VANCOUVER, BC, Jan. 28, 2021 /CNW/ - Elemental Royalties Corp.
("Elemental" or "the Company") (TSXV: ELE) (OTCQX:
ELEMF), a gold-focused royalty company providing investors with
exposure to a growing portfolio of producing royalties, notes the
recent announcement from Austral Gold Limited ("Austral")
(ASX: AGD) (TSX-V: AGLD) that in the course of a successful
delineation program at its Amancaya mine it has discovered a new
mineralized zone. Elemental holds a 2.25% NSR royalty at Amancaya,
which is expected to produce in excess of 50,000 gold equivalent
ounces in 2020.
Additionally, Capricorn Metals ("Capricorn") (ASX: CMM)
released their December Quarterly Activities Report, confirming
that development of the Karlawinda Gold Project is proceeding as
planned, with first gold production expected in the June 2021 quarter. Elemental has entered into a
binding agreement to acquire a 2% NSR royalty on Karlawinda from
South32 Limited.
"This is a very exciting development, with Austral noting
that it is potentially transformative with respect to both possible
production rate, and mine life." said Frederick Bell, CEO of Elemental.
"Elemental's highest royalty rate is on the Amancaya mine –
giving us a high degree of leverage to additional discoveries. We
are also pleased that Karlawinda construction is on time and on
budget; we are looking forward to the start of production at the
110-125,000 ounce per annum gold mine in Q2 2021."
Drilling Highlights - Amancaya
- 2.53 metres @ 12.18 g/t gold and 8.5 g/t silver in
the Central Vein and discovered a new mineralized breccia zone
below that of 30m at 4.04 g/t
gold and 7.5 g/t silver, including 4.14 metres @ 23.50
g/t gold and 29.3 g/t silver (DAM-008)
- 1.35 metres @ 14.65 g/t gold and 50.6 g/t silver,
including 42.43 g/t gold and 124 g/t silver over 0.44 metres
(DAM-002)
- 2.07 metres @ 12.13 g/t gold and 57.5 g/t silver,
including 21.01 g/t gold and 142.8 g/t silver over 0.88 metres
(DAM-003)
- 0.40 metres @ 41.89 g/t gold and 7.5 g/t silver
(DAM-012)
Extension of Known Veins
The Amancaya drilling program commenced in Q4 2020, targeting
Resource and Reserve growth at depth. Austral notes that a new
strategy orienting the drilling from west to east has intercepted
the veins 50-100 metres below existing workings, with similar
widths and tenor.
A New Mineralized Zone
In addition, Austral also reported the discovery of a new
mineralized breccia system, some 40 metres downhole beyond the
currently mined vein. This new wide zone of hydrothermal breccia
may have the potential to enhance the production profile and
further extend mine life at Amancaya.
Karlawinda Construction on Track
Capricorn announced that concreting and civil earthworks have
been completed at the processing plant, the ball mill has been
delivered to site, the majority of processing equipment and
steelwork has been delivered, construction of the Tailings Storage
Facility is underway, and mining has commenced in the Bibra open
pit.
Development costs are in line with budget, with the available
funding balance including a 29% contingency allowance. First gold
production continues to be expected in Q2 2021.
Capricorn has also commenced a near pit exploration program,
targeting the conversion of Inferred Resources to Indicated
immediately to the west of the current A$1,600 Bibra pit, to support potential pit
expansions and production increases. Significant interceptions
include:
- 5 metres @ 3.77 g/t from 36 metres (KBRC1470)
- 7 metres @ 1.59 g/t from 48 metres (KBRC1456)
- 4 metres @ 2.09 g/t from 35 metres (KBRC1467)
- 2 metres @ 3.68 g/t from 49 metres (KBRC1467)
- 12 metres @ 0.74 g/t from 44 metres (KBRC1455)
- 11 metres @ 0.75 g/t from 67 metres (KBRC1468)
On behalf of Elemental Royalties Corp.
Frederick Bell
CEO and
Director
Elemental is a proud member of Discovery Group. For more
information please visit: discoverygroup.ca or contact
604-653-9464.
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.
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.
SOURCE Elemental Royalties Corp.