VANCOUVER, BC, March 29, 2021 /CNW/ - Elemental Royalties Corp.
("Elemental" or "the Company") (TSXV: ELE) (OTCQX:
ELEMF) is pleased to announce the appointment of South32 Limited
("South32") Chief Development Officer Simon Collins to the Elemental Board of
Directors and update on developments across the Company's royalty
portfolio.
Director Appointment
- Following the acquisition of a portfolio of precious metals
royalties from a wholly owned subsidiary of South32 and in
accordance with an Investor Rights Agreement, South32 has nominated
a director to the Board of Elemental to increase the number of
directors to five.
- Simon has more than 25 years' experience in the resources
industry in senior leadership and business development roles
- At South32, Simon leads the Corporate Development team which
covers portfolio strategy, business development, mergers and
acquisitions and greenfields exploration. Simon also has
accountability for South32's non-operated Brazilian alumina
refining joint venture, the Hermosa base metals development project
located in southern Arizona and
the 50% owned Ambler Metals base metals exploration joint venture
in Alaska
- Prior to joining South32, Simon worked for BHP for more than a
decade, where he led global business development teams. Simon
started his career in mine operations in Australia and South
Africa
Corporate Update
- Focus Minerals Limited (ASX: FML) ("Focus") announced
the first phase of an Open Pit PFS at their 100% Laverton Project
in Western Australia
- Endeavour Mining (TSX: EDV) ("Endeavour") has provided production
guidance following its acquisition of the Wahgnion mine and
committed to a major exploration program
- Development work has begun on the Tuart Underground Mine
covered by Elemental's royalty at Zijin Mining's (HKG: 2899)
("Zijin") Mount Pleasant Operations
Elemental's CEO, Frederick Bell,
said: "We welcome Simon to the Elemental Board after our recent
acquisition of three West Australian gold royalties from South32.
His business acumen and business development background in the
mining industry complement our existing Board skillset and we look
forward to Simon's contribution as Elemental continues to grow it
portfolio of producing gold royalties."
"Meanwhile the Stage-1 PFS at Laverton confirms our
expectation of the potential for the early development of
higher-grade open pit, oxide deposits in the Royalty Area near to
the Barnicoat Mill. We have already seen encouraging recent
drilling results at Beasley Creek and Beasley Creek South, not all
of which have been included in the announced mine plan and expect
Focus' ongoing assessments will continue to translate to further
Resource and Reserve growth on Elemental's royalty areas,
underpinning a production decision at Laverton."
"Endeavour's production
guidance for 2021 at Wahgnion is ahead of our expectations and the
potential for ongoing Reserve and Resource growth from a
substantial drilling program is very encouraging."
Positive Pre-Feasibility Study at Laverton
- Initial Pre-Feasibility Study ("PFS") across only 21% of
Focus' Mineral Resource base with substantial potential for
resource growth at Elemental's Beasley Creek deposit, which remains
open along strike and where additional infill drilling may lead to
an upgrade of shallow existing Inferred Resources
- Focus recently announced JORC 20121 compliant maiden
Ore Reserves of 546koz of gold, of which 238koz of gold is from the
higher-grade Beasley Creek, Beasley Creek South and Wedge Deposits
covered by Elemental's Royalty2
- New strong intersections at Beasley Creek South to be included
in second-phase PFS already underway
- A number of other deposits with JORC 2004 resources with grades
of 2g/t or greater, many of which are within Elemental's Royalty
Area, are to be updated to JORC 2012 compliance before inclusion in
the second-phase PFS
Endeavour Provides 2021 Guidance and Exploration Budget at
Wahgnion
- Following the acquisition of Teranga, which closed on
February 10, 2021, Endeavour has stated that Wahgnion is expected
to produce between 140 – 155koz of gold
- Applying this guidance over the full twelve months would
provide a production estimate of approximately 158 – 175koz of gold
for FY 2021, continuing the trend of strong outperformance since
the mine was built
- Endeavour also announced that
exploration will be a strong focus in 2021, with their
second-largest budget of US$12
million for a single mine committed to Wahgnion. This will
target both extensions to existing deposits and new greenfields
targets
Development begins on Tuart orebody at Mount Pleasant
- Elemental notes an announcement by a mining contractor that
initial underground development is underway on the Tuart orebody,
covered by Elemental's royalty at Zijin's Mount Pleasant
Operations
- Tuart has a historical JORC 2012 compliant Indicated Resource
of 212koz of gold at 1.8g/t and Inferred Resource of 232koz of gold
at 3.8g/t3 on both conceptual underground and open pit
mineralisation
On behalf of Elemental Royalties Corp.
Frederick Bell
CEO and
Director
For further information about the Company or this news release,
please visit our website at www.elementalroyalties.com or by
email at info@elementalroyalties.com.
Elemental is a proud member of Discovery Group.
Neither the TSX-V nor its Regulation Service Provider (as
that term is defined in the policies of the TSX-V.) accepts
responsibility for the adequacy or accuracy of this press
release.
About Elemental Royalties
Elemental is a gold-focused royalty company listed on the TSX-V
in Canada and provides investors
with lower risk precious metals exposure through a portfolio of
nine high-quality royalties. This enables investors to
benefit from ongoing royalty revenue, future exploration upside and
low operating costs. Elemental's experienced team seeks to secure
royalties in advanced precious metals projects, run by established
operators, from its pipeline of identified opportunities.
Qualified Person
Richard Evans, FAusIMM, is Senior
Vice President Technical for Elemental, and a qualified person
under National Instrument 43-101 – Standards of Disclosure for
Mineral Projects, has reviewed and approved the scientific and
technical disclosure contained in this press release.
Cautionary note regarding forward-looking statements
This release contains certain "forward looking statements" and
certain "forward-looking information" as defined under applicable
Canadian securities laws. Forward-looking statements and
information can generally be identified by the use of
forward-looking terminology such as "may", "will", "should",
"expect", "intend", "estimate", "anticipate", "believe",
"continue", "plans" or similar terminology.
Forward-looking statements and information include, but are not
limited to, statements with respect to the future growth and
development of the Company. Forward-looking statements and
information are based on forecasts of future results, estimates of
amounts not yet determinable and assumptions that, while believed
by management to be reasonable, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Forward-looking statements and information are
subject to various known and unknown risks and uncertainties, many
of which are beyond the ability of Elemental to control or predict,
that may cause Elemental's actual results, performance or
achievements to be materially different from those expressed or
implied thereby, and are developed based on assumptions about such
risks, uncertainties and other factors set out herein, including
but not limited to: the requirement for regulatory approvals and
third party consents, the impact of general business and economic
conditions, the absence of control over the mining operations from
which Elemental will receive royalties, including risks related to
international operations, government relations and environmental
regulation, the inherent risks involved in the exploration and
development of mineral properties; the uncertainties involved in
interpreting exploration data; the potential for delays in
exploration or development activities; the geology, grade and
continuity of mineral deposits; the impact of the COVID-19
pandemic; the possibility that future exploration, development or
mining results will not be consistent with Elemental's
expectations; accidents, equipment breakdowns, title matters, labor
disputes or other unanticipated difficulties or interruptions in
operations; fluctuating metal prices; unanticipated costs and
expenses; uncertainties relating to the availability and costs of
financing needed in the future; the inherent uncertainty of
production and cost estimates and the potential for unexpected
costs and expenses, commodity price fluctuations; currency
fluctuations; regulatory restrictions, including environmental
regulatory restrictions; liability, competition, loss of key
employees and other related risks and uncertainties. Elemental
undertakes no obligation to update forward-looking information
except as required by applicable law. Such forward-looking
information represents management's best judgment based on
information currently available. No forward-looking statement can
be guaranteed, and actual future results may vary materially.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements or information.
Notes
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(1)
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Reconciliation to
CIM Definitions
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In this News Release,
the Company has disclosed a number of resource and reserve
estimates covering properties related to certain mining assets that
are not based on Canadian Institute of Mining, Metallurgy and
Petroleum ("CIM") definitions, but instead have been prepared in
reliance upon the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves ("JORC
Code").
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Estimates based on
the JORC Code are recognized under NI 43-101 in certain
circumstances. In each case, the mineral resources and mineral
reserves included in this Presentation are based on estimates
previously disclosed by the relevant property owner or operator,
without reference to the underlying data used to calculate the
estimates.
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Accordingly, the
Company is not able to reconcile the resource and reserve estimates
prepared in reliance on JORC Code with that of CIM definitions The
Company previously sought confirmation from its Qualified Person
who is experienced in the preparation of resource and reserve
estimates using CIM and JORC Code, of the extent to which an
estimate prepared under JORC Code would differ from that prepared
under CIM definitions. The Company was advised that, while the CIM
definitions are not identical to those of JORC Code, the resource
and reserve definitions and categories are substantively the same
as the CIM definitions mandated in NI 43-101 and will typically
result in reporting of substantially similar reserve and resource
estimates.
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The Company's
Qualified Person further confirmed, without reference to the
procedures in which the estimates prepared using JORC Code that are
reproduced in this News Release were conducted, that in the course
of preparation of a resource or reserve estimate, effectively the
same procedures would be used to prepare and report the resource or
reserve estimate regardless of the reliance on CIM or JORC
Code.
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(2)
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Focus Minerals Ltd
(ASX: FML) announcement titled "Laverton Stage 1 Open Pit PFS
Progressive Results", dated March 11, 2021, and the Beasley Creek,
Beasley Creek South and Wedge orebodies described, amongst others,
in that release are within Elemental's Royalty Area.
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(3)
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The Tuart deposit in
Elemental's Mt Pleasant royalty area has been assigned a historical
resource estimate on both conceptual underground and open pit
mineralisation on the basis of Norton Gold Fields Limited's
announcement dated February 3, 2015, titled "January 2015 Mineral
Resource & Ore Reserve update".
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The estimate was
prepared by Norton Goldfields Ltd (ASX: NGF) in accordance with the
JORC Code 2012 for the situation at Dec 31, 2014, and is available
on the ASX website at:
https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01596085.
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Elemental believes
that the resources disclosed are fundamentally reliable but they
should not be relied on as a current resource estimate, and no
qualified person of Elemental has done sufficient work to classify
the above estimate as current Mineral Resources. Elemental is not
treating the historical estimate as current Mineral Resources or
Mineral Reserves and it is unknown how much of the historical
resource will be economic under the proposed mine plan. Elemental
understands that there has been no production from the area since
the historical resource estimate was published
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SOURCE Elemental Royalties Corp.