New Break Discusses Fresh Collaborative Approach to Exploring the Moray Property

New Break Discusses Fresh Collaborative Approach to Exploring the Moray Property

New Break Resources Ltd. (CSE: NBRK) ("New Break" or the "Company") is pleased to outline the Company's 2022 exploration programs at its 100% owned Moray property ("Moray") located approximately 49 km south of Timmins, Ontario and 32 km northwest of the Young-Davidson Gold Mine operated by Alamos Gold Inc. New Break developed a fresh approach to 2022 exploration following the interpretation of results from its 2021 exploration programs, including observations and findings from detailed compilation work that also identified gaps in historical exploration work. Gold mineralization at Moray occurs in second order structures interpreted as splays off the Cadillac Larder-Lake Fault Zone, part of the famous Abitibi greenstone belt.

For almost 60 years, Moray has attracted over a dozen different operators, including mining industry giants like Noranda Inc. ("Noranda"), Rio Tinto, Inmet Mining Corporation and Newmont Corporation. Successive cycles of exploration work were completed, focused on gold, base metals (Cu, Pb, Zn, Ag) and ultramafic hosted Ni-Cu mineralization with 13 separate mineral showings recognized in the Ontario Mineral Index Inventory. Historical drilling includes an aggregate of 9,794 metres in 61 diamond drillholes, completed from 1964 to 2012 by a dozen different companies, including the most recent 2012 work, completed by SGX Resources Inc. ("SGX"). SGX performed prospecting and trenching programs during the summer of 2012, completed an induced polarisation ("IP") survey in November 2012 and completed a 776-metre diamond drilling program in five drillholes in December 2012. SGX cut short its exploration of Moray to focus on another nearby property. After a number of years of inactivity, New Break is bringing a fresh and collaborative approach to exploration at Moray.

Numerous instances of short tenure by past operators left a gap in understanding the geological structures that underlie the Moray property and its mineral showings. Success from drilling is increased tremendously by spending the necessary time and performing the necessary work to gain this understanding. New Break has focused on analyzing all historical work on the property, including historical drilling. Through this analysis and after incorporating new field work and interpretations, it is apparent that other compelling drill intersections of gold mineralization have never been followed up.

Michael Farrant, President and CEO of New Break, noted, "After acquiring the Moray property in September 2020, the task of understanding the geology of Moray and its potential host an economic mineral deposit was led by Bill Love, New Break's Vice-President, Exploration and a key member of the Hemlo gold deposit discovery team. Discoveries like Hemlo don't come without patience and developing a new and better understanding of the geology. The 1981 discovery at Hemlo was years in the making and only came after 75 unsuccessful drillholes by Corona Resources. The Hemlo gold camp has produced over 22 million ounces of gold and is one of Canada's most important gold camp discoveries. Who better to lead the efforts at Moray than one of the geologists who participated in the Hemlo discovery."

Bill Love built a technical team comprised of Orix Geoscience Inc. ("Orix"), along with a number of industry specialists to support him in undertaking a detailed compilation of the historical exploration work performed at Moray. Initial collaboration included reviewing assessment reports, observing and sampling historical drill-core, speaking to past operators to understand their perspectives on the property and facilitating a variety of technical sessions focused on interpretation and targeting. The results of 2021 survey work were interpreted using advances in technology, including proprietary 3-D modelling. 2022 exploration programs have been further designed to allow New Break to develop the best ever drill targets on the Moray property, based on a new and comprehensive geological understanding, and drill them.

2021 Moray Exploration Programs

In August and October 2021, Shaun Parent, P. Geo., of Superior Exploration Co. ("Superior Exploration") completed 22.61 line-kilometres of Very Low Frequency ("VLF") ground geophysical surveys over three principal targets areas, the Fiset showing ("Fiset"), the Voyager showing ("Voyager") and over the eastern end of Moray Lake, in order to test the historical results yielded in the NOR-1 drillhole, drilled by Noranda in 1965. VLF data are used to map geologic structure, including the apparent dip of fault zones and shear zones. The data can be interpreted to identify the dip of these structures for reliable drilling. The main Voyager trend was evident from the results of the survey and is evidenced by pyrite-pyrrhotite mineralization associated with mafic volcanics. The VLF survey at the East end of Moray Lake did produce a conductor/structure co-incident with the presumed azimuth of the NOR-1 drillhole.

From early October 2021, New Break engaged Pioneer Exploration Consultants Ltd. ("Pioneer") to perform a detailed airborne drone magnetometer ("Drone-MAG") survey over the entire 1,856-hectare Moray property using an Unmanned Aerial Vehicle ("UAV"). The UAV provides a low altitude aeromagnetic survey, producing high resolution data at regular intervals at a fraction of the cost of ground magnetics. The Drone-MAG survey resulted in New Break gathering Total Magnetic Intensity, 1st Vertical Derivative and 3D Analytic Signal data for the Moray property. The Drone-MAG survey details are noted in the following table:

Area NameLine
Spacing

(m)
Line
Direction
(deg)
Tie Line
Spacing
(m)
Flight Lines
(km)
Tie Lines
(km)
VLF Lines
(km)
Total Line Kilometers
(km)
Moray 202150000-120500377.51841.04018.817437.376

 

Magnetic methods are applicable to gold exploration in syenites, such as the Fiset syenite at Moray, because alteration readily destroys magnetite such that gold deposits in syenites invariably occur within "magnetic quiet zones". The data generated through the Drone-MAG survey at Moray, was further analyzed with the generation of magnetic inversions. The magnetic inversions provide a 3-D view of areas where magnetite destruction has occurred, including gold mineralized sections of the Fiset syenite, similar to syenite-hosted gold mineralization found at the Young-Davidson mine. Areas of magnetite enrichment are also highlighted, associated with serpentinization and potential Ni-Cu mineralization in the Moray ultramafic rocks.

In March 2022, New Break purchased the raw IP data from SGX from their 2012 IP survey, which was far more cost effective than duplicating the work. IP surveys are important as they measure the chargeability and conversely the resistivity of the subsurface and are a well-known tool for mapping disseminated style mineralization and sulphide mineralization associated with gold. IP can help discriminate between non-mineralized conductors such as shear zones and faults and map alteration zones.

New Break engaged Alan King of Geoscience North Ltd. ("Geoscience North") with the assistance of Gordon Morrison, to interpret the results of the 2021 VLF and Drone-MAG surveys, along with the purchased raw IP data. Mr. King was Chief Geophysicist at Inco Ltd. and Vale S.A., while Mr. Morrison was past President of TMAC Resources Inc. as well as having been an integral part of the discovery of 13 major polymetallic and precious metal deposits, six of which are producing mines. Through the use of proprietary technology, Mr. King created a geological model of the Moray property incorporating the VLF, Drone-MAG and IP data which has yielded revolutionary new targets for mechanical stripping and drilling unlike any historical data interpretation conducted in respect of the Moray property.

Spring and Summer 2022 Moray Exploration Programs

VLF Survey of the Fiset Syenite

3-D modelling of Drone-MAG survey data by Geoscience North has interpreted a magnetic low represented in a southerly plunging inversion shape within the Fiset syenite. As a result, New Break again engaged Superior Exploration to complete a 14.88 line-km VLF ground geophysical survey of the northeastern corner of the Moray property in April 2022. The purpose of the survey was to test for conductors and structures associated with this plunging magnetic low. Gold mineralization is thought to exist in the altered syenite. The survey yielded two VLF trends that have yet to be tested.

Till Sampling Survey

Glacial till sampling is a tried-and-true mineral exploration technique based on glacial erosion and the down-ice transportation of primary bedrock mineralization. This relatively new method has led to several critical gold discoveries in Canada in the past few decades, including the Rainy River gold deposit in northwestern Ontario. Till sampling has never been performed on the Moray property by any of the previous operators. In June 2022, New Break engaged IOS Services Géoscientifique Inc. ("IOS") out of Chicoutimi, Quebec, to complete a till sampling survey of the Moray property. In 2021, IOS completed an extensive till sampling program for Kenorland Minerals Ltd. on their Frotet Project in Quebec.

From June 5-10, 2022, IOS visited the Moray property taking 46, 10-kilogram basal till samples from the C-horizon of glacial till. The sampling grid consisted of sampling lines (WSW-ENE and E-W) approximately 1 kilometre apart and perpendicular to the dominant ice flow with spacing of approximately 250 metres between samples. Samples will be processed by IOS in Chicoutimi, Quebec using their ArtPHOT and ArtGOLD methodologies. Following sample preparation, this involves the use of a high-resolution optical camera to identify gold grains and their morphologies (ArtPHOT technique). Any gold grains recognized through automated photo recognition will be scanned with a research-grade scanning electron microscope to confirm the composition. The analysis and findings are expected to be completed by the end of October 2022.

Mechanical Stripping, Washing, Channel Sampling and Structural Mapping

During the process of compiling the results of historical exploration work on the Moray property, it became apparent to New Break that no previous operator had completed a sufficient level of structural mapping to understand the geological structure associated with the main mineral showings on the property. In addition, while SGX did undertake a 76-sample prospecting program and completed 2,285 m2 of mechanical stripping in a 15-trench program that yielded 194 samples, SGX did not cut channel samples and did not drill their best gold target in their December 2012, 5-hole, 776 metre drilling program.

In approaching 2022 exploration of Moray, New Break determined that gaining a better understanding of the structural controls governing the mineralization at Moray was a critical component to ensuring the greatest chance of future drilling success. New Break engaged CXS Canadian Exploration Services Ltd. ("CXS") out of Larder Lake, Ontario, to complete an initial program of approximately 3,800 m2 of mechanical stripping, principally focused on the Voyager area, including the historical SGX trench 12 and the Fiset area, including the historical SGX trench 1 and NOR-1 vein discovered by Noranda. Stripping, which also included the dewatering of SGX trenches 1 and 12 to accommodate structural mapping by Orix, was completed from June 20-30, 2022. CXS washed both the newly stripped areas and the historical SGX trenches 1 and 2 at Fiset and trench 12 at Voyager which was followed by a 135-sample channel sampling program. The channel sample areas were marked by New Break personnel and cut by CXS, with the program being completed on July 17, 2022.

New Break engaged Orix to oversee the channel sampling program and complete detailed structural mapping of the Voyager and Fiset areas, including prospecting, which included taking 77 rock chip samples from various areas of the Moray property, including historical SGX trench 12 at Voyager. Orix arrived at Moray on July 13, 2022 and completed a high-resolution drone imaging survey of the new and historical stripped areas at Moray. This high-resolution survey has provided New Break with an unprecedented visual record of exploration work at Voyager and Fiset. Orix completed the rock sampling program, including geological and structural mapping by mid-August 2022. New Break expects the assay results from the channel sampling and prospecting programs to be available in the coming days.

Ontario Junior Exploration Program

The 2022 exploration work programs at Moray are being funded in part by the Province of Ontario as part of the Ontario Junior Exploration Program ("OJEP"). New Break is extremely pleased to be part of a small group of companies that were successfully approved to receive funding under OJEP. The funding period covers eligible exploration work completed between April 1, 2022 and February 15, 2023. Eligible expenses are reimbursed at a rate of 50% with the aggregate reimbursement capped at $200,000. Only 12 companies were approved during the first intake in 2021 and only 18 were approved in the second intake in 2022, including New Break, which accomplished this while still private. Further information on OJEP can be found at www.ontario.ca/page/ontario-junior-exploration-program, including a list of the successful companies.

Permitting and First Nations

The Moray property is fully permitted for conducting prescribed exploration activities, including mechanical stripping and drilling, for a period of three years to October 21, 2024. In addition, New Break has the support of the Matachewan and Mattagami First Nations ("First Nations") through a Memorandum of Understanding ("MOU") signed October 22, 2022. New Break has agreed to make payments to the First Nations equal to 2% of the cost of prescribed exploration activities and where possible, New Break will look to offer employment and training opportunities to First Nations members.

Qualified Person

Peter C. Hubacheck, P. Geo., consulting geologist to New Break, and a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical disclosure in this news release.

About New Break Resources Ltd.

New Break is a Canadian mineral exploration company with a dual vision for value creation. In northern Ontario, New Break is focused on its Moray Project, in a well-established mining camp, within proximity to existing infrastructure, while at the same time, through our prospective land holdings in Nunavut, we provide our shareholders with significant exposure to the vast potential for exploration success in one of the most up and coming regions in Canada for gold exploration and production. New Break is supported by a highly experienced team of mining professionals committed to placing a premium on Environmental, Social and Corporate Governance. Information on New Break is available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.newbreakresources.ca. New Break began trading on the Canadian Securities Exchange (www.thecse.com) on September 7, 2022 under the symbol (CSE: NBRK).

For further information on New Break, please contact:

Michael Farrant, President and Chief Executive Officer
Tel: 416-278-4149
E-mail: mfarrant@newbreakresources.ca

And follow us on Twitter and LinkedIn

No stock exchange, regulation securities provider, securities commission or other regulatory authority has approved or disapproved the information contained in this news release.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historic fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is 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. Forward-looking statements are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to property agreements, timing and content of upcoming work programs, geological interpretations, receipt of property titles, an inability to predict and counteract the effects global events on the business of the Company, including but not limited to the effects on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains etc. Forward-looking information addresses future events and conditions and therefore involves inherent risks and uncertainties, including factors beyond the Company's control. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update publicly or otherwise any forward-looking information, except as may be required by law. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company's financial statements and management's discussion and analysis (the "Filings"), such Filings available upon request.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/137944

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(Figure 1 - Moray Project, property map)

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(TheNewswire)

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Gold Royalty Corp. (" Gold Royalty " or the " Company ") (NYSE American: GROY) is pleased to announce the filing of its operating and financial results for the three months and full year ended December 31, 2023 . All amounts are expressed in U.S. dollars unless otherwise noted.

Gold Royalty Corp. Logo (CNW Group/Gold Royalty Corp.)

David Garofalo , Chairman and CEO of Gold Royalty, commented: "In just three years, we have grown rapidly from 18 development stage royalties to 240 royalties, including 5 producing projects. We feel our portfolio is poised to deliver one of the strongest revenue growth trajectories in the royalty and streaming sector. We executed several important acquisitions in 2023, including the Borborema and Cozamin royalties, which supplement our organic revenue growth from key assets entering and ramping up production, such as Côté and Odyssey. 2024 is expected to be a pivotal year, with approximately 100% growth expected in gold equivalent ounces and positive operating cash flow based on the public forecasts and other disclosure by the owners and operators of our assets. With gold at an all-time high, and several important potential catalysts across our portfolio, we are very excited by the outlook for 2024."

2023 Results Summary:

The following table sets forth selected financial information for the three and full year ended December 31, 2023 :



For three months
ended


For the year ended



December
31, 2023


December
31, 2022


December
31, 2023


December
31, 2022

(in thousands of dollars, except per share and GEO amounts)


($)


($)


($)


($)

Revenue


1,016


582


3,048


3,993

Net loss


(19,360)


(2,204)


(26,756)


(12,709)

Net loss per share, basic and diluted


(0.13)


(0.02)


(0.18)


(0.10)

Operating cash flows before movements in working capital


(995)


(2,315)


(5,049)


(9,604)

Non-IFRS and Other Measures









Total Revenue, Land Agreement Proceeds and Interest*


1,319


1,131


5,216


5,837

Cash Operating Expenses*


(2,017)


(2,940)


(8,004)


(12,580)

Adjusted Net Earnings/(Loss)* (1)


935


(2,824)


(3,965)


(11,254)

Adjusted Net Earnings/(Loss) Per Share, basic and diluted*


0.01


(0.02)


(0.03)


(0.08)

Total Gold Equivalent Ounces (" GEOs ")


667


653


2,703


3,204

(1) Adjusted Net Earnings for the year and quarter ended December 31, 2023, includes $2.3 million deferred tax recovery that was recognized as a result of convertible debt financing. An offsetting deferred tax expense has been recognized directly in equity. See Note 11 of our audited annual consolidated financial statements for the year ended December 31, 2023 for further information.

* See Non-IFRS Measures below.

For further detailed information, please refer to the Company's consolidated financial statements and Annual Report on Form 20-F for the year ended December 31, 2023 , copies of which are available under the Company's profile at www.sedarplus.ca and www.sec.gov .

*Adjusted Net Earnings/(Loss) Per Share, Total Revenue, Land Agreement Proceeds and Interest, GEOs, and Cash Operating Expenses are non-IFRS measures and should not be considered in isolation or as a substitute for analysis of the Company's results under IFRS. See "Non-IFRS Measures" below for further information.

2023 Highlights and 2024 Outlook:

  • The Company currently forecasts between approximately 5,000 and 5,600 GEOs* in 2024, based upon the current disclosed plans of the underlying operators, which equates to approximately $10.0 million to $11.2 million in Total Revenue, Land Agreement Proceeds and Interest at a gold price of $2,000 per ounce. If achieved, this would represent an increase in GEOs of over 100% compared to 2023. Cash Operating Expenses are expected to remain essentially unchanged in 2024. Taken together, this would lead to positive operating cash flow in 2024.

  • Revenue was $3.0 million and Total Revenue, Land Agreement Proceeds and Interest* was $5.2 million (2,703 GEOs) for 2023, which was slightly below guidance primarily due to the continued deferral of production at Canadian Malartic into 2024. Cash Operating Expenses* of $8.0 million were 36% lower than the prior year and within the guidance range on a total and recurring basis.

  • Net loss per share for the fourth quarter ended December 31, 2023 was $0.13 , which included a non-cash impairment charge taken on select non-core assets. Adjusted Net Earnings Per Share for the fourth quarter ended December 31, 2023 were $0.01 compared to an Adjusted Net Loss Per Share of $0.02 in the fourth quarter of 2022.

  • All of the Company's core assets have demonstrated considerable progress in 2023 contributing to what we believe is industry-leading revenue growth through the end of this decade. Côté is expected to commence production imminently; Odyssey continues to ramp up and we will benefit from a full year of revenue in 2024 from our most recent acquisitions, Borborema and Cozamin.
2024 Outlook

The Company currently forecasts between approximately 5,000 and 5,600 GEOs in 2024 which equates to approximately $10.0 million to $11.2 million in Total Revenue, Land Agreement Proceeds and Interest at a gold price of $2,000 per ounce. This represents a midpoint increase in GEOs of approximately 100% relative to 2023. Total GEOs is a non-IFRS financial measure. See "Non-IFRS Measures".

The Company's recurring Cash Operating Expenses are currently expected to be consistent with 2023 and the Company expects to achieve positive operating cash flow in 2024 when a number of its growth projects ramp up in production, including the long-life cornerstone mines at Côté and Odyssey and a full year of cash inflows from the recently acquired Cozamin and Borborema royalties. Cash Operating Expenses is a non-IFRS financial measure. See "Non-IFRS Measures".

The 2024 outlook regarding total GEOs is based on public forecasts, expected development timelines and other disclosure by the owners and operators of the properties underlying our interests and our assessment thereof.

Portfolio Update

Odyssey Project (3.0% NSR over the northern portion of the project): Agnico Eagle Mines Limited (" Agnico Eagle ") owns and operates the Canadian Malartic Complex that is one of the world's largest gold mining operations and is comprised of the open-pit Canadian Malartic mine and the underground Odyssey mine. The Canadian Malartic complex will progressively transition from open pit to underground mining between 2023 and 2028.

On February 15, 2024 , Agnico Eagle announced its full year 2023 results as well as providing an update on 2023 exploration results and 2024 exploration plans. Exploration drilling at the Odyssey mine in 2023 amounted to a total of 131,565 meters which exceeded the budget of 101,500 meters due to a supplemental 25,000 meters of additional drilling. Agnico Eagle reported conversion of mineral resources into inaugural reserves at Odyssey and have stated that with additional exploration they believe mineralization will continue to be added into the existing 20-year mine life with good potential to grow yearly gold production and extend mine life. Specifically, Agnico Eagle stated that continued positive results from the Odyssey internal zones show the potential to add mineral resources with further drilling at shallow depth near existing underground mine infrastructure.

For further information see Agnico Eagle's news release dated February 15, 2024 , available under its profile on www.sedarplus.ca

Côté Gold Project (0.75% NSR royalty over the southern portion of the project): On February 15, 2024 , IAMGOLD Corporation (" IAMGOLD ") announced its 2023 results and provided its outlook for 2024. As of December 31, 2023 , the Côté Gold Project was estimated to be 98% complete construction with production at Côté Gold, on a 100% basis, expected to be between 220,000 and 290,000 ounces for the year. IAMGOLD's estimate assumes initial gold production by the end of March, with a steady ramp up of gold production throughout 2024 with expected commercial production being achieved in the third quarter. Once at steady run-rate, IAMGOLD expects Côté Gold will be Canada's third largest gold mine with an expected mine life exceeding 18 years with additional opportunities for growth.

For further information see IAMGOLD's news release dated February 15, 2024 , available under its profile on www.sedarplus.ca .

Borborema Gold Project (2.00% NSR royalty and gold-linked royalty-convertible loan): On February 20, 2024 , Aura Minerals Inc. (" Aura ") announced its 2023 annual results including an update on construction at the Borborema project. Following commencement of construction in Q3 2023, construction is well underway with 17% completed to date, and production expected to start in early 2025. Gold Royalty expects to receive 1,440 GEOs in 2024 from Aura through fixed pre-production payments associated with the 2.0% NSR royalty and gold-linked coupon payments associated with the gold-linked royalty-convertible loan.

The Borborema royalty decreases to a 0.5% NSR after 725,000 oz of gold production. Subject to a buyback right of the operator, whereby a 0.5% NSR may be repurchased for $2.5 million after the earlier of 2,250,000 oz of production or 2050.

For further information see Aura's news release dated February 20, 2024 , available under its profile on www.sedarplus.ca .

Ren Project (1.5% NSR royalty and 3.5% NPI): On September 12, 2023 , Barrick Gold Corporation (" Barrick ") issued a news release that included an update on the embedded growth projects. It disclosed that at Carlin, Ren was highlighted as an expected continued driver of growth with expected increases in resources and a pre-feasibility study targeted by Barrick for 2026. In its management's discussion and analysis for the year ended December 31, 2023 , Barrick highlighted continued exploration success at the Ren deposit. The step-out surface drilling program intercepted the targeted Corona dike at a depth of approximately 900 meters downhole and returned 4.7 meters at 24.90 g/t Au, which it stated confirmed the continuity of high-grade mineralization and paving the way for underground platform development in the future to convert more material to the west.

For further information see Barrick's news releases dated September 12, 2023 , and management's discussion and analysis for the year ended December 31, 2023 , available under its profile on www.sedarplus.ca .

Granite Creek Mine Project (10.0% NPI): On February 7, 2024 , i-80 Gold Corp (" i-80 ") provided a summary of 2023 activities and 2024 exploration and development plans, including ongoing initiatives at the Granite Creek Mine Project. The South Pacific Zone (" SPZ ") is a priority area of development for i-80 and, and they have announced plans to advance a development plan that will include extending a decline in order to provide access to the SPZ allowing it to become part of Granite Creek mine plan in H1-2024. Ewan Downie , CEO of i-80 stated, "The results from our 2023 definition programs demonstrate the potential for the SPZ to be a significant deposit located on strike from one of North America's largest gold mining operations. Mineralization remains open at depth and along strike to the north with the average intercept grade in the northern extension definition program of approximately 15 g/t gold with true widths ranging up to 15 metres."

For further information see i80's news release dated February 7, 2024 , available under its profile on www.sedarplus.ca .

Cozamin Mine (1.0% NSR over a portion of the mine): On January 24, 2024 , Capstone Copper Corp. (" Capstone ") reported 2023 production and 2024 guidance. Production from Cozamin in 2024 is anticipated by Capstone to be similar to 2023 at 22,000 to 24,000 tonnes of copper on a 100% basis. Operating costs in 2024 are forecasted to be higher than those in 2023 driven by a higher proportion of cut-and-fill mining methods compared to longhole stoping, along with a stronger Mexican peso.

For further information see Capstone's news release dated January 24, 2024 , available under its profile on www.sedarplus.ca .

Royalty Generation Model Update

Our Royalty Generator Model continues to generate positive results with six new royalties added in the year ended December 31, 2023 . We have generated 39 royalties since the acquisition of Ely Gold Royalties Inc. in 2021 through this model.

We currently have 29 properties subject to land agreements and 7 properties under lease generating land agreement proceeds. The model continues to incur low operating costs with only $0.16 million spent on maintaining the mineral interests in 2023.

Investor Webcast

An investor webcast will be held on Thursday, March 28, 2024 , starting at 11:00 am ET ( 8:00 am PT ) to discuss these results. Management will be providing an update to interested stakeholders on the Company's 2023 results including key recent catalysts that have been announced on the assets underlying the Company's royalties. The presentation will be followed by a question-and-answer session where participants will be able to ask any questions they may have of management.

To register for the investor webcast, please use the following link: https://www.bigmarker.com/vid-conferences/Gold-Royalty-Corp-Town-Hall-Forum-Q4

A replay of the webcast will be available on the Gold Royalty website following the presentation.

Gold Royalty Corp. is a gold-focused royalty company offering creative financing solutions to the metals and mining industry. Its mission is to invest in high-quality, sustainable, and responsible mining operations to build a diversified portfolio of precious metals royalty and streaming interests that generate superior long-term returns for our shareholders. Gold Royalty's diversified portfolio currently consists primarily of net smelter return royalties on gold properties located in the Americas.

Qualified Person

Alastair Still , P.Geo., Director of Technical Services of the Company, is a "qualified person" as such term is defined under Canadian National Instrument 43-101 (" NI 43-101 ") and has reviewed and approved the technical information disclosed in this news release.

Notice to Investors

For further information regarding the project updates regarding properties underlying the Company's interests, please refer to the disclosures of the operators thereof, including the news releases referenced herein. Disclosure relating to properties in which Gold Royalty holds royalty or other interests is based on information publicly disclosed by the owners or operators of such properties. The Company generally has limited or no access to the properties underlying its interests and is largely dependent on the disclosure of the operators of its interests and other publicly available information. The Company generally has limited or no ability to verify such information. Although the Company does not have any knowledge that such information may not be accurate, there can be no assurance that such third-party information is complete or accurate.

Unless otherwise indicated, the technical and scientific disclosure contained or referenced in this news release, including any references to mineral resources or mineral reserves, was prepared by the project operators in accordance with Canadian National Instrument 43-101, which differs significantly from the requirements of the U.S. Securities and Exchange Commission ("SEC") applicable to domestic issuers. Accordingly, the scientific and technical information contained or referenced in this news release may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of the SEC.

Forward-Looking Statements:

Certain of the information contained in this news release constitutes "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and U.S. securities laws (collectively, "forward-looking statements"), including but not limited to statements regarding: estimated future total GEOs, Total Revenues and Land Agreement Proceeds, Cash Operating Expenses, expected future cash flows; expectations regarding the operations and/or development of the projects underlying the Company's royalty interests, including the estimates of the operators thereof their timing and ability to achieve production; and expectations regarding the Company's growth and statements regarding the Company's plans and strategies. Such statements can be generally identified by the use of terms such as "may", "will", "expect", "intend", "believe", "plans", "anticipate" or similar terms. Forward-looking statements are based upon certain assumptions and other important factors, including assumptions of management regarding the accuracy of the disclosure of the operators of the projects underlying the Company's projects, their ability to achieve disclosed plans and targets, macroeconomic conditions, commodity prices, and the Company's ability to finance future growth and acquisitions. Forward-looking statements are subject to a number of risks, uncertainties and other factors which may cause the actual results to be materially different from those expressed or implied by such forward-looking statements including, among others, any inability to any inability of the operators of the properties underlying the Company's royalty interests to execute proposed plans for such properties or to achieved planned development and production estimates and goals, risks related to the operators of the projects in which the Company holds interests, including the successful continuation of operations at such projects by those operators, risks related to exploration, development, permitting, infrastructure, operating or technical difficulties on any such projects, the influence of macroeconomic developments,  the ability of the Company to carry out its growth plans and other factors set forth in the Company's Annual Report on Form 20-F for the year ended December 30, 2023 and its other publicly filed documents under its profiles at www.sedarplus.ca and www.sec.gov . 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. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

Non-IFRS Measures

We have included, in this document, certain performance measures, including: (i) Adjusted Net Earnings/(Loss) and Adjusted Net Earnings/(Loss) Per Share; (ii) GEOs; (iii) Total Revenue, Land Agreement Proceeds and Interest; and (iv) Cash Operating Expenses which are each non-IFRS measures. The presentation of such non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and other companies may calculate these measures differently.

  • Adjusted Net Earnings/(Loss) and Adjusted Net Earnings/(Loss) Per Share

Adjusted Net Earnings/(Loss) is calculated by adding land agreement proceeds credited against mineral properties, adding the pre-acquisition royalty revenue received as credited against the Cozamin purchase price and deducting the following from net income: transaction related and non-recurring general administrative expenses (2) , share of (income)/loss and dilution income in associate, impairment, changes in fair value of derivative liabilities, short-term investments and gold-linked loan, loss on loan modification, foreign exchange gain/(loss), other income/(expense) and land agreement proceeds credited against mineral properties. Adjusted Net Earnings/(Loss) includes recognized deferred tax recovery. Adjusted Net Earnings/(Loss) Per Share, basic and diluted have been determined by dividing the Adjusted Net Earnings/(Loss) by the weighted average number of common shares for the applicable period. We included this information as management believes that they are useful measures of performance as they adjust for items which are not always reflective of the underlying operating performance of our business and/or are not necessarily indicative of future operating results. The table below provides a reconciliation of net loss to Adjusted Net Earnings/(Loss) and Adjusted Net Earnings/(Loss) Per Share, basic and diluted for the periods indicated:

(2) Transaction related, and non-recurring general administrative expenses are a supplementary financial measure comprised of operating expenses that are not expected to be incurred on an ongoing basis. During the year ended December 31, 2023, transaction related and non-recurring administrative expenses related primarily to professional fees related to changing our fiscal year-end, tax restructuring following the completion of corporate transactions, establishing a dividend reinvestment and finance programs and select corporate development activities and in the same periods of 2022, related primarily to consulting fees and professional fees associated with corporate transactions.



For three months ended


For the year ended



December
31, 2023


December
31, 2022


December
31, 2023


December
31, 2022

(in thousands of dollars, except per share amounts)


($)


($)


($)


($)

Net loss


(19,360)


(2,204)


(26,756)


(12,709)

Land Agreement Proceeds credited against mineral properties


270


549


1,909


1,844

Pre-acquisition royalty revenue credited against Cozamin purchase price




226


Loan interest


33



33


Transaction related and non-recurring administrative expenses


268


115


967


1,650

Share of (gain)/loss in associate


72


(1)


(172)


152

Dilution gain in associate




(12)


(100)

Impairment of royalties, net of taxes


19,760



19,760


3,018

Change in fair value of derivative liabilities



(278)


(242)


(4,776)

Change in fair value of gold-linked loan


(172)



(172)


Change in fair value of short-term investments


45


(1,060)


264


51

Change in fair value of embedded derivatives


(30)



(30)


Gain on loan modification




249


(316)

Foreign exchange (gain)/loss


55


42


132


11

Other income


(6)


13


(121)


(79)

Adjusted Net Earnings/(Loss)


935


(2,824)


(3,965)


(11,254)

Weighted average number of common shares


145,086,763


143,913,069


144,729,662


136,803,625

Adjusted Net Earnings/(Loss) Per Share, basic and diluted


0.01


(0.02)


(0.03)


(0.08)

  • GEOs

Total GEOs are determined by dividing Total Revenue, Land Agreement Proceeds and Interest by the average gold prices for the applicable period:

(in thousands of dollars, except Average Gold Price/oz and GEOs)


Average Gold
Price/oz


Total
Revenue,
Land
Agreement
Proceeds and
Interest


GEOs

For three months ended March 31, 2022


1,877


1,759


937

For three months ended June 30, 2022


1,874


2,024


1,080

For three months ended September 30, 2022


1,729


923


534

For three months ended December 31, 2022


1,731


1,131


653

For year ended December 31, 2022


1,822


5,837


3,204








For three months ended March 31, 2023


1,889


1,970


1,043

For three months ended June 30, 2023


1,978


557


282

For three months ended September 30, 2023


1,927


1,370


711

For three months ended December 31, 2023


1,977


1,318


667

For year ended December 31, 2023


1,929


5,215


2,703

  • Total Revenue, Land Agreement Proceeds and Interest

Total Revenue, Land Agreement Proceeds and Interest are determined by adding land agreement proceeds credited against mineral properties, the pre-acquisition royalty revenue credited against Cozamin purchase price to total revenue and the gold-linked loan interest. We have included this information as management believes certain investors use this information to evaluate our performance in comparison to other Gold Royalty companies in the precious metal mining industry. Below is a reconciliation of our Total Revenue, Land Agreement Proceeds and Interest to total revenue for the three and year ended December 31, 2023 and 2022, respectively:



For three months ended


For the year ended



December
31, 2023


December
31, 2022


December
31, 2023


December
31, 2022

(in thousands of dollars)


($)


($)


($)


($)

Royalty


758


435


1,964


3,037

Pre-acquisition royalty revenue credited against Cozamin purchase price




226


Advance minimum royalty and pre-production royalty


137


48


646


492

Land agreement proceeds


391


648


2,347


2,308

Loan interest


33



33


Total revenue and land agreement proceeds


1,319


1,131


5,216


5,837

Land agreement proceeds credited against mineral properties


(270)


(549)


(1,909)


(1,844)

Pre-acquisition royalty revenue credited against Cozamin purchase price




(226)


Loan interest


(33)



(33)


Revenue


1,016


582


3,048


3,993

  • Cash Operating Expenses

Cash Operating Expenses are determined by adding the impact of non-cash expenses, revenue, other income and tax expenses or recovery to net loss. We have included this information as management believes certain investors use this information to evaluate our performance in comparison to other Gold Royalty companies in the precious metal mining industry. The table below provides a reconciliation of net loss to Cash Operating Expenses.



For three months ended


For the year ended



December
31, 2023


December
31, 2022


December
31, 2023


December
31, 2022

(in thousands of dollars)


($)


($)


($)


($)

Net loss


(19,360)


(2,204)


(26,756)


(12,709)

Revenue


(1,016)


(582)


(3,048)


(3,993)

Other income


(6)


13


(121)


(79)

Depletion


249


216


943


1,685

Depreciation


20


29


70


92

Share-based compensation


536


1,078


2,806


3,323

Share of (gain)/loss in associate


72


(1)


(172)


152

Dilution gain in associate




(12)


(100)

Impairment of royalties


22,379



22,379


3,821

Change in fair value of derivative liabilities



(278)


(242)


(4,776)

Change in fair value of gold-linked loan


(172)




(172)


51

Change in fair value of short-term investments


45


(1,060)


264


Change in fair value of embedded derivatives


(30)



(30)


Loss on loan modification




249


(316)

Foreign exchange (gain)/loss


55


(1)


132


(32)

Interest expense


814


285


1,839


918

Tax recovery (expenses)


(5,603)


(435)


(6,133)


(617)

Cash Operating Expenses


(2,017)


(2,940)


(8,004)


(12,580)

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/gold-royalty-reports-2023-financial-and-operating-results-and-forecasts-approximate-100-growth-in-revenue-in-2024-driven-by-cornerstone-royalties-entering-production-302101900.html

SOURCE Gold Royalty Corp.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/March2024/28/c6875.html

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