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Gidji JV Exploration Update
Element79 Gold Corp Reports Additional Assay Results Reinforcing Lucero Project's Momentum
Element79 Gold Corp. (CSE: ELEM) (OTC: ELMGF) (FSE: 7YS0) ("Element79" , the "Company ”) reports additional results from the most recent underground and surface sampling of its flagship Lucero property.
These geochemical assays of exploration samples continue to support the immense potential housed within Element 79’s crown jewel.
“The data obtained is not just promising; it's the cornerstone upon which our future endeavors will be built,” said James Tworek, CEO of Element 79. “These recent results coupled with historical data represent the bedrock upon which we are advancing our Lucero project.”
Among a total of 97 samples were sent for assays, 56 of which returned greater than 0.1 g/t gold (up to 8.55 g/t gold and 523 g/t silver ) which are shown in Table 1. Several samples also were also rich in base metals (up to 23.7% lead and 9.9% zinc ), all of which underscores the richness of our project further supporting the Company’s belief a robust resource base can be delineated.
Figure 1. Fall 2023 Sample locations (yellow stars), mapped workings (crosses), with selected Samples highlighted.
Table 1. Samples returning >0.1 g/t gold from the fall 2023 sampling program, C (channel sample), G (grab sample), S (surface), U (underground).
Sampel | Type | Origin | WGS84 Z18S Easting | WGS84 Z18S Northing | length (m) | Au g/t | Ag g/t | Cu % | Pb % | Zn % |
2101 | C | S | 803,491 | 8,296,553 | 0.80 | 0.30 | 1.2 | 0.0 | 0.0 | 0.0 |
2103 | C | S | 803,493 | 8,296,666 | 1.00 | 0.53 | 8.9 | 0.0 | 0.0 | 0.0 |
2104 | C | S | 803,658 | 8,296,620 | 0.30 | 0.15 | 0.7 | 0.0 | 0.0 | 0.0 |
2108 | C | S | 803,700 | 8,296,468 | 0.60 | 0.12 | 1.9 | 0.0 | 0.0 | 0.0 |
2109 | C | S | 803,700 | 8,296,469 | 0.50 | 0.30 | 6.2 | 0.0 | 0.0 | 0.0 |
2113 | C | S | 803,730 | 8,296,446 | 1.00 | 0.25 | 40.1 | 0.0 | 0.0 | 0.0 |
2117 | C | S | 803,481 | 8,296,736 | 1.10 | 0.12 | 3.8 | 0.0 | 0.1 | 0.0 |
2119 | C | S | 803,457 | 8,296,803 | 0.50 | 0.58 | 2.6 | 0.0 | 0.0 | 0.0 |
2120 | C | S | 803,456 | 8,296,803 | 0.60 | 1.57 | 9.1 | 0.0 | 0.0 | 0.1 |
2123 | C | S | 803,399 | 8,296,787 | 0.50 | 2.77 | 9.7 | 0.0 | 0.0 | 0.0 |
2124 | C | S | 803,399 | 8,296,788 | 0.80 | 0.27 | 5.1 | 0.0 | 0.0 | 0.1 |
2125 | C | S | 803,298 | 8,297,044 | 0.35 | 1.70 | 57.7 | 0.0 | 0.1 | 0.1 |
2126 | C | S | 803,298 | 8,297,043 | 0.60 | 6.22 | 33.0 | 0.0 | 0.1 | 0.1 |
2127 | C | S | 803,189 | 8,297,146 | 0.35 | 5.01 | 138.0 | 0.0 | 0.1 | 0.0 |
2128 | C | S | 803,303 | 8,296,978 | 0.80 | 0.27 | 17.4 | 0.0 | 0.1 | 0.1 |
2129 | C | S | 803,257 | 8,297,133 | 0.40 | 1.75 | 84.1 | 0.0 | 0.0 | 0.1 |
2130 | C | S | 803,256 | 8,297,133 | 0.85 | 0.65 | 42.6 | 0.0 | 0.0 | 0.1 |
2134 | C | S | 803,594 | 8,297,072 | 0.60 | 0.18 | 26.2 | 0.0 | 0.4 | 0.1 |
2139 | G | U | 801,951 | 8,294,338 | N/A | 6.96 | 81.4 | 0.1 | 0.4 | 0.8 |
2140 | G | U | 801,929 | 8,294,348 | N/A | 1.06 | 23.1 | 0.0 | 0.7 | 1.2 |
2141 | C | U | 801,882 | 8,294,362 | 0.30 | 0.12 | 5.5 | 0.0 | 0.0 | 0.1 |
2143 | C | U | 801,832 | 8,294,389 | 0.30 | 0.90 | 29.1 | 0.0 | 0.1 | 0.3 |
2145 | G | U | 801,809 | 8,294,390 | N/A | 8.55 | 523.0 | 0.0 | 0.4 | 0.2 |
2149 | C | U | 801,824 | 8,294,392 | 0.45 | 6.19 | 97.0 | 0.1 | 0.4 | 0.4 |
2150 | C | U | 802,276 | 8,293,072 | 0.90 | 0.14 | 40.1 | 0.1 | 2.1 | 1.3 |
2152 | C | U | 802,297 | 8,293,075 | 0.30 | 2.11 | 48.5 | 0.0 | 1.6 | 3.6 |
2154 | C | U | 802,297 | 8,293,075 | 0.50 | 0.11 | 6.3 | 0.0 | 0.3 | 0.8 |
2156 | C | U | 802,374 | 8,293,117 | 0.90 | 0.18 | 6.6 | 0.1 | 0.2 | 0.4 |
2157 | C | U | 802,382 | 8,293,119 | 1.50 | 0.16 | 13.7 | 0.1 | 0.3 | 2.2 |
2159 | C | U | 802,412 | 8,293,119 | 0.40 | 0.16 | 22.7 | 0.0 | 2.7 | 1.6 |
2160 | C | U | 802,439 | 8,293,126 | 0.80 | 0.10 | 34.1 | 0.2 | 2.3 | 2.7 |
2162 | G | U | 802,498 | 8,293,150 | N/A | 0.60 | 5.0 | 0.0 | 0.1 | 0.2 |
2163 | C | U | 802,520 | 8,293,161 | 0.65 | 0.24 | 7.2 | 0.0 | 0.5 | 1.0 |
2165 | C | U | 802,542 | 8,293,167 | 0.30 | 0.11 | 2.9 | 0.0 | 0.2 | 0.2 |
2166 | C | U | 802,596 | 8,293,176 | 0.55 | 0.29 | 2.4 | 0.0 | 0.1 | 0.2 |
2167 | C | U | 802,595 | 8,293,175 | 0.60 | 0.20 | 23.5 | 0.0 | 2.9 | 2.2 |
2169 | C | U | 802,327 | 8,293,090 | 0.55 | 0.27 | 4.3 | 0.0 | 0.0 | 0.1 |
2171 | C | U | 802,327 | 8,293,091 | 0.50 | 0.43 | 29.4 | 0.0 | 0.6 | 0.7 |
2173 | C | U | 802,367 | 8,293,108 | 0.45 | 0.37 | 14.7 | 0.0 | 0.6 | 0.3 |
2175 | C | U | 802,385 | 8,293,111 | 0.90 | 0.32 | 69.0 | 0.6 | 3.8 | 2.6 |
2176 | C | U | 802,405 | 8,293,113 | 0.35 | 1.22 | 60.8 | 0.2 | 3.7 | 2.7 |
2178 | C | U | 802,424 | 8,293,116 | 0.55 | 0.17 | 5.8 | 0.0 | 0.2 | 0.3 |
2179 | C | U | 802,424 | 8,293,115 | 0.40 | 0.49 | 210.0 | 0.3 | 23.7 | 9.9 |
2181 | C | U | 802,424 | 8,293,115 | 0.70 | 0.16 | 35.3 | 0.1 | 0.1 | 1.0 |
2182 | C | U | 802,453 | 8,293,126 | 0.75 | 0.17 | 7.8 | 0.0 | 0.2 | 0.2 |
2183 | C | U | 802,510 | 8,293,155 | 0.80 | 0.25 | 6.6 | 0.0 | 0.2 | 0.5 |
2184 | C | U | 802,509 | 8,293,156 | 0.50 | 0.65 | 30.5 | 0.1 | 1.8 | 6.1 |
2185 | C | U | 802,629 | 8,293,181 | 0.40 | 0.12 | 5.7 | 0.1 | 0.1 | 0.3 |
2187 | C | U | 802,676 | 8,293,176 | 0.55 | 0.54 | 10.6 | 0.0 | 0.4 | 0.8 |
2188 | C | U | 802,676 | 8,293,176 | 0.35 | 0.27 | 15.9 | 0.1 | 1.6 | 0.6 |
2189 | C | U | 802,331 | 8,293,090 | 2.00 | 0.40 | 12.9 | 0.0 | 0.5 | 0.3 |
2200 | C | U | 802,361 | 8,293,107 | 0.40 | 0.19 | 3.3 | 0.0 | 0.3 | 0.4 |
2202 | C | U | 802,371 | 8,293,108 | 0.70 | 0.12 | 5.1 | 0.0 | 0.1 | 0.1 |
2203 | C | U | 802,371 | 8,293,107 | 0.65 | 0.11 | 9.1 | 0.0 | 0.9 | 0.2 |
2206 | C | U | 802,375 | 8,293,108 | 1.60 | 0.16 | 2.4 | 0.0 | 0.1 | 0.2 |
2209 | C | U | 802,383 | 8,293,111 | 0.30 | 0.13 | 23.0 | 0.1 | 0.6 | 0.8 |
All Samples were sent for To CERTIMIN S.A. Laboratories, Lima, Peru for analysis. Standards and duplicates were inserted every 10 th samples.
Recent data from assay results is pivotal for Element 79. Firstly, it will serve as the foundation for the Company’s resource development and future mine planning. These reports are both essential steps the mine evaluation process and highlights crucial milestones in demonstrating the project's viability.
Secondly, this data will inform the direction of the Company’s upcoming 2024 drill program, which will be guided by a 3D modelling of both geology and historic mine workings, designed to maximize efficiency and accuracy. The 3D model will harness the comprehensive dataset that has been amassed, including historic data compilation from the past-producing era leading up to 2005, current surface and underground geochemistry, review and channel sampling of underground workings, mapping (both underground and surface), geophysical surveys, as well as cross-sectional and longitudinal interpretations.
Tworek continues: “This data helps to prove from a methodical and unbiased perspective where both the ore “is” as much as where the ore “isn’t”. When modelled in conjunction with past sampling data and historical production data, this proves that the current underground addits and open veins as well as their surface level expressions are strong economically, where future exploration and drilling campaigns will highlight where we will focus for ore extraction.“
As the Element79 team moves forward, its confidence is both in the skill and experience of its team as well as the continued positive results its work programs have yielded. The Company’s mission is to maximize shareholder value through continued development of the Lucero project, by bringing it back into commercial production, in a safe, ethical, sustainable and profitable fashion.
Qualified Person
The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo., Director of Element79 Gold and a "qualified person" as defined by National Instrument 43-101.
About Element79 Gold Corp.
Element79 Gold is a mining company focused on gold and silver committed to maximizing shareholder value through responsible mining practices and sustainable development of its projects. Element79 Gold's focus is on developing its past-producing, high-grade gold and silver mine, the Lucero project located in Arequipa, Peru, with the intent to restart production in 2024.
The Company also holds a portfolio of 5 properties along the Battle Mountain trend in Nevada, with the Clover and West Whistler projects believed to have significant potential for near-term resource development. Three properties in the Battle Mountain Portfolio are under contract for sale to Valdo Minerals Ltd., with an anticipated closing date in the first half of 2024. The Company has also signed an Option Agreement to sell the Maverick Springs project, an advanced-stage exploratory property with an Inferred Resource of 3.71MMoz AuEq (1.37MMoz Au and 175MMoz Ag) (see 43-101 technical report titled: Amended Technical Report on the Maverick Springs Project, Nevada, USA, by Allan Armitage, PhD., P.Geo, and Rohan Millar, B.Sc. P.Geo., dated October 7, 2022, available on SEDAR) and anticipates completing this sale on or before July 21, 2024.
In British Columbia, Element79 Gold has executed a Letter of Intent and funded a drilling program to acquire a private company that holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James.
The Company has an option to acquire a 100% interest in the Dale Property, 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, and has recently announced that it has transferred this project to its wholly owned subsidiary, Synergy Metals Corp, and is advancing through the Plan of Arrangement spin-out process.
For more information about the Company, please visit www.element79.gold
Contact Information
For corporate matters, please contact:
James C. Tworek, Chief Executive Officer
E-mail: jt@element79gold.com
For investor relations inquiries, please contact:
Investor Relations Department
Phone: +1.403.850.8050
E-mail: investors@element79.gold
Cautionary Note Regarding Forward Looking Statements
This press contains "forward‐looking information" and "forward-looking statements" under applicable securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the Company's future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made considering management's experience and perception of historical trends, current conditions and expected future developments. Forward-looking statements include, but are not limited to, statements with respect to: the Company's business strategy; future planning processes; exploration activities; the timing and result of exploration activities; capital projects and exploration activities and the possible results thereof; acquisition opportunities; and the impact of acquisitions, if any, on the Company. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, forward-looking statements cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. All statements other than statements of historical fact may be forward‐looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "forecast", "potential", "target", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward‐looking statements".
Actual results may vary from forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to materially differ from those expressed or implied by such forward-looking statements, including but not limited to: the duration and effects of the coronavirus and COVID-19; risks related to the integration of acquisitions; actual results of exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; commodity prices; variations in ore reserves, grade or recovery rates; actual performance of plant, equipment or processes relative to specifications and expectations; accidents; labour relations; relations with local communities; changes in national or local governments; changes in applicable legislation or application thereof; delays in obtaining approvals or financing or in the completion of development or construction activities; exchange rate fluctuations; requirements for additional capital; government regulation; environmental risks; reclamation expenses; outcomes of pending litigation; limitations on insurance coverage as well as those factors discussed in the Company's other public disclosure documents, available on www.sedarplus.ca . Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company believes that the expectations reflected in these 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 herein should not be unduly relied upon. These statements speak only as of the date hereof. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.
Neither the Canadian Securities Exchange nor the Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
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Element79 Gold Corp.
Overview
Element79 Gold (CSE:ELEM,OTC:ELMGF) is an exploration and development mining company with the potential for near-term production through its Lucero project in Peru. The Lucero mine is one of the highest-grade underground mines in Peru’s history and is on the fast track for production. Additionally, the company’s two exploration projects in Nevada, Clover and West Whistler, create further opportunities for future resource development. A globally-experienced management team with a proven track record of success in developing operational mines leads Element79 toward fully realizing the potential of its assets.
Lucero is a past-producing, high-grade gold mine ready to reach production quickly. The mine operated between 1989 to 2005. Historic reports between 1998 and 2004 indicate that the mine produced approximately 18,800 ounces of gold and 435,000 ounces of silver per year at 19 grams per ton (g/t) gold equivalent. An NI 43-101 report prepared by a third party indicates grades up to 116.8 g/t gold equivalent. In addition to generating near-term cash flow, the 10,805-hectare Lucero project also has high upside potential for further greenfield exploration.Peru is considered a relatively stable mining jurisdiction, especially for smaller-scale operations. As mining is an essential aspect of the country’s GDP, Peru has developed a favorable regulatory regime for its mining industry. Element79 Gold is poised to benefit from the pro-mining jurisdiction as it moves the Lucero asset toward production.
Ground work at the Lucero property is currently underway, where Element79 has engaged Ore Discovery LLC, a technical mining service provider, to work in conjunction with Element79’s operations team. The work includes above-ground and underground mapping, sampling, trenching, drill site targeting on both better-known and unexplored vein systems, for exploration and de-risked resource development on the path toward ore extraction and near-term cash flow generation.
Latest underground mapping and channel sampling efforts on the Lucero property have revealed additional insights, documenting an expansive network spanning 8.9 kilometers of workings, with 85 percent now meticulously mapped and sampled. A total of 19 adits have been mapped, with 10 additional adits remaining for underground mapping. Intersected mineralization conforms to the intermediate sulfidation epithermal style, characterized by gold-silver veins with associated lead and zinc sulphides.In June 2023, Element79 Gold further strengthened its portfolio in Peru with the acquisition of the 1,200-hectare Lucero del Sur 28, located strategically just east of the high-grade Lucero gold-silver project. Lucero del Sur 28 is a coveted area covering the Roxana vein, a vein dominated by white to hyaline quartz and altered rock clasts, with lesser amounts of limonite patinas, hematite, pyrite and jarosite.
In North America, the company holds a portfolio of mining properties in Nevada, one of which is the Maverick Springs gold and silver project. With an inferred 3.71 million ounces of gold equivalent, the project is located in one of the world’s richest gold mining districts and is located only 30 kilometers away from the Kinross (NYSE:KGC) Bald Mountain Mine. It is currently under an option agreement to sell wherein the company stands to generate CAD $4.4 million cash and AUD $800,000 in shares of Green Power Minerals (soon to be known as Sun Silver Limited by July 2024.
A powerhouse management team leads Element79 Gold with a track record of experience and success. Antonio Maragakis, Former COO and now Director, has held director-level positions at miners with multi-billion dollar portfolios, including Barrick Gold Corporation and Koch Industries. In addition, Kim Kirkland, Chief Operating Officer, has led engineering roles in some of the world’s largest mining companies, such as Rio Tinto Group and Barrick Gold Corporation.
Shane Williams, strategic advisor, brings a history of significant value creation in early-stage and operating companies and currently heads West Red Lake Gold (TSXV:WRLG) as president and CEO. Combined, Element79 has the right experts to fully realize its assets' potential.Company Highlights
- Element79 Gold is an exploration and development mining company with a high-grade gold and silver flagship project with near-term cash flow potential.
- The company’s Lucero project in Peru has historical high-grade results and provides opportunities for both near-term revenue and future greenfield exploration.
- Lucero has historically produced 18,800 ounces of gold and 435,000 ounces of silver per year at 19 grams per ton gold equivalent.
- Peru is considered a safe jurisdiction for mining operations due to a pro-mining government that recognizes the industry’s economic contributions.
- Element79 Gold’s Maverick Springs gold and silver project in Nevada creates additional near term revenue generation potential as it is under contract for sale in May-June 2024.
- A powerhouse management team leads the company toward fully developing its asset portfolio.
Key Projects
Lucero Gold Project
The 10,805-hectare project in southern Peru presents near-term cash flow potential as it moves toward production. Lucero operated as a high-grade gold mine between 1989 and 2005 and remains partially unexplored. As a result, the asset is in a unique position to start generating revenue while also providing future growth opportunities with additional exploration.
Project Highlights:
- Encouraging Historic Results: Reports from 1998 to 2004 indicate production averaging roughly 18,800 ounces of gold and 435,000 ounces of silver per year, with grades of 14.0 g/t gold and 373 g/t silver. Additionally, the asset contains recoveries at the ore processing facility averaging 94.5 percent for gold and 85.5 percent for silver for near-term cash flow.
- Unique Geology: Lucero hosts 74 recognized epithermal veins, 14 of which have been partially exploited. The project is a low-sulphidation epithermal gold-silver deposit hosted within tertiary volcanics in the Central Andes Cordillera of southern Peru. The project also hosts unexplored high-sulphidation style mineralization, which has returned surface samples up to 33.6 g/t gold.
- Promising Resource Estimate: A third-party NI 43-101 report indicates grades up to 116.8 g/t gold equivalent, or 78.7 g/t gold and 2,856 g/t silver. Element79 Gold is moving towards production to capitalize on these resources.
Maverick Springs Gold Project
The Nevada-based Maverick Springs gold project covers 4,800 acres on top of a gold belt with deposits approximately five miles wide and 40 miles long. The project’s gold belt district has produced more gold than any other mining district in the United States.
Project Highlights:
- Prolific Resource Estimate: A 2021 constrained mineral resource statement estimates that the asset contains 124.4 million tonnes at 68.9 g/t gold equivalent, which indicates 278 million ounces of gold equivalent. This estimate demonstrates the high upside potential of the project.
- Existing Infrastructure: The Maverick Springs gold project is accessible year-round via a gravel road and contains a network of drill roads throughout its claims. The asset also has nearby electrical power that minimizes initial development costs.
Clover Gold Property
The Clover Property is located in the historic Midas Mining District in Nevada, which has been producing gold and silver since the early 1900s and is 16 kilometers west of Hecla Mining Company’s Midas Mine, the largest known gold-silver epithermal deposit along the Northern Nevada Rift. Mineralization at the property is classified as low-sulphidation, vein-hosted, epithermal gold mineralization similar to that found at the Midas deposit as it is found within a similar geologic setting. Gold and silver mineralization at the Midas Mine is hosted in several northwest-striking veins. Between 1998 and 2013, the main veins produced over 2 million ounces of gold.
A $6.7-million program is planned for the Clover Property focused on data compilation, construction of geologic and resource models, and a 10,000-meter drilling program followed by a mineral resource estimate and NI 43-101 compliant preliminary economic assessment.
Project Highlights
- Consists of 169 unpatented claims encompassing 3,063 acres.
- Located in the historic Midas Mining District, which has been producing gold and silver since the early 1900s, along the northeast trending Getchell Trend that bridges the northwestern ends of the Carlin and Battle Mountain Trends and contains Nevada Gold’s active Turquoise Ridge Mine, the third largest gold mine in the US with 537,000 ounces of gold production reported in 2020.
- Drilling by previous operators intersected mineralized and veined breccias and shear zones with significant intercepts including 9.7 meters grading 25.3 g/t gold, 7.6 meters of 7.9 g/t gold and 3 meters of 10 g/t gold.
- Work to date by Element79 found that the property has ubiquitous expressions of precious metals and pathfinder elements in rock chip, soil geochemistry and drill hole intercepts consistent with the Midas, Hollister and other classical epithermal systems.
West Whistler
The West Whistler Property is located in the Eureka Mining District, which hosts mid-Cretaceous, igneous-related, polymetallic carbonate replacement deposits that have subsequently been overprinted by Carlin-type gold-silver mineralization. The property is located along the southeastern end of the Battle Mountain Trend near several gold deposits including the Cortez Mine, the third largest gold mine in North America with 2021 gold production of 828,000 ounces.
Since its acquisition, Element79 has completed high-level data review and conceptual plans for target identification. The company has a $ 700,000 program planned for the West Whistler Property focused on field operations, surface sampling and structural analysis in order to develop drill targets
Project Highlights
- Consists of 103 unpatented claims encompassing 2,057 acres in the Eureka Mining District.
- Located within the Battle Mountain Trend in close proximity to several gold deposits including the Cortez Mine, the third largest gold mine in North America with 2021 gold production of 828,000 ounces.
- Targeting a deposit similar to that found at the Rain Deposit located 113 kilometers to the north where the Saddle Zone deposit hosts 1.15 million tons grading 0.57 oz/t gold for 782,000 ounces of gold.
- In this model, the gold is deposited above or near the Devils Gate-Webb Formation contact adjacent to northwest and northeast trending gold-bearing fault zones. At the West Whistler Property a 2-kilometer by 0.65-kilometer window of Devonian Devil’s Gate Limestone and Webb Formation is exposed in the southern portion of the claim block.
Management Team
James C. Tworek - Chief Executive Officer and Director
James Tworek has held director, senior management, analytical and operations roles in both public and private companies. A quick study and entrepreneurial to the bone, his 25-year career started in banking in 1998 and has since garnered a wealth of experience across diverse industries between commercial banking, mining, project finance, mezzanine debt, oil and gas, clean water/envirotech and hemp/legal cannabis industries. He has investing experience in real estate, private equity, private mining, startup generation, tech and agricultural ventures. A team leader driven by results, Tworek has built his career on successfully executing development and corporate growth targets, exceeding sales objectives, and being mindful of ensuring open communication, honesty and integrity with investors and stakeholders.
Tammy Gillis - Chief Financial Officer
Ms. Gillis is a CPA, CMA with over 20 years of experience in the public markets bringing comprehensive background in finance, reporting and regulatory requirements for manufacturing, bio-technology, technology and junior exploration industries. Ms. Gillis has been part of teams that have completed several financings, grant applications and acquisition transactions. Ms. Gillis started her career working at a corporate and securities law firm. Ms. Gillis previously served as Corporate Accountant for an international manufacturing company that had revenue in excess of $120 million and as Chief Financial Officer for a technology company with patented cathode materials used in lithium-ion batteries that successfully built a pilot plant with the assistance of over $4 million in government grants. Ms. Gillis has served as an officer for several TSX-V and CSE-listed issuers.
Antonios (Tony) Maragakis - Director
Antonios Maragakis completed his PhD at the University of Delft, MSc at the University of Bath, his B.Sc and B.A. at the University of Nevada, and executive training at the London Business School. He brings with him more than 15 years of experience leading some of the largest mining megaprojects in the last decade. Maragakis holds a distinguished resume, including management and director-level positions overseeing multibillion-dollar project portfolios internationally at organizations, such as:
- Barrick Gold (NYSE Listed), where he led project controls in North America across a portfolio of more than 70 projects worth over $2.3 billion.
- Skeena Resources (TSX Listed), where he worked closely with executive leadership to develop the Eskay Creek Project and corporate processes and management systems.
- Freeport-McMoRan (NYSE Listed), where he helped develop the $3-billion Indonesian Copper Smelter Project which includes a two-million-ton/annum smelter and precious metal recovery plant.
- Eldorado Gold (TSX, NYSE Listed), where he was project director for the over $1-billion Skouries Project, as well as led the operational turnaround of the Kassandra Mines.
- Koch Industries (the largest privately held company in the US), at its subsidiary, Koch Ag. & Energy Solutions, where he helped execute the Enid Expansion Megaproject, at the time the largest capital project ever undertaken by the entire Koch Industries conglomerate.
- Mochica Resources and Calipuy Resources (private Peruvian gold mines) where he oversaw the development of various project portfolios.
Kim Kirkland - Chief Operating Officer
Kim Kirkland’s track record spans senior executive and lead engineering roles at some of the world's largest mining companies. Key highlights of Kirkland's work history include:
- Barrick Gold Corporation - Involved during the early growth and innovation years at the Goldstrike Complex, including the development and maintenance of the open-pit mineral reserve model for the Betze-Post Mine
- Rio Tinto Group - La Granja Copper Project in northern Peru, held a senior management position at the Benga Mine
- MMG Ltd. - regional manager at the Las Bambas Copper Mine in Peru
- Amec Foster Wheeler Plc - Marcobre SAC's Mina Justa Mine Project
- McEwen Mining - Responsible for the restructuring of the El Gallo Silver Project (later renamed to Fenix) in Sinaloa, Mexico, as the director of project development.
Neil Pettigrew - Director
Neil Pettigrew is a professional geologist in good standing, registered in Ontario, with over 20 years of experience in the mineral exploration industry. He received his Honors B.Sc. from the University of New Brunswick and his M.Sc. from the University of Ottawa. Pettigrew has been employed as a senior precambrian geoscientist with the Ontario Geological Survey and has worked for several junior and major companies in gold and Cu-Ni-PGE exploration. He has held officer and director positions at several TSX and TSXV listed junior companies and currently sits as vice-president of exploration and director of Palladium One Mining Inc.
George Tumur - Director
GeorgeTumur brings a wealth of experience and a profound understanding of mining, investment funding and government relations. As former ambassador to Singapore, Tumur's remarkable career has been characterized by visionary leadership, strategic acumen and an exceptional ability to navigate complex challenges.
Tumur has held several executive-level positions at minerals exploration and mining organizations, including Hunnu Coal (ASX:HUN), Energy Resources (later, MMC, HKEX: 0975) and other public and private entities. Most notably, in these roles, Tumur has had a transformative impact on leadership, unlocking significant coal resources, estimated at 1 billion tons of measured and indicated coal across three projects at Hunnu Coal, and elevating the company's valuation nine-fold in just 18 months following IPO; as well as commencing a significant production of a private project within six months from a head start, introducing an international contract mining experience into local mining industry, leading to a successful IPO.
Prior to his recent role as a senior advisor at Gateway Partners, a private equity investment fund in Singapore, Tumur was appointed as ambassador of Mongolia to Singapore, Philippines and Brunei Darussalam, and applied his diplomatic skills to strengthen bilateral and multilateral relations, boasting trade and tourism between host countries and Mongolia.
Tumur's academic background includes a master of science in mining and earth systems engineering from the Colorado School of Mines and a bachelor of science in metallurgy and materials engineering from the same institution.
Zara Kanji - Director
Zara Kanji is a founder of Zara Kanji & Associates (established in 2004). Kanji is experienced in financial reporting compliance for junior listed resource companies, personal and corporate taxation, general accounting, financial reporting and value-added operational consulting services for individuals, and private and public companies. Prior to starting her accounting practice, Kanji served as a controller for a marketing company, as an accountant in public practice for a CA firm, a CGA firm and as an analyst for a pension fund. In addition to providing accounting and financial compliance services to private and public entities, Kanji has served as director and officer for several listed issuers.
Shane Williams – Strategic Advisor
Shane Williams carries a history of significant value creation in both early-stage and operating companies, which includes senior executive and management roles overseeing and delivering world-class, multibillion-dollar projects at highly prominent companies, including: chief operation officer at Skeena Resources (NYSE Listed), Eskay Creek Project; former senior vice-president at Eldorado Gold (NYSE Listed), $2-billion global project portfolio; former general manager of expansion projects at Rio Tinto (NYSE Listed), $2.5-billion CAPEX; and former vice-president of projects at Kaunis Iron AB, $800-million flagship Kaunisvarra Iron Ore Project.
Element79 Elevating Community Relations: Discussing Pending Formalization with Artisanal Miners and Reporting on Social Initiatives Leading to Restarting Production at Lucero
VANCOUVER, BC T he N ewswire April 25, 2024 Element79 Gold Corp. (CSE: ELEM) (OTC: ELMGF) (FSE: 7YS) ("Element79" the "Company ") provides an update on recent social affairs development and ongoing initiatives with the Chachas community at its Lucero project.
Fostering Collaboration with Artisanal Miners
As part of Element79's ongoing efforts and community engagement, the Company's community relations team recently organized a coordination meeting with artisanal miners from Lomas Doradas during the month of April. The meeting aimed to foster collaborative relationships between the groups, seeking mutual support as the Company endeavours to use surface land to conduct exploration work. Moreover, the Company also sought exclusive agreements with artisanal miners, ensuring a unified approach to mineral extraction and resulting sale of ore.
With Element79's dedication to fostering productive relationships with all stakeholders, the Company has provided drafts of contracts for the potential of both a community approval of 10-year surface access rights for Element79 to access the Lucero mine site with exploration permission for the whole concession, as well as, in reciprocal fashion, to grant the approval of the local miners to work on the mine site in defined locations over the next 10 years; among other terms, Lomas Doradas will also provide its mined product to Element79 for subsequent resale to market. Element79 intends to use its institutional and industry contacts to source optimal market pricing for Lomas Doradas' ore while providing a revenue stream for both parties.
A pivotal meeting is scheduled in Chachas on April 28 th to further solidify collaboration between the Company and Lomas Doradas, where the community will vote on these initiatives in order to formalize the relationship between the two parties. Further updates on, and details of this key initiative will follow, pending feedback and results of the April 28 meeting.
Community Assistance in Times of Need
Earlier in March, a major landslide left the Chachas community isolated from its neighbouring annex, Nahuira. Element79's team on the ground swiftly responded to the community's need for assistance, providing crucial support in transferring community members stranded on the other side of the landslide while it was being cleared from the roads.
Cultural Integration and Traditional Ceremony
Element79's community relation team recently participated in a traditional Water Ceremony alongside local authorities and community leaders. This customary Chachas ceremony, involving offerings to the water, highlights the deep-rooted cultural traditions of the Chachas community. The Company was honored to be involved in such a rich and culturally-steeped ritual which further showcases its commitment to meaningful community engagement and ongoing integration.
Sustained Engagement in Social Awareness
Site visits of the Chachas community and neighbouring annexes have continued since the beginning of the year, bolstering social awareness while garnering support for ongoing and future exploration activities. Element79's team has engaged in internal consultations with annex leaders, receiving encouraging support for its initiatives. In alignment with sustainable development objectives, the Company advocates for a progressive approach, prioritizing exploration as a precursor to exploitation permits, aligning with the community's interests.
Cultivating Community Bond Through Education
Finally, as part of its steadfast dedication to the long-term prosperity of the community, notably through educational empowerment, Element79 along with its engaged NGO, Unidos por el Medioambiente (UMA) was recently invited to conduct a workshop on environment, economy and society as part of an initiative with the Education Institute of the Chachas community. The workshop was a pivotal platform for fostering discussions and sharing invaluable insights on the environment, economy, and society. The event's active engagement from community members and stakeholders underscored Element79's commitment to promoting knowledge-sharing and sustainable development within the Chachas community and beyond.
Image Group 1 – Images of the in-class sessions hosted by UMA, a Peruvian NGO, and Element79 Gold Corp, sharing educational themes on health and wellness, the environment and the economy
About Element79 Gold Corp.
Element79 Gold is a mining company focused on gold and silver committed to maximizing shareholder value through responsible mining practices and sustainable development of its projects. Element79 Gold's focus is on devel oping its past-producing, high-grade gold and silver mine, the Lucero project located in Arequipa, Peru, with the intent to restart production in 2024.
The Company also holds a portfolio of 5 properties along the Battle Mountain trend in Nevada, with the Clover and West Whistler projects believed to have significant potential for near-term resource development. Three properties in the Battle Mountain Portfolio are under contract for sale to Valdo Minerals Ltd., with an anticipated closing date in the first half of 2024. The Company has also signed an Option Agreement to sell the Maverick Springs project, an advanced-stage exploratory property with an Inferred Resource of 3.71MMoz AuEq (1.37MMoz Au and 175MMoz Ag) (see 43-101 technical report titled: Amended Technical Report on the Maverick Springs Project, Nevada, USA, by Allan Armitage, PhD., P.Geo, and Rohan Millar, B.Sc. P.Geo., dated October 7, 2022, available on SEDAR) and anticipates completing this sale on or before July 21, 2024.
In British Columbia, Element79 Gold has executed a Letter of Intent and funded a drilling program to acquire a private company that holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James.
The Company has an option to acquire a 100% interest in the Dale Property, 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, and has recently announced that it has transferred this project to its wholly owned subsidiary, Synergy Metals Corp, and is advancing through the Plan of Arrangement spin-out process.
For more information about the Company, please visit www.element79.gold
Contact Information
For corporate matters, please contact:
James C. Tworek, Chief Executive Officer
E-mail: jt@element79gold.com
For investor relations inquiries, please contact:
Investor Relations Department
Phone: +1.403.850.8050
E-mail: investors@element79.gold
Cautionary Note Regarding Forward Looking Statements
This press contains "forward‐looking information" and "forward-looking statements" under applicable securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the Company's future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made considering management's experience and perception of historical trends, current conditions and expected future developments. Forward-looking statements include, but are not limited to, statements with respect to: the Company's business strategy; future planning processes; exploration activities; the timing and result of exploration activities; capital projects and exploration activities and the possible results thereof; acquisition opportunities; and the impact of acquisitions, if any, on the Company. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, forward-looking statements cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. All statements other than statements of historical fact may be forward‐looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "forecast", "potential", "target", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward‐looking statements".
Actual results may vary from forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to materially differ from those expressed or implied by such forward-looking statements, including but not limited to: the duration and effects of the coronavirus and COVID-19; risks related to the integration of acquisitions; actual results of exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; commodity prices; variations in ore reserves, grade or recovery rates; actual performance of plant, equipment or processes relative to specifications and expectations; accidents; labour relations; relations with local communities; changes in national or local governments; changes in applicable legislation or application thereof; delays in obtaining approvals or financing or in the completion of development or construction activities; exchange rate fluctuations; requirements for additional capital; government regulation; environmental risks; reclamation expenses; outcomes of pending litigation; limitations on insurance coverage as well as those factors discussed in the Company's other public disclosure documents, available on www.sedarplus.ca . Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company believes that the expectations reflected in these 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 herein should not be unduly relied upon. These statements speak only as of the date hereof. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.
Neither the Canadian Securities Exchange nor the Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright (c) 2024 TheNewswire - All rights reserved.
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Element79 Gold Corp. Confirms Oversubscribed Final Tranche Of Equity Unit Offering Raising Over $867,000
(TheNewswire)
Vancouver, BC April 18, 2024 Element79 Gold Corp. (CSE:ELEM)(OTC:ELMGF)(FSE:7YS0) ("Element79" or "the Company") The Company is pleased to announce that it has closed its final round of capital raising efforts, announcing that that the previously initiated non-brokered Private Placement of Equity Units was met with overwhelming investor interest, resulting in an oversubscription.
While the Company had originally set out to raise CAD $400,000 , it had garnered capitalization commitments surpassing the initial offering, with the Unit offering having gone through two tranches, first on March 14 and extended the offering to $600,000 after the second on March 28th, and now with a third closing the offering has raised an aggregate total of CAD $867,735.
The Third tranche of the placement raised a total of $317,660 and will see the Company issue a total of 1,381,130 Units. Each Unit comprised of one common share of the Company (a "Common Share") and one common share purchase warrant (each a "Warrant"). Each Warrant will be exercisable for one Common Share at a price of $0.35 per Common Share for two (2) years from the date of issuance. All securities issued for the placement will be subject to a four month and one day hold from the date of issue.
The warrants are subject to an acceleration clause whereby should the shares of the Company trade at or above $0.40 per share on the North American stock exchange on which it is then listed for ten consecutive trading days (after the date that is four months and one day from the closing of the Offering) the warrants may be accelerated. There were no finders fees payable for the Second tranche of the placement,
The Company further notes that pursuant to its press release of April 8, 2024 , it has settled a cash payment due to Condor Resources Inc. in the amount of USD $85,000 / CAD $114,865 through the issuance of the same units offered to subscribers of the placement as noted above. The settlement has the Company issuing a total of 499,413 Units. Each Unit as defined above, having a hold period of Four months and a day. For more details of the payments to Condor please refer to the press release.
James C. Tworek, Chief Executive Officer and Director, commented, "Undoubtedly, our refocused corporate drive has garnered significant support from our investment community with this equity raising round seeing multiple up-sizings and closings. The oversubscription of the Units underlines the trust and confidence placed in Element79's vision and strategy, with this funding more clearly bringing into sight near-term ore extraction and revenue generation plans."
Proceeds from the abovementioned sale of the Units will be used for operations, including the advancement of the social contract formalization in Peru to allow the long-term extension of the social license and ongoing Lucero project development plan to unfold. In addition, Certain Investor Relations initiatives will be engaged or extended in conjunction with this Financing with a portion withheld for general working capital.
About Element79 Gold Corp
About Element79 Gold Corp Element79 Gold Corp is a gold and silver mining company committed to maximizing shareholder value through responsible mining practices and sustainable development of its projects. Element79 Gold's core focus is on developing its past-producing, high-grade gold and silver mine, the Lucero project located in Arequipa, Peru, with the intent to restart production in 2024.
The Company also holds a portfolio of 5 properties along the Battle Mountain trend in Nevada, with the Clover and West Whistler projects believed to have significant potential for near-term resource development. Three properties in the Battle Mountain Portfolio are under contract for sale to Valdo Minerals Ltd., with an anticipated closing date in the first half of 2024. The Company has also signed an Option Agreement to sell the Maverick Springs project, an advanced-stage exploratory property with an Inferred Resource of 3.71MMoz AuEq (1.37MMoz Au and 175MMoz Ag) (see 43-101 technical report titled: Amended Technical Report on the Maverick Springs Project, Nevada, USA, by Allan Armitage, PhD., P.Geo, and Rohan Millar, B.Sc. P.Geo., dated October 7, 2022, available on SEDAR) and anticipates completing this sale on or before July 21, 2024.
In British Columbia, Element79 Gold has executed a Letter of Intent and funded a drilling program to acquire a private company that holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James. The Company has an option to acquire a 100% interest in the Dale Property, 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, and has recently announced that it has transferred this project to its wholly-owned subsidiary, Synergy Metals Corp, and is advancing through the Plan of Arrangement spin-out process. For more information about the company please visit our official website at www.element79.gold
Contact Information
For corporate matters, please contact:
James C. Tworek
Chief Executive Officer and Director
E-mail: jt@element79.gold
For investor relations inquiries, please contact:
Investor Relations Department
Phone: +1.403.850.8050
E-mail: investors@element79.gold
Cautionary Note Regarding Forward Looking Statements This press release contains "forward‐looking information" and "forward-looking statements" under applicable securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the Company's future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management's experience and perception of historical trends, current conditions and expected future developments. Forward-looking statements include, but are not limited to, statements with respect to: the Company's business strategy; future planning processes; exploration activities; the timing and result of exploration activities; capital projects and exploration activities and the possible results thereof; acquisition opportunities; and the impact of acquisitions, if any, on the Company. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, forward-looking statements cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. Neither the Canadian Securities Exchange nor the Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information For corporate matters, please contact: James C. Tworek, Chief Executive Officer and Director E-mail: jt@element79.gold For investor relations inquiries, please contact: Investor Relations Department Phone: +1.403.850.8050 E-mail: investors@element79.gold Cautionary Note Regarding Forward Looking Statements This press release contains "forward‐looking information" and "forward-looking statements" under applicable securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the Company's future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management's experience and perception of historical trends, current conditions and expected future developments. Forward-looking statements include, but are not limited to, statements with respect to: the Company's business strategy; future planning processes; exploration activities; the timing and result of exploration activities; capital projects and exploration activities and the possible results thereof; acquisition opportunities; and the impact of acquisitions, if any, on the Company. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, forward-looking statements cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. Neither the Canadian Securities Exchange nor the Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright (c) 2024 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
Element79 Gold Corp and Condor Resources Inc. Reschedule March 2024 Lucero Payment
(TheNewswire)
Vancouver, B.C., April 8, 2024 TheNewswire - Element79 Gold Corp - ("Element79" or the "Company") (CSE: ELEM, OTC: ELMGF, FSE: 7YS0) announces that it has reached agreement with Condor Resources Inc. (TSXV:CN, "Condor") to revise the payment terms on a payment due March 31, 2024 of US$375,000 with respect to the Lucero project. Element79 are the owner of Calipuy Resources Inc., ("Calipuy"), and assumed Calipuy's obligations to acquire the shares of Condor's subsidiary, Minas Lucero del Sur S.A.C., the owner of the Lucero project.
Element79 and Condor have agreed to restructure the U$375,000 payment as follows: US$100,000 was paid in cash on April 2, 2024; US$85,000 (US $75,000 payment plus US$10,000 bonus) will be satisfied by the issuance of approximately 499,413 Units of Element79 (per the Company's current Private Placement each comprising of a 0.23 share and a warrant convertible for one common share of the Company at 0.35 for two years); and the balance of US$200,000 will be paid in cash on the closing of Element79's sale of their Maverick Springs project, which sale is expected to close before the end of June 2024. In consideration of the restructure, Element79 will pay an additional US$20,000 with the US$200,000 payment.
Element79 CEO and Director James Tworek comments: "We're making solid headway with both the local community and project development aspects at the Lucero project with a very busy development and mining season gearing up. We genuinely appreciate the solid support of Condor Resources through these efforts".
About Condor Resources
Condor is an active explorer focused exclusively on Peru, supplemented by a project generator and royalty model designed to generate exploration capital whilst minimizing shareholder dilution. Our objective in advancing our portfolio of projects is the discovery of a major new precious metals or base metals deposit in Peru. Project acquisition and exploration activities are managed by the Company's Lima based exploration team.
About Element79 Gold Corp
Element79 Gold Corp is a gold and silver mining company committed to maximizing shareholder value through responsible mining practices and sustainable development of its projects. Element79 Gold's core focus is on developing its past-producing, high-grade gold and silver mine, the Lucero project located in Arequipa, Peru, with the intent to restart production in 2024.
The Company also holds a portfolio of 5 properties along the Battle Mountain trend in Nevada, with the Clover and West Whistler projects believed to have significant potential for near-term resource development. Three properties in the Battle Mountain Portfolio are under contract for sale to Valdo Minerals Ltd., with an anticipated closing date in the first half of 2024. The Company has also signed an Option Agreement to sell the Maverick Springs project, an advanced-stage exploratory property with an Inferred Resource of 3.71MMoz AuEq (1.37MMoz Au and 175MMoz Ag) (see 43-101 technical report titled: Amended Technical Report on the Maverick Springs Project, Nevada, USA, by Allan Armitage, PhD., P.Geo, and Rohan Millar, B.Sc. P.Geo., dated October 7, 2022, available on SEDAR) and anticipates completing this sale on or before July 21, 2024.
In British Columbia, Element79 Gold has executed a Letter of Intent and funded a drilling program to acquire a private company that holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James.
The Company has an option to acquire a 100% interest in the Dale Property, 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, and has recently announced that it has transferred this project to its wholly-owned subsidiary, Synergy Metals Corp, and is advancing through the Plan of Arrangement spin-out process.
For more information about the company please visit our official website a t www.element79.gold
Contact Information
For corporate matters, please contact:
James C. Tworek, Chief Executive Officer and Director
E-mail: jt@element79.gold
For investor relations inquiries, please contact:
Investor Relations Department
Phone: +1.403.850.8050
E-mail: investors@element79.gold
Forward-Looking Statements
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 similar words, or statements that certain events or conditions "may" or "will" occur.
Although the Company believes that the expectations reflected in applicable forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to 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 (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Copyright (c) 2024 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
Element79 Gold Corp to Present at the Emerging Growth Conference Today
(TheNewswire)
Vancouver, BC TheNewswire - April 3, 2024 - "Element79 Gold Corp" ( OTC:ELMGF ) ( CSE:ELEM ) ( FSE:7YS0, a mining company focused on the exploration for and production of gold and silver (the "Company") is pleased to announce that it has been invited to present at the Emerging Growth Conference on April 3, 2024
The next Emerging Growth Conference is presenting today, April 3, 2024. This live, interactive online event will give existing shareholders and the investment community the opportunity to interact with the Company's CEO and Director, James C. Tworek in real time.
Mr. Tworek will perform a presentation and may subsequently open the floor for questions. Please submit your questions in advance to Questions@EmergingGrowth.com or ask your questions during the event and will do his best to get through as many of them as possible.
Element79 Gold Corp will be presenting at 1:10PM Eastern time for approximately 30 minutes.
Please register here: ( https://goto.webcasts.com/starthere.jsp?ei=1658200&tp_key=df67ccfa7e&sti=elmgf ) to ensure you are able to attend the conference and receive any updates that are released.
If attendees are not able to join the event live on the day of the conference, an archived webcast will also be made available on EmergingGrowth.com and on the Emerging Growth YouTube Channel, http://www.YouTube.com/EmergingGrowthConference . We will release a link to that after the event.
About the Emerging Growth Conference
The Emerging Growth conference is an effective way for public companies to present and communicate their new products, services and other major announcements to the investment community from the convenience of their office, in a time efficient manner.
The Conference focus and coverage includes companies in a wide range of growth sectors, with strong management teams, innovative products & services, focused strategy, execution, and the overall potential for long term growth. Its audience includes potentially tens of thousands of Individual and Institutional investors, as well as Investment advisors and analysts.
All sessions will be conducted through video webcasts and will take place in the Eastern time zone.
About Element79 Gold Corp
Element79 Gold Corp is a gold and silver mining company committed to maximizing shareholder value through responsible mining practices and sustainable development of its projects. Element79 Gold's core focus is on developing its past-producing, high-grade gold and silver mine, the Lucero project located in Arequipa, Peru, with the intent to restart production in 2024.
The Company also holds a portfolio of 5 properties along the Battle Mountain trend in Nevada, with the Clover and West Whistler projects believed to have significant potential for near-term resource development. Three properties in the Battle Mountain Portfolio are under contract for sale to Valdo Minerals Ltd., with an anticipated closing date in the first half of 2024. The Company has also signed an Option Agreement to sell the Maverick Springs project, an advanced-stage exploratory property with an Inferred Resource of 3.71MMoz AuEq (1.37MMoz Au and 175MMoz Ag) (see 43-101 technical report titled: Amended Technical Report on the Maverick Springs Project, Nevada, USA, by Allan Armitage, PhD., P.Geo, and Rohan Millar, B.Sc. P.Geo., dated October 7, 2022, available on SEDAR) and anticipates completing this sale on or before July 21, 2024.
In British Columbia, Element79 Gold has executed a Letter of Intent and funded a drilling program to acquire a private company that holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James.
The Company has an option to acquire a 100% interest in the Dale Property, 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, and has recently announced that it has transferred this project to its wholly-owned subsidiary, Synergy Metals Corp, and is advancing through the Plan of Arrangement spin-out process.
For more information about the company please visit our official website at www.element79.gold
Contact Information
For corporate matters, please contact:
James C. Tworek, Chief Executive Officer and Director
E-mail: jt@element79.gold
For investor relations inquiries, please contact:
Investor Relations Department
Phone: +1.613.879.9387
E-mail: investors@element79.gold
Cautionary Note Regarding Forward Looking Statements
This press release contains "forward ‐ looking information" and "forward-looking statements" under applicable securities laws (collectively, "forward ‐ looking statements"). These statements relate to future events or the Company's future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management's experience and perception of historical trends, current conditions and expected future developments. Forward-looking statements include, but are not limited to, statements with respect to: the Company's business strategy; future planning processes; exploration activities; the timing and result of exploration activities; capital projects and exploration activities and the possible results thereof; acquisition opportunities; and the impact of acquisitions, if any, on the Company. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, forward-looking statements cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur.
Neither the Canadian Securities Exchange nor the Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright (c) 2024 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
Element79 Gold Corp Announces Closing of Second Tranche of Placement
(TheNewswire)
Vancouver, British Columbia TheNewswire - March 28, 2024 - Element79 Gold Corp (the "Company") (CSE:ELEM) (OTC:ELMGF) (FSE:7YS0) Further to the Corporation's previous Financings announcement, Element79 is pleased to announce the successful completion of its second tranche of its placement for an addition $300,075 of funding through its Non-Brokered Private placement. This second tranche of closing will see the Company issue a total of 1,304,674 Units for this tranche. The second tranche of the placement was largely subscribed to by a strategic investor who recognizes the long-term value and potential of the Company. This investor brings not only capital but also invaluable expertise and connections within the sector which will accelerate the Company's corporate development.
The Placement consists of Units of the Company (each a "Unit") at a purchase price of $0.23 per Unit. Each Unit will be comprised of one common share of the Company (a "Common Share") and one common share purchase warrant (each a "Warrant"). Each Warrant will be exercisable for one Common Share at a price of $0.35 per Common Share for two (2) years from the date of issuance. All securities issued for the placement will be subject to a four month and one day hold from the date of issue which is anticipated to be April 4 th in keeping with CSE regulations.
The warrants are subject to an acceleration clause whereby should the shares of the Company trade at or above $0.40 per share on the North American stock exchange on which it is then listed for ten consecutive trading days (after the date that is four months and one day from the closing of the Offering) the warrants may be accelerated. There were Finder's Fees of 5% cash and 5% in warrants on some of this Second tranche of the placement.
Element79 has to date raised a total of $550,075 through the facilities of its placement and shall continue to seek funds, anticipating closing its final tranche within the next ten business days.
About Element79 Gold Corp
Element79 Gold Corp is a gold and silver mining company committed to maximizing shareholder value through responsible mining practices and sustainable development of its projects. Element79 Gold's core focus is on developing its past-producing, high-grade gold and silver mine, the Lucero project located in Arequipa, Peru, with the intent to restart production in 2024.
The Company also holds a portfolio of 5 properties along the Battle Mountain trend in Nevada, with the Clover and West Whistler projects believed to have significant potential for near-term resource development. Three properties in the Battle Mountain Portfolio are under contract for sale to Valdo Minerals Ltd., with an anticipated closing date in the first half of 2024. The Company has also signed an Option Agreement to sell the Maverick Springs project, an advanced-stage exploratory property with an Inferred Resource of 3.71MMoz AuEq (1.37MMoz Au and 175MMoz Ag) (see 43-101 technical report titled: Amended Technical Report on the Maverick Springs Project, Nevada, USA, by Allan Armitage, PhD., P.Geo, and Rohan Millar, B.Sc. P.Geo., dated October 7, 2022, available on SEDAR) and anticipates completing this sale on or before July 21, 2024.
In British Columbia, Element79 Gold has executed a Letter of Intent and funded a drilling program to acquire a private company that holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James.
The Company has an option to acquire a 100% interest in the Dale Property, 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, and has recently announced that it has transferred this project to its wholly-owned subsidiary, Synergy Metals Corp, and is advancing through the Plan of Arrangement spin-out process.
For more information about the company please visit our official website at www.element79.gold
Contact Information
For corporate matters, please contact:
James C. Tworek, Chief Executive Officer and Director
E-mail: jt@element79.gold
For investor relations inquiries, please contact:
Investor Relations Department
Phone: +1.403.850.8050
E-mail: investors@element79.gold
Cautionary Note Regarding Forward Looking Statements
This press release contains "forward‐looking information" and "forward-looking statements" under applicable securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the Company's future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management's experience and perception of historical trends, current conditions and expected future developments. Forward-looking statements include, but are not limited to, statements with respect to: the Company's business strategy; future planning processes; exploration activities; the timing and result of exploration activities; capital projects and exploration activities and the possible results thereof; acquisition opportunities; and the impact of acquisitions, if any, on the Company. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, forward-looking statements cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur.
Neither the Canadian Securities Exchange nor the Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright (c) 2024 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
Pan American Makes US$295M Deal to Sell La Arena Mine
Pan American Silver (TSX:PAAS,NASDAQ:PAAS) has announced the sale of its 100 percent interest in La Arena, including the La Arena gold mine and the La Arena II project in Peru, to Singapore’s Jinteng Mining, a subsidiary of Zijin Mining Group (OTC Pink:ZIJMF,SHA:601899)
Zijin will pay US$245 million cash upfront and grant Pan American a life-of-mine gold net smelter return royalty of 1.5 percent for the La Arena II project upon the deal closing. Additionally, upon the commencement of commercial production from the La Arena II project, an additional contingent payment of US$50 million in cash will be made.
The transaction marks a pivotal moment for both Pan American Silver and Zijin in the sector. Pan American expects the deal to be finalized in the third quarter of 2024.
"With the sale of La Arena, we continue to deliver on our strategy to optimize our portfolio, following the Yamana transaction, while maintaining future upside through the retention of royalties," Pan American President and CEO Michael Steinmann stated. "Proceeds from the transaction will further strengthen our financial position and allow us to deliver on our capital allocation priorities of investing in high-quality assets, debt reduction and returning capital to our shareholders."
The La Arena property, situated in the La Libertad province of Peru, has seen significant development under Pan American's ownership since its acquisition of previous owner Tahoe Resources in 2019.
Despite the sale of La Arena, Pan American Silver retains a strong foothold in the sector, with interests in exploration and development projects across the region. The company is currently planning expansions at its Huarón silver mine, also in Peru.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Far Northern Resources: Newly Listed Australia-based Gold, Copper Explorer
Far Northern Resources (ASX:FNR) focuses on three gold and base metals projects – two based in Northern Queensland (Empire and Rocks Reef) and one in the Northern Territories (Bridge Creek). Far Northern Resources debuted on the ASX on April 12, 2024, and secured AU$6 million in funding.
The company's Empire Project is located 34 kilometres west of Chillagoe in North Queensland covering 252 hectares, on granted mining lease 20380. The claims boast a rich exploration history, marked by substantial drilling conducted across various phases. This culminated in the determination of a 2019 mineral resource estimate of 22,505 oz of gold on the Empire Stockworks gold deposit.
Far Northern is planning a 20,000-meter drilling program over the next two years, which will consist: of 5,000+ meters for Empire; 2,500 to 5,000 meters for Bridge Creek; and 2,500 meters planned at Rocks Reef in the China Wall prospect.
Company Highlights
- Far Northern Resources (FNR) is a newly listed Australia-based gold and base metals exploration company. The company was listed on the ASX on April 12, 2024, following the completion of its IPO in which it raised AU$4 million.
- The company has three projects across Northern Queensland and the Northern Territories – Empire, Bridge Creek and Rocks Reef. Empire and Bridge Creek are significantly advanced, drill-ready with JORC-compliant resources.
- The flagship project Empire has undergone extensive exploration work culminating in a 2019 mineral resource estimate of 22,500 oz gold. The company intends to undertake 5,000 meters of drilling at Empire over the next two years which should lead to further expansion of the resource base.
- At Bridge Creek, FNR is planning a 2,500- to 5,000-meter drilling program, which aims to enhance inferred resources to indicated status, as well as extend the mineralization both along the strike and at depth.
- The Rock Reefs property presents a prospective upside for FNR with historical exploration confirming the presence of a mineralized vein system at the China Wall prospect. FNR is planning a 2,500-meter drill program at the China Wall prospect.
- The presence in relatively attractive mining jurisdictions in Australia positions the company to capitalize on opportunities in Australia's resource sector and deliver superior returns to its shareholders.
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Brunswick Exploration
Overview
Brunswick Exploration (TSXV:BRW,OTCQB:BRWXF) is among the only public companies aggressively and systematically conducting grassroots exploration for lithium in Canada and Greenland using state-of-the-art exploration technology to identify high-potential targets. Specifically, our team has staked major under explored pegmatite fields across Quebec, Newfoundland and Labrador, Nova Scotia, New Brunswick, Ontario, Manitoba, Saskatchewan and Greenland.
Our team of geologists begins by compiling available data and conducting research to identify locations where they believe the potential for minerals of interest might be found. Our technical field team is dispatched to conduct a prospecting program by gathering robust observational data using tried-and-true field geology techniques. The goal of the program is to reveal the presence of mineralization that may predict the presence of an unknown mineral deposit.
The company's exploration team is led by Robert Wares, co-founder of the Osisko Group of Companies. Wares is an established and award-winning professional geologist with over 35 years of experience in mineral exploration and development.
Brunswick Exploration has identified five high-priority projects in the Eeyou Istchee-James Bay region of Quebec: Mirage, Elrond, Anatacau, PLEX and Mythril. In 2023, grassroots lithium discoveries were made at Mirage, Elrond and Anatacau, which are currently the focus of drilling.
Company Highlights
- Brunswick Exploration Inc. (BRW) is a Montreal-based mineral exploration company listed on the TSX-V under symbol BRW. The Company is focused on grassroots exploration for lithium in Canada and Greenland, a critical metal necessary to global decarbonization and energy transition.
- This has generated one of the largest grassroots lithium portfolios globally.
- BRW's board includes Robert Wares, one of the founders of Osisko Mining.
- BRW was recognized as one of the Top 50 TSX Venture listed companies in 2023.
- The company has staked hundreds of untested prospective pegmatites measuring a minimum strike length of 500 meters and within 50 kilometers of infrastructure.
- In 2023, three discoveries were made in the Eeyou Istchee-James Bay region of Quebec at the Mirage, Anatacau Main and Elrond projects.
- In 2023, BRW completed a maiden 3,712-meter drill program at the Anatacau West project in Quebe that generated up to 26.5 metres at 1.51% Li2O.
- BRW completed 2 drill programs at the Mirage project, located in the Eeyou Istchee-James Bay region of Quebec. Intercepts include up to 58.1 metres at 1.59% Li2O.
- The company also completed a maiden drill program in early 2024 at the Elrond project to test the Arwen pegmatite discovered in 2023. Results are pending.
- The company will launch a Maiden drill program at the Anatacau Main project in the Eeyou Istchee-James Bay region of Quebec to test the Anais showing in H2 2024.
- Sirios Resources signed an agreement with Brunswick Exploration granting it the right to purchase a 0.5 percent net smelter return (NSR) held by Sirios on eight claims that are part of Brunswick Exploration's Mirage lithium property located in Eeyou Istchee James Bay.
Key Projects
Mirage Project
The Mirage Project comprises 427 claims with a total surface area of 21,230 hectares (staked and optioned claims), located roughly 40 kilometers south of the Trans-Taiga Highway in Quebec’s James Bay region. Fruitful discussions with a geologist that worked the area twenty-five years ago for gold exploration led to the staking of the BRW claims, as he recorded the presence of several angular pegmatitic glacial boulders hosting well-defined, decimetric spodumene crystals. The largest observed boulder measured 8 meters by 4 meters by 3 meters. In the fall of 2023, BRW discovered several high grade spodumene outcrops over a 2.5 kilometer trend as well as an adjacent 3.0 kilometer spodumene boulder train that has different minerology than the discovered outcrops.
In 2023, BRW completed a 5,000-meters drill program at the Mirage Project. The phase 1, 26-hole program, aimed to test the continuity and widths of the six widest spodumene-bearing pegmatite dykes that have been discovered to date on the property over a total cumulative strike length of 2,500 meters. Final drill results from the 2023 program at the Mirage project have outlined two new spodumene mineralized dykes (MR-5 and MR-6) with significant thickness and grade, all within the Central Zone. MR-23-28 intersected high-grade mineralization of 1.80 percent Li2O over 37.2 meters starting from surface in newly discovered dyke MR-6 located 500 metres northeast of MR-3. Evidence of potential stacking of dykes in Central Zone where MR-23-35 intercepted 11.5 meters grading 1.1 percent Li2O approximately 100 meters south of MR-3 in new dyke MR-5.
In H1 2024, a Phase II drilling campaign, containing 35 holes was completed at the Mirage project by targeting the extensions of known pegmatite dykes (MR-1 to MR-6) while new prospective outcrops have yet to be drill-tested. Results have generated up to 58.10 meters of 1.59% Li2O. Final results will be released when available.
In 2024, Brunswick Exploration signed an agreement with Sirios Resources to repurchase an existing 0.5 percent NSR on certain claims within the Mirage projectElrond Project
The Elrond Project comprises 136 claims with a total area of 7,048 hectares, located roughly 12 kilometers east of the Billy Diamond Highway in Quebec’s James Bay region. Elrond is part of the Mythril option agreement with Midland Exploration whereby BRW can earn a maximum of 85 percent interest in the project.
In the fall of 2023, BRW uncovered a new, undocumented spodumene-bearing pegmatite, known as the Arwen showing, that is exposed over a surface area measuring approximately 250 meters by 100 meters, dipping very shallowly to the north. The pegmatite remains open in all directions.
The Arwen outcrop is well mineralized in spodumene throughout the showing with an apparent higher-grade zone, containing up to 30 percent spodumene, which has a visible extent of approximately 75 by 15 meters. The spodumene crystals are well formed and up to 30 centimeters in length with an off-white color and were confirmed through LIBS analysis and UV light.
In early 2024, the company completed a maiden drilling campaign at the Elrond project to test the Arwen spodumene-bearing pegmatite. The Arwen pegmatite is well mineralized and three representative grab samples returned values between 1 and 3 percent Li2O. A high-resolution airborne magnetic survey was flown in the fall of 2023 and suggests that the Arwen showing is emplaced in a favorable structural corridor that is 4 kilometers long and 500 meters wide. The target area is proximal to infrastructure, located approximately 12 kilometers from the Billy-Diamond Highway and drilling activities will be ground supported via a winter road.
Results will be released when available.
Anatacau
Comprising the Anatacau Main and Anatacau West projects, these assets are under an option agreement with Osisko GP, a subsidiary of Osisko Development, under which Brunswick Resources can earn a 90 percent interest in the projects. The Anatacau property is located just east of Allkem’s (TSX:AKE) James Bay Lithium deposit (previously known as the Cyr deposit), which has a total mineral resource of 110.2 million tons (Mt) at 1.30 percent lithium oxide and a total ore reserve of 37.3 Mt at 1.27 percent lithium oxide.
BRW completed a maiden drill program at the Anatacau west property totalling 3,712 meters. 17 of the 18 drilled holes intersected spodumene mineralization that generated up to 26.5 metres at 1.51% Li2O
In the summer of 2023, Brunswick discovered a significant lithium pegmatite outcrop, measuring at least 100 meters long by 15 meters wide known as the Anais showing in Anatacau Main. The outcrop is within a larger cluster of pegmatite dykes all of which contain high-grade lithium mineralization.
This discovery is located 22 kilometers east of Anatacau West and Allkem’s James Bay Project along a large-scale E-W deformation corridor which is host to the known lithium-bearing pegmatite dykes in the region. This structure runs through both the Anatacau West and Anatacau Main properties over a total of 15.5 kilometers, all of which has never been explored for lithium.
BRW is planning a maiden drill program in 2024 to test the Anais pegmatite as well as a property wide prospecting and geochemical program.
Management Team
Robert Wares - Executive Chairman
Robert Wares is a professional geologist with more than 35 years of experience in mineral exploration and development. He was responsible for discovering the Canadian Malartic bulk tonnage gold mine, which was subsequently developed by Osisko Mining into one of Canada's largest gold producers. Wares was a co-winner of the Prospectors and Developers Association of Canada's "Prospector of the Year Award" for 2007. He was also named one of the"Mining Men of the Year" for 2009 by the Northern Miner. Wares will remain at Osisko Metals in an advisory capacity. He has a bachelor of science and an honorary doctorate in Earth sciences from McGill University.
Killian Charles - President and CEO
From 2017 to 2021, Killian Charles worked as VP of corporate development for Osisko Metals. Charles was previously the manager of corporate development at Integra Gold Corp, which was an advanced-stage gold development company until it was acquired by Eldorado Gold in July 2017. He worked as a mining analyst at Industrial Alliance Securities and Laurentian Bank Securities. Charles covered small and mid-cap exploration and production companies as a mining analyst. Charles holds a bachelor of science with a major in Earth and planetary sciences from McGill University.
Anthony Glavac - CFO
Anthony Glavac has more than 17 years of experience in financial reporting, including over 12 years in the mining industry. Since August 2017, Glavac has served as vice-president, and corporate controller for Falco Resources, and previously served as director, financial reporting and internal controls at Dynacor Gold Mines. Glavac spent 10 years at KPMG, working with both public and private companies, providing audit, taxation, strategic advisory and public offering services. Glavac is also involved with other public companies in the mining industry.
François Goulet - Exploration Manager, Quebec
François Goulet holds a master’s degree in structural geology from the Université du Québec à Montréal (UQÀM). In recent years he was president and CEO of Harfang Exploration, a gold project generator in the James Bay region. He has extensive experience working in the James Bay region of Quebec as well as international experience in a variety of exploration projects. Goulet has worked for Virginia Mines, Unigold, Maya Gold and Silver, the Canadian Malartic Partnership, Glencore Canada and several other junior companies. He is a member of the board of directors of l’Association de l’exploration minière du Québec (AEMQ) and a registered geologist with the Ordre des géologues du Québec since January 2011.
Charles Kodors - Exploration Manager, Atlantic Canada
Mr. Kodors is the Manager, Atlantic Canada at Brunswick Exploration Inc. and has been with the company since January 2021. Having 15 years of experience in the mining and exploration industry, he most recently served as an Exploration Manager for Osisko Metals and a Senior Exploration Geologist for Kirkland Lake Gold. Mr. Kodors received his B.Sc. from Brock University and is a registered Professional Geologist within the provinces of New Brunswick, Newfoundland, Nova Scotia, Ontario, Quebec, Manitoba and Saskatchewan.
Simon Hébert - Vice-president, Development
Simon Hébert is a professional geologist with over 13 years in the mining exploration industry. He began his career with Virginia Mines and Osisko Mining. Hébert has worked on several metallogenic projects and in various environments, mainly in the Baie-James territory, Nunavik and the Northwest Territories. He was a mining director in April 2019 where he participated in the formation of NQ Mining Investment, where he subsequently became general manager in 2023. Hébert is a registered professional geologist and a member of the Ordre des Géologues du Quebec since 2012. He has sat on the AEMQ board of directors since 2019, serving as vice-president. He is president of the board of directors of the Table Jamésienne de concertation minière. Hébert holds a bachelor’s degree in geology from Université Laval.
Gold, Silver See Gains as Fed Continues to Maintain Rates
The United States Federal Reserve announced on Wednesday (May 1) that it would hold its benchmark rate at 5.25 percent to 5.5 percent following its two-day Federal Open Market Committee (FOMC) meeting.
In his press conference following the meeting, Federal Reserve Chairman Jerome Powell largely echoed statements from previous sessions, suggesting the committee would continue to hold rates until it had more confidence that the inflation rate was on a sustainable path to the 2 percent target set by the central bank.
This was in line with analyst expectations prior to the meeting based on recent data from various government agencies.
Higher-than-expected personal consumption expenditures index (PCE) data released by the US Bureau of Economic Analysis (BEA) on April 26 showed that inflation rates were remaining stubborn. The key indicator posted a 2.7 percent annualized growth in March, 0.2 percent higher than February’s 2.5 percent growth rate. A day earlier, the BEA released an advance estimate of Q1 2024 gross domestic product data, which reported that real GDP increased 1.6 percent on an annual basis in the first quarter, down from 3.4 percent annual growth in Q4 2023.
Further muddying the waters for the Fed was a release from the Bureau of Labor Statistics on April 30, coinciding with the first day of the FOMC’s meeting, that reported a 1.2 percent increase in labor costs through the first quarter of 2024. While this data is not a key indicator for the Fed, the increase continues to show the effects of inflation within the labor market, making the situation more challenging for the central bank.Data suggests higher-for-longer interest rates
Powell said the data released since the last meeting in February had given the FOMC some uncertainty, but they were committed to restoring price stability to the economy. While the agency is continuing to pause changes to its rate, Powell did say the Federal Reserve would also continue to reduce its security holdings, with the pace slowing in June.
The committee came to its decision based on the stalling of inflation rates over the past several months as well as a tight labor market that, while becoming more balanced, continues to see demand exceed supply.
Although much of the data pushed the agency towards a higher-for-longer policy on its rates, Powell suggested there were some bright spots in the economy, including supply and demand conditions returning to balance along with unemployment remaining relatively low at 3.8 percent.
While Powell noted he doesn’t expect another rate hike, he was unwilling to state when rate cuts could be expected, suggesting that having the confidence to make cuts will take longer than expected.
After the release of the policy decision, markets were mixed, with the S&P and Nasdaq falling off 0.34 percent and 0.7 percent respectively by the end of the trading day, while the Dow had a slight gain of 0.23 percent. Meanwhile, the US dollar index saw a decline, losing 0.64 percent.
However, the gold price and silver price both saw gains, with gold climbing from US$2,299 in morning trading to a session high of US$2,327 and silver moving from US$26.43 to US$26.90, although both withdrew slightly. Gold has continued to trade at all-time highs in 2024, and set its latest record in early April when the gold price climbed to US$2,392. Silver has also performed strongly this year, and breached the US$29 level in the middle of last month.
The next meeting for the Federal Reserve’s FOMC will take place June 11 to 12.
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Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Franco-Nevada Reports Q1 2024 Results
Gold Prices Fuel Margin Expansion
(in U.S. dollars unless otherwise noted)
"Our diversified portfolio performed well and production for the quarter met expectations. Elevated gold prices translated directly into some of our highest ever margins," stated Paul Brink CEO. "Salares Norte commenced production during the quarter and Greenstone and Tocantinzinho are on track for first production in the coming months. Alamos' planned acquisition of Argonaut will help realize the full potential of the Magino and Island Gold deposits. While Cobre Panama remains on preservation and safe management, we are hopeful that the issues can be resolved. Franco- Nevada has no debt, $2.3B in available capital and has an active deal pipeline."
Q1 2024 | |||||
Q1 2024 results | vs | ||||
Q1 2023 | |||||
Total GEOs 1 sold | 122,897 GEOs | -15 % | |||
Precious Metal GEOs 1 sold | 93,018 GEOs | -16 % | |||
Revenue | $256.8 million | -7 % | |||
Net income | $144.5 million ($0.75/share) | -8 % | |||
Adjusted Net Income 2 | $146.0 million ($0.76/share) | -4 % | |||
Adjusted Net Income Margin 2 | 56.9 % | +3 % | |||
Adjusted EBITDA 2 | $216.1 million ($1.12/share) | -6 % | |||
Adjusted EBITDA Margin 2 | 84.2 % | +1.4 % |
Strong Financial Position
- No debt and $2.3 billion in available capital as at March 31, 2024
- Operating cash flow of $178.6 million in Q1 2024
- Quarterly dividend increased 5.88% to $0.36 /share effective Q1 2024
Sector-Leading ESG
- Rated #1 precious metals company and #1 gold company by Sustainalytics, AA by MSCI and Prime by ISS ESG
- Committed to the World Gold Council's Responsible Gold Mining Principles
- Partnering with our operators on community and ESG initiatives
- 40% diverse representation at the Board and top leadership levels as a group
Diverse, Long-Life Portfolio
- Most diverse royalty and streaming portfolio by asset, operator and country
- Attractive mix of long-life streams and high optionality royalties
- Long-life mineral resources and mineral reserves
Growth and Optionality
- Mine expansions and new mines driving 5-year growth profile
- Long-term optionality in gold, copper and nickel and exposure to some of the world's great mineral endowments
- Strong pipeline of precious metal and diversified opportunities
Quarterly revenue and GEOs sold by commodity | |||||||||||
Q1 2024 | Q1 2023 | ||||||||||
GEOs Sold | Revenue | GEOs Sold | Revenue | ||||||||
# | (in millions) | # | (in millions) | ||||||||
PRECIOUS METALS | |||||||||||
Gold | 77,563 | $ | 160.9 | 90,722 | $ | 172.2 | |||||
Silver | 11,688 | 25.0 | 14,813 | 28.6 | |||||||
PGM | 3,767 | 8.1 | 5,703 | 11.4 | |||||||
93,018 | $ | 194.0 | 111,238 | $ | 212.2 | ||||||
DIVERSIFIED | |||||||||||
Iron ore | 7,301 | $ | 14.8 | 7,074 | $ | 13.1 | |||||
Other mining assets | 1,496 | 3.0 | 1,067 | 2.0 | |||||||
Oil | 13,883 | 26.1 | 14,170 | 27.1 | |||||||
Gas | 4,865 | 12.3 | 9,118 | 16.9 | |||||||
NGL | 2,334 | 5.4 | 2,664 | 5.0 | |||||||
29,879 | $ | 61.6 | 34,093 | $ | 64.1 | ||||||
Revenue from royalty, stream and working interests | 122,897 | $ | 255.6 | 145,331 | $ | 276.3 | |||||
Interest revenue and other interest income | — | $ | 1.2 | — | $ | — | |||||
Total revenue | 122,897 | $ | 256.8 | 145,331 | $ | 276.3 |
In Q1 2024, we recognized $256.8 million in revenue, down 7.1% from Q1 2023. While we benefited from the rally in gold prices during the quarter, we sold fewer GEOs than in the prior year period as Cobre Panama remains in preservation and safe management. GEOs sold during the quarter do not fully reflect production for the quarter as 3,036 GEOs from Condestable were held in inventory at March 31, 2024 and sold subsequent to quarter-end. Precious Metal revenue accounted for 75.5% of our revenue (62.7% gold, 9.7% silver, 3.1% PGM). Revenue was sourced 82.8% from the Americas (39.2% South America , 9.7% Central America & Mexico , 18.2% U.S. and 15.7% Canada ). Revenue includes interest revenue and other interest income related to loans provided as part of our financing packages. For the three months ended March 31, 2024 , we recognized $1.2 million in revenue related to the G Mining Ventures Term Loan and Skeena Convertible Debenture.
Environmental, Social and Governance (ESG) Updates
During the quarter, we published our 2024 ESG Report that, among other things, highlights our key focuses for ESG due diligence, increased community contributions, progression of diversity goals and initiatives, and the adoption of reduction targets in respect of our corporate emissions. We also renewed our partnership with Perpetua Resources to support social capacity building at the Stibnite Gold Project. In furtherance of our goal to have diversity at the Board level on grounds broader than gender diversity, we made a firm commitment to appoint a racially or ethnically diverse director by no later than our annual general shareholder meeting in 2025. We continue to rank highly with leading ESG rating agencies.
Portfolio Additions
- Financing package with Scottie Resources: Subsequent to quarter-end, on April 15, 2024 , we acquired a 2.0% gross production royalty on all minerals produced on Scottie Resources Corp.'s ("Scottie") claims in the Stewart Mining Camp in the Golden Triangle in British Columbia, Canada , for a purchase price of $5.9 million ( C$8.1 million ). Additionally, we acquired 5,422,994 common shares of Scottie for an aggregate of $0.7 million ( C$1.0 million ).
- Amendment of Condestable Stream – Peru : On March 27, 2024 , we amended our Condestable precious metal stream agreement to increase the Phase 2 variable deliveries from 25% of gold and silver produced to 37.5%, by paying an additional $10.0 million deposit.
- Acquisition of Silver Royalty on the Stibnite Gold Project – U.S. : On March 21, 2024 , we acquired a NSR interest covering all of the payable silver production from the Stibnite Gold project in Idaho for a purchase price of $8.5 million .
- Funding of G Mining Ventures Term Loan: On January 29, 2024 , we funded $42.0 million under our term loan commitment to G Mining Ventures. Subsequent to quarter-end, on April 19, 2024 , we funded the remaining $33.0 million , thereby fulfilling our term loan commitment. The term loan is part of a financing package we provided to G Mining Ventures in July 2022 in connection with the Tocantinzinho gold project, in Brazil .
- Acquisition of Royalties on Pascua-Lama Project – Chile : On January 3, 2024 , we acquired an additional interest in the Chilean portion of Barrick Gold Corporation's Pascua-Lama project for a purchase price of $6.7 million . Including the interest we acquired in August 2023 , at gold prices exceeding $800 /ounce, we now hold a 2.941% NSR (gold) and a 0.588% NSR (copper) on the property.
- Acquisition of Additional Natural Gas Royalty in the Haynesville – U.S.: As previously announced, on November 21, 2023 , we agreed to acquire a royalty portfolio in the Haynesville gas play in Louisiana and Texas for $125.0 million and funded an initial deposit of $12.5 million . The transaction closed on January 2, 2024 , and we funded the remainder of the purchase price of $112.5 million .
Q1 2024 Portfolio Updates
Precious Metal assets: GEOs sold from our Precious Metal assets were 93,018, compared to 111,238 GEOs in Q1 2023. Higher contributions from Antapaccay, Guadalupe-Palmarejo and Subika (Ahafo) were more than offset by lower deliveries from Cobre Panama and Antamina.
South America :
- Candelaria (gold and silver stream) – GEOs delivered and sold in Q1 2024 were relatively in line with Q1 2023. In February 2024 , Lundin Mining reported an overall increase in Mineral Resources at Candelaria , reflecting additional drilling at La Espanola and Santos offset by lower underground Mineral Resources due to changes to underground mining regulations.
- Antapaccay (gold and silver stream) – GEOs delivered and sold were higher in Q1 2024 compared to Q1 2023. Operations were temporarily suspended as a result of socio-political tensions in early 2023.
- Antamina (22.5% silver stream) – GEOs delivered and sold were lower in Q1 2024 compared to Q1 2023. Silver production at the mine was lower than in the prior year period due to a decrease in average silver grades as anticipated based on the life of mine plan.
- Condestable (gold and silver stream) – We received 3,036 GEOs in Q1 2024, consistent with deliveries in Q1 2023. However, ounces were sold subsequent to quarter-end and remained in inventory as at March 31, 2024 .
- Tocantinzinho (gold stream) – G Mining Ventures reported the physical construction of the Tocantinzinho project was 89% complete as of the end of March 2024 and remains on track for commercial production in H2 2024. According to the 2022 feasibility study, the project is expected to produce an average of 196,000 ounces of gold annually for the first five years.
- Salares Norte (1- 2% royalties) – Gold Fields announced that production at the Salares Norte mine started with the pouring of its first gold-silver doré on March 28, 2024 . Ramp-up of the mine to steady state production is progressing with gold equivalent production of 250,000 ounces expected for 2024. Once steady state production is reached, production is expected to increase to 580,000 gold equivalent ounces in 2025.
- Posse ( Mara Rosa ) (1% royalty) – Hochschild Mining announced that the first gold pour took place on February 20, 2024 , with commercial production expected in Q2 2024. Mara Rosa is expected to produce between 83,000 to 93,000 gold ounces in 2024 and has reported expected average annual production of approximately 80,000 gold ounces over an initial mine life of 10 years, with approximately 100,000 gold ounces annually over the first four years.
- Cascabel (1% royalty) – In February 2024 , SolGold announced the completion of a new pre-feasibility study, which outlined reduced initial capital costs and a 28-year mine plan containing 3.2 million tonnes of copper, 9.4 million ounces of gold, and 28 million ounces of silver (540 million tonnes grading 0.60% copper, 0.54 g/t gold, and 1.62 g/t silver).
Central America & Mexico :
- Cobre Panama (gold and silver stream) – Production at Cobre Panama has been halted since November 2023 with mining activities currently on preservation and safe management.
- Guadalupe-Palmarejo (50% gold stream) – GEOs sold from Guadalupe-Palmarejo increased in Q1 2024 compared to the same quarter in 2023, reflecting increased production at the mine due to better head grade and recoveries.
U.S.:
- Stillwater (5% royalty) – GEOs from our Stillwater royalty decreased in Q1 2024 compared to Q1 2023 as the decline in PGM prices more than offset higher production at the mine. Sibanye-Stillwater is repositioning its U.S. PGM operations in light of the lower palladium price environment.
- Bald Mountain (0.875-5% royalties) – GEOs from our Bald Mountain royalties were higher in Q1 2024 than in Q1 2023 due to mine sequencing.
- Marigold (0.5-5% royalties) – GEOs from our Marigold royalties were lower in Q1 2024 than in Q1 2023 as production is taking place on ground that carries a lower royalty rate. Production is anticipated to progress to higher royalty rate ground in 2027 through the end of the current mine life.
- Stibnite Gold (gold and silver royalties) – Perpetua Resources received a letter of interest from the Export-Import Bank of the United States for potential debt financing of up to $1.8 billion .
Canada :
- Detour Lake (2% royalty) – Agnico Eagle reported it expects the mill to reach a throughput of 28.0 million tonnes per annum by the end of 2024 and continues to evaluate underground mining scenarios. Agnico Eagle expects to provide an update on the project, mill optimization efforts and ongoing exploration results in Q2 2024. Exploration drilling focussed on infill drilling the West Pit Extension, west of the West Pit mineral resources and near the potential underground exploration ramp.
- Hemlo (3% royalty & 50% NPI) – GEOs from our Hemlo royalties were lower than in Q1 2023 reflecting higher underground mining costs. Barrick anticipates production at Hemlo to improve relative to 2023, where production was impacted by interruptions to the underground operations.
- Brucejack (1.2% royalty) – GEOs from our Brucejack royalty were lower in Q1 2024 than in Q1 2023. Newmont, which acquired Brucejack through its acquisition of Newcrest Mining in November 2023 , anticipates an increase in production in 2024 compared to 2023.
- Macassa ( Kirkland Lake ) (1.5-5.5% royalty & 20% NPI) – Agnico Eagle reported that commissioning of the ventilation system upgrade at Macassa was completed in Q1 2024. Production from long hole stopes in the Near Surface deposit continued in Q1 2024, and development of the AK deposit progressed for initial production in Q4 2024.
- Magino (3% royalty) and Island Gold ( 0.62% royalty) – Argonaut and Alamos announced a definitive agreement whereby Alamos will acquire all of the issued and outstanding shares of Argonaut. The combination is expected to create one of Canada's largest, lowest cost and most profitable gold mines. The transaction is expected to result in substantial synergies through shared infrastructure between the adjacent Magino and Island Gold mines. Alamos has noted potential longer-term upside through a single optimized milling complex at Magino with an expansion of between 15,000 and 20,000 tonnes per day.
- Canadian Malartic (1.5% royalty) – Agnico Eagle reported that ramp development reached the first production level of East Gouldie in February 2024 . Exploration drilling continued to return positive results to the east of the East Gouldie mineral resources, demonstrating the potential to add inferred mineral resources.
- Greenstone (3% royalty) – Equinox Gold announced that ore was introduced into the grinding circuit on April 6, 2024 , with first gold pour expected in May 2024 and commercial production targeted for Q3 2024. Equinox Gold also announced that it had entered into an agreement to consolidate its ownership interest to 100% of the Greenstone project. On a 100% basis, Greenstone is expected to produce between approximately 175,000 and 208,000 gold ounces in 2024, and average annual production of approximately 400,000 gold ounces over an initial mine life of 14 years.
- Valentine Gold (3% royalty) – Production at Valentine Gold continues to be anticipated in H1 2025. The project is now owned by Calibre Mining, which acquired Marathon Gold in January 2024 . Average annual production of approximately 195,000 gold ounces is expected, over an initial mine life of 12 years.
Rest of World:
- MWS (25% stream) – GEOs delivered and sold from our MWS stream were higher than in Q1 2023 due to higher production.
- Tasiast (2% royalty) – GEOs from our Tasiast royalty were higher than in Q1 2023 as a result of strong grades, higher recoveries and record throughput following the completion of the Tasiast 24k project.
- Subika (Ahafo) (2% royalty) – GEOs from our Subika (Ahafo) royalty were higher than in Q1 2023 as production at Subika increased due to higher open pit grade and stronger underground mining rates.
- Séguéla (0.6% royalty) – On March 30, 2024 , Fortuna Silver Mines exercised its option to buy-back 0.6% of the 1.2% NSR by paying $6.5 million ( A$10 million ) to Franco-Nevada, such that our NSR on the Séguéla mine is now 0.6%.
Diversified assets: Our Diversified assets, primarily comprising our Iron Ore and Energy interests, generated $61.6 million in revenue, down from $64.1 million in Q1 2023.
Iron Ore:
- Vale Royalty (iron ore royalty) – Revenue from the Vale royalty increased compared to Q1 2023. The increase is due to a higher than anticipated royalty payment reflecting higher attributable iron ore sales during the H2 2023 period. For the Q1 2024 period, production was in line compared to Q1 2023 in the Northern System. Higher production from the Southeastern System, where the royalty is not yet payable, was driven by increases at Itabira and Brucutu.
- LIORC – LIORC declared a cash dividend of C$0.45 per common share in the current period, compared to C$0.50 in Q1 2023. LIORC reported production at IOC for Q1 2024 of 4.5 million tonnes, up from 4.3 million tonnes in Q1 2023, and confirmed 2024 production guidance remains unchanged at 16.7 million tonnes to 19.6 million tonnes.
- Caserones (0.517% effective NSR) – GEOs from our interest in Caserones were higher than in Q1 2023. On January 19, 2024 , EMX Royalty Corp. exercised an option to acquire a portion of our interest for a sale price of $4.7 million , such that our effective NSR on Caserones is now 0.517%.
Energy:
- U.S. (various royalty rates) – Revenue from our U.S. Energy interests decreased compared to Q1 2023. While revenue from our oil assets was consistent with the prior year, overall revenues declined due to lower revenue from our gas assets. Contribution from our new Haynesville gas acquisition was offset by lower realized gas prices and volumes at our existing Haynesville assets.
- Canada (various royalty rates) – Revenue from our Canadian Energy interests was slightly lower than in Q1 2023. Higher production and revenues from our Orion asset were offset by lower revenue from the Weyburn NRI, due to prior period adjustments.
Dividend Declaration
Franco- Nevada is pleased to announce that its Board of Directors has declared a quarterly dividend of US$0.36 per share. The dividend will be paid on June 27, 2024 , to shareholders of record on June 13, 2024 (the "Record Date"). The dividend has been declared in U.S. dollars and the Canadian dollar equivalent will be determined based on the daily average rate posted by the Bank of Canada on the Record Date. Under Canadian tax legislation, Canadian resident individuals who receive "eligible dividends" are entitled to an enhanced gross-up and dividend tax credit on such dividends.
The Company has a Dividend Reinvestment Plan (the "DRIP") which allows shareholders of Franco-Nevada to reinvest dividends to purchase additional common shares at the Average Market Price, as defined in the DRIP, subject to a discount from the Average Market Price in the case of treasury acquisitions. The Company will issue additional common shares through treasury at a 1% discount to the Average Market Price. The Company may, from time to time, in its discretion, change or eliminate the discount applicable to treasury acquisitions or direct that such common shares be purchased in market acquisitions at the prevailing market price, any of which would be publicly announced. Participation in the DRIP is optional. The DRIP and enrollment forms are available on the Company's website at www.franco-nevada.com . Canadian and U.S. registered shareholders may also enroll in the DRIP online through the plan agent's self-service web portal at www.investorcentre.com/franco-nevada . Canadian and U.S. beneficial shareholders should contact their financial intermediary to arrange enrollment. Non-Canadian and non-U.S. shareholders may potentially participate in the DRIP, subject to the satisfaction of certain conditions. Non-Canadian and non-U.S. shareholders should contact the Company to determine whether they satisfy the necessary conditions to participate in the DRIP.
This press release is not an offer to sell or a solicitation of an offer for securities. A registration statement relating to the DRIP has been filed with the U.S. Securities and Exchange Commission and may be obtained under the Company's profile on the U.S. Securities and Exchange Commission's website at www.sec.gov .
Shareholder Information
The complete Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis can be found on our website at www.franco-nevada.com , on SEDAR+ at www.sedarplus.com and on EDGAR at www.sec.gov .
We will host a conference call to review our Q1 2024 results. Interested investors are invited to participate as follows:
Conference Call and Webcast: | May 2 nd 10:00 am ET |
Dial‑in Numbers: | Toll‑Free: 1‑888‑390‑0546 International: 416‑764‑8688 |
Conference Call URL (This allows participants to join | |
Webcast: | |
Replay (available until May 9 th ): | Toll‑Free: 1‑888‑390‑0541 International: 416‑764‑8677 Pass code: 644762 # |
Corporate Summary
Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco- Nevada is debt-free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the Toronto and New York stock exchanges.
Forward- Looking Statements
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to future events or future performance, management's expectations regarding Franco-Nevada's growth, results of operations, estimated future revenues, performance guidance, carrying value of assets, future dividends and requirements for additional capital, mineral resources and mineral reserves estimates, production estimates, production costs and revenue, future demand for and prices of commodities, expected mining sequences, business prospects and opportunities, the performance and plans of third party operators, audits being conducted by the Canada Revenue Agency ("CRA"), the expected exposure for current and future tax assessments and available remedies, and statements with respect to the future status and any potential restart of the Cobre Panama mine and related arbitration proceedings. In addition, statements relating to mineral resources and mineral reserves, GEOs or mine lives are forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates and assumptions are accurate and that such mineral resources and mineral reserves, GEOs or mine lives will be realized. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "potential for", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Franco-Nevada to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual events or results to differ materially from any forward-looking statement, including, without limitation: fluctuations in the prices of the primary commodities that drive royalty and stream revenue (gold, platinum group metals, copper, nickel, uranium, silver, iron ore and oil and gas); fluctuations in the value of the Canadian and Australian dollar, Mexican peso, and any other currency in which revenue is generated, relative to the U.S. dollar; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; the adoption of a global minimum tax on corporations; regulatory, political or economic developments in any of the countries where properties in which Franco-Nevada holds a royalty, stream or other interest are located or through which they are held; risks related to the operators of the properties in which Franco-Nevada holds a royalty, stream or other interest, including changes in the ownership and control of such operators; relinquishment or sale of mineral properties; influence of macroeconomic developments; business opportunities that become available to, or are pursued by Franco-Nevada; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; whether or not the Company is determined to have "passive foreign investment company" ("PFIC") status as defined in Section 1297 of the United States Internal Revenue Code of 1986, as amended; potential changes in Canadian tax treatment of offshore streams; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; access to sufficient pipeline capacity; actual mineral content may differ from the mineral resources and mineral reserves contained in technical reports; rate and timing of production differences from resource estimates, other technical reports and mine plans; risks and hazards associated with the business of development and mining on any of the properties in which Franco-Nevada holds a royalty, stream or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, sinkholes, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious disease; the impact of future pandemics; and the integration of acquired assets. The forward-looking statements contained herein are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Franco-Nevada holds a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or operators of such underlying properties; no material adverse change in the market price of the commodities that underlie the asset portfolio; the Company's ongoing income and assets relating to determination of its PFIC status; no material changes to existing tax treatment; the expected application of tax laws and regulations by taxation authorities; the expected assessment and outcome of any audit by any taxation authority; no adverse development in respect of any significant property in which Franco-Nevada holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in production; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However, 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. Investors are cautioned that forward-looking statements are not guarantees of future performance. In addition, there can be no assurance as to (i) the outcome of the ongoing audit by the CRA or the Company's exposure as a result thereof, or (ii) the future status and any potential restart of the Cobre Panama mine or the outcome of any related arbitration proceedings. Franco- Nevada cannot assure investors that actual results will be consistent with these forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.
For additional information with respect to risks, uncertainties and assumptions, please refer to Franco-Nevada's most recent Annual Information Form as well as Franco-Nevada's most recent Management's Discussion and Analysis filed with the Canadian securities regulatory authorities on www.sedarplus.com and Franco-Nevada's most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov . The forward-looking statements herein are made as of the date hereof only and Franco-Nevada does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law.
ENDNOTES:
- GEOs: Gold equivalent ounces ("GEOs") include Franco-Nevada's attributable share of production from our Mining and Energy assets after applicable recovery and payability factors. GEOs are estimated on a gross basis for NSRs and, in the case of stream ounces, before the payment of the per ounce contractual price paid by the Company. For NPI royalties, GEOs are calculated taking into account the NPI economics. Silver, platinum, palladium, iron ore, oil, gas and other commodities are converted to GEOs by dividing associated revenue, which includes settlement adjustments, by the relevant gold price. The price used in the computation of GEOs varies depending on the royalty or stream agreement of each particular asset, which may make reference to the market price realized by the operator, or the average price for the month, quarter, or year in which the commodity was produced or sold. For Q1 2024, the average commodity prices were as follows: $2,072 /oz gold (Q1 2023 - $1,889 ), $23.36 /oz silver (Q1 2023 - $22.56 ), $910 /oz platinum (Q1 2023 - $994 ) and $978 /oz palladium (Q1 2023 - $1,567 ), $126 /t Fe 62% CFR China (Q1 2023 - $124 ), $76.96 /bbl WTI oil (Q1 2023 - $76.13 ) and $2.09 /mcf Henry Hub natural gas (Q1 2023 - $2.76 ).
- NON-GAAP FINANCIAL MEASURES: Adjusted Net Income and Adjusted Net Income per share, Adjusted Net Income Margin, Adjusted EBITDA and Adjusted EBITDA per share, and Adjusted EBITDA Margin are non-GAAP financial measures with no standardized meaning under International Financial Reporting Standards ("IFRS Accounting Standards") and might not be comparable to similar financial measures disclosed by other issuers. For a quantitative reconciliation of each non-GAAP financial measure to the most directly comparable financial measure under IFRS Accounting Standards, refer to the following tables. Further information relating to these Non-GAAP financial measures is incorporated by reference from the "Non-GAAP Financial Measures" section of Franco-Nevada's MD&A for the three months ended March 31, 2024 dated May 1, 2024 filed with the Canadian securities regulatory authorities on SEDAR+ available at www.sedarplus.com and with the U.S. Securities and Exchange Commission available on EDGAR at www.sec.gov .
- Adjusted Net Income and Adjusted Net Income per share are non-GAAP financial measures, which exclude the following from net income and earnings per share ("EPS"): impairment losses and reversal related to royalty, stream and working interests and investments; gains/losses on disposals of royalty, stream and working interests and investments; impairment losses and expected credit losses related to investments, loans receivable and other financial instruments, changes in fair value of investments, loans receivable and other financial instruments, foreign exchange gains/losses and other income/expenses; unusual non-recurring items; and the impact of income taxes on these items.
- Adjusted Net Income Margin is a non-GAAP financial measure which is defined by the Company as Adjusted Net Income divided by revenue.
- Adjusted EBITDA and Adjusted EBITDA per share are non-GAAP financial measures, which exclude the following from net income and EPS: income tax expense/recovery; finance expenses and finance income; depletion and depreciation; impairment charges and reversals related to royalty, stream and working interests and investments; gains/losses on disposals of royalty, stream and working interests and investments; impairment losses and expected credit losses related to investments, loans receivable and other financial instruments, changes in fair value of investment, loans receivable and other financial instruments, foreign exchange gains/losses and other income/expenses; and unusual non-recurring items.
- Adjusted EBITDA Margin is a non-GAAP financial measure which is defined by the Company as Adjusted EBITDA divided by revenue.
Reconciliation of Non-GAAP Financial Measures:
For the three months ended | ||||||||
March 31, | ||||||||
(expressed in millions, except per share amounts) | 2024 | 2023 | ||||||
Net income | $ | 144.5 | $ | 156.5 | ||||
Gain on disposal of royalty interests | (0.3) | (3.7) | ||||||
Foreign exchange loss (gain) and other expenses (income) | 1.6 | (2.2) | ||||||
Tax effect of adjustments | 0.2 | 1.6 | ||||||
Adjusted Net Income | $ | 146.0 | $ | 152.2 | ||||
Basic weighted average shares outstanding | 192.2 | 191.9 | ||||||
Adjusted Net Income per share | $ | 0.76 | $ | 0.79 |
For the three months ended | ||||||||
March 31, | ||||||||
(expressed in millions, except Adjusted Net Income Margin) | 2024 | 2023 | ||||||
Adjusted Net Income | $ | 146.0 | $ | 152.2 | ||||
Revenue | 256.8 | 276.3 | ||||||
Adjusted Net Income Margin | 56.9 | % | 55.1 | % |
For the three months ended | ||||||||||
March 31, | ||||||||||
(expressed in millions, except per share amounts) | 2024 | 2023 | ||||||||
Net income | $ | 144.5 | $ | 156.5 | ||||||
Income tax expense | 27.5 | 27.6 | ||||||||
Finance expenses | 0.6 | 0.7 | ||||||||
Finance income | (16.0) | (10.5) | ||||||||
Depletion and depreciation | 58.2 | 61.0 | ||||||||
Gain on disposal of royalty interests | (0.3) | (3.7) | ||||||||
Foreign exchange loss (gain) and other expenses (income) | 1.6 | (2.2) | ||||||||
Adjusted EBITDA | $ | 216.1 | $ | 229.4 | ||||||
Basic weighted average shares outstanding | 192.2 | 191.9 | ||||||||
Adjusted EBITDA per share | $ | 1.12 | $ | 1.20 |
For the three months ended | |||||||||
March 31, | |||||||||
(expressed in millions, except Adjusted EBITDA Margin) | 2024 | 2023 | |||||||
Adjusted EBITDA | $ | 216.1 | $ | 229.4 | |||||
Revenue | 256.8 | 276.3 | |||||||
Adjusted EBITDA Margin | 84.2 | % | 83.0 | % |
FRANCO- NEVADA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in millions of U.S. dollars)
At March 31, | At December 31, | |||||||
2024 | 2023 | |||||||
ASSETS | ||||||||
Cash and Cash equivalents | $ | 1,352.0 | $ | 1,421.9 | ||||
Receivables | 126.7 | 111.0 | ||||||
Gold bullion, prepaid expenses and other current assets | 91.5 | 82.4 | ||||||
Current assets | $ | 1,570.2 | $ | 1,615.3 | ||||
Royalty, stream and working interests, net | $ | 4,078.7 | $ | 4,027.1 | ||||
Investments | 257.2 | 254.5 | ||||||
Loans receivable | 65.4 | 24.8 | ||||||
Deferred income tax assets | 35.1 | 37.0 | ||||||
Other assets | 52.7 | 35.4 | ||||||
Total assets | $ | 6,059.3 | $ | 5,994.1 | ||||
LIABILITIES | ||||||||
Accounts payable and accrued liabilities | $ | 41.8 | $ | 30.9 | ||||
Current income tax liabilities | 11.6 | 8.3 | ||||||
Current liabilities | $ | 53.4 | $ | 39.2 | ||||
Deferred income tax liabilities | $ | 181.6 | $ | 180.1 | ||||
Other liabilities | 4.8 | 5.7 | ||||||
Total liabilities | $ | 239.8 | $ | 225.0 | ||||
SHAREHOLDERS' EQUITY | ||||||||
Share capital | $ | 5,742.2 | $ | 5,728.2 | ||||
Contributed surplus | 19.3 | 20.6 | ||||||
Retained earnings | 283.7 | 212.3 | ||||||
Accumulated other comprehensive loss | (225.7) | (192.0) | ||||||
Total shareholders' equity | $ | 5,819.5 | $ | 5,769.1 | ||||
Total liabilities and shareholders' equity | $ | 6,059.3 | $ | 5,994.1 | ||||
The unaudited condensed consolidated interim financial statements and accompanying notes can be found in our Q1 2024 Quarterly Report available on our website |
FRANCO- NEVADA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE (LOSS) INCOME
(in millions of U.S. dollars and shares, except per share amounts)
For the three months ended | |||||||
March 31, | |||||||
2024 | 2023 | ||||||
Revenue | |||||||
Revenue from royalty, streams and working interests | $ | 255.6 | $ | 276.3 | |||
Interest revenue | 0.9 | — | |||||
Other interest income | 0.3 | — | |||||
Total revenue | $ | 256.8 | $ | 276.3 | |||
Costs of sales | |||||||
Costs of sales | $ | 33.6 | $ | 38.2 | |||
Depletion and depreciation | 58.2 | 61.0 | |||||
Total costs of sales | $ | 91.8 | $ | 99.2 | |||
Gross profit | $ | 165.0 | $ | 177.1 | |||
Other operating expenses (income) | |||||||
General and administrative expenses | $ | 5.7 | $ | 6.2 | |||
Share-based compensation expenses | 2.8 | 3.2 | |||||
Gain on disposal of royalty interests | (0.3) | (3.7) | |||||
Gain on sale of gold bullion | (1.4) | (0.7) | |||||
Total other operating expenses | $ | 6.8 | $ | 5.0 | |||
Operating income | $ | 158.2 | $ | 172.1 | |||
Foreign exchange (loss) gain and other (expenses) income | $ | (1.6) | $ | 2.2 | |||
Income before finance items and income taxes | $ | 156.6 | $ | 174.3 | |||
Finance items | |||||||
Finance income | $ | 16.0 | $ | 10.5 | |||
Finance expenses | (0.6) | (0.7) | |||||
Net income before income taxes | $ | 172.0 | $ | 184.1 | |||
Income tax expense | 27.5 | 27.6 | |||||
Net income | $ | 144.5 | $ | 156.5 | |||
Other comprehensive (loss) income, net of taxes | |||||||
Items that may be reclassified subsequently to profit and loss: | |||||||
Currency translation adjustment | $ | (39.2) | $ | (0.4) | |||
Items that will not be reclassified subsequently to profit and loss: | |||||||
Gain on changes in the fair value of equity investments | |||||||
at fair value through other comprehensive income ("FVTOCI"), | |||||||
net of income tax | 1.8 | 6.8 | |||||
Other comprehensive (loss) income, net of taxes | $ | (37.4) | $ | 6.4 | |||
Comprehensive income | $ | 107.1 | $ | 162.9 | |||
Earnings per share | |||||||
Basic | $ | 0.75 | $ | 0.82 | |||
Diluted | $ | 0.75 | $ | 0.81 | |||
Weighted average number of shares outstanding | |||||||
Basic | 192.2 | 191.9 | |||||
Diluted | 192.4 | 192.2 | |||||
The unaudited condensed consolidated interim financial statements and accompanying notes can be found in our Q1 2024 Quarterly Report available on our website |
FRANCO- NEVADA CORPORATION
CONDENSE CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of U.S. dollars)
For the three months ended | ||||||||
March 31, | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 144.5 | $ | 156.5 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Interest revenue | (0.9) | — | ||||||
Other interest income | (0.3) | — | ||||||
Depletion and depreciation | 58.2 | 61.0 | ||||||
Share-based compensation expenses | 1.4 | 1.5 | ||||||
Gain on disposal of royalty interests | (0.3) | (3.7) | ||||||
Unrealized foreign exchange loss (gain) | 1.1 | (2.1) | ||||||
Deferred income tax expense | 5.4 | 8.1 | ||||||
Other non-cash items | (0.8) | (0.7) | ||||||
Acquisition of gold bullion | (15.9) | (4.8) | ||||||
Proceeds from sale of gold bullion | 10.7 | 8.5 | ||||||
Changes in other assets | (17.4) | — | ||||||
Operating cash flows before changes in non-cash working capital | $ | 185.7 | $ | 224.3 | ||||
Changes in non-cash working capital: | ||||||||
Increase in receivables | $ | (15.7) | $ | (16.1) | ||||
Decrease in prepaid expenses and other | 0.7 | 2.1 | ||||||
Increase (decrease) in current liabilities | 7.9 | (0.5) | ||||||
Net cash provided by operating activities | $ | 178.6 | $ | 209.8 | ||||
Cash flows used in investing activities | ||||||||
Acquisition of royalty, stream and working interests | $ | (146.9) | $ | (109.3) | ||||
Investment in loan receivable | (41.2) | — | ||||||
Acquisition of investments | (6.7) | — | ||||||
Acquisition of energy well equipment | (0.3) | (0.3) | ||||||
Acquisition of property and equipment | (0.1) | — | ||||||
Proceeds from sale of royalty interests | 4.7 | 7.0 | ||||||
Net cash used in investing activities | $ | (190.5) | $ | (102.6) | ||||
Cash flows used in financing activities | ||||||||
Payment of dividends | $ | (58.9) | $ | (57.8) | ||||
Proceeds from exercise of stock options | 0.8 | 1.2 | ||||||
Net cash used in financing activities | $ | (58.1) | $ | (56.6) | ||||
Effect of exchange rate changes on cash and cash equivalents | $ | 0.1 | $ | 1.3 | ||||
Net change in cash and cash equivalents | $ | (69.9) | $ | 51.9 | ||||
Cash and cash equivalents at beginning of period | $ | 1,421.9 | $ | 1,196.5 | ||||
Cash and cash equivalents at end of period | $ | 1,352.0 | $ | 1,248.4 | ||||
Supplemental cash flow information: | ||||||||
Income taxes paid | $ | 7.4 | $ | 23.9 | ||||
Dividend income received | $ | 2.1 | $ | 3.9 | ||||
Interest and standby fees paid | $ | 0.4 | $ | 0.6 |
The unaudited condensed consolidated interim financial statements and accompanying notes can be found in our Q1 2024 Quarterly Report available on our website |
View original content: https://www.prnewswire.com/news-releases/franco-nevada-reports-q1-2024-results-302133634.html
SOURCE Franco-Nevada Corporation
View original content: http://www.newswire.ca/en/releases/archive/May2024/01/c1560.html
News Provided by Canada Newswire via QuoteMedia
Rio Silver Announces Grant of Stock Options
Rio Silver Inc. ("Rio Silver" or the "Company") (TSX.V: RYO) (OTC: RYOOF) The company announces that it has granted an aggregate of 2 million incentive stock options to directors, officers and consultants of the company, exercisable at a price of five cents with the following exercise periods: (i) one year as to 600,000 options; (ii) two years as to 400,000 options; and (iii) five years as to 1 million options, from the date of grant. The grant of these options is subject to the approval of the exchange.
About Rio Silver Inc.
Rio Silver is a resource development company that has been selectively identifying and acquiring precious metal assets that afford the best possible leverage and returns in anticipation of an increasingly more favorable precious metals bull market. Our Peruvian precious metal assets are wholly owned with no royalty obligations. The Ninobamba area Au/Ag targets are economically attractive as the mineralization suggests near surface, bulk mineable open pit targets.
Rio Silver is pleased with our host country as the Government continues to support mining policies ensuring continued growth and opportunity throughout Peru.
ON BEHALF OF THE BOARD OF DIRECTORS OF RIO SILVER INC.
“Chris Verrico”
Christopher Verrico
604-762-4448
Chris.verrico@riosilverinc.com
Director, President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. 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 or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required by applicable laws.
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