(in U.S. dollars unless otherwise noted)
MONTREAL, Jan. 21, 2021 /CNW Telbec/ - Nomad Royalty Company Ltd. ("Nomad" or the "Company") (TSX: NSR) (OTCQX: NSRXF) is pleased to announce its preliminary gold and silver deliveries and sales from its royalty, stream and gold loan interests:
Preliminary Metal Deliveries
Metal Deliveries Attributable to Nomad |
||||||
Ounces |
Q1 2020 |
Q2 2020 |
Q3 2020 |
Q4 2020 |
2020 |
|
Gold - Premier Gold Prepay Loan |
2,450 |
2,450 |
900 |
900 |
6,700 |
|
Gold - Royalty and Stream Interests(1) |
1,677 |
1,686 |
2,200 |
1,846 |
7,409 |
|
Silver - Stream Interests |
43,963 |
56,254 |
52,616 |
64,568 |
217,401 |
|
Gold equivalent ounces(2) |
4,597 |
4,654 |
3,769 |
3,587 |
16,607 |
|
Preliminary Metal Sales
Metal Sales Attributable to Nomad |
||||||
Ounces |
Q1 2020 |
Q2 2020 |
Q3 2020 |
Q4 2020 |
2020 |
|
Gold - Premier Gold Prepay Loan |
2,450 |
2,450 |
900 |
900 |
6,700 |
|
Gold - Royalty and Stream Interests(1) |
1,677 |
1,521 |
2,365 |
1,846 |
7,409 |
|
Silver - Stream Interests |
127,946 |
56,254 |
52,616 |
64,568 |
301,384 |
|
Gold equivalent ounces(2) |
5,493 |
4,491 |
3,933 |
3,587 |
17,504 |
|
The Company realized preliminary revenues of $6.8 million during the three-month period ended December 31, 2020 resulting from 3,587 gold equivalent ounces(2) sold. Preliminary revenues for the year ended December 31, 2020 and cash acquired from the Bonikro gold stream as per the vend-in transactions closed on May 27, 2020 totalled $29.9 million.
As per the vend-in transactions closed on May 27, 2020, Nomad was entitled to payments made in respect of the acquired assets since January 1, 2020. As such, the preliminary gold and silver deliveries and sales above for the three-month periods ended March 31, 2020, June 30, 2020 and the year ended December 31, 2020 include payment received on the closing of the vend-in transactions.
Asset Updates and Recent Developments:
Robertson Timeline to First Production Announced: On November 20, 2020, Barrick Gold Corporation ("Barrick") announced during their investor day presentation that Robertson was now included within the 5-year plan at Cortez, with first production expected in 2025. As per current guidance, Cortez is forecasted to produce 750,000 to 850,000 ounces annually from 2021 to 2025. Additionally, on the exploration front, Barrick will be conducting drilling programs at Robertson and initiate earlier stage generative exploration work on the Pipeline-Robertson corridor.
Nomad owns a sliding scale 1 – 2.25% net smelter return ("NSR") royalty on all claims that form part of the Robertson property.
Blyvoor Operations Ramping Up: Blyvoor Gold Capital Pty ("Blyvoor Gold") continues to ramp up mining operations at Blyvoor. Blasting activities are now fully operational and taking place daily. The process plant construction is complete and ore processing has commenced. A technical report in connection with the Blyvoor mineral resource is expected to be completed in the first half of 2021.
Nomad owns a 10% gold stream on the Blyvoor gold mine on the first 160koz of gold production within a calendar year, and 5% on any additional gold production within the calendar year. Following the delivery of 300 koz of gold to Nomad under the agreement, the stream percentage shall be 0.5% on the first 100koz of production within a calendar year until 10.32 million ounces of gold production at the Blyvoor gold mine. Nomad will make ongoing payments of $572/oz for each ounce of gold delivered under the contract.
Mercedes Acquired by Equinox Gold: On December 16 2020, Equinox Gold Corp. ("Equinox") announced the friendly acquisition of Premier Gold Mines Limited ("Premier"). Equinox will become the operator of the Mercedes mine and has indicated there is expansion potential to increase production to 80,000 to 90,000 ounces of gold annually. Equinox operates seven mines globally, is very well capitalized and is led by a reputable management team which we anticipate will have the ability to drive further productivity increases at the mine site.
Nomad owns a 100% silver stream on the silver production from the Mercedes Mine and 100% on the silver production from the South Arturo Mine attributable to Premier (40% attribution), until a total of 3.75 million ounces of refined silver have been delivered, after which the stream percentage reduces to 30%. The silver stream is subject to minimum annual delivery of 300,000 ounces of refined silver until the cumulative delivery of 2.1 million ounces. Nomad will make ongoing payments equal to 20% of the prevailing silver market price for each ounce of silver delivered under the contract.
South Arturo Silver Resource Growth: Nevada Gold Mines had another exceptional year with production exceeding budget by over 30%. The strong performance was driven by higher production rates that averaged 694 tonnes per day processed. On January 19, 2021, Premier published a preliminary feasibility study on South Arturo which outlined an 18-year mine life and was based on a mineral resource estimate at December 1, 2020 which included Nomad attributable reserves of 1.9 million ounces of silver (3.8Mt at 15.23g/t), measured and indicated resources of 4.0 million ounces of silver (20.0Mt at 6.19g/t) and an inferred mineral resource of 1.8 million ounces of silver (10.1Mt at 5.47g/t). In 2020, drill programs were completed at El Nino, with initial results suggesting the potential to expand underground resources and extend the mine life. A new mineral resource estimate will be completed in 2021 following receipt of all 2020 drilling results.
Moss Expands Drill Program: Northern Vertex Mining Corp. ("Northern Vertex") is conducting an aggressive exploration program with 3 drill rigs onsite to expand the resource with the aim at extending the mine life and testing district scale targets. Recent results intersected high grade at the Ruth Vein target, widespread mineralization within the Gold Bridge and West Extension targets located 1.5km west of the pit, and similar Moss pit mineralization at the West target. Phase II drilling program was initiated in November 2020 and will extend to February 2021, Phase II will focus on the high-grade Ruth Vein target, resource infill at Gold Bridge and target new discoveries within extensive stockwork gold and silver mineralization both on strike and at depth at the Moss Mine. The combined Phase I and II drilling programs will total 32,000 meters. In addition to the multi-phased exploration program, Northern Vertex continued to successfully implement a number of new initiatives to further optimize operations and reduce costs at the Moss Mine.
Nomad owns a 1 – 3% NSR royalty on the Moss property.
Troilus Expands Southwest Zone: In early 2021, Troilus Gold Corp. ("Troilus") reported great results on the Southwest zone, including a 200-metre step-out hole which intersected high-grade gold-bearing mineralization between 50m and 450m from surface, and located outside of the NI 43-101 mineral resource envelope and the open pit proposed in the August 2020 PEA. For winter 2021, Troilus is implementing a 7,000 metres per month drilling program with the objective of expanding the mineral resource estimate at the Southwest Zone, definition drilling in the Z87 and J Zone and geotechnical drilling in support of the Pre-Feasibility Study. A Pre-Feasibility Study is expected to be published later in 2021 and an Environmental Impact Study targeted for early 2022.
Nomad owns a 1% NSR royalty on the Troilus property.
Notes:
(1) |
Preliminary gold deliveries and sales from royalty and stream interests include the gold equivalent ounces of cash settled amounts for the RDM and Moss net smelter return royalties. |
(2) |
The Company's royalty and stream revenues are converted to gold equivalent ounces by dividing the gold royalty and stream revenues for a specific period by the average realized gold price per ounce for the same respective period. Silver earned from royalty and stream agreements are converted to gold equivalent ounces by multiplying the silver ounces by the average silver price for the period and dividing by the average gold price for the period. The gold equivalent ounces attributable to Nomad include the revenues, net of cost of sales from the Bonikro gold stream from January 1 to May 27, 2020, reflected in the consolidated statement of cash flows, investing activities as Cash acquired for the three-month periods ended June 30, 2020. |
QUALIFIED PERSON
Vincent Cardin-Tremblay, P. Geo., Vice President, Geology of Nomad Royalty is the "Qualified Person" as defined by NI 43-101 who has reviewed and approved the technical content of this news release.
ABOUT NOMAD
Nomad Royalty Company Ltd. is a gold & silver royalty company that purchases rights to a percentage of the gold or silver produced from a mine, for the life of the mine. Nomad owns a portfolio of 14 royalty, stream, and gold loan assets, of which 6 are on currently producing mines. Nomad plans to grow and diversify its low-cost production profile through the acquisition of additional producing and near-term producing gold & silver streams and royalties. For more information please visit: www.nomadroyalty.com.
Nomad Royalty Company Ltd.
500-1275 ave. des Canadiens-de-Montréal
Montréal (Québec) H3B 0G4
nomadroyalty.com
Forward-looking statements
Certain statements contained in this press release may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that Nomad expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "scheduled" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Nomad believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include the impossibility to acquire royalties, streams and to fund precious metal streams, gold prices, Nomad's royalty and stream interests, access to skilled consultants, results of mining operations, exploration and development activities for properties with respect to which Nomad holds a royalty or stream, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government or court approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations, market prices, continued availability of capital and financing and general economic, market or business conditions. Nomad cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the forward looking statements contained herein should carefully consider the above factors as well as the uncertainties they represent and the risks they entail. Nomad believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. Nomad undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law.
SOURCE Nomad Royalty Company Ltd.
about Nomad Royalty Company, please visit our website at www.nomadroyalty.com or email us: Vincent Metcalfe, CEO, [email protected]; Joseph de la Plante, CIO, [email protected]
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