TORONTO, May 19, 2022 (GLOBE NEWSWIRE) — Eloro Resources Ltd. (the “Company” or “Eloro”) (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) is pleased to announce that it has closed its previously announced bought deal financing of 3,007,710 units of the Company (the “Units”) at a price of C$3.25 per Unit for gross proceeds to the Company of C$9,775,057.50 (the “Offering”). The Offering was underwritten on a bought deal basis by Cormark Securities Inc. as underwriter (the “Underwriter”), pursuant to an underwriting agreement dated May 16, 2022 between the Company and the Underwriter. Haywood Securities Inc. participated as a special selling group member in connection with the Offering. The Offering included the exercise in full by the Underwriter of the over-allotment option granted by the Company pursuant to the terms of the Offering. Each Unit consists of one common share in the capital of the Company (each a “Common Share”) and one-half of one Common Share purchase warrant of the Company (each whole warrant, a “Warrant”). Each Warrant entitles the holder to acquire an additional Common Share at a price of C$4.75 for a period of 24 months following the closing of the Offering.
The securities issued under the Offering were qualified for distribution pursuant to a prospectus supplement dated May 16, 2022 (the “Supplement”) to the Company’s short form base shelf prospectus dated May 11, 2022.
The net proceeds from the Offering will be used for continued exploration and development of the Company’s Iska Iska project in Bolivia, as further set out in the Supplement filed on the Company’s SEDAR profile at www.sedar.com.
In connection with the Offering, the Company paid the Underwriter a cash commission equal to 6% of the gross proceeds of the Offering (for a total cash commission of C$586,503.45) and issued to the Underwriter and its selling group members that number of non-transferable compensation options (the “Compensation Options”) equal to 6% of the aggregate number of Units sold under the Offering (for a total of 180,462 Compensation Options). Each Compensation Option entitles the holder to acquire one Common Share at a price of C$3.25 per Common Share for a period of 24 months following the closing of the Offering.
The securities offered in the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Eloro Resources Ltd.
Eloro is an exploration and mine development company with a portfolio of gold and base-metal properties in Bolivia, Peru and Quebec. Eloro has an option to acquire a 99% interest in the highly prospective Iska Iska Property, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. A NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited, is available under Eloro’s filings on SEDAR. Iska Iska is a road-accessible, royalty-free property. Eloro also owns an 82% interest in the La Victoria Gold/Silver Project, located in the North-Central Mineral Belt of Peru some 50 km south of Barrick’s Lagunas Norte Gold Mine and Pan American Silver’s La Arena Gold Mine. La Victoria consists of eight mining concessions and eight mining claims encompassing approximately 89 square kilometres. La Victoria has good infrastructure with access to road, water and electricity and is located at an altitude that ranges from 3,150 m to 4,400 m above sea level.
For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President at (416) 868-9168.
Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company (forward-looking statements in this news release include, without limitation, statements regarding the use of proceeds from the Offering). There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information. The Company does not intend to update any such forward-looking information, except in accordance with applicable laws.
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.
TORONTO and NEW YORK, May 17, 2022 /CNW/ – Mountain Province Diamonds Inc. (“Mountain Province”, the “Company”) (TSX: MPVD) (OTC: MPVD) today announces interim exploration results for its 100%-held Kennady North Project. The Kennady North Project consists of over 107,000 hectares of claims and leases that completely surround the Gahcho Kué Diamond Mine. The 2022 exploration program is focussed on finding new kimberlites based on a detailed analysis of historical technical information including ground and airborne geophysics, kimberlite indicator minerals, and geological mapping. Approximately 3,000 of the ongoing 6,000 meter winter drill program have been completed.
Exploration Highlights for the Winter Program
Kimberlite intersected in 16 of 20 drill holes
3 of 4 target areas have returned Kimberlite Intersections
Winter geophysics completed
Mark Wall, the Company’s President and Chief Executive Officer, commented:
“We began 2022 with a plan to launch an aggressive winter exploration campaign over Kennady North, and we have achieved that plan. We have discovered kimberlite in three of four targets tested to date, and completed all of our scheduled airborne and ground geophysics. In the final weeks of our winter program, we will continue to drill-test as many priority anomalies as feasible with the intent to discover more kimberlite and add value to the Kennady North Project. As a pure Canadian diamond producer and explorer, we see this as an important time to aggressively explore for new Canadian diamond production”
Of the sixteen targets identified four have been tested by drilling so far. Drilling will continue through the rest of the winter 2022 program which is expected to culminate at the end of May. Summer exploration will start in Q3 with emphasis on follow-up sampling of indicator mineral results generated from the 2021 till sampling program, which are expected to be complete by the end of Q3. A review of all winter 2022 ground geophysical data continues through Q2 with the intent to drill areas of interest (“AOI”) with land-based anomalies in the summer program.
To date, 2,935 meters from 20 drillholes have been collected from the North Anomaly, South Anomaly, KS Anomaly and G6 Anomaly. These anomalies were defined using ARRT (a high-resolution ground resistivity system developed by Aurora Geoscience Ltd., Yellowknife), and by ground gravity. Both systems recognize the physical contrast between competent country rock and country rock adjacent to kimberlite that is broken and altered from emplacement of the kimberlite. Locations for these anomalies relative to the Kelvin and Faraday kimberlites are shown in the first set of images.
Locations for the anomalies relative to the Kelvin and Faraday kimberlites (CNW Group/Mountain Province Diamonds Inc.)Locations for the anomalies relative to the Kelvin and Faraday kimberlites (CNW Group/Mountain Province Diamonds Inc.)
Seven drillholes completed at the North Anomaly have identified depth-extensive zones of highly altered country rock intermixed with intersects of hypabyssal kimberlite (‘HK’) ranging from 0.03 to 6.93 meters in thickness (average thickness 1.54m). Suspected volcaniclastic kimberlite (‘VK’) has been intersected in three drillholes and ranges from 0.16 to 2.13 meters in thickness (average 0.95m), with 3D modeling of the drilling indicating lateral continuity for the VK. For Kelvin and Faraday kimberlites at Kennady North, VK comprises the greatest volume and its presence in the exploration drilling is considered a good indication for volume potential at the North Anomaly.
At the South Anomaly all five drillholes have HK present with thicknesses ranging from 0.68 to 6.96 meters (average 3.23m). Country rock breccia consisting of highly comminuted gneiss mixed with kimberlite has also been observed, and is indicative of volume potential for the South Anomaly.
Four of six drillholes at the KS anomaly intersected HK kimberlite ranging from 0.22 to 1.49 meters in thickness. The present interpretation for the KS anomaly is that the system is lacking the kimberlitic fluids necessary to break up country rock and provide volume for VK to develop. A table of drill results for the North, South and KS Anomaly is provided below.
Drill Hole
Azimuth2
Inclination2
Kimberlite Intersect1,2 (m)
End of Hole2(m)
From
To
Length1
North Anomaly
KDI-22-008
128.5
-71.2
75.86
81.48
5.62
121.0
KDI-22-010
135.8
-49.4
83.27
86.59
3.32
127.4
KDI-22-012
47.9
-46.1
107.05
113.98
6.93
150.0
KDI-22-013
49.4
-60.7
81.56
81.75
0.19
121.0
plus
82.61
82.98
0.37
plus
83.68
83.88
0.20
plus
85.07
85.45
0.38
plus
86.10
86.13
0.03
plus
86.30
86.52
0.22
plus
87.72
88.75
1.03
KDI-22-015
45.0
-52.5
76.76
76.90
0.14
plus
77.66
78.60
0.94
plus
80.73
81.10
0.37
plus
83.90
87.00
3.10
KDI-22-016
45.0
-62.0
69.50
72.40
2.90
plus
73.15
73.70
0.55
KDI-22-019
223.7
-52.4
76.60
76.76
0.16
plus
77.13
78.83
1.70
South Anomaly
KDI-22-001
307.4
-46.1
109.00
113.13
4.13
163.0
KDI-22-002
294.3
-65.0
84.19
90.06
5.87
114.7
KDI-22-003
48.6
-45.5
115.02
121.98
6.96
142.0
KDI-22-004
46.2
-69.4
98.57
99.25
0.68
139.0
KDI-22-007
182.0
-89.0
66.03
68.42
2.39
121.0
plus
79.97
81.45
1.48
plus
85.48
86.57
1.09
KS Anomaly
KDI-22-005
35.1
-46.1
217.08
218.57
1.49
163.0
KDI-22-006
31.3
-54.7
—
—
—
114.7
KDI-22-009
26.0
-67.7
63.51
63.76
0.25
93.2
KDI-22-011
24.9
-52.5
—
—
—
152.0
KDI-22-018
27.0
-50.0
35.50
35.65
0.15
160.0
plus
37.00
37.25
0.25
plus
40.20
40.50
0.30
plus
46.46
47.71
1.25
plus
65.14
66.00
0.86
1Intersects are not true thicknesses. 2Initial measurements from field logs may change with further drillhole surveying and logging.
The target AOI were selected from recently-compiled studies of glacial geology and kimberlite indicator mineral (KIM) dispersions over the project area. Additional target AOI were selected after a review of historical geophysical data for Kennady North. These datasets were reviewed during several in-house workshops held in late 2021 and early 2022, with final ranking of sixteen AOI completed in a joint workshop held with De Beers in February 2022. The sixteen AOI were scheduled for ARRT and ground gravity surveys during the winter program, with a total of 188.8 line-km of ARRT and 3,139 gravity stations completed over the targets. A map image of the AOI that received ground geophysics for drill-targeting is shown in the third image.
A map image of the AOI that received ground geophysics for drill-targeting (CNW Group/Mountain Province Diamonds Inc.)
Drilling has started at the G6 anomaly, situated on the winter spur road to Gahcho Kué Mine. The G6 anomaly is the result of a 1997 DIGHEM airborne survey that delineated the Kelvin, Faraday and Gahcho Kué kimberlites. Recent drilling over follow-up coincident ARRT and ground gravity anomalies encountered no kimberlite. Assessment of the drill data is underway.
In addition to the ground geophysical surveys, a small airborne magnetic/electromagnetic survey was conducted over an unsurveyed area located one kilometer southeast of Gahcho Kué. A total of 1,291 line-km of data were collected over the area.
In 2021 over 600 till samples were collected over the project area, including the recently staked Kennady East claims. Preliminary results for 47 samples confirm the presence of pyrope, chromite and picroilmenite in esker samples from the southern portion of the Kennady East claims. The distribution of 2021 till samples and outline of the 2022 airborne geophysics program are shown in the fourth and final image.
The distribution of 2021 till samples and outline of the 2022 airborne geophysics program. (CNW Group/Mountain Province Diamonds Inc.)
About the Company
Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada’s Northwest Territories. The Gahcho Kué Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company also controls 106,202 hectares of highly prospective mineral claims and leases that surround the Gahcho Kué Joint Venture property that include an indicated mineral resource for the Kelvin kimberlite and inferred mineral resources for the Faraday kimberlites.
For further information on Mountain Province Diamonds and to receive news releases by email, visit the Company’s website at www.mountainprovince.com.
Qualified Person
The disclosure in this news release of scientific and technical information regarding Mountain Province’s mineral properties has been reviewed and approved by Matthew MacPhail, P.Eng., MBA, and Tom E. McCandless, Ph.D., P.Geo., both employees of Mountain Province Diamonds and Qualified Persons as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Caution Regarding Forward Looking Information This news release contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian and United States securities laws concerning the business, operations and financial performance and condition of Mountain Province Diamonds Inc. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to operational hazards, including possible disruption due to pandemic such as COVID-19, its impact on travel, self-isolation protocols and business and operations, estimated production and mine life of the project of Mountain Province; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; the future price of diamonds; the estimation of mineral reserves and resources; the ability to manage debt; capital expenditures; the ability to obtain permits for operations; liquidity; tax rates; and currency exchange rate fluctuations. Except for statements of historical fact relating to Mountain Province, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “targets,” “intends,” “likely,” “will,” “should,” “to be”, “potential” and other similar words, or statements that certain events or conditions “may”, “should” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Mountain Province and there is no assurance they will prove to be correct.
Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include the development of operation hazards which could arise in relation to COVID-19, including, but not limited to protocols which may be adopted to reduce the spread of COVID-19 and any impact of such protocols on Mountain Province’s business and operations, variations in ore grade or recovery rates, changes in market conditions, changes in project parametres, mine sequencing; production rates; cash flow; risks relating to the availability and timeliness of permitting and governmental approvals; supply of, and demand for, diamonds; fluctuating commodity prices and currency exchange rates, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated.
These factors are discussed in greater detail in Mountain Province’s most recent Annual Information Form and in the most recent MD&A filed on SEDAR, which also provide additional general assumptions in connection with these statements. Mountain Province cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Mountain Province believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release.
Although Mountain Province has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Mountain Province undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered as the property is developed.
Further, Mountain Province may make changes to its business plans that could affect its results. The principal assets of Mountain Province are administered pursuant to a joint venture under which Mountain Province is not the operator. Mountain Province is exposed to actions taken or omissions made by the operator within its prerogative and/or determinations made by the joint venture under its terms. Such actions or omissions may impact the future performance of Mountain Province. Under its current note and revolving credit facilities Mountain Province is subject to certain limitations on its ability to pay dividends on common stock. The declaration of dividends is at the discretion of Mountain Province’s Board of Directors, subject to the limitations under the Company’s debt facilities, and will depend on Mountain Province’s financial results, cash requirements, future prospects, and other factors deemed relevant by the Board
YERINGTON, Nev., May 16, 2022 (GLOBE NEWSWIRE) — Nevada Copper (TSX: NCU) (OTC: NEVDF) (FSE: ZYTA) (“Nevada Copper” or the “Company”) today announced its first quarter 2022 financial and operating results as well as recent milestone achievements and updates on key development initiatives for its Pumpkin Hollow underground mine (the “Underground Mine”) and open pit project (the “Open Pit Project”). The Company has filed its interim financial statements and the related management’s discussion and analysis (“MD&A”) for the quarter ended March 31, 2022 with the Canadian securities regulatory authorities, which documents can be accessed under the Company’s profile on www.SEDAR.com.
Recent Developments
Underground Mine Ramp Up Continues: Underground production continues to ramp up with hoisting rates of a combination of stope ore and development material expected to increase to approximately 3,000 tons per day (“tpd”) in Q2 2022 and then further increasing to 4,000 to 4,500 tpd during Q3 2022.
Paste Plant Commissioning: The Underground Mine paste plant began wet commissioning and filling of the first stope with paste backfill in April 2022. Paste plant commissioning activities are ongoing with initial throughput capacity expected to be realized by the end of June 2022. It is expected that the implementation of paste backfilling will result in quicker stope turnover leading to improvements in hoisting and production rates going forward.
Surface Vent Installation and Third Ore Pass Construction: The dry commissioning of the surface ventilation fans was completed in early April. Initial excavation of the third ore pass is complete with construction activities scheduled for completion in Q3 2022.
Open Pit Drill Program Commenced: The 2022/23 drill program commenced with one drill arriving on site in late April and a second drill planned to arrive during the second quarter. The primary goals of the planned approximate 25,000-foot (“ft”) drill program are upgrading in-pit inferred mineral resources that are currently considered as waste in the 2019 Technical Report1, to a minimum of an indicated resource, and expanding mineral resources previously inaccessible for drilling. Drilling will also be used to advance the geotechnical and metallurgical understanding of the deposit. Condemnation drilling will be completed in areas planned for major infrastructure. Several holes are also planned to follow up geophysical and surface work and test the nearby Tedeboy porphyry target.
Open Pit Project Prefeasibility Study (“PFS”) Update on Track: The Open Pit Project PFS update is progressing well and is expected to be completed in Q3 2022, as planned. The PFS will include updated mineral reserves and resources and economics based on current metals prices, costs, project development strategy and the contemplated solar project, which is expected to have a positive impact on the long-term price expectations for power. The results of the drill program currently underway will not be included in the PFS, however, they are expected to be included in an open pit feasibility study planned for the second half of 2023. The Open Pit Project has all the material permits required at this time for mine construction and operations and proven and probable mineral reserves, as estimated in the 2019 Technical Report, were 3,590 million pounds of copper (385.7 million tons grading 0.47% copper).
Key Team Additions: Continued strengthening of the team with the hiring of experienced individuals in the following roles: VP Technical Services; VP Human Resources; VP Finance; VP Investor Relations and Community Relations; Director Safety & Health; Director Supply Chain; Chief Reliability Engineer; Underground Production Manager; Process Manager; IT Manager; and several critical hires in Process Maintenance.
Randy Buffington, President & CEO stated, “I am very pleased with the progress we are making on several fronts at Pumpkin Hollow. We have completed a number of key projects at site that are aimed at improving productivity, stope availability and equipment reliability for the Underground Mine. The prefeasibility study update for the fully permitted Open Pit Project is well underway and will include important sustainable initiatives such as the solar project. In addition, the commencement of our exploration program is an important step towards our longer-term growth strategy. We are laying the groundwork necessary to demonstrate the potential for this significant copper operation and assembling the right team to execute on these plans for the long-term benefit of our stakeholders.”
Q1 2022 Highlights
Underground Mine Operations
Underground Mining Operations – During Q1 2022, the Company hoisted approximately 97,518 tons of material, a 66% improvement over Q4 2021. Included in the material hoisted was approximately 32,025 tons at an average grade of 1.3% copper mined from 3 stopes including ore mined from stopes in the Sugar Cube zone.
Lateral Development – Lateral development rates improved 31% in Q1 2022 compared with Q4 2021, with 3,126 ft developed. Two additional loaders were lowered underground in April 2022 further increasing mucking capacity and an additional haul truck is scheduled to be hoisted in May 2022. Ore tons mined from development during Q1 2022 were 65,493 tons, at an average grade of 0.7% copper. As previously disclosed, the Company continues to advance across a water-bearing dike structure with the first crossing being completed and grouting activities underway on the second crossing to be followed by advancing development under steel sets through the dike. While there have been some challenges due to highly variable ground and water conditions, the Company is advancing development from Ramp 01 on the other side of the dike to maintain the production schedule. The Company expects to complete the second crossing in Q2 2022.
Processing Plant – During Q1 2022, 96,414 tons of ore were processed, a 76% increase over Q4 2021. Processing plant recovery improved by 5% to 84% from Q4 2021. Copper concentrate sales increased by 50% to approximately 2,099 tons of concentrate at an average copper grade of 23%, compared to 1,403 tons of concentrate at an average copper grade of 23% in Q4 2021. The Company continued to batch process ore during Q1 2022, however the number of operating days improved by 112% from 17 days in Q4 2021 to 36 days in Q1 2022.
Q1 2022 Financial Statements and MD&A
The Company has filed on SEDAR its condensed consolidated interim financial statements and the related management’s discussion and analysis for the quarter ended March 31, 2022. These documents are available on the Company’s website at www.nevadacopper.com and the Company’s SEDAR profile at www.sedar.com.
Management Team Changes
In April 2022, Tracey Thom joined the Company as Vice President, Investor Relations and Community Relations. Tracey’s primary roles include implementing and managing the ongoing investor and community relations strategy that aligns all stakeholder engagement with the Company’s vision and goals.
Tracey brings over 25 years of senior management and investor relations experience in the mining industry and joins Nevada Copper from Hycroft Mining Holding Corporation where she was Vice President, Investor Relations and Corporate Communication for over 13 years. Prior to that she held senior executive roles in single and dually listed companies ranging from exploration and development to multi-national operations including Andina Minerals, Kinross Gold Corporation, and TVX Gold Inc.
Effective May 23, 2022, Kris Sims will assume the role of Interim Chief Financial Officer (“CFO”) following the departure of Andre van Niekerk as Executive Vice President and CFO, who is leaving for personal reasons. Kris is a seasoned financial professional with over 30 years of experience in the mining industry in executive leadership roles with large operating and development companies in the precious and base metals sectors including Phelps Dodge Mining Company, Freeport McMoRan Copper and Gold and Kinross Gold Corporation. He focuses on establishing fiscal transparency and accountability, operational excellence, profitability, and sustainability for the companies he works with. He has also been an advocate for mining in Nevada and led the Nevada Mining Association as Chairman in 2015. Kris was previously employed with Nevada Copper as Project Manager and has a strong base of institutional knowledge that will be key to moving forward and transitioning the CFO role.
“On behalf of the Board and Nevada Copper team, our sincere appreciation for the strong leadership and commitment Andre provided during his tenure,” said Randy Buffington. “He has been an incredible asset and we wish him well in his future endeavors. I am glad we are able to seamlessly integrate Kris into this leadership role as his experience and institutional knowledge will be valuable during our ongoing ramp up.”
Qualified Persons
The technical information and data in this news release has been reviewed by Greg French, C.P.G., Vice President, Exploration and Steven Newman, Registered Member – SME, Vice President, Technical Services for Nevada Copper, who are non-independent Qualified Persons within the meaning of NI 43-101.
About Nevada Copper
Nevada Copper (TSX: NCU) is a copper producer and owner of the Pumpkin Hollow copper project. Located in Nevada, USA, Pumpkin Hollow has substantial reserves and resources including copper, gold and silver. Its two fully permitted projects include the high-grade underground mine and processing facility, which is now in the production stage, and a large-scale open pit project, which is advancing towards feasibility status.
Randy Buffington President & CEO
For additional information, please see the Company’s website at www.nevadacopper.com, or contact:
Tracey Thom | Vice President, IR and Community Relations tthom@nevadacopper.com +1 775 391 9029
____________ 1 Technical Report, entitled “NI 43-101 Technical Report: Nevada Copper Corp. Pumpkin Hollow Project, Open Pit and Underground Mine Prefeasibility Study”, with an effective date of January 21st, 2019.
Cautionary Language on Forward Looking Statements This news release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, are forward-looking statements. Such forward-looking information and forward-looking statements specifically include, but are not limited to, statements that relate to Underground Mine development, production and ramp-up expectations and objectives, future hoisting and production rates, equipment installation, expectations regarding the prefeasibility study update and the expected completion thereof and the other plans of the Company with respect to exploration, development, construction and commercial production.
Forward-looking statements and information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as “plans”, “expects”, “potential”, “is expected”, “anticipated”, “is targeted”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements or information should not be read as guarantees of future performance and results. They are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and events to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.
Such risks and uncertainties include, without limitation, those relating to: the ability of the Company to complete the ramp-up of the Underground Mine within the expected cost estimates and timeframe; requirements for additional capital and no assurance can be given regarding the availability thereof; the impact of COVID-19 on the business and operations of the Company; the state of financial markets; history of losses; dilution; adverse events relating to milling operations, construction, development and ramp-up, including the ability of the Company to address underground development and process plant issues; ground conditions; cost overruns relating to development, construction and ramp-up of the Underground Mine; loss of material properties; interest rates increase; global economy; limited history of production; future metals price fluctuations; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment to perform as expected; labour disputes; supply problems; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; changes in project parameters as plans continue to be refined; possible variations in ore reserves, grade of mineralization or recovery rates from management’s expectations and the difference may be material; legal and regulatory proceedings and community actions; accidents; title matters; regulatory approvals and restrictions; increased costs and physical risks relating to climate change, including extreme weather events, and new or revised regulations relating to climate change; permitting and licensing; dependence on management information systems and cyber security risks; volatility of the market price of the Company’s securities; insurance; competition; hedging activities; currency fluctuations; loss of key employees; other risks of the mining industry as well as those risks discussed in the Company’s Management’s Discussion and Analysis in respect of the year ended December 31, 2021 and the quarter ended March 31, 2022 and in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 31, 2022. The forward-looking statements and information contained in this press release are based upon assumptions management believes to be reasonable, including, without limitation: no adverse developments in respect of the property or operations at the project; no material changes to applicable laws; the ramp-up of operations at the underground mine in accordance with management’s plans and expectations; no worsening of the current COVID-19 related work restrictions; reduced impacts of COVID-19 going forward; the Company will be able to obtain sufficient additional funding to complete the ramp-up, no material adverse change to the price of copper from current levels; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended.
The forward-looking information and statements are stated as of the date hereof. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law. Although the Company has attempted to identify important factors that could cause actual actions, events, or results to differ materially from those described in forward-looking information and statements, there may be other factors that could cause actions, events or results not to be as anticipated, estimated or intended. Specific reference is made to “Risk Factors” in the Company’s Management’s Discussion and Analysis in respect of the year ended December 31, 2021 and the quarter ended March 31, 2022 and “Risk Factors” in the Company’s Annual Information Form dated March 31, 2022, for a discussion of factors that may affect forward-looking statements and information. Should one or more of these risks or uncertainties materialize, should other risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results and events may vary materially from those described in forward-looking statements and information. For more information on the Company and the risks and challenges of its business, investors should review the Company’s filings that are available at www.sedar.com.
The Company provides no assurance that forward-looking statements and information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.
VANCOUVER, British Columbia, May 16, 2022 (GLOBE NEWSWIRE) — (CSE: HAMR/OTCQB: HAMRF) Silver Hammer Mining Corp. (the “Company” or “Silver Hammer”) is pleased to announce its intention to complete a brokered private placement on a commercially reasonable efforts basis for gross proceeds of up to approximately C$3,000,000 (the “Offering”). The Offering will be led by Echelon Wealth Partners Inc. as lead agent and sole bookrunner (the “Agent”).
The Company will grant the Agent an option to increase the size of the Offering by up to 15% of the Units sold under the Offering exercisable, in whole or in part, by the Agent upon written notice to the Company at any time up to 48 hours prior to the final closing date of the Offering.
The Offering will consist of up to 7,894,800 units of the Company (each, a “Unit”, and collectively the “Units”) at a price of C$0.38 per Unit (the “Offering Price”). Each Unit consists of one Common Share (each, a “Common Share”, and collectively the “Common Shares”) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant” and collectively the “Warrants”). Each Warrant entitles the holder thereof to acquire one Common Share at a price of C$0.50 per Common Share for a period of 24 months from the closing date of the Offering. The Company will apply to list the Common Shares (including the Common Shares underlying the Warrants and the broker warrants (as described below)) on the Canadian Securities Exchange (“CSE”) upon closing of the Offering.
The net proceeds of the Offering will be used for the exploration of the Silver Strand Project in Idaho, the Eliza Silver Project in Nevada, the Silverton Silver-Gold Project in Nevada, and for general and working capital purposes.
The Company will pay a cash commission to the Agent equal to 8.0% of the aggregate gross proceeds of the Offering (4.0% from the sale of Units to purchasers identified on the Company’s president’s list) and will issue broker warrants equal to 8.0% of the number of Units sold under the Offering (4.0% of the number of Units from the sale of Units to purchasers identified on the Company’s president’s list), each exercisable to acquire one Common Share at $0.38 for a period of 24 months from the closing date of the Offering.
Closing of the Offering is expected to occur on or about June 2, 2022.
The Units will be offered and sold by private placement in Canada to “accredited investors” within the meaning of National Instrument 45-106 – Prospectus Exemptions and other exempt purchasers in each province of Canada and may be sold outside of Canada on a basis which does not require the qualification or registration of any of the Common Shares or the Warrants comprising the Units in the subscriber’s jurisdiction. The Company may also concurrently offer and sell Units outside of Canada on a non-brokered, unregistered private placement basis to a limited number of “accredited investors” (as defined in Regulation D under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”)) with whom the Company has substantive pre-existing relationships, in reliance on exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws or in other jurisdictions where permitted by law. The securities issued in the Offering will be subject to applicable hold periods imposed under applicable securities legislation, including a hold period of 4 months and one day from the date of issuance (the “Hold Period”).
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described in this news release. Such securities have not been, and will not be, registered under the U.S. Securities Act, or any state securities laws, and, accordingly, may not be offered or sold within the United States, or to or for the account or benefit of persons in the United States or “U.S. Persons”, as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.
About Silver Hammer Mining Corp.
Silver Hammer Mining Corp. is a junior resource company advancing the flagship past-producing Silver Strand Mine in the Coeur d’Alene Mining District in Idaho, USA, as well both the Eliza Silver Project and the Silverton Silver Mine in one of the world’s most prolific mining jurisdictions in Nevada and the Lacy Gold Project in British Columbia, Canada. Silver Hammer’s primary focus is defining and developing silver deposits near past-producing mines that have not been adequately tested. The Company’s portfolio also provides exposure to copper and gold discoveries
Forward-Looking Information
This release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Forward-looking statements may include, without limitation, statements relating to the Offering and the use of proceeds therefrom. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. All forward-looking statements in this press release are made as of the date of this press release. The forward-looking statements contained herein are also subject generally to assumptions and risks and uncertainties that are described from time to time in the Company’s public securities filings with the Canadian securities commissions, including the Company’s short form prospectus. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
On Behalf of the Board of Silver Hammer Mining Corp.
Morgan Lekstrom, President and CEO Corporate Office: 551 Howe Street, Vancouver, British Columbia V6C 2C2, Canada
For further information contact: Kristina Pillon, President, High Tide Consulting Corp. T: 604.908.1695 E: investors@silverhammermining.com
For media inquiries, contact: Adam Bello, Primoris Group Inc. T: 416.489.0092 E: media@primorisgroup.com
The CSE does not accept responsibility for the adequacy or accuracy of this release. The Canadian Securities Exchange has neither approved nor disapproved the contents of this press release.
Burlington, Ontario–(Newsfile Corp. – May 5, 2022) – Silver Bullet Mines Corp. (TSXV: SBMI) (OTCQB: SBMCF) (“SBMI” or “the Company”) is pleased to provide an update on operations at its 100%-owned Washington Mine in Idaho. This mine is on patented lands.
“We are pleased to be back at the Washington Mine and moving forward to production,” said A. John Carter, SBMI’s CEO. “The plan is to access the ore zone in June, to commence production in July, and to continue to work through the winter of 22-23.” SBMI is in discussions with an experienced contract miner to commence such work as soon as reasonably possible, subject to a due diligence site visit.
The Washington Mine first saw production in the late 1800’s with an average gold grade of one ounce per ton. It again produced gold in the 1930’s during which time the then-owner lacked the process capability needed to produce silver, so a decision was made to block out the silver mineralization with the intention of returning at a future date to extract it. To the best of SBMI’s knowledge, the blocked-out volume remains in situ. A historical report indicates the blocked-out volume contains an estimated 3 million ounces of silver with a grade of 30 to 90 ounces per ton and 15,000 ounces of gold at 0.3 ounces per ton. (Source, “Geological Evaluation”, Roger G. Stoker, P.G. and Ryne C. Stoker, Student Geologist, Energy Services Inc., December, 1981.)
Stoker also indicated the location of the “Berger Vein”, described as a “gold ore shoot 25 feet wide, 135 feet long, and unknown depth.” Average grades were given as 0.3 oz/ton gold with unknown silver content. Additional notes in Stoker suggest that the Berger Vein was intersected in drifting at the 400-foot level.
The references above to data and observations derived from work not carried out by SBMI are of historical nature only and cannot be relied upon at this time. SBMI does not know the methods by which such work was carried out, or whether all or part of it was under the supervision of a Qualified Person, as that term is defined in NI43-101. SBMI refers to such data and observations to inform its knowledge of the area.
Based in part on the information from Stoker, SBMI took a bulk sample from the Washington Mine, the results of which were disclosed on January 18, 2022. That bulk sample returned 55.5 ounces silver per ton. It is the Company’s intention to exploit that mineralization while developing other vein faces.
To that end the Company’s onsite contractor has cleared small trees that had fallen over the winter, has upgraded the road, and with snowmelt, has cleared access to the main portal.
SBMI has also contracted a portable sawmill to be on site in the near future to start cutting timber for the underground workings. There will be cost-savings as SBMI owns the timber rights at the Washington Mine, meaning SBMI can provide most of the required timber. The Company is also installing a water supply and equipment container.
It is intended that SBMI meet the contract miner at the Washington Mine in the next few weeks for a due diligence visit. Some of the items involved in having the contract miner begin removing mineralized material are:
Road upgrade permit has been received and the work completed;
Mine ID has been applied for and received;
A ventilation plan is in progress and should be completed in next few weeks;
MSHA approval should be received shortly;
Contract negotiations are underway with a Mine Rescue contractor; and
Metallurgical testing is ongoing at Montana Technical University with results anticipated in the next few weeks.
It is anticipated the contract miner will take an initial bulk sample of 1500 to 3000 tons in July, for processing at a local mill. Upon completion of the processing of the bulk sample, SBMI intends to start underground development, targeting the parallel zone and the Berger Vein.
All the above items are being completed under the on-site supervision of Mr. Nick Barr, geologist.
The Company is also planning a surface exploration program at the Washington Mine this summer to further delineate the parallel structures discovered during last year’s field program.
Access to the property can be maintained through the winter as SBMI has contracted a local service provider who has the equipment needed to keep the road open. Decisions on the scope of winter work underground will be determined after the Company receives the results of the July bulk sample.
In Arizona at the Buckeye Silver Mine, work continues to complete the 125t/day mill. Wiring the Motor Control Centre to the various parts of the ball mill has begun. The estimated timeline for completion is roughly four weeks, although that is largely out of SBMI’s control. There continues to be some supply chain risk and pricing risk as to when all equipment will be ready and on-site, although SBMI believes it has taken all necessary steps to reduce such risks.
Please check the Company’s website www.silverbulletmines.com, or follow on Twitter @bulletmines or at YouTube “Silver Bullet Mines”.
For further information, please contact:
John Carter Silver Bullet Mines Corp., CEO cartera@sympatico.ca +1 (905) 302-3843
Peter M. Clausi Silver Bullet Mines Corp., VP Capital Markets pclausi@brantcapital.ca +1 (416) 890-1232
Cautionary and Forward-Looking Statements
Silver Bullet Mines Corp. trades on the TSX Venture Exchange under the symbol SBMI and on the OTCQB Venture Market under the symbol SBMCF. The OTCQB Venture Market is for early stage and developing U.S. and international companies. Companies listed there are current in their reporting and undergo an annual verification and management certification process. Investors can find current financial disclosure for the Company on www.otcmarkets.com and at https://money.tmx.com/en/quote/SBMI.
This news release contains certain statements that constitute forward-looking statements as they relate to SBMI and its subsidiaries. Forward-looking statements are not historical facts but represent management’s current expectation of future events, and can be identified by words such as “believe”, “expects”, “will”, “intends”, “plans”, “projects”, “anticipates”, “estimates”, “continues” and similar expressions. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that they will prove to be correct.
By their nature, forward-looking statements include assumptions, and are subject to inherent risks and uncertainties that could cause actual future results, conditions, actions or events to differ materially from those in the forward-looking statements. If and when forward-looking statements are set out in this new release, SBMI will also set out the material risk factors or assumptions used to develop the forward-looking statements. Except as expressly required by applicable securities laws, SBMI assumes no obligation to update or revise any forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: the impact of SARS CoV-2 or any other global virus; reliance on key personnel; the thoroughness of its QA/QA procedures; the continuity of the global supply chain for materials for SBMI to use in the production and processing of ore; shareholder and regulatory approvals; activities and attitudes of communities local to the location of SBMI’s properties; price increases related to supply chain issues; risks of future legal proceedings; income tax matters; fires, floods and other natural phenomena; the rate of inflation; availability and terms of financing; distribution of securities; commodities pricing; currency movements, especially as between the USD and CDN; effect of market interest rates on price of securities; and, potential dilution. SARS CoV-2 and other potential global viruses create risks that at this time are immeasurable and impossible to define.
Vancouver, British Columbia–(Newsfile Corp. – May 5, 2022) – Provenance Gold Corp. (CSE: PAU) (OTCQB: PVGDF) (the “Company” or “Provenance“) is continuing to advance its flagship gold properties at Eldorado and White Rock, with plans to drill the properties this year to support maiden resource estimates expected by the end of 2022.
Highlights
Provenance is finalizing exploration technical reports for Eldorado and White Rock which includes a detailed review of the geology and technical aspects of the properties to better define the geological model and provide recommendations for next steps.
Provenance has engaged Rangefront Mining Services of Nevada, USA and Apex Geoscience Ltd. of Edmonton, Alberta to lead a full data validation and audit of the large volume of historic information received with the acquisition of the Eldorado and White Rock projects. This work will enable effective and efficient 2022 exploration in support of maiden resource estimates.
Eldorado
White Rockhttps://embed.fireplace.yahoo.com/embed?ctrl=Monalixa&m_id=monalixa&m_mode=document&site=sports&os=android&pageContext=%257B%2522ctopid%2522%253A%25221542500%253B1577000%2522%252C%2522hashtag%2522%253A%25221542500%253B1577000%2522%252C%2522wiki_topics%2522%253A%2522White_Rock%252C_British_Columbia%253BProvenance%253BThe_El_Dorado%253BBureau_of_Land_Management%253BExploration%253BNevada%253BGold%253BGold_cyanidation%2522%252C%2522lmsid%2522%253A%2522a0V0W00000HOPDcUAP%2522%252C%2522revsp%2522%253A%2522newsfile_64%2522%252C%2522lpstaid%2522%253A%25228f415286-941b-317b-8942-a80b6cf4b10d%2522%252C%2522pageContentType%2522%253A%2522story%2522%257D
Mr. Rauno Perttu, Co-Founder and Chairman of Provenance stated, “TheEldorado and White Rock Projects represent tremendous opportunities to add significant value in the near-term and we are excited to continue working towards maiden resources on both projects.”
Eldorado Project Summary
Provenance signed a binding option to purchase the Eldorado property located in eastern Oregon from Nevada Select Royalty Inc. and has completed the first year’s payment as announced on December 13, 2021. Nevada Select is an arm’s-length company that is a subsidiary of Gold Royalty Corp., a leading growth and Americas-focused precious metals royalty company.
The Eldorado Property was first explored in 1980 by Westley Mines. Exploration continued intermittently up until 1998 by Degerstrom, Ican Minerals, Billiton Minerals and, lastly, North Mining Ltd. There has been no work done on the property since 1998. Previous work on the property included 236 reverse circulation holes and six core holes for a total of 21,866.9 meters of drilling, including trenching, soil sampling, metallurgy, geophysics, and modelling.
A resource study was conducted by Pincock, Allen and Holt on behalf of Billiton in 1990 and at the time estimated the Eldorado property contained 38,416,000 tons averaging 0.68 g/t for 764,000 ounces of gold (at a 0.292 g/t cutoff grade) and encompassed a limited portion of the known mineralization. This estimate is considered to be historical in nature, should not be relied upon, and is provided only for historical context on development of the property. A Qualified Person has not completed sufficient work to classify the historical estimate as a current mineral resource, and it predates current CIM (Canadian Institute of Mining, Metallurgy and Petroleum) categories. Provenance is not treating the historical estimate as a current mineral resource or reserve. Significant data compilation, redrilling, resampling and data verification will be required by a qualified person before the historical estimate can be classified as a current resource.
Other work that is underway includes an analysis of the current drill hole data base in preparation for a maiden model of the gold mineralization on the Eldorado gold property. This work includes review and verification of the 242 historic holes drilled on the property. Provenance plans to commence the first drilling program at Eldorado during mid to late summer, subject to drill rig availability and permitting.
White Rock Project Summary
The White Rock Property consists of 258 lode mining claims covering a combined area of approximately 5,160 acres, located approximately 105 kilometers northeast of Wells, Elko County, Nevada. On June 12, 2020, Provenance, through its subsidiary Provenance Gold USA, entered into a four-year option agreement with Nevada Select Royalty Inc., an arm’s-length company that is a subsidiary of Gold Royalty Corp., a leading growth and America’s-focused precious metals royalty company which grants Provenance Gold USA the sole and exclusive right to purchase 100% of Gold Royalty’s right, title and interest to the Property.
The White Rock Property lies at the northern end of the basin and range geological province of the western United States. The White Rock Property hosts gold mineralization and alteration patterns with similarities to low sulphidation epithermal deposits. Drilling by Provenance commenced in July 2021 and defined the stratigraphic and structural controls and grades within the extensive central area of sediment-hosted gold mineralization. The target mineralization extends across a 3.2 km by 1.6 km area centered on a complex dome structure that is believed to have formed on the upper plate of a system of thrust faults. In addition, drilling was intended to confirm results from historical drillholes that intersected numerous thick intervals of potentially open-pit grade gold mineralization, while confirming Provenance’s new understanding of the structural and stratigraphic controls of the gold mineralization.
The drillhole assay results confirmed similar results achieved by past operators and confirmed the location of a newly recognized open-ended gold mineralization feeder structure that extends across the core mineralized area of 3.2 km in length and 1.3 km in width (WR-45) while bottoming out in mineralization. In addition to the newly identified plumbing structure, recent step-out drilling continued to expand the gold mineralization in several directions from drillhole WR-23, which returned an interval of 80 meters (265 feet) of gold mineralization. Large step-out drilling tested new areas including the Rhyolite Graben to the northwest, the Nose area to the south and the newly identified plumbing structure. The Rhyolite Graben, located to the northwest and west of hole WR-23 was tested with two holes. Both intercepted gold mineralization with hole WR-32 assaying 65.5 meters (215 feet) of 0.305 g/t gold which included 20 meters (65 feet) of 0.411 g/t gold. The hole bottomed out in mineralization at 115.8 meters (380 feet) and was lost. The importance of this intercept suggests that the host rocks in the graben will host gold mineralization and now become a substantial new target.
Other work that is underway includes an analysis of the current drill hole database in preparation for a maiden model of the gold mineralization on the White Rock gold property. This work includes review and verification of the 65 historic holes drilled on the property in addition to the Company’s recent drilling on the project. As with Eldorado, it also includes certification of all drill assays. Provenance plans the next stage drilling program at White Rock during the late summer/fall, depending on drill rig availability.
Qualified Person Steven Craig, CPG, an independent consultant and qualified person as defined under National Instrument 43-101, has reviewed and approved the technical contents of this news release.
About Provenance Gold Corp. Provenance Gold Corp. is a precious metals exploration company with a focus on gold and silver mineralization within North America. The Company currently holds interests in four properties, three in Nevada, and one in eastern Oregon, USA. For further information please visit the Company’s website at https://provenancegold.com or contact Rob Clark at rclark@provenancegold.com.
On behalf of the Board,
Provenance Gold Corp.
Rauno Perttu, Chief Executive Officer
Neither the Canadian Securities Exchange, nor its regulation services provider, accepts responsibility for the adequacy or accuracy of this press release. This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When or if used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward-looking statements or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.
VANCOUVER, BC / ACCESSWIRE / May 5, 2022 / Sandy MacDougall, CEO of Noram Lithium Corp. (“Noram” or the “Company“) (TSXV:NRM | OTCQB:NRVTF | Frankfurt:N7R) is pleased to announce the successful completion of CVZ-72 (PH-06) and release of the final assay results. The Company completed core hole CVZ-72 at a depth of 428 feet (130.5 m). Sampling for assay began at 60 ft (18.3 m) and continued to the bottom of the hole, an interval thickness of 368 ft (112.2 m) was intersected, which was the entire assayed portion of the hole. The hole ended in mineralization and the weighted average lithium values present were as follows:
Noram Lithium Corp., Thursday, May 5, 2022, Press release pictureNoram Lithium Corp., Thursday, May 5, 2022, Press release picture
Figure 1. Comparative stratigraphy and assay results for drill holes CVZ-72 as compared to CVZ-53 and CVZ-68, which were drilled as part of the Phases IV and V programs. CVZ-53 and CVZ-68 both had long intercepts of high grade lithium mineralization. The histogram on the sides of the holes are the composited lithium grades in ppm Li. The cross section has a 4X vertical exaggeration.
“CVZ-72 was the second hole completed in Noram’s 12-hole Phase VI drilling program. These assays represent the longest and highest-grade interval of lithium mineralization intersected to date on the Zeus property. This hole also clearly reaffirms the consistently high lithium grades across this blanket-like mineral deposit. If the program continues to produce results such as these, we could reasonably expect our PFS to outshine our PEA. Ending in mineralization at depths such as these suggests even greater potential for the size and extent of this resource” comments Brad Peek, VP of Exploration and geologist on all six phases of Noram’s Clayton Valley exploration drilling.
Noram Lithium Corp., Thursday, May 5, 2022, Press release picture
Table 1 – Sample results from CVZ-72 from 60 ft to depth of 428 ft.https://embed.fireplace.yahoo.com/embed?ctrl=Monalixa&m_id=monalixa&m_mode=document&site=sports&os=android&pageContext=%257B%2522ctopid%2522%253A%25221542500%2522%252C%2522hashtag%2522%253A%25221542500%2522%252C%2522wiki_topics%2522%253A%2522Clayton_Valley_Charter_High_School%253BNor-Am_Cup%253BLithium_carbonate%253BZeus%253BLithium%2522%252C%2522lmsid%2522%253A%2522a077000000LnOyOAAV%2522%252C%2522revsp%2522%253A%2522accesswire.ca%2522%252C%2522lpstaid%2522%253A%252240a280ff-4983-315c-895c-18deb81d6637%2522%252C%2522pageContentType%2522%253A%2522story%2522%257D
The samples were analyzed by the ALS laboratory in Reno, Nevada. QA/QC samples were included in the sample batch and returned values that were within their expected ranges.
The technical information contained in this news release has been reviewed and approved by Brad Peek., M.Sc., CPG, who is a Qualified Person with respect to Noram’s Clayton Valley Lithium Project as defined under National Instrument 43-101.
About Noram Lithium Corp.
Noram Lithium Corp. (TSXV: NRM | OTCQB: NRVTF | Frankfurt: N7R) is a well-financed Canadian based advanced Lithium development stage company with less than 90 million shares issued and a fully funded treasury. Noram is aggressively advancing its Zeus Lithium Project in Nevada from the development-stage level through the completion of a Pre-Feasibility Study in 2022.
The Company’s flagship asset is the Zeus Lithium Project (“Zeus”), located in Clayton Valley, Nevada. The Zeus Project contains a current 43-101 measured and indicated resource estimate* of 363 million tonnes grading 923 ppm lithium, and an inferred resource of 827 million tonnes grading 884 ppm lithium utilizing a 400 ppm Li cut-off. In December 2021, a robust PEA** indicated an After-Tax NPV(8) of US$1.3 Billion and IRR of 31% using US$9,500/tonne Lithium Carbonate Equivalent (LCE). Using the LCE long term forecast of US$14,000/tonne, the PEA indicates an NPV (8%) of approximately US$2.6 Billion and an IRR of 52% at US$14,250/tonne LCE.
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. This news release may contain forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements regarding, among other things, the completion transactions completed in the Agreement. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, regulatory approval processes. Although Noram believes that the assumptions used in preparing the forward-looking information in this news release are reasonable, including that all necessary regulatory approvals will be obtained in a timely manner, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Noram disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable securities laws. *Updated Lithium Mineral Resource Estimate, Zeus Project, Clayton Valley, Esmeralda County, Nevada, USA (August 2021) **Preliminary Economic Assessment Zeus Project, ABH Engineering (December 2021).
Joining us for a conversation or legendary Rick Rule of Rule Investment Media and David Cole of EMX Royalty as will discover why mineral royalties are powerful financial instruments.
About EMX Royalty: EMX Royalty Corporation has a long-standing track record of success in exploration discovery, royalty generation, royalty acquisition, and strategic investments. Our diversified, three-pronged business approach provides exposure to multiple upside opportunities while minimizing the impact on EMX’s treasury.
EMX’s business model is designed to efficiently manage the risks inherent to the minerals exploration and mining industry. Key elements and resulting advantages of our unique approach are: We organically generate royalties through low-cost property acquisition and early-stage exploration to build value, and then develop partnerships with quality companies to advance the projects, with EMX retaining a royalty interest and receiving pre-production payments. Our organic royalty growth is supplemented by purchases of royalties from other parties, as well as strategic investments. Cash flow from royalties, advance royalties, and other property payments are supplemented by returns from strategic investments and provide “self-funding” operating capital for our ongoing business initiatives. Using this model, we sustainably grow the royalty portfolio, with minimal dilution to our shareholders. EMX’s royalty and property portfolio spanning five continents and consists of a balanced mix of precious metal, base metal, and other assets.
Joining us for a conversation are two of the most prolific names in the natural resource space, both legends in their own right, as we are joined today with Rick Rule of Rule Investment Media and David Cole of EMX Royalty.
Maurice Jackson:
I must say it’s an absolute delight to be speaking with you both today, as I hold you both in the highest regard personally and professionally, as we plan to discover why mineral royalties are powerful financial instruments. We have a lot of ground to cover today, gentlemen, so let’s get to it.
Maurice Jackson:
Mr. Rule, you have a proven track record of nearly 50 years as a wealth builder for you and your clients through resource stocks. What are you seeing right now that gives you the courage and conviction that resource stocks may present a once in a lifetime opportunity?
Rick Rule:
First of all, you’re always not wise to contradict your host, but I’ve had a couple of these opportunities in my lifetime. So I don’t think it is a once in lifetime opportunity. But I, as you point out, have been lucky enough to see the opportunity before that’s in front of me now. And it was extremely pleasant to participate in. Natural resource bull markets are wonderful financial events if you participate in them early enough.
Rick Rule:
And my own belief, is that right now we are in the latter stage of the beginning of a precious metals bull market. And we’re probably in an earlier stage in a broader natural resource bull market. And the idea to participate in two real bull markets where the outcome is a probability, not a possibility, is extraordinary.
Rick Rule:
It is seldom before in my life have the fundamental factors that are in front of me come together simultaneously that has given me the courage of my convictions with regards to the probabilities of the outcome, is what I’m talking about. And that’s what feels good to me now.
Maurice Jackson:
Given the reasons you just convey to us, investors and speculators alike are seeking prudent ways to preserve their capital, and if possible, sweeten the deal with the delivery of some nice returns. About a decade ago, you introduced me a business model that offers investors both of these virtues, and I’m referring to the concept of mineral royalties. For someone new to the conversation, would you please share what are mineral royalties and why are mineral royalty companies a strategic part of your portfolio?
Rick Rule:
What I’ve learned over time is that having an economic interest in a revenue stream where my gross is my net is a very good thing. What a royalty is, is a part of the revenue stream of a mine or an oil well or something else. But you don’t bear any establishing capital risk, any sustaining capital risk or any operating cost risk.
Rick Rule:
So to the extent, as an example, that you disagree with a management team over some of their expenses, it doesn’t matter. You just get the check. Your gross is your net. A mineral royalty too is a timeless interest pretty much. And that means that most of the surprises that you can have are pleasant surprises.
Rick Rule:
If you are lucky enough to own a royalty on a tier one mineral discovery, my experience has always been that big discoveries yield surprises and small deposits yield surprises too. But big discoveries yield pleasant surprises, and small discoveries yield unpleasant surprises.
Rick Rule:
So a mineral royalty, which is established on a, let’s say, a 1 to 1.5 million ounce gold deposit, which feels attractive over 30 years might end up producing two, two and a half million dollars. The additional exploration expense that goes into establishing the lengthening of your royalty, the operating costs, the sustaining capital costs, the taxes, all that stuff doesn’t matter. Remember on a royalty for the most part, your gross is your net, which is very pleasant.
David Cole:
With regards to mineral royalties, what also comes to mind is the concept of optionality. Mineral royalties are phenomenal financial instruments, particularly in an inflationary environment, for the very reasons that you laid out and that discovery optionality and advancement of engineering techniques, all of which are multiplicative, make royalties fantastic instruments to hold.
Maurice Jackson:
And David, if you would expand on that word optionality, that may be a new term for readers.
David Cole:
Sure. So that’s the chance that things might go super well or super bad. And the couple of guys, Black Scholes got a Nobel prize for defining a formula, how to calculate what optionality is worth and options trade in the marketplace. And with respect to royalties, what we’re talking about is the chance that things can go well.
David Cole:
And as Rick pointed out, the cost that goes into the exploration and discovery work, development work, production work et cetera, et cetera, is born by the counterparty, not by the royalty holders. So we’re exposed to all that upside optionality. And that’s one of the things that makes a portfolio of royalty so powerful.
Maurice:
Mr. Cole, you’re the CEO of the royalty generator and I’m referring to EMX Royalty. Please introduce us to the value proposition that EMX Royalty presents for investors along with your current share price.
David Cole:
Well, I’m more than happy to talk about that. And first of all, it all revolves around this concept the royalties are fantastic instruments, and different royalty companies accumulate royalties in different ways. There’s royalty financings to advance mine projects. There’s purchasing of existing royalties. And then there’s royalty generation.
David Cole:
We love to generate royalties through the prospect generation business model, acquiring prospected mineral rights around the world, adding value by doing good geology and coalescing data, selling that onto an industry, hungry for discovery opportunity. And as Rick said, I’ve never seen an industry more hungry for discovery opportunity than we have today across the periodic table.
David Cole:
And we love doing that. We love selling them on for cash shares and of course, a royalty. We also buy royalties to augment that portfolio, to create that portfolio effect and to further advance the optionality.
Maurice Jackson:
And you do that organically. That’s what I find very intriguing about your business model.
David Cole:
That is our defining factor. That’s our hedgehog, and we’ve sold by example, Maurice, 83 projects in the last four years. We have track record of just selling projects right and left. And when I’m talking about selling projects, what I mean is we stake mining claims, or we acquire mining licenses from governments, add value, and then move them onto a counterparty, junior companies, and major companies.
David Cole:
And in the junior company deals, it’s commonly cash payments and share payments. We’ve done exceedingly well with the share payments over our nearly 20-year history and always a production royalty at the end. With major companies, which we also love to do business with, we’ve done six deals with Rio Tinto, the largest mining company in the world the last four years, as one example. And there, it’s more focused on the inground expenditures, cash payments, and of course the royalty at the back end.
David Cole:
And we’re just delighted to have the capital across our portfolio being expended by our counterparties, but also their expertise employed across that portfolio, which is enhancing this concept of discovery optionality, which is where the big win comes from. Of course, there’s commodity price optionality as well, which is a hot topic in an inflationary environment.
Maurice Jackson:
Now, before we delve into specific projects, multi-pronged question. Mr. Cole, how many projects are in the EMX property bank and how many of those projects are now in the harvest mode of generating royalties?
David Cole:
So when you use the word bank, that’s probably a good word to use. So we have approximately 300 mineral property positions globally, more than a dozen countries. We’ve always taken a broad approach. We’ve cast a broad net to find value, and that’s a very strong base of pyramid.
David Cole:
And then EMX does have half dozen producing assets or assets that are just about to become producing at the top of the pyramid. And we’re at the transitionary point where we’re going from a junior company that’s been building a portfolio of mineral property positions and royalties to one that has strong cash flow. And we’re right at that tipping point this year.
Maurice Jackson:
And we’re going to highlight five of those here in just a minute. Rick, in the resource space, precious metals seemed to dominate the conversation. But I’d like to get your thought on base metals and in particular, the outlook for copper.
Rick Rule:
I think the two easiest things to think about is that the driver for copper is the ascent of humankind to the extent that there are almost eight billion people on earth and more people every day. And to the extent that humankind has a responsibility, I believe, to take the poorest half of humanity and increase their wellbeing, that automatically comes to copper.
Rick Rule:
Many readers may not know that 1.2 billion people on earth have no access to electricity. And another 2 billion people on earth have access to intermittent or unaffordable electricity. We’ve done a great job as humankind the last 30 years in increasing the material a lot of the poorest of the poor. But we have a lot more to do, and an important transition from a subsistence lifestyle to a more fulfilling lifestyle, at least part of the material translation is electricity, and electricity is copper.
Rick Rule:
At the same time that we need to continue to increase access to electricity for the poorest half of humanity, the other half of humanity wants to increase their electrical consumption too electric vehicles, power, gadgets, all those types of things. All requires copper. While this happens, in other words, while demand for copper is inexorably higher and where the rate of increase is probably increasing, we have under-invested as an industry in copper exploration production for 30 or 35 years.
Rick Rule:
The truth is most of the world’s great copper mines are a bit like me. They’re old, they’re past their prime. Bingham Canyon has been producing for 120 years. Chuquicamata has been producing for 105 years. Grasberg has producing for my whole lifetime, which is to say 69 years. You don’t stand at the top of a pit, throw in fertilizer and water and have it grow more copper. That’s not the way it works.
Source: https://wikitravel.org/en/Chuquicamata
Rick Rule:
So five years from now, what you see is that these old behemoths become longer and longer and longer of tooth. While as a consequence of three decades of under investment and exploration production, there’s nothing to take their place. And if there is something to take their place, increasingly, there are political and economic roadblocks put in front of them. There’s a wonderful copper deposit here in the United States called Resolution that the world’s been talking about for 20 years. And it’s probably 10 years away from permitting and production, not in time to make any difference in a supply outlook.
Rick Rule:
So, to the extent that one is able to make a copper discovery, the appetite among the major copper producers to buy these projects, to replace the old behemoths, which are long of tooth. And the incredible interest that governments and consumers have about increasing the material wellbeing of their citizens, which is a fancy way of saying increasing demand for copper, means that an intelligently constructed copper exploration royalty development program, I say intelligently crafted. Part of the problem in the last 30 years has been that not only haven’t we invested enough money, we’ve invested most of the money that we’ve invested stupidly.
Rick Rule:
So we’ve been both unwitting and unscrupulous in the mining business with regards to copper. But the result of that is that successful efforts in the copper business pay absolutely tremendous rewards and will continue to, I think. Most people in the west when they think about copper, they think about Tesla or something like that. And that’s fine. That’s wonderful.
Maurice, I’ll point out if you don’t mind that Dr. Richard Schodde is our consulting and advisor on the mineral economic side out of Australia, MinEx Consulting. He believes that conservatively, the planet will consume as much copper in the forthcoming 20 to 25 years as has been consumed by humanity throughout all the history cumulatively.
David Cole:
And when you think about that with respect to the under-capitalized situation in the copper industry, it’s very, very dynamic situation. It’s very difficult not to be extraordinarily bullish copper. And Rick mentioned that Bingham Canyon Mine, one of the largest open pit mines in the world is where open pit mining was first invented. The globe currently consumes the entire endowment of that deposit annually. So it’s an interesting situation for the copper business.
Maurice Jackson:
Sticking with copper, Mr. Cole, let’s visit the EMX property banking, and get acquainted with some of your royalties beginning in Chile at the Caserones Mine where EMX recently increased its position there. Tell us about the royalty and why the increase.
David Cole:
So well, first of all, as said, we’re very bullish copper, have always believed in having a diversified portfolio and copper has been a key component to that. Scott Close who heads our investor relations team, likes to call Caserones, Casherones. This is a very long live asset. Officially, it’s a 17-year-mine life, but as geologists, we’ve looked at it. We see 25-plus years of production here just from the existing deposit as it is open ended at depth, and copper cutoff grades have a long history of decreasing over time because of these various factors that we’re pointing out.
David Cole:
So this is a very long lived assets. It’s like having a 30-year bond that pays in pounds of copper. And we do see a little bit of upside with respect to production coming from that, but we’re very bullish copper prices. And we did have the opportunity to buy at a fair valuation, a 0.4% royalty on that deposit. And then the opportunity came along for us to augment that as additional family members who owned this royalty wanted to sell and liquidate.
“We have under-invested as an industry in copper exploration production for 30 or 35 years”. ~ Rick Rule
David Cole:
And so we had the chance to increase that, and we did it as that next bite was larger than we could afford by ourselves. We brought in Franco-Nevada as a partner, and we have a huge amount of respect for Franco-Nevada. They’re the leader in the mining royalty space. And if you would’ve asked me who’s the best company to be a strategic investor in EMX, I would’ve said Franco-Nevada.
David Cole:
Very happy to get them across the line and become a shareholder in EMX, part and parcel to us taking that further bite and increasing our exposure to Caserones. And that’s not our only copper exposure in the world. Of course, we have a royalty on the Timok Project, which is one of the largest ongoing copper-gold discoveries on the planet.
Maurice Jackson:
Why would Franco Nevada the biggest, most successful company in the mineral royalty sector want shares in EMX?
“I think there is going to be an increasing demand for electrification for well to do people. But the real opportunity is increasing the material living standards for the bottom half of humanity. We have an obligation to do it. We’ve done a good job of it over the last three decades, it’s going to continue. And the driver is going to be copper”. ~ Rick Rule
David Cole:
And we’re delighted to have them on board. They’ve been giving us accolades for the royalty generation work for many years. We know these folks well from our history. I used to work with some of them at Newmont Mining Corporation, and they would come up to me. David Harquail once said, “Dave, we believe that your royalty generation work is topnotch and hats off to you for doing that.”
David Cole:
And ultimately, it was that that carried him across the line and got them to invest in the company. But ironically, it was associated with a royalty purchase. But Franco Nevada recognized the power and the integration of buying royalties as well as growing them organically to build your portfolio.
Maurice:
All right, I’ve thrown you some softballs here. Here’s a tough one. EMX has recently deployed a substantial amount of capital lately acquiring cash flowing and/or soon to be cash flowing royalties and taking on debt to do so. Does this really make sense in the long-term health of the company? I mean, is this really in the best interest of the shareholders?
David Cole:
Absolutely, absolutely. So, our calculated risk adjusted internal rate of return on the monies that we’ve invested into purchasing these portfolio of royalties vastly exceeds the cost of that capital. And speaking of cost of capital, one of the important goals here is to populate the top of the pyramid, increasing our cash flow, and enabling us to move across that border from a junior company to a mid-tier company with strong cash flows, which will significantly reduce our cost of capital as we able to form a relationship with major senior banks. And we’re in those discussions now.
David Cole:
So this is all part of our strategy to prudently grow our portfolio. And particularly in an inflationary environment, paying a 7% coupon rate to borrow some money to buy things that have double digit internal rates of return is smart business.
Maurice:
Rick, as a shareholder, how significant is it when you see Franco-Nevada paying a premium to own a 3.5% stake in EMX?
Rick Rule:
I like good partners. I’ve been a Franco-Nevada shareholder on and off because of course they disappeared for a while since 1982, and I hold them in very high regard. Dave has done a good job, I think, of attracting other sophisticated shareholders in EMX.
Rick Rule:
But certainly, I’m attracted to EMX as a shareholder. What price they paid is really a matter of their own concern, the fact that they paid a premium. I think if you look at the nature of the royalty transaction, the premium was explained.
“That’s what separates us from the crowd. And that’s why we’re the only junior or mid-tier royalty company that Franco Nevada has ever bought stock in and hold stock in currently“. ~ David Cole
Rick Rule:
But the truth is that in Franco-Nevada, EMX has a partner that should they have an opportunity that is time sensitive and attractive, they have a partner that could stroke a $250 million check or a $350 million check overnight without blinking an eye. And a partner that has the sophistication and the courage to be able to do that, that’s what’s important.
Maurice:
Rick, we just highlighted copper. What is your outlook on the opportunity before us in nickel?
Rick Rule:
Well, nickel, you could also say is also an electric metal. It’s in tighter supply than copper. Most of the marginal nickel production that we’ve seen in the world in the last 30 years is lateritic nickel, which is nickel that occurs in tropical environments, often Indonesia and the Philippines. And the production of lateritic nickel is extremely environmentally degrading and also extremely energy intensive. So you need to break down nickel between lateritic nickel and primary sulfide deposits.
Rick Rule:
Primary nickel sulfide deposits are very rare and extraordinarily valuable. A primary nickel mine, even at today’s nickel, makes an awful lot of money. In the very near term, the nickel price looks inexorably higher because the world’s most important nickel producer is Russia. The political difficulties between Russia and the rest of the world, including the fact that because Russia has been kicked out of the SWIFT banking systems means that even if they sell nickel, they can’t get paid for it in any currency that they can spend.
Rick Rule:
But looking beyond that, the uses of nickel in batteries, in stainless steel, in metallurgical applications, nickel is tied very, very directly like copper to the ascent of humankind. But primary nickel deposits are even rarer than high-quality primary copper deposits.
Maurice Jackson:
David, about two weeks ago, EMX announced that it had made a strategic investment in privately held Premium Nickel Resources, which holds a trio of defunct nickel, copper and cobalt mines in Botswana of all places. Now, this seems to be a big deviation from the EMX business model. What’s going on there?
David Cole:
Well, it’s actually a key part of our business model to make strategic investments. And so it’s quite synergistic with our royalty generation work. We’ve got smart economic challenges around the world, identifying properties to acquire. And occasionally, they come across an opportunity to invest in a company where we cannot, not buy the stock.
David Cole:
And you may recall the investment that we had in Russia of all places, that we liquidated at a substantial profit. That was a strategic investment in an ongoing copper and gold development story. We did exceedingly well on and happy to have our money out of Russia back in 2018 and have not gone back, I’ll point out.
David Cole:
But that’s an example of us making strategic investments. Our track record over a nearly 20-year pathway here has been quite good. We’ve netted out over 50 million USD from our strategic investments. And we’ve had a couple bumps on the chin. We’re comfortable with taking risk and the wins have far outweighed the losses.
David Cole:
This is our next major strategic investment, absolutely delighted for the very reasons that Rick pointed out to have that nickel exposure. And we think that the premium nickel asset in Botswana is going to be in the top five nickel sulfide systems on the planet. We’re very bullish about that opportunity.
Maurice Jackson:
Multimillion dollar question here, can you provide us with an update on the situation with Zijin Mining in Serbia at the giant Timok copper-gold mine?
David Cole:
Everybody wants to know the answer to that. Of course, I can selectively disclose information, but I can say that we are in negotiations with Zijin. They’ve been quite professional and communicative to work with, and I’m confident that we’ll come to a mutual agreement.
Maurice Jackson:
All right. The Balya silver-lead-zinc mine in Turkey, it’s been ramping up for a while now. What’s the latest there?
David Cole:
So the exploration results have been phenomenal. The deposit continues to grow. They’ve decided that they will build a second mill, which we’re delighted that will substantially enhance our cash flow long-term. And they are entering into commercial production now. I expect the first royalty check to come in within the next couple of months, actually. And I do expect production to ramp up from multiple underground headings over the course of the next five years. Five years from now, it’s going to be a substantial annual royalty for us.
Maurice Jackson:
Can you give us an update on the Gediktepe gold oxide and polymetallic mine? And when will this royalty start cash flowing?
David Cole:
That one’s also just a couple months away, Maurice. And so that’s an interesting royalty in that the royalty on the upper oxide zone, which is gold and silver enriched, is 10%. That was part of the sales price when the predecessor to SSR sold that on to the current operator, Lidya, and that 10% kicks in after 10,000 ounces have been poured. And we’re right at 4,000 ounces right now. They are in production, they’re placing ore on the pad. They did have a tough winter season, so that slowed them down a little bit, but they’re only a few weeks behind.
David Cole:
And we’re seeing greater in production as they head into summer. As soon as they cross the 10,000th ounce, which will be just a few months out, probably June or July, then we’ll start to receive royalty payments on that, and that is a 10% royalty. And that’s on the upper oxide zone, which we believe will have about a five-year mine life. And then it goes into the polymetallic sulfide zone, which is dominated by zinc and copper, two commodities we love. And that’s a 2% royalty in perpetuity on that zone.
David Cole:
So that’s another key asset within the portfolio that starts to cash flow in a few months.
Maurice Jackson:
Now that 10% is just remarkable. With all the new royalty cash flow and pending royalties poised to begin paying, what will the cash flow look like for EMX for the remainder of 2022?
David Cole:
Yep. So we will be coming out with guidance in two quarters, and we’re diligently working on that. And our bankers are talking to us about that. And that’s part of our shelf filing that we’re also in the process of, and this is all part of our maturing from a junior company that’s been building a portfolio to a mid-tier company with strong cash flows. And so, as soon as we provide that guidance, Maurice, you’ll be one of the first to know.
Maurice Jackson:
Right, looking forward to it. Leaving the property bank, Rick, I know you have a very stringent, selective criteria for companies that make the grade, if you will, before you will commit your capital. Now, we just heard Mr. Cole referenced that EMX has five attractive royalties and more on the way along with an attractive share price, in my opinion.
Maurice Jackson:
That all sounds compelling, but you taught me years ago that the competitive advantage for a shareholder is found in the board of directors, management, and technical team. Why are the people equally, if not more, important to you as a shareholder than the given project, and specifically the team that comprises EMX royalty?
Rick Rule:
Bad people can screw up good rocks. If the wrong team controls the cash flow, they get it and the shareholders don’t, simple as that. The second thing of course, is that luck favors the trained observer. And you need luck in exploration. Dave has done a great job over 20 years. He’s a geologist himself, but I would say his true talent is hiring and motivating and keeping very good geologists.
Rick Rule:
So, what has always attracted me to EMX has been the technical IQ per dollar of market cap. The fact that although the team has done a decent job of buying royalties, what I think the real secret sauce is the fact that they have generated royalties by generating 300 exploration concepts that other people have bought into. It can take a decade for prospect generation to work for you. But prospect generation, in my own portfolio, has been by far the most capital efficient exploration speculation that I have done. What the EMX team did is they figured out a better payments mechanism.
Rick Rule:
For most of my life, I invested in teams that had great intellectual capital that generated projects, and they ended up getting a carried interest in the project. The problem with that is that they sometimes didn’t have the ability to carry the load as the project went into production. And well, they had a lot of exploration expertise, they maybe didn’t have construction or development expertise.
Rick Rule:
What David did is he really simplified the way they got paid. Rather than get paid in the ability to own on a subsidized basis, a minority interested in operation that they may not know how to operate, he developed a circumstance where they got paid a carried interest by way of a royalty, which is ultimately a safer and probably a more valuable instrument.
Rick Rule:
The same intellectual capital that he has hired and deploys in the exploration business can be used to both source and evaluate either merchant banking opportunities, which is to say those companies that he invests in strategically or royalties. So I think it’s important that the exploration IQ that has been assembled within EMX turns out to be a strategic advantage in moving their asset base forward.
Maurice Jackson:
Now, Rick, we’ve heard you convey the merits of owning mineral royalties, and we’ve heard the virtues that EMX royalty presents to the market. Before we close, what did I forget to ask?
Rick Rule:
Well, I think, the important question to ask any company that’s beginning to mature is how are the capital allocation decisions made. What would be as, an example, the capital cost assumptions around the debt that they took on and what sort of pro forma delta would occur between cost of capital to return on capital employed? How strategically will the decision be made internally as to whether to emphasize the merchant banking business, the royalty generation business, or the royalty acquisition business?
Rick Rule:
And then finally, I think, the royalty acquisition business is extremely competitive. I would ask Dave to describe the competitive advantage that he may feel against the 30-some odd other players in the mineral royalty space.
Maurice Jackson:
All right, Mr. Cole. So, you know what’s up for our next interview.
David Cole:
It boils down to our alpha, which is on the technical side. And we believe that astute business decisions are rooted in solid technical understanding. And we’ve always had a strong technical team here at EMX to drive those business decisions so that we can have that astute allocation of capital.
Maurice Jackson:
Last question for you, Rick, tell us about the Rule Symposium, which will be held this year at the beautiful Boca Raton Resort in Boca Raton, Florida, July 26th through the 29th.
And I thought you’d never ask, Maurice. As both of you know, or all of you, frankly, to have put on natural resource investing conferences, the majority of those, the live ones took place in Vancouver, BC. A couple years ago because of COVID, we had to discontinue that one for a while. And we’d like to bring it back to BC, but the truth is with the COVID circumstance and public health administrations and two countries doing their level best to thwart my franchise, we decided to bring the conference down to the United States because most of the attendees are, in fact, American.
Rick Rule:
We searched around the country for a resort that was of the same quality that we expected, and one that had the facilities that we needed. And we found one in Boca Raton. The Boca Resort has a long and fabled history. It’s just undergone a spectacular renovation. They put hundreds of millions of dollars in it. They’re renting rooms to our attendees for $295 a night. Their rack rate is about a thousand, truly spectacular location.
Rick Rule:
The conference itself has a long and storied history. We’ve always had great speakers. We have Jim Rickards, Danielle DiMartino Booth, Doug Casey, the normal sort of gurus. But what’s always made our conference set apart is really two things. One, we have always had what I call the living legends, which is to say, we’ve always had the speakers, people who have built multi-billion dollar businesses in natural resources from scratch. It isn’t all gurus. There’s a lot of jockeys there and they are great jockeys. We’ll have that this year.
Rick Rule:
In addition to that, every exhibitor at our conference is owned either in Sprott managed accounts or in my own account. That doesn’t mean sadly that every stock I own goes up. What it does mean is that my attendees can rest assure that every exhibitor has been vetted. We know them well enough that we in fact, own them.
Rick Rule:
The important part of a live conference is that you get to see the interaction between the exhibitors and the speakers. I remember four years ago, I guess in Vancouver, following at a discreet different distance, Robert Friedland, one of the best resource entrepreneurs in history. And I watched him walk around the exhibit hall. I watched him speak to exhibitors. I took note of which exhibitors he talked to and which exhibitors made him smile and which exhibitors made him frown. I think the opportunity to follow Robert Friedland on a resource stock shopping trip is worth the price of admission.
Rick Rule:
By the way, with regards to the price of admission, every investment product, every investment education product that Rule Investment Media has ever offered over the last 30 years has come with a complete money back guarantee. If you come to the conference, you pay the tuition, and you don’t think it was worth your money? Email me. I’ll give you your money back.
Maurice:
One important factor that maybe you forgot to highlight there is the intellectual capital that you get from other investors. And the lifelong relationships that I’ve had an opportunity to forge has just been, I can’t put a price tag on that.
Rick Rule:
Oh, that’s a very good point. There’s going to be 500 high net worth investors there. And the idea that all the IQ in the room flows from the dais to the room is stupid. Watching fellow investors, listening to the questions that they ask the exhibitors, listening to the questions and the conversations they have amongst each other, listening to the conversations in the workshop, absolutely invaluable. And as I say, if you aren’t prepared to make money on it, there’s a money back guarantee.
Maurice:
Now I know the next question everyone has is how do I register? We’ve got that taken care of for you CLICK HERE. Check the description box below. Also, just visit www.provenandprobable.com. And the link will be on the right side of our homepage just below the weekly precious metal special through Miles Franklin Precious Metals Investments. Mr. Cole, before we close, what would you like to say to shareholders?
David Cole:
Buy the depths, yeah. As Rick likes to say, you want to use the cycles to your advantage rather than be used by the cycles.
Maurice:
Mr. Cole, for someone that wants to learn more about EMX royalty, please share the website address.
VANCOUVER, BC / ACCESSWIRE / May 4, 2022 / (CSE:ROO) (OTC PNK:JNCCF) (Frankfurt:5VHA) – RooGold Inc. (“RooGold” or the “Issuer“).
RooGold is pleased to report that it has acquired an additional, 100% held Exploration Licence (EL) 9390 in the highly prospective Peel-Manning Suture Zone of the New England Orogen in New South Wales, Australia.
Highlights
EL 9390 covers an area of 229 km2 and is strategically located in between Roo Gold’s Lorne (EL 9232) and Gold Belt (EL 9226) Projects.
The three Projects cover 435 km2 over a 65 km strike length of the Peel-Manning Suture Zone which is well known to host precious and base metal mineral deposits.
The Projects are located within 70 km of each other making for efficient logistics and work planning.
Landowner access negotiations and rock chip sampling to commence as soon as practicable at prospective mineral occurrences.
Carlos Espinosa, Chief Executive Officer and a Director of RooGold comments, “Exploration Licence 9390 is a valuable addition to Roo Gold’s tenure portfolio. EL 9390 is 100% held by Roo Gold and was strategically acquired for both its position over the serpentinite package of rocks along the Peel-Manning Suture zone and its close proximity to our Lorne and Gold Belt Projects, making logisitics and work planning more efficient. We look forward to commencing land access negotiations to facilitate field work as soon as practicable”
The Glenrock Project
The Glenrock Project, EL 9390, is located 15 km southeast of the Lorne Project (EL 9232) and 30 km northwest of Gold Belt Project (EL 9226). It covers over 20 km of the serpentinite belt of the Peel-Manning Suture Zone.
EL 9390 contains diverse geology that are known elsewhere in the region to host a variety of mineralisation styles that contain Au-Cu and base metal metallic mineral deposits. Rock types include serpentinites, flysch sequences, intrusives, volcanics and volcaniclastics, structurally located within in a complex, highly faulted system. This system may host numerous metallic mineralisation styles including lode gold with associated base metals. The tenement also contains mineral occurrences of copper-rich quartz veins containing malachite, bornite and chalcopyrite in serpentinite dykes up to 150 m long and 12 m wide. The tenement is significantly under-explored, has never been drilled and represents a ground-floor opportunity for the discovery of new metallogenic province.
Exploration Licence Application (ELA) 6429 was submitted to the Deparment of Regional NSW covering an area of 229 km2 on 3rd February 2022. On 11 April 2022, Exploration Licence (EL) 9390 was granted to Great Southern Precious Metals Pty Ltd, a 100% subsidiary company of Roo Gold Inc.
Following a historic data review and land access negotiations, Roo Gold will undertake a field reconnaissance trip and rock chip sampling to identify targets for follow up.
RooGold Inc., Wednesday, May 4, 2022, Press release picture
Figure 1: Location map with key geology and mineral occurrences of newly acquired EL 9390, Glenrock Project, in geographical relation to Roo Gold’s strategic tenement holding along the Peel-Manning Suture in the New England Orogen of New South Wales, Australia.
ROOGOLD is a Canadian based junior venture mineral exploration issuer which is uniquely positioned to be a dominant player in New South Wales, Australia, through a growth strategy focused on the consolidation and exploration of high potential, mineralized precious metals properties in this prolific region of Australia. Through its announced acquisitions of Southern Precious Metals Ltd., RooGold Ltd. and Aussie Precious Metals Corp. properties, RooGold commands a portfolio of 14 high-grade potential gold (10) and silver (4) concessions covering 1,537 km2 which have 139 historic mines and prospects.
This press release may contain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as “plan”,”expect”, “project”, “intend”,”believe”, “anticipate”, “estimate” and other similarwords, or statements that certain eventsor conditions “may” or “will” occur.
Although the Issuer believes that the expectations reflected in applicable forward-looking statements are reasonable, therecan be no assurance that such expectations will prove to be correct. Such forward-looking statements are subjectto risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in such statements.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
VANCOUVER, BC / ACCESSWIRE / May 4, 2022 / Metallic Minerals (TSX.V:MMG)(OTCQB:MMNGF) (“Metallic Minerals“, or the “Company“) is pleased to announce the creation of a dedicated Community & First Nations Relations team for the Metallic Group of Companies and the appointment of Lindsay Wilson to the role of Manager, Community and Investor Relations. Ms. Wilson will be working alongside Lauren Blackburn, the Company’s Yukon-based Regulatory & Permitting Manager, in further strengthening our relationships with First Nations, local communities and governments.
The Metallic Group is well established in the Yukon with multiple projects under development by member companies. The Group employs dedicated personnel in Whitehorse, who are long-time residents of the Yukon and, as such, have an affinity for and understanding of its people, its history and its robust mineral endowment. Ms. Blackburn has been with Metallic Minerals and the Metallic Group since its founding and has taken a leading role in the Company’s community, permitting and regulatory initiatives. The addition of Ms. Wilson greatly increases our capacity to build meaningful and long-lasting and mutually beneficial partnerships in keeping with our strong commitment to environmental, social, and governance (“ESG”) aspects of the resource sector. The Metallic Group is committed to applying best industry practices to exploration and to make positive contributions in the Territory and the specific communities in which we work.
Lauren Blackburn – Manager, Regulatory and Permitting
Ms. Blackburn has over 15 years of Yukon-based experience in the mineral exploration sector focused on the exploration and development of early to advanced-stage silver, gold, and base metal deposits. Her primary concentration has been in northern Canada where she has garnered a dynamic skill set that includes expertise in the exploration process, permitting, lands management, regulatory lobbying, land-use planning and community engagement. Ms. Blackburn is highly involved in Territorial legislation and policy review, permitting activities and assists in evaluation of potential project acquisitions and strategic development.
Lindsay Wilson – Manager, Community & Investor Relations
A member of the Snuneymuxw First Nation on Vancouver Island, Ms. Wilson is focused on incorporating traditional ways of being into her work within the resource sector and seeking to develop sustainable and credible partnerships within the communities that she works. Ms. Wilson has a comprehensive background in indigenous studies and public relations, alongside practical experience in the mineral resource sector. Having worked previously in the Yukon with the Yukon Mining Alliance, Ms. Wilson is excited about the opportunity to return to work in the Yukon and looking forward to reconnecting with the communities there.
Arctic Indigenous Investment Conference (AIIC)
The Metallic Group Community and First Nations Team will be attending the AIIC on May 4th & 5th in Whitehorse, Yukon.
Connecting globally – through a hybrid (in-person & virtual) experience – AIIC 2022 will highlight and promote indigenous development corporations and businesses in the northern economy, alongside the north’s business community and colleagues across sectors. The goals of AIIC 2022 are to support economic reconciliation and growth, and youth entrepreneurship by forging new and stronger relationships, advancing meaningful partnerships, and connecting people across the arctic. Indigenous development corporations and businesses play a key role across northern Canada. These efforts are supported when we stand together with a collaborative voice for business, northern investment and our citizens, to ensure a diverse and prosperous economy, community and future.
About Metallic Minerals
Metallic Minerals Corp. is an exploration and development stage company, focused on silver, gold and copper in the high-grade Keno Hill and La Plata mining districts of North America. Our objective is to create shareholder value through a systematic, entrepreneurial approach to making exploration discoveries, growing resources and advancing projects toward development. Metallic Minerals has consolidated the second-largest land position in the historic Keno Hill silver district of Canada’s Yukon Territory, directly adjacent to Alexco Resource Corp’s operations, with more than 300 million ounces of high-grade silver in past production and current M&I resources. In addition, the Company recently announced the inaugural resource estimate for the La Plata silver-gold-copper project in southwestern Colorado. All of the districts in which the Company works have seen significant mineral production and have existing infrastructure, including power and road access. Metallic Minerals is led by a team with a track record of discovery and exploration success on several major precious and base metal deposits, as well as having large-scale development, permitting and project financing expertise.
About the Metallic Group of Companies
The Metallic Group is a collaboration of leading precious and base metals exploration and development companies, with a portfolio of large, brownfields assets in established mining districts adjacent to some of the industry’s highest-grade producers of silver and gold, platinum and palladium, and copper. Member companies include Metallic Minerals in the Yukon’s high-grade Keno Hill silver district and La Plata silver-gold-copper district of Colorado, Granite Creek Copper in the Yukon’s Minto copper district, and Group Ten Metals in the Stillwater PGM-nickel-copper district of Montana and Kluane district in the Yukon. The founders and team members of the Metallic Group include highly successful explorationists formerly with some of the industry’s leading explorer/developers and major producers. With this expertise, the companies are undertaking a systematic approach to exploration and development using new models and technologies to facilitate discoveries in these proven, but under-explored, mining districts. Members of the Metallic Group have been recognized as recipients of awards for excellence in environmental stewardship demonstrating commitment to responsible resource development and appropriate ESG practices. The Metallic Group is headquartered in Vancouver, BC, Canada, and its member companies are listed on the Toronto Venture, US OTCQB and Frankfurt stock exchanges.
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.
