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Jayant Bhandari – Doug’s Take

Doug’s Take

Aztec Minerals

A few months back, I had a discussion with Doug Casey and Matthew Smith. For some reason, the musings in which I mentioned it did not reach several people. So, I am taking the liberty of including it again:

On Investments

Aztec Minerals (AZT; C$0.30): They recently had some drill results from their property in Arizona. I find them very good and talked about them with Cory Fleck in the linked discussion.

Jayant Bhandari

Disclaimer: All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment, or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. The sole purpose of these musings is to show my thinking process when analyzing a stock, not to provide any recommendation. I will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this site, expressed or implied herein, are committed at your own risk, financial or otherwise.

Categories
Energy Jericho Energy Ventures Junior Mining Oil & Gas

Jericho Energy Ventures Subsidiary Hydrogen Technologies Files Provisional Patents for its Generation 2.0 cleanH2steam DCC(TM) Boiler

NEWTOWN, PA and VANCOUVER, BC / ACCESSWIRE / August 4, 2021 /Jericho Energy Ventures (TSXV:JEV)(FRA:JLM0)(OTC PINK:JROOF) (“Jericho” or “JEV” or the “Company”) is pleased to announce its wholly owned subsidiary, Hydrogen Technologies (“HT”), has filed for a series of new provisional patents associated with the advancements of its second generation hydrogen boiler with the US Patent and Trademark Office.

On May 26, 2021, JEV announced the launch of HT’s newest Generation 2.0 cleanH2steam Dynamic Combustion Chamber™ (DCC™) Boiler 3000 Series design. The second generation DCC™ Boiler has an improved and streamlined fuel delivery system featuring high precision mass flow meters, increased process monitoring and remote management options. Improvements were also made to the ignitor design providing optimum combustion resulting in higher thermal efficiencies.

The enhanced engineering design was also accompanied by an active procurement strategy which led to metallurgy changes that address the current high cost and long lead time of stainless steel in global supply chains.

There is no pathway to Net Zero targets without a robust, efficient, zero-emission boiler. Currently, 37 percent of the fossil fuels burned by US industry alone is to produce steam. HT’s DCC™ is the only zero-emissions, closed-loop hydrogen boiler, which produces clean process steam without generating any air pollutants or emissions. The DCC™ system is designed to replace existing boilers that burn coal, natural gas, diesel, or fuel oil, which are estimated to account for over 20 percent of all global greenhouse gasses emitted each year.

“Our Hydrogen Technologies team has made significant advances with the DCC™ boiler, leveraging Jericho’s financial and strategic capabilities to drive innovation,” said CEO Brian Williamson. “The DCC™, designed without a smokestack for energy dissipating heat and gasses, is the only hydrogen-based boiler with ZERO greenhouse gas emissions. Our disruptive technology enables meaningful GHG emissions reduction for large users of heat and steam. With the filing of our recent patent application, we are preparing a broader marketing campaign targeting users with large thermal loads worldwide.”

About Jericho Energy Venture

Jericho Energy Ventures (JEV) is focused on advancing the low-carbon energy transition with investments in hydrogen technologies, energy storage, carbon capture and new energy systems. JEV’s wholly owned subsidiary, Hydrogen Technologies, delivers patented, zero-emission boiler technology to the $30 Billion Commercial & Industrial heat and steam industry in addition to its investment in H2U‘s electrocatalyst and low-cost electrolyser platform. JEV also owns and operates producing oil and gas assets in the US Mid-Continent, predominantly in Oklahoma.

Website: https://jerichoenergyventures.com/
Twitter: https://twitter.com/JerichoEV
LinkedIn: https://www.linkedin.com/company/jericho-energy-ventures
YouTube: https://www.youtube.com/c/JerichoEnergyVentures

CONTACT:
Adam Rabiner
Director of IR
Jericho Energy Ventures
604.343.4534
adam@jerichoenergyventures.com

This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Jericho’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Jericho’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. Although Jericho believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Forward-looking information and statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information and statements which include, but are not limited to: the effects of and risks associated with the ongoing COVID-19 pandemic, the impact of general economic conditions, industry conditions and current and future commodity prices including sustained low oil prices, significant and ongoing stock market volatility, currency and interest rates, governmental regulation of the oil and gas industry, including environmental regulation; geological, technical and drilling problems; unanticipated operating events; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; liabilities inherent in oil and gas exploration, development and production operations; and the other factors described in our public filings available at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.The forward-looking information and forward-looking statements contained in this news release are made as of the date of this news release, and Jericho does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Jericho Energy Ventures Inc.

Categories
Base Metals Breaking Emx Royalty Project Generators

EMX Royalty Files Amended and Restated Timok Project Technical Report on SEDAR

Vancouver, British Columbia–(Newsfile Corp. – August 3, 2021) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX”) is pleased to announce the filing on SEDAR of an amended and restated Timok Project Technical Report entitled: “NI 43-101 Technical Report – Timok Copper-Gold Project Royalty, Serbia” dated July 21, 2021 and with an effective date of December 31, 2020 prepared by Mineral Resource Management LLC (“MRM”). The amended and restated Technical Report can be found under the Company’s profile at www.sedar.com. EMX holds an uncapped 0.5% net smelter return (“NSR”) royalty on Timok’s Brestovać license, which covers the Čukaru Peki copper-gold development project. The Timok Project is controlled and being developed by Zijin Mining Group Co., Ltd (“Zijin”).

The amended and restated Timok Technical Report: a) restates the Timok Project resources and reserves for the Upper Zone and the resources for the Lower Zone as adopted from public disclosures by Zijin, which is the current owner and operator of the Timok Project. Zijin’s Timok Project resources and reserves, disclosed in its 2020 Annual Report, have been conformed to the requirements of NI 43-101 and are materially identical to those of the previous operator Nevsun, which were referenced in the original Report; and b) removes the discussion of EMX’s Brestovać West and Durlan Potok royalty properties from the section of the original Report entitled “Adjacent Properties” to comply with the requirements of NI 43-101. The discussion of these two royalty properties has been moved to the “Property Description and Location” section of this amended and restated Technical Report to accompany the discussion of the Brestovać royalty property.

Zijin is on a fast-track schedule for Timok’s Čukaru Peki high sulfidation epithermal copper-gold development project. Recently, Zijin stated in a news release dated June 16, 2021, that it “recently obtained the trial production permit for the processing facilities issued by the Serbian Ministry of Mining and Energy, and have entered the trial production stage. At present, the construction of the processing facilities of the project has been completed, and trial production and operation, construction conclusion and greening, etc. are being conducted at full speed. It is planned that all work of the trial production stage shall be completed for submission to the Ministry of Mining for acceptance check before September of this year. This will achieve a smooth transition from mine infrastructure construction to production and operation“. In addition to the Upper Zone, Čukaru Peki also hosts the underlying Lower Zone porphyry copper-gold resource project, which provides substantial exploration upside to EMX’s Brestovać royalty asset.

The start of trial production and the imminent commencement of commercial production this year at the Upper Zone represents an important milestone for EMX which purchased its key 0.5% NSR royalty on the Timok Project in 2013, shortly after the discovery of the Čukaru Peki copper-gold deposit (see EMX News Release dated February 4, 2014). This acquisition serves as an example of how EMX leveraged its in-country expertise through early recognition of the potential value of the Čukaru Peki discovery, but also through the understanding of where key royalty interests were held by third parties that were available for acquisition.

EMX congratulates Zijin on its ongoing progress in developing the Timok Project, and looks forward to new advancements as the work programs progress.

Dr. Eric P. Jensen, CPG, a Qualified Person as defined by National Instrument 43-101 and employee of the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.

About EMX. EMX is a precious, 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. Please see www.EMXroyalty.com for more information.

For further information contact:

David M. Cole
President and Chief Executive Officer
Phone: (303) 979-6666
Dave@EMXroyalty.com

Scott Close
Director of Investor Relations
Phone: (303) 973-8585
SClose@EMXroyalty.com

Isabel Belger
Investor Relations (Europe)
Phone: +49 178 4909039
IBelger@EMXroyalty.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release may contain “forward looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential”, “upside” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended March 31, 2021 (the “MD&A”), and the most recently filed Annual Information Form (the “AIF”) for the year ended December 31, 2020, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedar.com and on the SEC’s EDGAR website at www.sec.gov.

Categories
Irving Resources Junior Mining Precious Metals

Irving Resources Announces Plans to Drill Omui Mine Site and Hokuryu in Q3-Q4, 2021 – Provides Update on Q1-Q2, 2021 Omu Sinter Drilling

Irving Resources Inc.Tue, August 3, 2021, 9:00 AM

Figure 1

Plan map of drill hole locations in the southern part of Omu Sinter and a cross section illustrating mineralization encountered in the southern part of the Omu Sinter project area. Note that low-grade mineralization extends from surface to a vertical depth of approximately 180 m. Short intervals of higher grade mineralization are present. Irving suspects a higher grade feeder structure is nearby
Plan map of drill hole locations in the southern part of Omu Sinter and a cross section illustrating mineralization encountered in the southern part of the Omu Sinter project area. Note that low-grade mineralization extends from surface to a vertical depth of approximately 180 m. Short intervals of higher grade mineralization are present. Irving suspects a higher grade feeder structure is nearby
Plan map of drill hole locations in the southern part of Omu Sinter and a cross section illustrating mineralization encountered in the southern part of the Omu Sinter project area. Note that low-grade mineralization extends from surface to a vertical depth of approximately 180 m. Short intervals of higher grade mineralization are present. Irving suspects a higher grade feeder structure is nearby

VANCOUVER, British Columbia, Aug. 03, 2021 (GLOBE NEWSWIRE) — Irving Resources Inc. (CSE:IRV; OTCQX: IRVRF) (“Irving” or the “Company”) is pleased to announce plans for drilling at Omui Mine Site and Hokuryu in Q3-Q4, 2021 and provide a summary of results from its Q1-Q2, 2021 diamond drill program at Omu Sinter. All three of these targets are part of Irving’s 100% controlled Omu Au-Ag Vein Project, Hokkaido, Japan. An initial drill permit allowing Irving to drill at Hokuryu (officially registered as Shin-Hokuryu, known as New-Hokuryu) has recently been received from the Ministry of Economy, Trade and Industry (METI), Hokkaido Bureau.
https://s.yimg.com/rq/darla/4-8-0/html/r-sf-flx.html

Q3-Q4 Omui Mine Site and Hokuryu Diamond Drill Campaign

Irving plans to undertake diamond drilling at Omui Mine Site and Hokuryu during Q3-Q4, 2021. At Omui Mine Site, Rodren Drilling of Canada will drill a series of holes to follow up previous high-grade vein intercepts at the Honpi and Nanko targets. At Hokuryu, the maiden drill program will be undertaken using a Japanese-based drill contracted from Sumiko Resources Exploration & Development Co., Ltd., a wholly-owned subsidiary of Sumitomo Metal Mining Co., Ltd. Drilling will focus on the following priorities:

Honpi

  • Three holes will target extensions of veins encountered in some of the deeper holes completed over the past two years, particularly hole 19OMI-010 which encountered such notable intercepts including 3.00 m grading 27.0 gpt Au and 40.5 gpt Ag, 1.10 m grading 29.6 gpt Au and 36.5 gpt Ag, 3.77 m grading 12.3 gpt Au and 84.5 gpt Ag, and 1.20 m grading 7.8 gpt Au and 887.5 gpt Ag. The three planned holes will be positioned to test areas both east and west of hole 19OMI-010. (Please refer to the Company’s news releases dated December 17, 2019 and February 7, 2020)
  • One hole will test areas north of the historic Honpi vein where shallow holes completed in 2019 encountered high-grade veins. Intercepts include 1.00 m grading 19.25 gpt Au and 27.50 gpt Ag in hole 19OMI-001 and 1.80 m grading 6.05 gpt Au and 808.18 gpt Ag in hole 19OMI-002. The planned hole is expected to hit extensions of these veins. (Please refer to the Company’s news release dated December 17, 2019)

Nanko

  • One hole with test for deeper extensions of veins encountered in holes 20OMI-003, 20OMI-004 and 20OMI-005 last year. Most notably, hole 20OMI-003 encountered two veins, one grading 8.15 gpt Au and 147.29 gpt Ag over 1.76 m within a broader intercept of 3.55 gpt Au and 69.24 gpt Ag over 14.24 m and a second vein grading 21.65 gpt Au and 538.75 gpt Ag over 1.72 m including 56.10 gpt Au and 1,435.00 gpt Ag over 0.60 m. The planned hole will be drilled generally from north to south. (Please refer to the Company’s news release dated November 13, 2020)
  • A second hole will test an area northeast of holes 20OMI-006, 20OMI-007 and 20OMI-008 with vein intercepts of 2.39 m grading 5.22 gpt Au and 103.6 gpt Ag, 2.99 m grading 4.34 gpt Au and 26.8 gpt Ag and 2.00 m grading 3.98 gpt Au and 26.1 gpt Ag, respectively. The planned hole is designed to hit extensions of these veins. (Please refer to the Company’s news release dated February 9, 2021)

Hokuryu

  • Up to four holes are designed as a maiden drill test of the Hokuryu vein system. Mining was undertaken at Hokuryu for a few short years until it abruptly ceased in 1943. Irving’s recent controlled source audio-magnetotellurics (“CSAMT”) geophysical program has identified a large corridor of resistive, presumably silicified, rock extending well beyond the historic mine area. These initial holes will test select areas along this corridor for vein extensions and new veins.
  • Given the higher altitude at Hokuryu, completion of this program is dependant on weather. If holes remain uncompleted in 2021, Irving plans to complete this program as soon as possible in the spring of 2022.

Summary of Omu Sinter Drill Results

Earlier this year, Irving completed a series of four diamond drill holes at the Omu Sinter target. Holes 21OMS-002 and 21OMS-004 tested an area underlain by a broad expanse of silica sinter terrace in the southern part of this project area. Both holes encountered multiple long intervals of low grade gold and silver mineralization in bedded silica sinter and highly silicified, often hydrothermally brecciated, rocks beneath (see table below). Short intervals of higher grade mineralization were intersected. Remarkably, mineralized rock extends from surface to a vertical depth of approximtely 180 m (Figure 1). Although a high-grade feeder was not encountered, Irving believes potential for such a structure is good given the remarkable strength of this system and the presence of short, higher grade intervals in these holes. Irving plans to review this data and acquire additional structural data in an effort to identify a potential feeder structure prior to future drilling.

Summary of Results from Holes 21OMS-002 and 21OMS-004 at Omu Sinter

HoleFrom (m)To (m)Length (m)Gold (gpt)Silver (gpt)Gold eq (gpt)Silver eq (gpt)
21OMS-00215.1123.808.690.236.330.3222.9
31.5037.806.300.468.490.5841.6
48.5053.134.630.255.430.3323.4
61.47165.60104.130.2315.130.4431.7
including61.4761.790.323.1360.003.96285.4
and90.0092.502.501.4528.221.84132.6
and110.00113.403.400.2662.931.1381.7
181.50224.0042.500.1811.330.3424.3
21OMS-0044.9070.6065.700.750.480.7654.5
including13.9048.9035.000.5828.140.9769.9
including28.2331.112.881.0072.292.00144.3
102.35133.7831.430.245.980.3223.3
141.44145.614.170.278.370.3927.8
246.05249.903.850.998.851.1180.1
including246.27247.301.032.2718.192.52181.6
321.00322.001.000.2466.701.1784.0
Au eq (gpt) = Au (gpt) + Ag (gpt)/72

Holes 21OMS-001 and 21OMS-003 tested CSAMT anomalies to the west and east of the main Omu Sinter trend, respectively. Although each hole encountered hydrothermally altered volcanic rocks, only anomalous Au and Ag values were encoutered. Therefore, Irving believes all mineralization at Omu Sinter occurs within the 1.2 km long north-south corridor now tested by multiple holes.

“Irving has an aggressive drill program planned beginning approximately September 1, 2021″ commented Dr. Quinton Hennigh, director and technical advisor to Irving. “Two drills will be operating, one conducting follow up drilling of high-grade veins at Omui and a second undertaking maiden drilling at Hokuryu, a very large untested high-grade vein target. We are very eager to get back to work. At Omu Sinter, we have identified a remarkably large volume of mineralized bedded sinter and underlying intensely silicified and brecciated rock in the southern part of this project area. Although low grade, the strength and volume of rock that has been affected suggests a feeder structure is nearby. It may be in an orientation we simply have not explored. We plan to review this data and collect new field data to see if we can better define such a feeder structure prior to future drilling.”

All samples discussed in this news release are ½ split sawn diamond core samples. Irving submitted rock samples to ALS Global, Vancouver, Canada, for analysis. Au and Ag were analyzed by fire assay with AA finish. Overlimit samples were assayed by fire assay with gravimetric finish. Multielements were analyzed by mass spectrometry following four acid digestion. Irving staff are responsible for geologic logging and sampling of core. Au equivalent is calculated by adding Au (gpt) to Ag (gpt)/72.

Quinton Hennigh (Ph.D., P.Geo.) is the qualified person pursuant to National Instrument 43-101 responsible for, and having reviewed and approved, the technical information contained in this news release. Dr. Hennigh is a technical advisor and director of Irving Resources Inc.

About Irving Resources Inc.:

Irving is a junior exploration company with a focus on gold in Japan. Irving also holds, through a subsidiary, a Joint Exploration Agreement with Japan Oil, Gas and Metals National Corporation (JOGMEC). JOGMEC is a government organization established under the law of Japan, administrated by the Ministry of Economy, Trade and Industry of Japan, and is responsible for stable supply of various resources to Japan through the discovery of sizable economic deposits of base, precious and rare metals.

Additional information can be found on the Company’s website: www.IRVresources.com.

Akiko Levinson,
President, CEO & Director

Forward-looking information
Some statements in this news release may contain forward-looking information within the meaning of Canadian securities legislation including, without limitation, statements as to the timing of receipt of the results of drill samples and planned exploration activities. Forward-looking statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, without limitation, customary risks of the mineral resource exploration industry, the availability to Irving of sufficient cash to fund any planned drilling and other exploration activities, as well as the performance of services by third parties.

THE CSE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5dc40814-bdca-41d7-bbcb-ad6280a0e2a4

Categories
Base Metals Breaking Emx Royalty Energy Exclusive Interviews Junior Mining Precious Metals

EMX Royalty – Adds 18 New Royalty Properties from SSR Mining

Maurice Jackson:

Joining us for a conversation is David Cole, the CEO of EMX Royalty (NYSE: EMX | TSX.V: EMX), the Royalty Generator.

Maurice Jackson:

Honored to have you with us today sir, as you have some breaking news for shareholders, as EMX Royalty has just consummated a watershed moment with the announcement of the Royalty Portfolio purchase agreement with SSR Mining (Press Release). Mr. Cole, thank you for allowing me to be the first to say congratulations’ sir on a significant milestone on what may be the biggest company event in the history of EMX Royalty.

David Cole:

We are very pleased with this transaction, pleased to have SSR Mining as a shareholder in the company, and it’s been a pleasure to work with them.

Maurice Jackson:

Let’s get right into the press release, the EMX Royalty acquisition consists of 18 geographically diverse royalties with 4 royalty assets at advanced stages of project development. Please provide us with the details of the Royalty Purchase Agreement with SSR Mining.

David Cole:

Well, we’re paying $66 million upfront for this portfolio, $33 million in share capital, and $33 million in cash, which are deferred payments depending upon the performance of the Yenipazar net profit interest royalty in Turkey. Those deferred payments accumulate up to $34 million, but that’s not until that asset cashflows $20 million. We’re pleased with respect to how this is designed. This gives SSR Mining a nice chunk of equity in the EMX which is one of the key things that they were looking for when they chose us to sell the Royalty Portfolio.

Maurice Jackson:

What type of value creation will EMX derive from this transaction and how will it impact the synergies with the existing EMX initiatives around the world?

David Cole:

One of the key things here is immediate large cash flow. The Gediktepe mine which is at the final stages of construction and should be in production within a month or two has a high-grade oxide cap that’s gold enriched with a 10% NSR and we’ll see immediate gold royalty income over double-digit millions of dollars per annum from that royalty right out of the gate. We’re very, very pleased with that so this really propels at the top of our pyramid forward, which is something that we’ve been working on for some time as we’ve discussed previously, with respect to Synergies with our existing portfolio, and one of the reasons why we were able to grab this is because of our relationships in Turkey and our comfort with Lydia as an operator there. And that gave us an edge with respect to working with SSR to accomplish this deal.

Maurice Jackson:

One of the key aspects of this transaction along with all of EMX Royalties is something you’ve covered with us and that is the value proposition of embedded optionality, which is just icing on the cake for each of your royalty properties. Can you please elaborate on the virtues of embedded optionality within royalties?

 David Cole:

It’s one of my favorite topics and it’s the reason why royalties traded such premium valuations is because of all the embedded optionality, commodity price optionality, discovery optionality, engineering advancement optionality, et cetera, et cetera. And mining districts have a history of giving and giving and it’s always to the benefit of the royalty holder and no cost to the royalty holder. So that’s why royalties are so dear and I will point out that royalty companies that have large numbers of royalties trade at a much higher valuation per royalty than royalty companies, so the lower number of royalties, this is a phenomenon that’s existed in the royalty sector now for some time. Where the portfolio effect impacts the overall valuation of that portfolio and that’s because of this multiplicative optionality of the entire portfolio. You never know where the big success is going to come from years out.

David Cole:

As you know our goal here is to continue to grow this portfolio through organic methods which we’re good at and have had a track record for 18 years of doing, but also through acquisition. And we’ve been challenged quite honestly, to accomplish big creative acquisitions because it’s a competitive space. That we’ve been very patient. We stood at the plate and they kept throwing more pitches at us and we found one to hit and hit it out of the park.

Maurice Jackson:

Great way to put it, sir. I referenced a watershed moment. Where does today’s press release rank with the relation to the Malmyzh and/or the Timok?

David Cole:

Well, that’s interesting certainly the value proposition of the Timok acquisition is unbeatable because we paid $200,000 Canadian dollars for a royalty that’s going to pay hundreds of millions. So that one’s astonishing, but that had to do with the fact that we were in that district and understood what was going on there very early in the history of the discovery and were able to acquire that royalty early on thanks to our geologic understanding of the region. That’s a tough one to compare. With respect to the Malmyzh transaction that was a fantastic deal that cashed-up EMX and put us in a position where we could do this deal.

David Cole:

And step-by-step we’re building this company. Very pleased with these transactions. Malmyzh was super accretive for us. As you know, we booked $67 million US dollars out of that deal and have put those monies to excellent work. This being the top example. You and other folks have asked me many, many, many times, “What are you going to do with the money, Dave, what are you going to do with the money”? We just kept looking and turning down opportunities and losing sales processes because our bids weren’t as high as our competitors until the right one came along. And one of the key aspects that made this deal happen, as I mentioned, is the fact that SSR specifically wants to be a shareholder in EMX. And I’ve said before that the right transaction that’ll really advance this company is going to be one where the major companies selling their royalties understand the value proposition that EMX offers and want to be a contributor, want to be a member of the team.

Maurice Jackson:

Speaking of the Timok, which is a company making event in and of itself, what are the latest developments there?

David Cole:

It’s going into production. I do believe that they had a couple of delays. So they were originally talking about an opening ceremony in June. I believe that’s been pushed back to August at this point, maybe September, but that’s still ahead of the original schedule. The Chinese have been very aggressive. It’s advancing into production.

Maurice Jackson:

Leaving the property bank Mr. Cole, please provide us with the capital structure for EMX royalty.

 David Cole:

Well, we’re sitting here today with $84 million shares issued and outstanding and few over $90 million shares fully diluted. That’s not including the shares that we will issue to SSR, which on a pro forma basis will be approximately 12% of the company. So that’ll push us up towards the 95 issued outstanding and over a hundred million fully diluted at the completion of this transaction, which should hopefully occur within four to five weeks in my opinion. Sitting here today with about $30 million US dollars in cash, of course, those monies get paid to SSR as part of this transaction as well.

David Cole:

We have about $20 million in tradable securities and long-term investments in our portfolio as well and no debt at this time. However, we will be taking on a small $10 million debt from Sprott. We appreciate their support as a capital partner for EMX. They’ve helped us out in the past as well. That puts us in a situation where even though we’re putting out USD $33 million to SSR for this transaction, thanks to Sprott we’ll still have a nice cushion here with respect to money in the treasury to continually advance our organic growth, which is our job one, as you know.

Maurice Jackson:

Just for the record, ladies, and gentlemen, I plan to match my bullion purchases with shares and EMX royalty.  I believe the company has the potential to melt-up. And I’m talking about the stock price of course. The stock price, in my opinion, is at a fire sale. And that is Maurice Jackson’s opinion, but not really just my opinion, Mr. Cole, you and I both know some of the most prominent names in the natural resource space. They share the same sentiment about EMX royalty.

David Cole:

Happy to have those guys on as contributors.

Maurice Jackson:

Yes, sir. In closing, what would you like to say to shareholders?

David Cole:

EMX Royalty is in a situation here today where the Bayla royalty of 4% royalty on the lead, zinc, silver mine in Turkey is coming into production. Zijin is advancing the Timok project towards production, of course, Leeville in the background that pays every month. And we have an immense amount of optionality within our pyramid is bubbling up towards the top. And these names I’m throwing out are just examples of that. We’ve talked about the potential for this to become a cash cow over time. We’ve just poured fuel on the fire. We put gasoline on the fire here with this one and the Gediktepe 10% NSR and the oxide gold cap will just propel our gold income in the company here substantially over the next three years. We’re very excited.

Maurice Jackson:

Mr. Cole, for readers that want to get more information about EMX royalty please share the website address.

David Cole:

www.emxroyalty.com -The contact details for myself, Scott Close, and Isabel Belger managing European investor relations, and Scott here in North America are embedded in the website and on the press release feel free to reach out to us.

Maurice Jackson:

Mr. Cole, it’s been a pleasure speaking with you, wishing you and EMX royalty the absolute best, sir.

 David Cole:

Thank you, Maurice. Always appreciate your support.

Maurice Jackson:

And as a reminder, I am a licensed representative to buy and sell precious metals through Miles Franklin Precious Metals Investments, where we have several options to expand your precious metals portfolio, from physical delivery of gold, silver, platinum, palladium, and rhodium, to offshore depositories, and precious metals IRA’s. Give me a call at 855.505.1900 or you may email: Maurice@MilesFranklin.com.  Finally, please subscribe to www.provenandprobable.com, where we provide: Mining Insights and Bullion Sales, subscription is free.

Categories
Base Metals Breaking Energy Hotchili Junior Mining

Hot Chili Welcomes Glencore Investment

Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) is pleased to announce a strategic investment by Glencore to acquire a 9.99% interest in Hot Chili.

The Glencore investment is a positive endorsement of the Company’s Costa Fuego copper-gold project as it progresses to become a globally significant, low-altitude development.

The Company has entered into a binding agreement with Glencore for a A$14.4 million strategic investment to acquire a 9.99% interest in Hot Chili. Glencore is one of the largest natural resource companies in the world, providing strong support for the completion of a feasibility study and development of Cost Fuego.

Glencore will have the right to appoint a Director to the Board of Hot Chili, and the right to appoint members to a Technical Steering Committee to advise on operational matters. Furthermore, the Company undertakes to grant Glencore offtake agreements over 60% of concentrate produced for a period of 8 years from commercial production on arms-length commercially competitive benchmark terms. These rights are subject to Glencore holding at least 7.5% of the share capital of Hot Chili, except where Glencore did not have the opportunity to participate in a dilution event.

The addition of Glencore as a strategic investor will allow the Company to draw on Glencore’s expertise in project development and production.

Commenting on the strategic investment, the Managing Director of Hot Chili Mr Christian Easterday said:
“Hot Chili welcomes the strategic alignment with Glencore, especially as the Company moves toward a dual listing on the TSX Venture exchange by the end of 2021.”

“We view this as a significant milestone event and a strong endorsement by Glencore.”
“We believe Glencore will make an excellent partner in the development of Costa Fuego and are a testament to Hot Chili’s staff and consultants who are working tirelessly to transition Hot Chili into a Tier-1 copper developer.”

To access the announcement please click on the link below.Download full announcement here

Cortadera Copper Project

Cortadera’s maiden Mineral Resource positions Hot Chili with the largest copper Mineral Resource and one of the largest gold Mineral Resources for an ASX-listed emerging company. 

The Cortadera maiden Mineral Resource of 451Mt at 0.46% copper equivalent (CuEq) takes the total Mineral Resource estimate for Costa Fuego (Cortadera, Productora & El Fuego) to 724Mt at 0.48% CuEq for 2.9Mt copper, 2.7Moz gold, 9.9Moz Silver and 64kt molybdenum. Cortadera also contains a higher grade component of 104Mt at 0.74% CuEq, and this has strong potential to continue growing rapidly with further drilling.View the Cortadera Project

Categories
Base Metals Energy Exclusive Interviews Hotchili Junior Mining

Hot Chili on CNN Chile

CNN Chile featured Hot Chili in a recent story about the Company’s exploration activity in the country, including their discovery of copper and gold at the Cortadera Project. Learn more about Hot Chili: https://www.hotchili.net.au/ ASX: HCH OTCQB: HHLKF

Categories
Base Metals Eloro Resources Junior Mining Precious Metals

Eloro Delivers Universe Class Results

Bob Moriarty
Archives
Jul 30, 2021

I wrote about Eloro about three weeks ago and pretty much covered the story. The Iska Iska project in Southern Bolivia will be a mine. It is far too big and far too rich not to be a mine under any commodity prices.

The company released drill results on July 28th that probably would not qualify as just world class but it would be more accurate to call it universe class results with 300.75 meters of 129.65 g/t Ag eq.

(Click on images to enlarge)

As I did in my last piece a few weeks ago on Eloro I’m going to cheat a little bit and convert the silver eq into grams of gold. The intercept had a value of about $106 USD per tonne and while 2 grams per tonne gold eq would be about $117, it’s close enough for government work to use 2 grams for ease of understanding.

If you cube the 300.75 meters and use a s/g of 2.7 you get just over 54 million tonnes. Factor in the 2.0 grams and the POG right now of $1831 you have a hole showing about 3.5 million ounces of gold and a total value of $6.4 billion. Since 2 grams of gold is worth about 10% more than the 129.65 grams of silver, reduce that to about $5.8 billion for one hole. In every other case I have used this technique of cubing a hole I say that of course that is the very maximum value you could get out of one cube of that grade. In the case of Iska Iska, it’s entirely possible, indeed probable that they will have cubes of that size and that grade.

Sorry folks but the market just doesn’t get it.

I took the highest gram meter intercept from New Found Gold, which is also a mine in the making, and did the same cube trick because I want potential investors to understand how important long intercepts are. New Found Gold had a world class intercept of 146.2 grams of gold over 25.6 meters for an incredible 3,742 gram meter. That is $8,600 rock. A cubic meter would be worth $23,220.

When you cube it and compare it to Eloro’s hole you get an amazing difference due to the giant length of the 300-meter Iska Iska hole. Eloro had a 54 million tonne hole, NFG had a 45,298 tonne hole. Iska Iska had about 3.15 million ounces compared to 213,000 ounces for NFG. Now I do not want to take anything away from New Found Gold. The company has put in an incredible discovery program and is one of the greatest gold discoveries in the last five years but Iska Iska has a $6 billion hole compared to a respectable $389 million hole for NFG.

As of the close on July 29th, ELO had a market cap of $257 million and they are holding $23 million in cash. The only thing holding them back from bringing in more drills and increasing the speed of exploration is the backlog of 26,000 samples due to Covid.

As an aside, Cartier Iron holds about 2.4 million shares of ELO worth right at $10 million. At a close of $.13 on July 29th, CFE has a market cap of only $11.7 million.

Eloro is an advertiser. I have participated in several private placements in the past and bought shares in the open market. I am naturally biased so do your own due diligence.

Eloro Resources Ltd
ELO-V $4.17 (Jul 29, 2021)
ELRRF-OTCQX 61.7 million shares
Eloro website

#

Bob Moriarty
President: 321gold
Archives

321gold Ltd

Categories
Base Metals Breaking Emx Royalty Energy Junior Mining Precious Metals Project Generators

EMX Executes Agreement to Acquire Royalty Portfolio from SSR Mining

Figure 1: Locations of assets in the Royalty Portfolio

EMX Executes Agreement to Acquire Royalty Portfolio from SSR Mining

Vancouver, British Columbia, July 29, 2021 (NYSE American: EMX; TSX Venture: EMX; Frankfurt: 6E9) – EMX Royalty Corporation (the “Company”, or “EMX”) is pleased to announce that it has entered into an agreement (the “Royalty Purchase Agreement”) dated July 29, 2021 with SSR Mining Inc. and certain of its subsidiaries (“SSR Mining”) to purchase a portfolio of royalty interests and deferred payments (the “Royalty Portfolio”). The Royalty Portfolio consists of 18 geographically diverse royalties, with four royalty assets at advanced stages of project development, and also includes U.S. $18 million in future cash payments to be made to the owner of the Royalty Portfolio (see Figure 1 and Table 1). Upon closing of the transaction EMX will pay to SSR Mining U.S. $33 million in cash and U.S. $33 million in common shares of EMX. EMX will also make deferred and contingent payments to SSR Mining of up to U.S. $34 million if certain project advancement milestones are achieved. Further details of the commercial terms are provided below. Completion of the transaction is subject to customary closing conditions, including acceptance by the TSX Venture Exchange (the “TSX-V”).

The portfolio is highlighted by the Gediktepe royalties, which cover assets currently being developed by Lidya Madencilik (“Lidya”), a private Turkish company that expects initial production from Gediktepe in late 2021. These include a 10% NSR royalty on production from an oxide gold-silver deposit and a 2% NSR royalty on underlying polymetallic volcanogenic massive sulfide (“VMS”) mineralization. Yenipazar (Turkey) and Diablillos (Argentina) are additional royalties on advanced stage projects (see summaries below) and the other 14 royalty interests cover both precious metal and base metal assets in South America, Mexico, the United States (Nevada) and Canada.

This transaction will leverage EMX’s experience base in Turkey, is expected to provide significant near-term cash flow to the Company, and establishes a pipeline of quality royalty assets in numerous well-recognized mineral belts around the world. EMX has been working in Turkey for nearly 20 years and looks forward to building its relationship with both SSR Mining and Lidya. In Lidya, EMX sees a well funded and highly capable operator that is developing both the Gediktepe and Hod Maden mines in Turkey. The Gediktepe and Yenipazar royalty interests will bolster EMX’s existing royalty portfolio in Turkey, which includes an uncapped 4% NSR royalty on the Balya North polymetallic deposit and other royalty interests in Turkey. Balya North is being developed by Esan Eczacibaşi Endüstriyel Hammaddeler San. ve Tic. A.Ş. (“Esan”) and remains on schedule to commence commercial production in 2021.

This Royalty Portfolio acquisition is well aligned with EMX’s corporate growth strategy, whereby the Company leverages its in-region expertise in identifying opportunities in jurisdictions where EMX already has a strategic presence. Through the years this approach has led to continuous value creation for the Company and synergies with existing EMX initiatives around the world. Further, securing near term positive cash flow will represent an important step in the Company’s evolution.

Rodney Antal, President and Chief Executive Officer of SSR Mining, commented “We are very excited to become a shareholder of EMX where our investors will have the opportunity to participate in the value creation associated with an established, growth-oriented company with an attractive portfolio of precious, base and battery metals royalties”.

Commercial Terms Overview. As stated above, upon closing of the transaction EMX will pay to SSR Mining U.S. $33 million in cash and U.S. $33 million in common shares of EMX. The number of common shares to be issued by EMX to SSR Mining will be based on the volume-weighted average price (“VWAP”) of the shares on the NYSE American stock exchange for the 20 days prior to the date of completion of the transaction (the “Closing Date”). All such shares will be subject to a hold period of 4 months and a day from the Closing Date. Upon closing, SSR Mining will own an approximate 12% undiluted equity interest in EMX, subject to final calculation at closing.

Additional deferred payments of up to U.S. $34 million will be made by EMX to SSR Mining in consideration for the Net Profits Interest (“NPI”) royalty on the Yenipazar property in Turkey. These will be payable as follows: (i) U.S. $2,000,000 in EMX common shares based on the 20-day VWAP prior to the date of commencement of construction of a mill on the Yenipazar property; (ii) U.S. $2,000,000 in EMX common shares based on the 20-day VWAP prior to the date of commencement of commercial production; (iii) U.S. $15,000,000 in cash, payable when EMX has received U.S. $10,000,000 in net profits interest payments under the Yenipazar NPI; and (iv) U.S. $15,000,000 in cash, payable when EMX has received a second U.S. $10,000,000 in net profits interest payments. All such shares will be subject to a hold period of 4 months and a day from the date of issue.

EMX intends to pay up to U.S. $10,000,000 of the cash payable at closing with the proceeds of a U.S. $10,000,000 senior secured credit facility (the “Credit Facility”) provided for in a non-binding term sheet EMX has entered into with Sprott Private Resource Lending II (Collector), LP (“Sprott”). The Credit Facility is to mature one year from the Closing Date, bear interest at a rate of 7% per annum, and be secured by general security agreements over the assets of EMX and certain of its subsidiaries, and pledges of the shares of certain of EMX’s subsidiaries, who will, at Sprott’s election, also be guarantors of the loan. In addition to interest payable, the U.S. $10,000,000 to be advanced under the Credit Facility will also be subject to an original issue discount equal to 5% of the amount of the advance. Under the term sheet, Sprott will subscribe for U.S. $300,000 of EMX common shares at closing, at a deemed price equal to U.S. $2.74 per share. All such shares will be subject to a hold period of 4 months and a day from the Closing Date.

If the Credit Facility is not ultimately entered into, the Royalty Purchase Agreement provides for vendor takeback financing by SSR Mining of up to U.S. $5,000,000 (the “VTB Note”), and EMX will pay the balance of the cash payable at closing from available working capital. The VTB Note will bear interest at 14% per annum and will mature 60 days from the Closing Date. If unpaid within such 60 day period, the VTB Note ‎will bear additional interest at a rate of 2% per annum for each 60 day period past due‎.

Royalty Portfolio Overview. As summarized in Figure 1 and Table 1, the Royalty Portfolio spans over 69,000 hectares across seven countries on three continents. Summaries for Gediktepe, Yenipazar and Diablillos are provided here, and further information on the Royalty Portfolio and other EMX assets can be found at www.emxroyalty.com. Upon completion of the transaction, of the royalties purchased, only the royalty over the Gediktepe property in Turkey will be material to EMX at the present time. EMX is currently preparing a technical report on the Gediktepe property to be filed on SEDAR.

Gediktepe VMS Deposit, Western Turkey: The Gediktepe VMS deposit was discovered by a Joint Venture (“JV”) initiative between Alacer Gold Corp. (“Alacer”) and Lidya in 2012-2013 and was quickly advanced to PEA (2014) and Prefeasibility stages (2016). The deposit is comprised of a polymetallic VMS system with precious metal, copper, and zinc rich domains. The upper portion of the deposit is oxidized, forming a precious metal-enriched gossanous cap that will be mined first, followed by production from the underlying polymetallic sulfide deposit. Operator Lidya has commenced development and construction of the project and is anticipating initial production in late 2021.

Alacer, the previous owner of the Gediktepe royalties, completed a merger with SSR Mining in September of 2020. The Gediktepe Royalties consist of: (i) a perpetual 10% NSR royalty over metals produced from the oxide zone (predominantly gold and silver) after cumulative production of 10,000 gold-equivalent oxide ounces; and (ii) a perpetual 2% NSR royalty over metals produced from the sulfide zone (predominantly copper, zinc, lead, silver and gold), payable after cumulative production of 25,000 gold-equivalent sulfide ounces.

The Gediktepe property is the subject of an NI 43-101 Prefeasibility study entitled “Gediktepe 2019 Prefeasibility Study” prepared by OreWin Pty Ltd. on behalf of Alacer with an effective date of Mar. 26, 2019 (the “Gediktepe Report”). The 2019 Gediktepe Report is filed on SEDAR and contains historical mining reserve and resource estimates (summarized in Tables 2.1 and 2.2).

Yenipazar VMS Deposit, Central Turkey: The Yenipazar polymetallic VMS deposit was discovered in the late 1990’s by YAMAS, a predecessor of Alacer and SSR Mining. Aldridge Minerals Inc. (“Aldridge”), a public Canadian corporation formerly listed on the TSX-V, formed a JV with Alacer in 2004 with the right to earn a majority interest in the project. Later modifications to the JV agreement in 2006 led to Aldridge acquiring a 100% project equity interest, with Alacer retaining an NPI royalty that is set at 6% until U.S. $165 million in revenues are received by the royalty holder, after which the NPI converts to a 10% interest.

Aldridge delivered a feasibility study in 2013 that was updated in 2014 before Aldridge encountered financial difficulties. Ultimately, Aldridge (and Yenipazar) were sold to a new private company (Virtus Madencilik) headed by Aldridge’s major shareholder, Ahmet Taçyildiz. Trafigura Ventures V B.V. also owns a 30% interest in Virtus. Virtus recently updated the feasibility study for Yenipazar and is currently seeking project financing for development of the project.

Diablillos Gold-Silver Epithermal deposit, ArgentinaDiablillos is an extensive 7,900 hectare property located in the mining friendly Province of Salta in the Argentine Puna region. There are currently seven known mineralized zones on the Diablillos property, with the Oculto zone being the most important and the most explored. Oculto is a deeply oxidized, high-sulfidation epithermal silver-gold deposit.

Operator AbraSilver Resource Corp. (TSX-V: ABRA, “AbraSilver”) has an option to acquire 100% of the Diablillos property, with one outstanding payment due on the earlier of the date on which commercial production occurs at Diablillos or July 31, 2025. A 2018 PEA reported historical Indicated Resources at Oculto of 26.85 million tonnes grading 93g/t silver and 0.85g/t gold, for 80.3 million ounces of contained silver and 732 thousand ounces of contained gold[1]. Preliminary metallurgical tests indicate high recoveries from a crushing, grinding and agitated leach plant with a Merrill-Crowe circuit. High-grade copper intercepts have been discovered at depth and may suggest deeper porphyry-style potential.

AbraSilver continues to drill Oculto as well as advancing other targets on the property. An updated PEA is expected in Q3 2021, with a feasibility study slated for 2022.


Note: A qualified person has not performed sufficient work to classify the historical resource estimate for Diablillos as current, and EMX is not treating the historical estimate as current mineral resources. Significant data compilation, confirmation drilling, re-sampling and data verification by a qualified person may be required before the historical estimates can be classified as current mineral resources. The historical estimate is considered by EMX to be reliable and relevant, and is presented for the purpose of describing the extent and nature of mineralization as presently understood. The historical estimate should not be relied upon until verified.

Summary: By agreeing to acquire the Royalty Portfolio, EMX seeks to secure near term and sustained cash flow from a diverse collection of royalty interests and deferred consideration payments. Further, EMX welcomes SSR Mining as a strategic shareholder in EMX. EMX views this transaction as wholly accretive to its overall business, where royalties over multiple advanced and resource stage assets add significant value and diversity to EMX’s global portfolio.

Eric P. Jensen, CPG, a Qualified Person as defined by National Instrument 43-101 and an employee of the Company, has reviewed, verified, and approved the disclosure of the technical information contained in this news release.


[1] As reported in Technical Report on the Diablillos Project, Salta Province, Argentina, prepared by Roscoe Postle Associates (RPA) and filed on SEDAR by AbraPlata Resource Corporation with an effective date of April 16, 2018. Mineral Resources were reported to CIM guidelines and definitions. The resources were estimated using Ordinary Kriging within grade shell domains and reported within an optimized pit based upon metal prices of $1500/oz gold and $23/oz silver and variably calculated recoveries (refer to the technical report for details).

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. Please see www.EMXroyalty.com for more information.

About SSR Mining. SSR Mining Inc. is a leading, free cash flow focused intermediate gold company with four producing assets located in the USA, Turkey, Canada, and Argentina, combined with a global pipeline of high-quality development and exploration assets in the USA, Turkey, Mexico, Peru, and Canada. SSR Mining is listed under the ticker symbol SSRM on the NASDAQ and the TSX, and SSR on the ASX.
For further information contact:
David M. ColePresident and Chief Executive OfficerPhone: (303) 979-6666Dave@EMXroyalty.com
Scott CloseDirector of Investor RelationsPhone: (303) 973-8585SClose@EMXroyalty.com
Isabel BelgerInvestor Relations (Europe)Phone: +49 178 4909039Ibelger@EMXroyalty.com
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements

This news release may contain “forward looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding completion of the transaction, perceived merits of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential”, “upside” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actualresults, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors. It is possible EMX may not complete the transaction, as a result of failure to fulfill conditions of closing, unavailability of financing or for other reasons EMX cannot anticipate at this time.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended March 31, 2021 and the year ended December 31, 2020 (the “MD&A”), and the most recently filed Revised Annual Information Form (the “AIF”) for the year ended December 31, 2020, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedar.com and on the SEC’s EDGAR website at www.sec.gov.

Categories
Base Metals Junior Mining Precious Metals Project Generators Riverside Resources Uncategorized

Riverside Resources Drills New Gold Vein System Developing an Updated Exploration Model at the Cuarentas Project in Sonora, Mexico

Vancouver, British Columbia–(Newsfile Corp. – July 29, 2021) – Riverside Resources Inc. (TSXV: RRI) (OTCQB: RVSDF) (FSE: 5YY) (“Riverside” or the “Company”), is pleased to present the new exploration model for the Cuarentas Project in Sonora, Mexico. This new model results from the compilation of the updated geochemistry processing from an external expert geochemist consultant, combined with the new proof of concept drill results from hole LC20-010. This is the first drill hole testing the Santa Rosalia Sur target by Riverside.

Highlights from the hole LC20-010 discovering a new drilled vein system:

  • 3.15 m at 0.36 g/t Au including 0.7 m at 0.88 g/t Au
  • 1.55 m at 0.58 g/t Au including 0.65 m at 1.05 g/t Au

Riverside’s President and CEO, John-Mark Staude: “We are excited to receive the new and first ever drill assay results from the Santa Rosalia Sur target area which begins to outline a strong drill target area at the Cuarentas Project. We are optimistic that with just one initial hole the campaign has encountered two vein areas wide open at strike and depth to continue seemingly above a degassing Laramide porphyry Cu-Au center.“https://s.yimg.com/rq/darla/4-8-0/html/r-sf-flx.html

The Cuarentas epithermal vein drilled mineralized area intersected at surface and appears to be the upper part of a copper-gold porphyry system that is potentially responsible for the extensive >6 km2 area including sericite and pyrophyllite alteration. Some of the key features include:

  • A major NW oriented fault corridor, linked with a 2.5 km continuous strong (>0.3 g/t Au) gold anomaly along trend.
  • Detailed and regional mapping by Riverside defines post-mineral cover boundary which was previously interpreted as the limit of the system and is now clearly seen as younger cover with the system being significantly larger and only a fraction exposed at the surface. Channel rock-sampling highlighting up to 3.4m @ 9.1 g/t Au at the surface of the single drill hole demonstrates potential for more gold in further drilling of this Santa Rosalia Sur target.
  • Strong geophysical texture with airborne and ground magnetic features defines the continuity of main shear zones which control veins and then downward into a porphyry Cu-Au targeting at depth. Further drilling is warranted to test the magnetic features.
  • Extensive pyritic halo across the entire property with zones of white micas and pyrophyllite indicate higher temperature vectors toward an undrilled porphyry system.
  • Extensive database from work done by Paget, Millrock, Centerra, Hochschild and Riverside gives abundant data now compiled.
  • Historical production reporting more than ten old adits and up to 100,000 tonnes mined from the 1950s.
  • A total of 14 historical and recent drill holes, which are evidence for mineralization, alteration useful for vectoring and targeting for future work.

And recently:

  • Defined Intermediate Sulfidation system at Santa Rosalia Sur which is vectoring toward a potential feeder zone; Geochemistry analysis are showing zoning of higher ratios which compiled with mapping and drilling is leading to a potential feeder zone (see Figure 1 below).
  • Single drill hole at the Santa Rosalia Sur target by Riverside has intersected wide pyritic zones, similar to the upper parts of known porphyry systems and vein halos in this Arizpe Sonora District including like portions of Las Chispas Mine and also Mercedes Mine which are nearby neighbors to the east and west respectively. Drilling here at Santa Rosalia Sur cut a gold rich mineralized quartz vein zone beneath post-mineral cover (see Figure 3 below – core pictures). Geologically, this hole is important for interpretation and vectoring purposes.



Figure 1: Two maps of the Cuarentas Project highlighting above the geochemistry ratio distributing spatial (top map), and Interpretation for targeting next drill program (bottom map of same area as top map).

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/6101/91539_7982025584517b94_002full.jpg

To conclude, after taking into consideration, Riverside is highlighting the possibility of a feeder system of intermediate sulfidation along the Testerazo fault corridor. The latter is known to be involved as a deep-seated structure within the Arizpe district, and regionally associated with porphyry feeder further to the south. Distribution of evidence is showing an opportunity for more geophysics within the southern block, near the Sombrerito target, which then will lead to test drilling (see Figure 2 below).



Figure 2: Interpretative SW-NE Cross Section of the Cuarentas Project, indicating prospective target at depth for drill testing of feeder zone (based on current drill and surface data).

To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/6101/91539_7982025584517b94_003full.jpg

Overall, the Cuarentas district is particularly prolific, with extensive alteration and can be seen at surface with extensive jarosite, limonite and pyrite non-oxidized in drill holes (see Figure 3 below). This pyritic halo extends for multiple km2. Zones of higher temperature clays are an important vector for the feeder zone, which are defined in Figure 1 above.



Figure 3: Core pictures of the hole LC20-010. Left picture: sheeted vein zone – and gold interval upper part of the core hole; Right picture: Example of pyritic halo intersected in drill hole.

To view an enhanced version of Figure 3, please visit:
https://orders.newsfilecorp.com/files/6101/91539_7982025584517b94_004full.jpg

Qualified Person & QA/QC:

The scientific and technical data contained in this news release pertaining to the Cuarentas Project was reviewed and approved by Freeman Smith, P.Geo, a non-independent qualified person to Riverside Resources, who is responsible for ensuring that the geologic information provided in this news release is accurate and who acts as a “qualified person” under National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Riverside completed a QA/QC program as part of the drilling program with about 10% of the samples assayed being control samples. Standards and blanks were inserted approximately every 20 samples and duplicates every 30 samples. Drill samples were taken to the Bureau Veritas Laboratories in Hermosillo, Mexico for fire assaying for gold. The rejects remained with Bureau Veritas in Mexico while the pulps were transported to Bureau Veritas laboratory in Vancouver, BC, Canada for 45 element ICP/ES-MS analysis. A QA/QC program was implemented as part of the sampling procedures for the exploration program. Standard samples were randomly inserted into the sample stream prior to being sent to the laboratory.

Rock samples from the previous exploration programs discussed above at Cuarentas were taken to remained with Bureau Veritas in Mexico while the pulps were transported to Bureau Veritas laboratory in Vancouver, BC, Canada for 45 element ICP/ES-MS analysis. A QA/QC program was implemented as part of the sampling procedures for the exploration program. Standard samples were randomly inserted into the sample stream prior to being sent to the laboratory.

About Riverside Resources Inc.:

Riverside is a well-funded exploration company driven by value generation and discovery. The Company has over $4M in cash, no debt and less than 72M shares outstanding with a strong portfolio of gold-silver and copper assets and royalties in North America. Riverside has extensive experience and knowledge operating in Mexico and Canada and leverages its large database to generate a portfolio of prospective mineral properties. In addition to Riverside’s own exploration spending, the Company also strives to diversify risk by securing joint-venture and spin-out partnerships to advance multiple assets simultaneously and create more chances for discovery. Riverside has properties available for option, with information available on the Company’s website at www.rivres.com.

ON BEHALF OF RIVERSIDE RESOURCES INC.

“John-Mark Staude”

Dr. John-Mark Staude, President & CEO

For additional information contact:

John-Mark Staude
President, CEO
Riverside Resources Inc.
info@rivres.com
Phone: (778) 327-6671
Fax: (778) 327-6675
Web: www.rivres.com

Raffi Elmajian
Corporate Communications
Riverside Resources Inc.
relmajian@rivres.com
Phone: (778) 327-6671
TF: (877) RIV-RES1
Web: www.rivres.com

Certain statements in this press release may be considered forward-looking information. These statements can be identified by the use of forward-looking terminology (e.g., “expect”,” estimates”, “intends”, “anticipates”, “believes”, “plans”). Such information involves known and unknown risks — including the availability of funds, the results of financing and exploration activities, the interpretation of exploration results and other geological data, or unanticipated costs and expenses and other risks identified by Riverside in its public securities filings that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

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