/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO
UNITED STATES NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED
STATES./
VANCOUVER, BC, Aug. 6, 2020 /CNW/ - Elemental Royalties Corp.
("Elemental" or "the Company") (TSX-V: ELE) is
pleased to note that Teranga Gold Corporation ("Teranga")
(TSX: TGZ) has reported an updated life of mine plan and increased
2020 production guidance at its Wahgnion Gold Operation
("Wahgnion"), located in southwest Burkina Faso, West
Africa. Elemental acquired a 1% net smelter royalty over
Wahgnion from a third party in January
2020.
Highlights:
- Teranga has increased Wahgnion's 2020 production guidance to
between 150,000 – 165,000 ounces, a 15% – 18% increase from earlier
guidance of 130,000 – 140,000 ounces
- Since commissioning, Wahgnion's processing plant has performed
approximately 25% above nameplate capacity for throughput and gold
recovered
- Teranga has also updated the Life of Mine plan to accommodate
higher throughput capacity, increasing annual expected production
by 25% with a corresponding reduction of mine life to 10 years
based on the currently-defined Mineral Reserve
- Annual gold production is expected to average 150,000 ounces
through 2025
- A multi-year drilling and exploration program has commenced
with the goal of extending mine life to 15 years at three existing
deposit areas and more than a dozen exploration targets
"Since acquiring the royalty on Wahgnion in January we have been
encouraged by the significant outperformance at the mine and
Teranga's announcement of increased guidance has a very positive
impact for Elemental" commented Frederick
Bell, CEO. "The increase in expected production at a time of
record gold prices is excellent news for the Company following our
recent listing. We are also pleased that Teranga have announced a
substantial drilling and exploration program that has the potential
to extend mine life beyond the existing plan."
For further information please reference Teranga's August 6, 2020 press release filed to its issuer
profile at www.sedar.com.
About the Wahgnion Gold Operation:
The Wahgnion Gold Operation is a conventional carbon-in-leach
operation located southwest Burkina
Faso, 510 km southwest of the capital city Ouagadougou. The mining licence covers an area
of 89 km2 mine license within a 933 km2
exploration land package covering the Paleoproterozoic Birimian
Senoufo Belt. Wahgnion will have multiple deposits feeding into a
central mill and owner-operated conventional truck and shovel
open-pit mining. First gold was poured in August 2019 with commercial production declared
on 1st November 2019.
Qualified Person:
Richard Evans, FAusIMM, is Senior
Vice President Technical for Elemental, and a qualified person
under National Instrument 43-101 – Standards of Disclosure for
Mineral Projects, has reviewed and approved the scientific and
technical disclosure contained in this press release.
About Elemental:
Elemental is a gold focused royalty company with a portfolio of
five royalties over producing assets spanning Burkina Faso, Chile, Mexico, Kenya
and Western Australia. The portfolio is heavily weighted
towards precious metals and producing royalties, providing a
diversified foundation of revenue from the outset, while minimising
shareholder dilution.
On behalf of Elemental Royalties Corp.
Frederick Bell
CEO and
Director
Elemental Royalties Corp. is a proud member of Discovery
Group. For more information please visit: discoverygroup.ca
or contact 604-653-9464.
Neither the TSX Venture Exchange Inc. nor its Regulation
Service Provider (as that term is defined in the policies of the
TSX Venture Exchange Inc.) accepts responsibility for the adequacy
or accuracy of this press release.
Forward-Looking Statements
This press release contains certain "forward looking
statements" and certain "forward-looking information" as defined
under applicable Canadian and U.S. securities laws. Forward-looking
statements and information can generally be identified by the use
of forward-looking terminology such as "may", "will", "should",
"expect", "intend", "estimate", "anticipate", "believe",
"continue", "plans" or similar terminology. The forward-looking
information contained herein is provided for the purpose of
assisting readers in understanding management's current
expectations and plans relating to the future. Readers are
cautioned that such information may not be appropriate for other
purposes. Forward-looking statements and information include, but
are not limited to, statements with respect to the Company's
financial guidance, outlook, proposed plans for acquiring
additional royalty and similar interests and the potential of such
interests to provide returns and the completion of mine expansion
under construction phases at the mines or properties that the
Company holds an interest in. Forward-looking statements and
information are based on forecasts of future results, estimates of
amounts not yet determinable and assumptions that, while believed
by management to be reasonable, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual actions, events or results to be materially different from
those expressed or implied by such forward-looking information,
including but not limited to: the impact of general business and
economic conditions; the absence of control over mining operations
from which Elemental will receive royalty payments and risks
related to those mining operations, including risks related to
international operations, government and environmental regulation,
delays in mine construction and operations, actual results of
mining and current exploration activities, conclusions of economic
evaluations and changes in project parameters as plans continue to
be refined; accidents, equipment breakdowns, title matters, labor
disputes or other unanticipated difficulties or interruptions in
operations; problems inherent to the marketability of gold and
other metals; the inherent uncertainty of production and cost
estimates and the potential for unexpected costs and expenses;
industry conditions, including fluctuations in the price of the
primary commodities mined at such operations, fluctuations in
foreign exchange rates and fluctuations in interest rates;
government entities interpreting existing tax legislation or
enacting new tax legislation in a way which adversely affects
Elemental; stock market volatility; regulatory restrictions;
liability, competition, loss of key employees , other related risks
and uncertainties. Elemental undertakes no obligation to update
forward-looking information except as required by applicable law.
Such forward-looking information represents management's best
judgment based on information currently available. No
forward-looking statement can be guaranteed and actual future
results may vary materially. Accordingly, readers are advised not
to place undue reliance on forward-looking statements or
information.
Cautionary Note to U.S. Persons Concerning Estimates of
Reserves and Measured, Indicated and Inferred Resources
Information contained or referenced in this press release or
in the documents referenced herein concerning the properties,
technical information and operations of Elemental has been prepared
in accordance with requirements and standards under Canadian
securities laws, which differ from the requirements of US
securities laws. The terms "mineral resource", "measured mineral
resource", "indicated mineral resource", "inferred mineral
resource" "mineral reserve", "probable mineral reserve," and
"proven mineral reserve" used in this press release or in the
documents incorporated by reference herein are mining terms as
defined in accordance with NI 43-101 under guidelines set out in
the Definition Standards for Mineral Resources and Mineral Reserves
adopted by the Canadian Institute of Mining, Metallurgy and
Petroleum Council on May 10, 2014. While such terms are
recognized and required by Canadian securities laws, they are not
recognized by SEC standards and normally are not permitted to be
used in reports filed with the SEC. Investors are cautioned not to
assume that all or any part of the disclosed mineral resource
estimates will ever be confirmed or converted into reserves that
meet the definitions used by the SEC. Disclosure of contained
ounces are or may be permitted disclosure under regulations
applicable to Elemental; however, the SEC normally only permits
issuers to report mineralization that does not constitute
"reserves" by SEC standards as in-place tonnage and grade without
reference to unit of production measures. Accordingly, certain
information contained in this press release or in the documents
incorporated by reference herein concerning descriptions of
mineralization and mineral resources under these standards may not
be comparable to similar information made public by US companies
subject to reporting and disclosure requirements of the
SEC.
SOURCE Elemental Royalties Corp.