.8
0.0
0.5
2.5
17
298
Including
129.4
133.5
2.18
31
4.1
0.1
0.3
3.4
28
440
BOU-DD23-180
8375N
Para
144.6
148.2
0.69
18
3.6
0.0
0.3
0.8
5
141
BOU-DD23-180
8375N
Para
155.6
156.4
0.59
24
0.8
0.0
0.3
2.2
107
217
BOU-DD23-180
8375N
Para
157.3
157.9
0.49
12
0.6
0.0
0.2
1.8
11
161
BOU-DD23-180
8375N
Para
159.8
160.3
2.62
67
0.5
0.1
0.5
3.7
7
538
BOU-DD23-180
8375N
Main
165.1
188.6
6.41
116
23.5
0.4
0.6
4.7
3
1039
BOU-DD23-180
8375N
Para
248.5
282.4
0.64
24
33.9
0.0
0.3
0.5
5
128
BOU-DD23-180
8375N
Para
296.0
297.0
0.64
8
1.0
0.0
0.0
0.1
11
73
BOU-DD23-180
8375N
Para
301.0
302.0
0.42
12
1.0
0.0
0.3
0.5
6
88
BOU-DD23-181
8025N
Main
345.1
345.9
0.99
48
0.8
0.1
2.4
2.6
3
376
BOU-DD23-181
8025N
Para
357.2
358.3
0.34
59
1.1
0.2
6.1
7.5
3
717
BOU-DD23-181
8025N
Para
480.2
480.7
0.35
33
0.5
0.0
1.3
0.9
34
159
BOU-DD23-181
8025N
Para
537.1
538.3
0.03
136
1.2
0.0
0.4
0.2
8
163
BOU-DD23-182
8275N
Para
145.3
145.9
0.74
24
0.6
0.0
0.9
1.4
45
202
BOU-DD23-182
8275N
Para
177.9
181.0
0.50
30
3.1
0.0
1.0
2.4
12
243
BOU-DD23-182
8275N
Main
189.2
192.0
0.82
23
2.8
0.1
2.0
1.2
31
248
BOU-DD23-182
8275N
Para
196.2
199.2
0.67
17
3.0
0.0
0.8
1.6
7
198
BOU-DD23-182
8275N
Para
201.2
205.4
0.43
16
4.2
0.0
0.6
2.1
4
190
BOU-DD23-183
8025N
Para
105.8
107.0
1.02
48
1.2
0.1
0.0
0.0
3
160
BOU-DD23-183
8025N
Para
287.7
288.7
0.64
7
1.0
0.0
0.3
0.1
6
85
BOU-DD23-183
8025N
Para
364.9
366.2
0.38
16
1.3
0.1
0.1
0.2
7
75
BOU-DD23-183
8025N
Main
507.6
514.0
0.80
23
6.4
0.0
0.4
0.6
10
146
Including
508.2
510.0
1.85
20
1.8
0.1
0.3
0.6
10
244
BOU-DD23-184
8225N
Para
59.7
60.2
0.52
33
0.5
0.0
0.6
4.6
40
358
BOU-DD23-184
8225N
Main
104.8
134.9
2.57
85
30.1
0.1
0.6
2.2
15
474
Including
104.8
108.0
6.69
528
3.2
0.1
0.8
2.6
8
1339
Including
130.5
133.9
5.65
120
3.4
0.2
1.6
8.1
91
1169
BOU-DD23-184
8225N
Para
135.9
136.9
0.36
12
1.0
0.0
0.3
5.7
9
369
BOU-DD23-185
8375N
Para
143.4
145.4
0.56
24
2.0
0.0
0.5
1.0
11
148
BOU-DD23-185
8375N
Para
175.6
176.5
4.97
252
0.9
0.4
2.7
8.5
16
1314
BOU-DD23-185
8375N
Main
204.6
210.9
0.16
1
6.3
0.0
0.0
0.1
11
26
BOU-DD23-185
8375N
Para
244.3
244.8
0.14
46
0.5
0.0
1.1
1.6
11
182
BOU-DD23-186
8175N
Main
37.8
54.4
1.85
150
16.6
0.1
0.3
1.9
8
442
Including
45.4
48.1
6.03
381
2.7
0.2
0.5
1.7
12
1088
BOU-DD23-187
8225N
Para
62.4
62.9
0.25
102
0.5
0.0
1.1
2.2
9
285
BOU-DD23-187
8225N
Para
157.4
157.9
0.97
77
0.5
0.0
1.8
2.8
20
378
BOU-DD23-187
8225N
Para
165.2
167.2
0.23
29
2.0
0.0
0.3
0.8
6
104
BOU-DD23-187
8225N
Para
168.2
169.1
0.24
34
0.9
0.0
2.0
1.6
12
206
BOU-DD23-187
8225N
Main
183.6
193.3
1.27
33
9.7
0.0
0.2
1.9
33
271
Including
188.9
192.3
2.19
44
3.4
0.1
0.2
3.6
61
462
BOU-DD23-187
8225N
Para
195.4
196.5
0.44
16
1.1
0.0
0.3
1.4
6
146
BOU-DD23-188
8275N
Para
9.0
10.0
0.03
56
1.0
0.0
9.8
0.7
9
407
BOU-DD23-188
8275N
Para
104.3
105.0
0.14
40
0.7
0.0
0.2
0.7
4
103
BOU-DD23-188
8275N
Para
179.2
180.2
0.32
36
1.0
0.0
0.4
1.6
9
168
BOU-DD23-188
8275N
Para
185.5
186.0
7.80
162
0.5
0.3
0.3
0.7
117
978
BOU-DD23-188
8275N
Para
190.9
191.4
0.47
41
0.5
0.0
1.0
3.1
8
289
BOU-DD23-188
8275N
Para
194.7
195.3
0.42
44
0.6
0.1
0.8
2.1
7
231
BOU-DD23-188
8275N
Main
216.8
218.8
1.37
26
2.0
0.0
0.3
0.3
5
188
BOU-DD23-188
8275N
Para
238.9
239.4
0.38
50
0.5
0.0
0.9
2.2
2
237
BOU-DD23-188
8275N
Para
280.6
283.4
0.39
36
2.8
0.0
0.2
1.2
27
149
BOU-DD23-189
8175N
Para
77.5
78.4
0.37
36
0.9
0.1
0.8
2.7
13
251
BOU-DD23-189
8175N
Para
89.3
90.4
0.38
24
1.1
0.0
0.3
0.7
6
110
BOU-DD23-189
8175N
Main
92.5
97.3
4.00
126
4.8
0.1
1.5
1.4
14
642
Including
94.3
97.3
5.95
179
3.0
0.2
2.2
1.2
15
896
BOU-DD23-189
8175N
Para
100.2
101.2
0.35
20
1.0
0.0
0.0
0.1
12
61
BOU-DD23-189
8175N
Para
103.1
114.7
1.38
68
11.6
0.1
0.1
2.9
33
366
BOU-DD23-190
8375N
Para
26.7
27.6
0.18
42
0.9
0.0
1.5
2.8
26
259
BOU-DD23-190
8375N
Main
249.1
250.9
0.14
79
1.8
0.0
0.7
1.2
56
183
BOU-DD23-191
8175N
Para
122.8
123.5
0.22
37
0.7
0.0
0.3
5.1
1
343
BOU-DD23-191
8175N
Para
140.9
142.0
1.08
12
1.1
0.0
0.2
0.6
1
154
BOU-DD23-191
8175N
Main
158.5
169.5
1.61
30
11.0
0.1
0.2
3.4
12
377
Including
158.5
167.5
1.87
33
9.0
0.1
0.2
3.7
7
423
BOU-DD23-192
8225N
Para
11.4
13.8
0.22
54
2.4
0.0
0.1
0.2
1
91
BOU-DD23-192
8225N
Para
127.2
127.7
0.64
63
0.5
0.0
1.3
3.2
4
343
BOU-DD23-192
8225N
Main
226.1
230.8
1.75
41
4.7
0.1
0.2
0.4
19
241
Including
228.1
230.8
2.31
58
2.7
0.1
0.3
0.5
12
323
BOU-DD23-192
8225N
Para
338.2
339.3
14.62
1
1.1
0.0
0.0
0.0
9
1371
BOU-DD23-194
8275N
Para
76.5
77.2
2.91
632
0.7
0.1
1.2
2.0
4
1063
BOU-DD23-194
8275N
Para
200.7
201.7
9.14
84
1.0
0.4
0.2
0.4
31
1024
BOU-DD23-194
8275N
Main
240.3
240.9
0.30
35
0.6
0.2
1.2
7.1
35
513
BOU-DD23-194
8275N
Para
277.6
278.7
0.41
19
1.1
0.0
1.2
1.5
20
179
BOU-DD23-195
8175N
Para
80.4
81.3
0.41
40
0.9
0.0
0.2
0.4
1
110
BOU-DD23-195
8175N
Para
84.6
85.4
0.51
36
0.8
0.0
1.2
2.3
4
245
BOU-DD23-195
8175N
Para
175.0
175.9
0.17
40
0.9
0.0
0.9
2.6
5
227
BOU-DD23-195
8175N
Main
185.0
185.5
0.75
44
0.5
0.0
1.5
3.9
1
376
BOU-DD23-195
8175N
Para
213.7
214.6
0.57
32
0.9
0.0
0.7
1.2
7
176
BOU-DD23-196
8225N
Para
15.3
16.3
0.56
16
1.0
0.0
0.1
0.2
19
82
BOU-DD23-196
8225N
Para
37.7
38.8
0.03
52
1.1
0.0
0.3
1.1
6
128
BOU-DD23-196
8225N
Para
85.6
86.4
4.83
112
0.8
0.0
0.4
0.7
1
614
BOU-DD23-196
8225N
Para
168.3
168.8
0.61
32
0.5
0.0
0.2
5.3
24
386
BOU-DD23-196
8225N
Para
215.2
216.4
1.75
19
1.2
0.1
2.6
1.4
25
351
BOU-DD23-196
8225N
Main
253.7
254.5
0.57
43
0.8
0.0
0.3
3.2
35
282
BOU-DD23-196
8225N
Para
407.9
408.5
0.52
79
0.6
0.0
0.2
1.6
5
224
BOU-DD23-198
8675N
Para
44.5
45.0
1.85
118
0.5
0.0
1.2
2.7
1
477
BOU-DD23-198
8675N
Para
71.0
73.1
1.66
41
2.1
0.0
1.0
2.9
44
392
BOU-DD23-198
8675N
Para
185.8
196.1
2.59
63
10.3
0.2
0.2
2.1
6
451
Including
185.8
189.4
6.21
144
3.6
0.5
0.4
3.7
5
1006
BOU-DD23-198
8675N
Para
271.3
273.4
1.85
16
2.1
0.0
1.5
0.3
8
255
BOU-DD23-198
8675N
Para
310.3
311.6
1.67
139
1.3
0.0
1.0
0.3
28
345
BOU-DD23-198
8675N
Main
323.3
326.0
1.50
58
2.7
0.0
0.2
0.2
29
216
BOU-DD23-198
8675N
Para
370.2
371.2
0.22
40
1.0
0.0
0.2
0.3
2
85
BOU-DD23-198
8675N
Para
374.4
375.4
0.45
20
1.0
0.0
0.1
0.1
5
72
BOU-DD23-198
8675N
Para
378.6
381.1
2.11
48
2.5
0.0
0.9
2.5
83
415
BOU-DD23-200
8175N
Para
135.5
136.3
1.87
25
0.8
0.0
0.1
0.2
4
214
BOU-DD23-200
8175N
Main
244.3
248.5
3.47
80
4.2
0.3
0.1
1.0
19
506
Including
244.3
246.3
5.37
124
2.0
0.5
0.1
0.6
18
736
BOU-DD23-200
8175N
Para
258.0
259.0
0.67
24
1.0
0.0
0.5
3.1
11
275
BOU-DD23-200
8175N
Para
295.2
295.7
0.63
55
0.5
0.0
0.3
4.1
53
349
BOU-DD23-201
8225N
Para
94.7
95.4
0.12
47
0.7
0.0
0.4
0.8
4
116
BOU-DD23-201
8225N
Para
209.1
210.0
0.49
28
0.9
0.0
1.4
1.5
5
201
BOU-DD23-201
8225N
Para
231.7
232.4
0.42
20
0.7
0.0
0.5
1.2
9
142
BOU-DD23-201
8225N
Para
242.4
246.6
2.59
39
4.2
0.1
0.2
0.7
9
341
Including
242.4
244.0
5.06
77
1.6
0.3
0.3
0.3
8
613
BOU-DD23-201
8225N
Main
315.0
316.0
0.30
32
1.0
0.1
0.8
4.7
19
357
BOU-DD23-202
8675N
Para
95.5
96.7
1.06
48
1.2
0.0
0.5
2.2
15
286
BOU-DD23-202
8675N
Para
104.9
105.4
1.59
110
0.5
0.0
3.0
7.9
5
786
BOU-DD23-202
8675N
Para
223.1
226.0
3.61
67
2.9
0.1
0.3
2.8
18
583
BOU-DD23-202
8675N
Para
227.8
229.2
0.58
11
1.4
0.0
0.1
0.3
19
85
BOU-DD23-202
8675N
Para
239.0
239.5
2.48
42
0.5
0.1
0.5
11.3
37
909
BOU-DD23-202
8675N
Para
242.6
243.2
0.72
24
0.6
0.0
0.6
2.3
21
238
BOU-DD23-202
8675N
Para
250.8
251.3
0.43
36
0.5
0.0
1.1
3.5
3
308
BOU-DD23-202
8675N
Para
266.6
267.4
0.22
35
0.8
0.0
2.8
2.4
15
277
BOU-DD23-202
8675N
Main
349.2
355.2
4.31
129
6.0
0.1
0.6
1.4
41
645
Including
352.3
354.0
10.11
339
1.7
0.3
1.2
2.8
54
1522
BOU-DD23-202
8675N
Para
418.8
422.2
1.56
39
3.4
0.0
0.5
0.7
2
240
BOU-DD23-203
8175N
Para
100.1
101.8
0.23
59
1.7
0.0
0.9
1.5
3
191
BOU-DD23-203
8175N
Para
207.4
207.9
0.46
91
0.5
0.1
1.9
4.3
6
435
BOU-DD23-203
8175N
Para
269.5
270.0
1.06
41
0.5
0.0
0.9
2.4
4
300
BOU-DD23-203
8175N
Para
280.7
281.7
0.32
20
1.0
0.0
0.4
0.5
9
92
BOU-DD23-203
8175N
Main
282.7
285.9
2.00
55
3.2
0.1
0.1
0.2
12
269
BOU-DD23-203
8175N
Para
289.5
290.6
0.42
12
1.1
0.0
0.3
1.2
10
124
BOU-DD23-203
8175N
Para
332.2
332.7
0.41
20
0.5
0.0
0.3
4.7
9
324
BOU-DD23-203
8175N
Para
373.2
374.3
0.03
89
1.1
0.2
0.8
1.2
7
201
*
True width remains undetermined at this stage; all values are uncut.
**
Ag equivalent is based on a 100% recovery with the following ratio; 1 g/t Au: 93.4 g/t Ag; 1% Cu: 130.4 Ag; 1% Pb: 31.8 Ag; 1% Zn: 54.1 Ag.
Appendix 2 – New Drillhole Coordinates of 2023 Boumadine Exploration Program (completed holes)
DDH No.
Easting
Northing
Elevation
Azimuth
Dip
Length (m)
BOU-DD23-213
316 991
3 474 849
1 257
70
-50
600.0
BOU-DD23-214
317 026
3 477 177
1 216
250
-50
447.1
BOU-DD23-215
316 714
3 477 378
1 220
250
-50
330.1
BOU-DD23-216
317 077
3 474 268
1 258
70
-50
705.0
BOU-DD23-217
316 754
3 477 393
1 218
250
-50
363.8
BOU-DD23-218
317 101
3 477 207
1 208
250
-50
483.5
BOU-DD23-219
316 868
3 477 434
1 214
250
-50
465.4
BOU-DD23-220
317 079
3 474 775
1 274
70
-50
144.5
BOU-DD23-221
317 010
3 474 750
1 263
70
-50
369.0
BOU-DD23-222
316 483
3 477 496
1 222
250
-50
171.1
BOU-DD23-223
317 170
3 474 754
1 294
70
-50
299.4
BOU-DD23-224
317 234
3 474 537
1 283
70
-50
302.0
BOU-DD23-225
316 552
3 477 523
1 214
250
-50
206.0
BOU-DD23-226
316 626
3 477 547
1 211
250
-50
350.2
BOU-DD23-227
316 714
3 477 576
1 214
250
-50
356.1
BOU-DD23-228
317 161
3 474 514
1 273
70
-50
419.5
BOU-DD23-229
317 103
3 474 730
1 280
70
-50
332.3
BOU-DD23-230
317 046
3 474 763
1 270
70
-50
261.0
BOU-DD23-232
317 456
3 476 254
1 211
250
-50
532.1
BOU-DD23-233
317 067
3 474 717
1 274
70
-50
76.5
BOU-DD23-234
316 976
3 474 737
1 259
70
-50
501.0
BOU-DD23-235
317 036
3 474 706
1 266
70
-50
500.7
BOU-DD23-236
317 088
3 474 487
1 268
70
-50
606.2
BOU-DD23-237
317 378
3 476 226
1 209
250
-50
600.5
BOU-DD23-238
317 298
3 476 197
1 218
250
-50
510.0
BOU-DD23-239
316 937
3 474 723
1 258
70
-50
486.7
BOU-DD23-240
317 001
3 474 693
1 260
70
-50
466.4
BOU-DD23-242
317 227
3 476 171
1 228
250
-50
384.8
BOU-DD23-244
317 147
3 474 666
1 278
70
-50
236.6
Aya Gold & Silver Inc logo (CNW Group/Aya Gold & Silver Inc)
A respected analyst report has recently commented on the value proposition of EMX Royalty. The decision seems to have merit based on this week’s recent news announcement on the 3rd Quarter Results for 2023. A projected 12-month price point of C$5.75 was the target by the analyst. At the present EMX Royalty is trading at C$2.22. We highly regard EMX Royalty, we’ve been long-term shareholders since 2016/17. In our opinion EMX Royalty is a legacy company that you buy and pass along to your children. It’s the Goose that keeps laying the Golden Egg.
Highlights from Q3 2023 include the following:
EMX earned approximately $1,955,000 in royalty revenue from the Gediktepe Mine as production continued from the oxide gold deposit. Partner Lidya Madencilik Anayi ve Ticaret A.S. (“Lidya”) also notified EMX that it has completed an internal Feasibility Study for development of the underlying polymetallic sulfide deposit. A decision regarding financing and construction for the sulfide project is pending.
The Caserones (effective) royalty distribution for Q3 totaled approximately $1,741,000. Lundin Mining Corporation (“Lundin”), in connection with their acquisition of fifty-one percent (51%) of the issued and outstanding equity of SCM Minera Lumina Copper Chile SpA (see Lundin news release dated July 13, 2023), filed a technical report on SEDAR titled “NI 43-101 Technical Report on the Caserones Mining Operation, Atacama Region, Chile” that included current mineral resource and reserve estimates. Lundin also provided Caserones H1 production and H2 production guidance.
Leeville revenue earned by EMX totaled approximately $773,000 from royalty production that totaled 403 ounces of gold. Q3 2023 marked another strong quarter of Leeville royalty production along with robust gold prices.
EMX recognized $568,000 in royalty revenue from the Balya property in Q3 2023 which included $212,000 from Q2 production and $356,000 from Q3 production subsequently received. Production began to ramp up again in Q2 2023 with 99,185 tonnes of mineralized material produced from Balya North. Production continued to accelerate in Q3 2023, with 161,133 tonnes of mineralized material produced according to calculations provided by Esan at the end of Q3.
EMX received $134,000 from Gold Bar South for royalty revenue earned in Q1 2023 and Q2 2023, and earned royalty revenue of $59,000 from Q3 2023 production, which was subsequently received.
AbraSilver Resource Corp. (“AbraSilver”) reported final results from the Phase III drill program at the Diablillos silver-gold royalty property. Phase III drill holes will be incorporated into an updated mineral resource estimate to be included in the Diablillos PFS scheduled for completion in H2 of 2023. As part of its ongoing PFS work, AbraSilver also reported on positive results from metallurgical optimization test work conducted for the Oculto deposit.
Arizona Sonoran Copper continued to report infill drilling results from the Parks-Sayler porphyry copper royalty property. Subsequent to quarter-end, Arizona Sonoran announced updated mineral resource estimates for the Parks-Sayler deposit, which is partially covered by an EMX royalty, as well as other deposits that constitute its Cactus Project.
Exploration drilling by South32 at the Hermosa Project’s Peake prospect returned mineralized intercepts covered by EMX’s Hardshell royalty property that included the best copper intercept to date of 139 meters averaging 1.88% copper, 0.51% lead, 0.34% zinc, and 52 g/t silver (true width not reported).
EMX’s U.S. royalty generation portfolio progressed with 13 partner-funded work programs consisting of five drill programs, the expansion of properties through the staking of new claims, and the permitting of key projects in preparation for three additional drill programs to be conducted in Q4 2023 and early 2024. EMX has 39 projects in partnership in the western U.S and received various option, AAR, and management fee payments during the quarter.
Scout Discoveries Corp. (“Scout”) (a private Idaho company) and EMX closed on an amended transaction, originally announced in Q1 2023 (see EMX news release dated March 8, 2023) for the sale of EMX’s Erickson Ridge, South Orogrande, Lehman Butte, and Jackknife precious and base metal projects to Scout.
In Canada, EMX executed two new agreements to partner the Jean Lake property to Canada Nickel Company, and the Ear Falls property to Beyond Lithium. EMX and its partners conducted summer field programs to continue advancing the properties in the portfolio. EMX received $104,000 in cash payments during the quarter from partnered projects.
In Chile, Pampa Metals announced assay results from its initial three hole drill program totaling 1,957 meters at the Buena Vista target on the Block 4 property. Anomalous copper, molybdenum and precious metals were intercepted, indicative of shallow levels of a porphyry system. Elsewhere within the portfolio, EMX was notified by Pampa Metals that it was abandoning the Arrieros, Redondo-Veronica, Cerro Blanco, Cerro Buena Aries, and Block 3 properties, resulting in EMX gaining 100% control of each property. These properties are now available for partnership.
In Northern Europe the Company continued to develop and advance its portfolio of projects, with summer field programs continuing on numerous properties in Q3 2023. EMX has 37 projects in partnership with other companies in Northern Europe. New partnerships were established for the Bamble and Flåt battery metals projects in Norway (Londo Nickel plc) and the Njuggträskliden and Mjövattnet battery metals projects in Sweden (Kendrick Resources plc).
The Company optioned the Copperhole Creek project in Queensland, Australia to Lumira Energy LTD, a private Australian company. The agreement provides EMX with a 2.5% NSR royalty interest, cash and equity payments, work commitments and other considerations. In conjunction with the transaction, Lumira Energy intends to establish a public listing on the Australian Securities Exchange (ASX) by mid-year 2024.
Also in Q3 2023 in Australia, partner companies executed drill programs comprising over 5,000 meters on three EMX royalty properties (Yarrol, Mt Steadman and Koonenberry) and field programs continued to advance the Queensland Gold and Copperhole Creek projects.
Royalty generation programs continued in the Balkans and in Morocco in Q3 2023, where multiple exploration license applications have been filed by the Company. Surface sampling programs commenced on several new exploration licenses awarded to EMX in Morocco targeting a variety of styles of mineralization. EMX also continued to assess projects and opportunities in the Balkans.
Investment Updates
As at September 30, 2023, the Company had marketable securities of $6,830,000 (December 31, 2022 – $9,966,000), and $5,313,000 (December 31, 2022 – $4,591,000) in private investments. The Company will continue to generate cash flow by selling certain of its investments when appropriate.
OUTLOOK
The 2023 year will continue to see revenue and other income coming from our cash flowing royalties, including Leeville and Gold Bar South in Nevada, Gediktepe and Balya in Turkey, and Timok in Serbia, and our effective royalty interest on Caserones in Chile. As in previous years, production royalties will continue to be complemented by option, advance royalty, and other pre-production payments from partnered projects across the global asset portfolio.
The Company will continue to strengthen its balance sheet over the course of the year by looking to retire portions of our long-term debt, continuing to evaluate equity markets, and the ongoing monetization of the Company’s marketable securities.
EMX is well positioned to identify and pursue new royalty and investment opportunities, while further filling a pipeline of royalty generation properties that provide opportunities for additional cash flow, as well as exploration, development, and production success.
Marketing Consulting Services
The Company is also pleased to announce that it has entered into an agreement with LFG Equities Corp. (“LFG”), an independent contractor with a business address at 402-9140 Leslie St., Richmond Hill, ON, L4B 0A9. Commencing on September 10th, 2023 for an initial term of six months, under the terms of the Agreement, LFG will provide marketing consulting services to the Company to communicate to the financial community information about EMX by way of newsletters and be paid US$50,000 plus applicable taxes.
QUALIFIED PERSONS
Michael P. Sheehan, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified and approved the above technical disclosure on North America, Latin America, and Strategic Investments. Eric P. Jensen, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified and approved the above technical disclosure on Europe, Turkey, and Australia.
About EMX. EMX is a precious, base and battery metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”, and also trade on the Frankfurt exchange under the symbol “6E9”. Please see www.EMXroyalty.com for more information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Forward-Looking Statements
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1Adjusted revenue and other income and adjusted cash provided by operating activities are non-IFRS financial measures with no standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Refer to the “Non-IFRS financial measures” section on page 24 of the Q3-2023 MD&A for more information on each non-IFRS financial measure.
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Physical uranium gained ground in October, while uranium miners declined; most commodities suffered in October but uranium continued to show resilience to macroeconomic factors.
YTD, uranium is up 54.16%; senior and junior uranium miners have risen 44.85% and 32.77%, respectively.
Uranium demand has been primarily driven by increased utility contracting, which we believe provides strong support and sustainability to higher price level.
Looking ahead to 2040, utilities have 1.5 billion pounds of cumulative uncovered uranium requirements.
The nuclear fuel supply chain continues to move away from Russia.
The strength in the uranium price has improved the revenue and profit for producers and raised the prospects for further mine restarts and new builds.
*Performance for periods under one year not annualized. Sources: Bloomberg and Sprott Asset Management LP. Data as of October 31, 2023. You cannot invest directly in an index. Included for illustrative purposes only. Past performance is no guarantee of future results.
Uranium Hits $74, Standing Firm at 12-Year Price High
The U3O8 uranium spot price gained 1.51% in October, increasing from US$73.38 to $74.48 per pound as of October 31, 2023.1 Uranium has posted a stellar 54.16% year-to-date return as of October 31, 2023, and continued to show strength and diversification relative to other commodities, which declined 7.26% (as measured by the BCOM Index).A higher uranium price is improving the prospects for further mine restarts and new builds.
While other commodities suffered in October largely due to China’s economic weakness, a persistently strong U.S. dollar (USD) and other macroeconomic factors, uranium continues to demonstrate its lower economic sensitivity. U3O8 contracting by utilities in 2023 is not largely dependent on general inflation, rising interest rates, etc. These characteristics may strengthen uranium investments’ uncorrelated performance relative to major asset classes, other commodities and enhance portfolio diversification.
Over the longer term, physical uranium and uranium equities have demonstrated significant outperformance against broad asset classes, particularly other commodities. For the five years ended October 31, 2023, the U3O8 spot price has risen a cumulative 162.28% compared to 25.76% for the broader commodities index (BCOM), as shown in Figure 1.
Figure 1. Physical Uranium and Uranium Stocks Have Outperformed Other Asset Classes Over the Past Five Years (10/31/2018-10/31/2023)
Source: Bloomberg and Sprott Asset Management. Data as of 10/31/2023. Uranium Miners are measured by the Northshore Global Uranium Mining Index (URNMX index); the S&P 500 TR Index measures U.S. Equities; the U308 Spot Price is from TradeTech; U.S. Bonds are measured by the Bloomberg Barclays US Aggregate Bond Index (LBUSTRUU); Commodities are measured by the Bloomberg Commodity Index (BCOM); and the U.S. Dollar is measured by DXY Curncy Index. Definitions of the indices are provided in the footnotes. You cannot invest directly in an index. Included for illustrative purposes only. Past performance is no guarantee of future results.
Uranium Supply: A Sellers’ Market
At the start of October, uranium had appreciated significantly by the end of September, posting its most impressive month since September 2021. The uranium spot price rose to its highest level before the Fukushima Daiichi power plant disaster in 2011, when it was $73 per pound. October saw yet another high, despite intra-month volatility, with the spot price reaching $74.48.
We believe the U3O8 spot price is well supported in holding to higher price levels not seen in over a decade. The World Nuclear Association’s (WNA) biennial Nuclear Fuel Report noted that world nuclear reactor requirements are forecasted to nearly double by 2040, from 171 to 338 MM U3O8e pounds per annum. Understanding of a future demand-supply imbalance is gaining acceptance and is fueling improved sentiment toward uranium.World nuclear reactor requirements are forecasted to nearly double by 2040.
Uranium demand has been primarily driven by increased utility contracting, which we believe provides strong support and sustainability to higher price levels. These end-user utilities have acquiesced to paying higher uranium prices, which has more impact on pricing than outside financial entities.
Utilities and uranium producers generally contract in the term market, representing uranium sold under long-term, multi-year contracts with deliveries starting a year or more after the agreement is made. These term contracts do not generally only have a fixed price associated with the purchase/sale of uranium. The price for the amount bought/sold may include a fixed price, but more recently, they have a variable price with reference to the market price at the time of delivery. These market reference prices generally have floors and caps that are set at the beginning of the contract. Also, the term contracts may vary in quantities, and utilities have had the option to flex the amount they receive either up or down. Industry media have been reporting the evolution of contracting terms, which includes a reduced number of contracts with flexible quantities, increases in the use of market reference pricing versus fixed pricing, and increases in the prices set at the floors and caps. We believe these contract changes between utilities and uranium producers highlight that we are in a sellers’ market and bolster the case for uranium and uranium miners. Furthermore, it is important to note that nuclear power plants require very large capital investments and that fuel costs related to U3O8 are just 4-8% of their ongoing costs.6 Overall, demand for uranium is inelastic, which means that higher prices are not likely to curtail demand.
Contracts on Pace to Reach Replacement Rate
Thus far in 2023, U3O8 term contracting has already surpassed 2022’s full-year contracting level. 2022 had the highest amount of term contracting in a decade, at 125 MM pounds. 2023’s full-year contracting is on track to be the first year in over a decade to reach the annual replacement rate. Term contracting had been below the replacement rate for the past decade as excess global uranium inventories were drawn down. The era of uranium inventory destocking is behind us as utilities are increasingly focused on the security of supply.
Looking ahead to 2040, utilities have 1.5 billion pounds of cumulative uncovered uranium requirements. As a result, we believe we are still in the early innings of the contracting cycle. Geopolitical risks related to the nuclear fuel supply chain remain heightened. French President Macron’s recent visits to Kazakhstan, Uzbekistan and Mongolia in search of uranium partnerships and investments is a prime example of the strategic importance of securing uranium supplies.
Moving Away from Russian Supply Chains
The nuclear fuel supply chain continues to move away from Russia. Orano SA announced that it will spend $1.8 billion to expand its uranium enrichment plant in France by over 30%.7 Russia accounts for 39% of the global capacity to enrich uranium. Although no sanctions have been levied against Russian services to date, utilities are self-sanctioning by not signing any new contracts with Russian entities. In the U.S., the White House also sent Congress an enrichment request for $2.2 billion in October.8 We believe that forthcoming additional capacity in enrichment (and conversion via ConverDyn) coupled with an industry shift in enrichment from underfeeding to overfeeding may allow utilities to focus more on contracting for future uncovered reactors’ uranium requirements.
Uranium Miners Developments
While the price of physical uranium held firm in October, uranium miners retreated. The broad sector of uranium miners fell by 3.67%,2 while junior uranium miners lost 4.47% on profit taking following several months of outsized gains.3 Nonetheless, the strength in the uranium price has improved the revenue and profit for producers and raised the prospects for further mine restarts and new builds. To this end, there were a couple of positive developments in October.
enCore Energy Corp. (enCore) announced that it had received approval to renew the Radioactive Materials License for its processing plants.9 enCore reaffirmed its plan to resume uranium production at its Rosita plant before the end of November 2023. enCore also plans to restart its Alta Mesa plant in early 2024. These restarts are located in Texas and should help kickstart the revival of U.S. domestic uranium production (see Figure 2). Especially since the U.S.’s domestic uranium production in the first half of 2023 was merely 10,000 pounds of U3O8, relative to annual requirements of approximately 50 million pounds.
Australian uranium miner Boss Energy Ltd. announced its commencement of mining operations at its Honeymoon project10, which has the capacity to produce 2.45 million pounds of U3O8 per year. The project began production in 2011 but was placed on care and maintenance in 2013. This project remains on time and budget for production starting in Q4 2023.
Figure 2. Sources of Uranium for US Nuclear Power Plants 1950 to 2022
Source: EIA. U.S. Energy Information Administration: Monthly Energy Review, Table 8.2, June 2023 Note: data withheld for U.S. power plant purchases from domestic suppliers in 2019 and for domestic production in 2020 to avoid disclosure of individual company data. Included for illustrative purposes only. Past performance is no guarantee of future results.
Regarding new uranium mines, Global Atomic Corporation announced that it finalized its third Letter of Intent (LOI) for the sale of uranium from its Dasa project in Niger. This brings the total contracted volume to 1.5 million pounds of U3O8 per annum over the project’s first five years of operations. This may be seen as a vote of confidence in the company given that just a few months ago, the coup d’état in Niger forced Global Atomic to announce delays of 6-12 months in the first production at Dasa to early 2026.11
With global uranium mine production well short of the world’s uranium reactor requirements, the supply deficit building over the next decade, a decade of underinvestment in supply, and future supply inhibited by long lead times and capital intensity, we believe that restarts and new mines in development are of critical importance. The uranium price target as an incentive level for further restarts and greenfield development is a moving target, and we believe that we will need higher uranium prices to incentivize enough production to meet forecasted deficits. Over the long term, increased demand in the face of an uncertain uranium supply is likely to continue to support a sustained bull market (Figure 3).
Note: A “bull market” refers to a condition of financial markets where prices are generally rising. A “bear market” refers to a condition of financial markets where prices are generally falling. Source: TradeTech Data as of 10/31/2023. TradeTech is the leading independent provider of uranium prices and nuclear fuel market information. The uranium prices in this chart dating back to 1968 is sourced exclusively from TradeTech; visit https://www.uranium.info/. Included for illustrative purposes only. Past performance is no guarantee of future results.
1
The U3O8 uranium spot price is measured by a proprietary composite of U3O8 spot prices from UxC, S&P Platts and Numerco. For periods before July 2021 data is from TradeTech LLC.
2
The North Shore Global Uranium Mining Index (URNMX) was created by North Shore Indices, Inc. (the “Index Provider”). The Index Provider developed the methodology for determining the securities to be included in the Index and is responsible for the ongoing maintenance of the Index. The Index is calculated by Indxx, LLC, which is not affiliated with the North Shore Global Uranium Miners Fund (“Existing Fund”), ALPS Advisors, Inc. (the “Sub-Adviser”) or Sprott Asset Management LP (the “Adviser”).
3
The Nasdaq Sprott Junior Uranium Miners™ Index (NSURNJ™) was co-developed by Nasdaq® (the “Index Provider”) and Sprott Asset Management LP (the “Adviser”). The Index Provider and Adviser co-developed the methodology for determining the securities to be included in the Index and the Index Provider is responsible for the ongoing maintenance of the Index. The Adviser will provide certain services in connection with the Index including contributing inputs in connection with the eligibility and proce
4
The Bloomberg Commodity Index (BCOM) is a broadly diversified commodity price index that tracks prices of futures contracts on physical commodities and is designed to minimize concentration in any one commodity or sector. It currently has 23 commodity futures in six sectors.
5
The S&P 500 or Standard & Poor’s 500 Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies.
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