Coeur Announces Investment in Victoria Gold Corp.

CHICAGO–(BUSINESS WIRE)–Coeur Mining, Inc. (“Coeur” or the
“Company”) (NYSE: CDE) announced today that it has entered into an agreement to acquire 11,067,714 (approximately 17.8%) of the outstanding undiluted common shares of Victoria Gold Corp. (“Victoria”) (TSX: VGCX) from Orion Co-VI Ltd. (“Orion”), at price of C$13.20 per share which reflects a 5% discount to the trailing 30-day volume weighted price for the period ending May 7, 2021. In connection with the transaction, Orion will receive 12,785,485 shares of Coeur common stock (approximately 4.9% of issued and outstanding shares), based on the trailing 30-day volume weighted price of $9.17 per share, for the period ended May 7, 2021, representing aggregate consideration of approximately $117.2 million. Orion’s sales of Coeur shares will be subject to certain restrictions. The transaction is expected to close on or about May 11, 2021, subject to closing conditions.

“We have long admired the quality of Victoria’s Eagle asset and its recent success in ramping up operations. This compelling opportunity to acquire 17.8% ownership interest in Victoria from Orion is consistent with our stated strategy and capital allocation framework, and complements our existing portfolio of precious metals assets in high-quality jurisdictions in North America,” commented Mitchell J. Krebs, Coeur’s President and Chief Executive Officer. “We are excited to become a shareholder of Victoria, and believe this transaction represents an attractive investment for our stockholders.”

Concurrently, the Company and Orion also entered into an agreement pursuant to which Orion has agreed, subject to certain terms and conditions, among other things, to certain transfer restrictions on its remaining shares in Victoria and to support, vote in favor of, or deposit all common shares it owns in favor of an offer, proposal or transaction that is supported by the board of directors of Victoria that would result in the acquisition by Coeur of more than 50% of the common shares of Victoria, or all or substantially all of the assets and properties of Victoria on a consolidated basis.

An early warning report will be filed by Coeur in accordance with applicable securities laws. As indicated in such report, in the future, Coeur may acquire or dispose of common shares or other securities of Victoria, either on the open market or in private transactions, depending on a number of factors. Coeur may engage in discussions with Victoria, and, if and when appropriate, its representatives, regarding the Company’s investment and possible strategic alternatives. While no present plans exist in this regard, Coeur may consider or develop plans and/or make proposals with respect to potential strategic transactions involving Victoria’s shares, business or assets.

 

About Coeur

Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals producer with five wholly-owned operations: the Palmarejo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, the Wharf gold mine in South Dakota, and the Silvertip silver-zinc-lead mine in British Columbia. In addition, Coeur has interests in several precious metals exploration projects throughout North America.

 

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this press release, including any information relating to the proposed investment in Victoria constitutes forward-looking statements or information within the meaning of securities legislation of the United States and Canada. In particular, this press release contains forward-looking statements including, without limitation, with respect to Coeur’s acquisition or disposition of securities of Victoria in the future and Coeur’s interest in Victoria on completion of the transaction with Orion. Forward-looking statements are necessarily based upon a number of assumptions, including material assumptions considered reasonable by Coeur as at the date of this press release in light of management’s experience and perception of current conditions and expected developments, and are inherently subject to significant business, economic, and competitive uncertainties and contingencies.

Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Coeur’s actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the uncertainties and risk factors set out in filings made from time to time with the United States Securities and Exchange Commission, and the Canadian Securities regulators, including, without limitation, Coeur’s most recent reports on Form 10-K and Form 10-Q. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements or information. Coeur disclaims any intent or obligation to update publicly such forward-looking statements or information, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Coeur, its financial or operating results or its securities.

 

Contacts

Coeur Mining, Inc.
104 S. Michigan Avenue, Suite 900
Chicago, Illinois 60603
Attention: Paul DePartout, Director, Investor Relations
Phone: (312) 489-5800
www.coeur.com

Sierra Metals Reports Consolidated Financial Results For The First Quarter Of 2021

 

CONFERENCE CALL MAY 7, 2021 AT 10:30 AM (EDT)  

(All $ figures reported in USD)

• Revenue from metals payable of $69.6 million in Q1 2021, a 25% increase from $55.6 million in Q1 2020
• Operating cash flows before movements in working capital of $25.6 million in Q1 2021, a 63% increase from $15.7 million in Q1 2020
• Adjusted EBITDA of $25.3 million in Q1 2021, a 57% increase from $16.1 million in Q1 2021
• Q1 2021 consolidated production includes 7.9 million pounds of copper, a 33% decrease; 1.0 million ounces of silver, a 1% increase; 24.1 million pounds of zinc, an 11% increase; 9.0 million pounds of lead, a 1% decrease; and 2,636 ounces of gold, a 28% decrease respectively, compared to Q1 2020 due to reduced mining of higher grade areas primarily due to restrictions resulting from COVID-19
• Cash costs and AISC per copper equivalent payable pound compared to Q1 2020 increased at Yauricocha 26% and 18% respectively; at Bolivar cash costs and AISC per copper equivalent payable pound increased by 37% and 57%, respectively; and at Cusi cash costs per silver equivalent payable pound decreased by 17% while the AISC was flat
• Record quarterly throughput of 3,728 tonnes per day (“tpd”) at the Yauricocha Mine in Peru
• $74.3 million of cash and cash equivalents as at March 31, 2021
• A shareholder conference call to be held Friday, May 7, 2021, at 10:30 AM (EDT)

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) today reported revenue of $69.6 million and an adjusted EBITDA of $25.6 million on the throughput of 774,421 tonnes and metal production of 25.5 million copper equivalent pounds or 3.7 million silver equivalent ounces, or 79.8 million zinc equivalent pounds for the three-month period ended March 31, 2021.

Despite the decline in quantities of payable metals due to ongoing COVID-19 related operational challenges and external factors, the Company generated higher revenues, adjusted EBITDA and operating cash flows during Q1 2021.

The Yauricocha Mine achieved 14% higher throughput in Q1 2021 compared to Q1 2020, despite the various operational challenges posed by the COVID-19 pandemic. Zinc equivalent production dropped 9% as compared to Q1 2020. In terms of copper equivalent pound, the decline was 21% due to a higher increase in copper prices than the zinc prices compared to Q1 2020. Metal production declined (except zinc and silver) as ore grades fell due to a decline of tonnage contributions from the high-grade cuerpos chicos zones. The copper-rich Esperanza zone also had some operational issues that have since been resolved. Cash costs per copper equivalent payable pound increased 26%, whereas cash costs per zinc equivalent payable pound increased by 9% as compared to Q1 2020. AISC per copper equivalent payable pound increased by 14%, as the increase in cash cost was partially offset by lower treatment and refining charges and lower sustaining capital. AISC per zinc equivalent payable pound increased by 4% as compared to Q1 2020.

The Bolivar Mine processed 371,608 tonnes in Q1 2021, representing a mere 2% decrease from tonnes processed in Q1 2020, despite the ongoing challenges due to COVID-19 and bad weather at the beginning of the quarter. The decrease in throughput combined with lower grades resulted in a 20% decrease in copper equivalent pounds produced during Q1 2021 as compared to Q1 2020. Cash costs and AISC per copper equivalent payable pound increased by 37% and 57%, respectively, as compared to Q1 2020.

The Cusi Mine achieved 2% lower throughput at 30% higher silver grades during Q1 2021, resulting in 17% higher silver equivalent production as compared to Q1 2020. Cash costs per silver equivalent ounce decreased by 17%, but AISC per silver equivalent payable ounce was in line with Q1 2020, as higher sustaining capital offset the impact of the increase in silver equivalent payable ounces in Q1 2021.

Consolidated production of silver increased 1% to 1.0 million ounces, copper decreased 33% to 7.9 million pounds, lead decreased 1% to 9.0 million pounds, zinc increased 11% to 24.1 million pounds, and gold decreased 28% to 2,636 ounces compared to Q1 2020.

Luis Marchese, CEO of Sierra Metals, commented, “The safety of our workforce and the communities in which we operate is paramount. The COVID-19 pandemic has enacted various direct and indirect challenges which have affected our ability to operate as effectively as expected. Additionally, an extended power outage at Cusi affected our operations during the quarter. Despite these challenges, we still had solid revenue and adjusted EBITDA tempered by higher costs due to lower metal production and a decline in ore grades. We continue to work through the challenges and issues, and we expect to see improvement as we progress throughout the year.”

He continued, “Looking ahead, the year continues to be busy with many exciting developments such as the anticipated receipt of the Informe Tecnico Minero (“ITM”) permit at Yauricocha, which will allow us to increase throughput by 20%. We also continue advancing the completion of Preliminary Feasibility Studies for all mines, examining increases in throughput starting in 2024. We also expect to begin construction of an iron ore processing plant at Bolivar, expected to produce 500,000 tonnes per year of 62% iron ore fines. This is expected to enhance Bolivar’s profitability while also lowering our transportation and tailing development costs. Furthermore, we continue with our brownfield and greenfield exploration programs. We have had recent success in the area between the Esperanza and Cachi Cachi zones with the discovery of high-grade copper silver and zinc oxide material as reported in a press release dated April 13, 2020.”

He concluded, “The Company continues to have a strong balance sheet to support the Company’s capital expenditures and growth initiatives. While we are facing challenges from COVID-19 currently, the mid-term plans remain in place.”

The following table displays selected financial and operational information for the three months ended March 31, 2021:

The following table displays average realized metal prices information for the three months ended March 31, 2021, vs March 31, 2020:

Q1 2021 Financial Highlights

Revenue from metals payable of $69.6 million in Q1 2021 increased by 25% from $55.6 million in Q1 2020. The increase in revenues was largely driven by the increase in realized metal prices, which more than compensated for the decrease in metal payable, except zinc and lead.

Yauricocha’s cost of sales per zinc equivalent payable pound was $0.50 (Q1 2020 – $0.45), cash cost per zinc equivalent payable pound was $0.47 (Q1 2020 – $0.43), and AISC per zinc equivalent payable pound of $0.85 (Q1 2020 – $0.82). AISC per zinc equivalent payable pound for Q1 2021 increased as compared to Q1 2020 due to an 11% decline in zinc equivalent payable pounds during the quarter.

Yauricocha’s cost of sales per copper equivalent payable pound was $1.56 (Q1 2020 – $1.22), cash cost per copper equivalent payable pound was $1.48 (Q1 2020 – $1.17), and AISC per copper equivalent payable pound of $2.65 (Q1 2020 – $2.24). AISC per copper equivalent payable pound for Q1 2021 increased as compared to Q1 2020 due to a 22% decline in copper equivalent payable pounds during the quarter.

Bolivar’s cost of sales per copper equivalent payable pound was $1.64 (Q1 2020 – $1.19), cash cost per copper equivalent payable pound was $1.58 (Q1 2020 – $1.15), and AISC per copper equivalent payable pound was $2.91 (Q1 2020 – $1.85) for Q1 2021. Unit costs at Bolivar increased due to the 24% decline in the copper equivalent payable pound resulting from lower grades as compared to Q1 2020.

Cusi’s cost of sales per silver equivalent payable ounce was $18.92 (Q1 2020 – $27.48), cash cost per silver equivalent payable ounce was $18.72 (Q1 2020 – $22.62), and AISC per silver equivalent payable ounce was $30.28 (Q1 2020 – $30.00) for Q1 2021 as compared to Q1 2020. Cost of sales and cash costs per unit declined at Cusi due to the 23% increase in the silver equivalent payable ounces sold as compare to Q1 2020. AISC per silver equivalent payable pound at Cusi was in line with Q1 2020 as a 188% increase in sustaining capital, driven by higher development costs, offset the impact of higher silver equivalent ounces sold.

Adjusted EBITDA⁽¹⁾ of $25.3 million for Q1 2021 increased compared to $16.1 million in Q1 2020. The increase in adjusted EBITDA in Q1 2021 resulted from higher revenues and higher gross margins at all sites.

Net income attributable to shareholders for Q1 2021 was $3.1 million (Q1 2020: $(1.9) million) or $0.02 per share (basic and diluted) (Q1 2020: $(0.01).

Adjusted net income attributable to shareholders (1) of $4.4, or $0.03 per share, for Q1 2021 as compared to the adjusted net income of $1.2 million, or $0.01 per share for Q1 2020.

Cash flow generated from operations before movements in working capital of $25.6 million for Q1 2021 increased compared to $15.7 million in Q1 2020. The increase in operating cash flow is mainly the result of higher consolidated revenues generated, and higher gross margins realized.

Cash and cash equivalents of $74.3 million and working capital of $64.7 million as at March 31, 2021, compared to $71.5 million and $70.1 million, respectively, at the end of 2020. Cash and cash equivalents increased during Q1 2021 due to $18.2 million of operating cash flows after working capital adjustments and taxes offset by $14.6 of cash used in investing activities and interest payments of $0.8 million.

⁽¹⁾ This is a non-IFRS performance measure. See the Non-IFRS Performance Measures section of the MD&A.

Exploration Update

Peru:

During the first quarter, surface exploration continued in the Triada copper porphyry (446 meters) and Kilkasca zones (224 meters);

• Underground exploration continued during Q1 2021 with the aim to replace and increase mineral resources that were depleted during 2020. Approximately 5,028 meters of drilling was completed in Esperanza North, Central Mine, Cachi-cachi and the high-grade cuerpos chicos.

Mexico:

Bolivar

• At Bolivar during Q1 2021, 11,185 meters were drilled from the surface as well as diamond drilling within the mine. Surface exploration drilling included 2,071 meters drilled in the Bolivar West – Bolivar West extension and 3,697 meters in the “Gallo Inferior” (“La Montura” Area) encountering skarn intersections with mineralization. Additionally, infill drilling of 2,846 meters was completed in the Bolivar West zone and 2,571 meters in the Gallo Inferior (Fierro Mine).

Cusi

• During Q1 2021, the Company completed 2,775 meters of infill drilling to support the development of the Santa Rosa de Lima vein and NE Trend. In addition, 2,383 meters of surface drilling was completed to support the “San Juan Vein” exploration and the “Gallo vein.”

Covid-19 Update and Guidance

The COVID-19 pandemic has impacted the Company’s operations, and this is reflected in delays in mine development and preparation of areas for mining and consequent lower head grades. A lower volume of sales is a result of a decrease in concentrate production attributable to lower grades. Costs are also negatively impacted mainly due to indirect fixed costs which have to be incurred, despite lower production. The Company continues to take proactive and reactive mitigation measures to minimize any potential impacts COVID-19 may have on its employees, communities, operations, supply chain, and finances. These measures, including COVID testing and quarantining employees and contractors. Further, some exploration and capital expenditure projects have been deferred due to ongoing and residual difficulties.

On January 27, 2021, the Peruvian Government, in response to the “second wave” of COVID-19, declared a quarantine period in certain cities for two weeks ending on February 14, 2021. This period was extended on February 10, 2021, for an additional two weeks until February 28, 2021. The second wave in Perú is still ongoing, with the number of cases remaining at all-time highs.

In Mexico, the contagion was at its peak at the end of 2020. Hospitalization rates were higher than 80% of the capacity in the state of Chihuahua, where the Company operates. Although the number of new cases declined until mid-March 2021, these cases have gradually been increasing since then, possibly due to new strains of the virus. The Mexican Government announced a precautionary closure of non-essential businesses in the last weekend of April 2021, and greater restrictions have been imposed on businesses and the mobility of people.

Currently, although the operations have not been directly affected by these recent additional measures taken by the local governments, they are affected by the overall pandemic operational restrictions and inefficiencies. Management continues to assess the situation but is maintaining its production guidance of between 155 million to 170 million Cu Eq pounds issued on January 18, 2021.

Conference Call and Webcast

Sierra Metals’ senior management will host a conference call on Friday, May 7, 2021, at 10:30 AM (EDT) to discuss the Company’s financial and operating results for the three months ended March 31, 2021.

Via Webcast:

A live audio webcast of the meeting will be available on the Company’s website:

https://event.on24.com/wcc/r/3081089/8CC784C584EEDC0F4B1375A13E2CE27A

The webcast, along with presentation slides, will be archived for 180 days on www.sierrametals.com.

Via phone:

To register for this conference call, please use the link provided below. After registering, a confirmation will be sent through email, including dial-in details and unique conference call codes for entry. As well, reminders will be sent to registered participants in advance of the call.

If you experience difficulty registering, please dial: (888) 869-1189 or (706) 643-5902 for extra assistance.

Registration is open throughout the live call. However, to ensure you are connected for the entire call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call.

Conference Call Registration Link for Phone:

http://www.directeventreg.com/registration/event/4189713

Qualified Persons

Américo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of Corporate Planning, is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Augusto Chung, FAusIMM CP (Metallurgist) and Vice President of Metallurgy and Projects, is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

The Company’s Common Shares trade on the Toronto Stock Exchange and the Bolsa de Valores de Lima under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

For further information regarding Sierra Metals, please visit www.sierrametals.com.

Continue to Follow, Like and Watch our progress:

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Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws related to the Company (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the Company’s operations, including anticipated developments in the Company’s operations in future periods, the Company’s planned exploration activities, the adequacy of the Company’s financial resources, and other events or conditions that may occur in the future. Statements concerning mineral reserve and resource estimates may also be considered to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if and when the properties are developed or further developed. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in our Annual Information Form dated March 30, 2021 in respect of the year ended December 31, 2020 and other risks identified in the Company’s filings with Canadian securities regulators and the U.S. Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above is not exhaustive of the factors that may affect any of the Company’s forward-looking information. Forward looking information includes statements about the future and are inherently uncertain, and the Company’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company’s statements containing forward-looking information are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update forward-looking information if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

Mike McAllister
V.P., Investor Relations
Sierra Metals Inc.
+1 (416) 366-7777
Email: info@sierrametals.com

Ed Guimaraes
CFO
Sierra Metals Inc.
+1(416) 366-7777

Luis Marchese
CEO
Sierra Metals Inc.
+1(416) 366-7777

Source: Sierra Metals Inc.

Sierra Metals Reports Consolidated Financial Results For The First Quarter Of 2021

 

CONFERENCE CALL MAY 7, 2021 AT 10:30 AM (EDT)  

(All $ figures reported in USD)

• Revenue from metals payable of $69.6 million in Q1 2021, a 25% increase from $55.6 million in Q1 2020
• Operating cash flows before movements in working capital of $25.6 million in Q1 2021, a 63% increase from $15.7 million in Q1 2020
• Adjusted EBITDA of $25.3 million in Q1 2021, a 57% increase from $16.1 million in Q1 2021
• Q1 2021 consolidated production includes 7.9 million pounds of copper, a 33% decrease; 1.0 million ounces of silver, a 1% increase; 24.1 million pounds of zinc, an 11% increase; 9.0 million pounds of lead, a 1% decrease; and 2,636 ounces of gold, a 28% decrease respectively, compared to Q1 2020 due to reduced mining of higher grade areas primarily due to restrictions resulting from COVID-19
• Cash costs and AISC per copper equivalent payable pound compared to Q1 2020 increased at Yauricocha 26% and 18% respectively; at Bolivar cash costs and AISC per copper equivalent payable pound increased by 37% and 57%, respectively; and at Cusi cash costs per silver equivalent payable pound decreased by 17% while the AISC was flat
• Record quarterly throughput of 3,728 tonnes per day (“tpd”) at the Yauricocha Mine in Peru
• $74.3 million of cash and cash equivalents as at March 31, 2021
• A shareholder conference call to be held Friday, May 7, 2021, at 10:30 AM (EDT)

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) today reported revenue of $69.6 million and an adjusted EBITDA of $25.6 million on the throughput of 774,421 tonnes and metal production of 25.5 million copper equivalent pounds or 3.7 million silver equivalent ounces, or 79.8 million zinc equivalent pounds for the three-month period ended March 31, 2021.

Despite the decline in quantities of payable metals due to ongoing COVID-19 related operational challenges and external factors, the Company generated higher revenues, adjusted EBITDA and operating cash flows during Q1 2021.

The Yauricocha Mine achieved 14% higher throughput in Q1 2021 compared to Q1 2020, despite the various operational challenges posed by the COVID-19 pandemic. Zinc equivalent production dropped 9% as compared to Q1 2020. In terms of copper equivalent pound, the decline was 21% due to a higher increase in copper prices than the zinc prices compared to Q1 2020. Metal production declined (except zinc and silver) as ore grades fell due to a decline of tonnage contributions from the high-grade cuerpos chicos zones. The copper-rich Esperanza zone also had some operational issues that have since been resolved. Cash costs per copper equivalent payable pound increased 26%, whereas cash costs per zinc equivalent payable pound increased by 9% as compared to Q1 2020. AISC per copper equivalent payable pound increased by 14%, as the increase in cash cost was partially offset by lower treatment and refining charges and lower sustaining capital. AISC per zinc equivalent payable pound increased by 4% as compared to Q1 2020.

The Bolivar Mine processed 371,608 tonnes in Q1 2021, representing a mere 2% decrease from tonnes processed in Q1 2020, despite the ongoing challenges due to COVID-19 and bad weather at the beginning of the quarter. The decrease in throughput combined with lower grades resulted in a 20% decrease in copper equivalent pounds produced during Q1 2021 as compared to Q1 2020. Cash costs and AISC per copper equivalent payable pound increased by 37% and 57%, respectively, as compared to Q1 2020.

The Cusi Mine achieved 2% lower throughput at 30% higher silver grades during Q1 2021, resulting in 17% higher silver equivalent production as compared to Q1 2020. Cash costs per silver equivalent ounce decreased by 17%, but AISC per silver equivalent payable ounce was in line with Q1 2020, as higher sustaining capital offset the impact of the increase in silver equivalent payable ounces in Q1 2021.

Consolidated production of silver increased 1% to 1.0 million ounces, copper decreased 33% to 7.9 million pounds, lead decreased 1% to 9.0 million pounds, zinc increased 11% to 24.1 million pounds, and gold decreased 28% to 2,636 ounces compared to Q1 2020.

Luis Marchese, CEO of Sierra Metals, commented, “The safety of our workforce and the communities in which we operate is paramount. The COVID-19 pandemic has enacted various direct and indirect challenges which have affected our ability to operate as effectively as expected. Additionally, an extended power outage at Cusi affected our operations during the quarter. Despite these challenges, we still had solid revenue and adjusted EBITDA tempered by higher costs due to lower metal production and a decline in ore grades. We continue to work through the challenges and issues, and we expect to see improvement as we progress throughout the year.”

He continued, “Looking ahead, the year continues to be busy with many exciting developments such as the anticipated receipt of the Informe Tecnico Minero (“ITM”) permit at Yauricocha, which will allow us to increase throughput by 20%. We also continue advancing the completion of Preliminary Feasibility Studies for all mines, examining increases in throughput starting in 2024. We also expect to begin construction of an iron ore processing plant at Bolivar, expected to produce 500,000 tonnes per year of 62% iron ore fines. This is expected to enhance Bolivar’s profitability while also lowering our transportation and tailing development costs. Furthermore, we continue with our brownfield and greenfield exploration programs. We have had recent success in the area between the Esperanza and Cachi Cachi zones with the discovery of high-grade copper silver and zinc oxide material as reported in a press release dated April 13, 2020.”

He concluded, “The Company continues to have a strong balance sheet to support the Company’s capital expenditures and growth initiatives. While we are facing challenges from COVID-19 currently, the mid-term plans remain in place.”

The following table displays selected financial and operational information for the three months ended March 31, 2021:

The following table displays average realized metal prices information for the three months ended March 31, 2021, vs March 31, 2020:

Q1 2021 Financial Highlights

Revenue from metals payable of $69.6 million in Q1 2021 increased by 25% from $55.6 million in Q1 2020. The increase in revenues was largely driven by the increase in realized metal prices, which more than compensated for the decrease in metal payable, except zinc and lead.

Yauricocha’s cost of sales per zinc equivalent payable pound was $0.50 (Q1 2020 – $0.45), cash cost per zinc equivalent payable pound was $0.47 (Q1 2020 – $0.43), and AISC per zinc equivalent payable pound of $0.85 (Q1 2020 – $0.82). AISC per zinc equivalent payable pound for Q1 2021 increased as compared to Q1 2020 due to an 11% decline in zinc equivalent payable pounds during the quarter.

Yauricocha’s cost of sales per copper equivalent payable pound was $1.56 (Q1 2020 – $1.22), cash cost per copper equivalent payable pound was $1.48 (Q1 2020 – $1.17), and AISC per copper equivalent payable pound of $2.65 (Q1 2020 – $2.24). AISC per copper equivalent payable pound for Q1 2021 increased as compared to Q1 2020 due to a 22% decline in copper equivalent payable pounds during the quarter.

Bolivar’s cost of sales per copper equivalent payable pound was $1.64 (Q1 2020 – $1.19), cash cost per copper equivalent payable pound was $1.58 (Q1 2020 – $1.15), and AISC per copper equivalent payable pound was $2.91 (Q1 2020 – $1.85) for Q1 2021. Unit costs at Bolivar increased due to the 24% decline in the copper equivalent payable pound resulting from lower grades as compared to Q1 2020.

Cusi’s cost of sales per silver equivalent payable ounce was $18.92 (Q1 2020 – $27.48), cash cost per silver equivalent payable ounce was $18.72 (Q1 2020 – $22.62), and AISC per silver equivalent payable ounce was $30.28 (Q1 2020 – $30.00) for Q1 2021 as compared to Q1 2020. Cost of sales and cash costs per unit declined at Cusi due to the 23% increase in the silver equivalent payable ounces sold as compare to Q1 2020. AISC per silver equivalent payable pound at Cusi was in line with Q1 2020 as a 188% increase in sustaining capital, driven by higher development costs, offset the impact of higher silver equivalent ounces sold.

Adjusted EBITDA⁽¹⁾ of $25.3 million for Q1 2021 increased compared to $16.1 million in Q1 2020. The increase in adjusted EBITDA in Q1 2021 resulted from higher revenues and higher gross margins at all sites.

Net income attributable to shareholders for Q1 2021 was $3.1 million (Q1 2020: $(1.9) million) or $0.02 per share (basic and diluted) (Q1 2020: $(0.01).

Adjusted net income attributable to shareholders (1) of $4.4, or $0.03 per share, for Q1 2021 as compared to the adjusted net income of $1.2 million, or $0.01 per share for Q1 2020.

Cash flow generated from operations before movements in working capital of $25.6 million for Q1 2021 increased compared to $15.7 million in Q1 2020. The increase in operating cash flow is mainly the result of higher consolidated revenues generated, and higher gross margins realized.

Cash and cash equivalents of $74.3 million and working capital of $64.7 million as at March 31, 2021, compared to $71.5 million and $70.1 million, respectively, at the end of 2020. Cash and cash equivalents increased during Q1 2021 due to $18.2 million of operating cash flows after working capital adjustments and taxes offset by $14.6 of cash used in investing activities and interest payments of $0.8 million.

⁽¹⁾ This is a non-IFRS performance measure. See the Non-IFRS Performance Measures section of the MD&A.

Exploration Update

Peru:

During the first quarter, surface exploration continued in the Triada copper porphyry (446 meters) and Kilkasca zones (224 meters);

• Underground exploration continued during Q1 2021 with the aim to replace and increase mineral resources that were depleted during 2020. Approximately 5,028 meters of drilling was completed in Esperanza North, Central Mine, Cachi-cachi and the high-grade cuerpos chicos.

Mexico:

Bolivar

• At Bolivar during Q1 2021, 11,185 meters were drilled from the surface as well as diamond drilling within the mine. Surface exploration drilling included 2,071 meters drilled in the Bolivar West – Bolivar West extension and 3,697 meters in the “Gallo Inferior” (“La Montura” Area) encountering skarn intersections with mineralization. Additionally, infill drilling of 2,846 meters was completed in the Bolivar West zone and 2,571 meters in the Gallo Inferior (Fierro Mine).

Cusi

• During Q1 2021, the Company completed 2,775 meters of infill drilling to support the development of the Santa Rosa de Lima vein and NE Trend. In addition, 2,383 meters of surface drilling was completed to support the “San Juan Vein” exploration and the “Gallo vein.”

Covid-19 Update and Guidance

The COVID-19 pandemic has impacted the Company’s operations, and this is reflected in delays in mine development and preparation of areas for mining and consequent lower head grades. A lower volume of sales is a result of a decrease in concentrate production attributable to lower grades. Costs are also negatively impacted mainly due to indirect fixed costs which have to be incurred, despite lower production. The Company continues to take proactive and reactive mitigation measures to minimize any potential impacts COVID-19 may have on its employees, communities, operations, supply chain, and finances. These measures, including COVID testing and quarantining employees and contractors. Further, some exploration and capital expenditure projects have been deferred due to ongoing and residual difficulties.

On January 27, 2021, the Peruvian Government, in response to the “second wave” of COVID-19, declared a quarantine period in certain cities for two weeks ending on February 14, 2021. This period was extended on February 10, 2021, for an additional two weeks until February 28, 2021. The second wave in Perú is still ongoing, with the number of cases remaining at all-time highs.

In Mexico, the contagion was at its peak at the end of 2020. Hospitalization rates were higher than 80% of the capacity in the state of Chihuahua, where the Company operates. Although the number of new cases declined until mid-March 2021, these cases have gradually been increasing since then, possibly due to new strains of the virus. The Mexican Government announced a precautionary closure of non-essential businesses in the last weekend of April 2021, and greater restrictions have been imposed on businesses and the mobility of people.

Currently, although the operations have not been directly affected by these recent additional measures taken by the local governments, they are affected by the overall pandemic operational restrictions and inefficiencies. Management continues to assess the situation but is maintaining its production guidance of between 155 million to 170 million Cu Eq pounds issued on January 18, 2021.

Conference Call and Webcast

Sierra Metals’ senior management will host a conference call on Friday, May 7, 2021, at 10:30 AM (EDT) to discuss the Company’s financial and operating results for the three months ended March 31, 2021.

Via Webcast:

A live audio webcast of the meeting will be available on the Company’s website:

https://event.on24.com/wcc/r/3081089/8CC784C584EEDC0F4B1375A13E2CE27A

The webcast, along with presentation slides, will be archived for 180 days on www.sierrametals.com.

Via phone:

To register for this conference call, please use the link provided below. After registering, a confirmation will be sent through email, including dial-in details and unique conference call codes for entry. As well, reminders will be sent to registered participants in advance of the call.

If you experience difficulty registering, please dial: (888) 869-1189 or (706) 643-5902 for extra assistance.

Registration is open throughout the live call. However, to ensure you are connected for the entire call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call.

Conference Call Registration Link for Phone:

http://www.directeventreg.com/registration/event/4189713

Qualified Persons

Américo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of Corporate Planning, is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Augusto Chung, FAusIMM CP (Metallurgist) and Vice President of Metallurgy and Projects, is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

The Company’s Common Shares trade on the Toronto Stock Exchange and the Bolsa de Valores de Lima under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

For further information regarding Sierra Metals, please visit www.sierrametals.com.

Continue to Follow, Like and Watch our progress:

Web: www.sierrametals.com | Twitter: sierrametals | Facebook: SierraMetalsInc | LinkedIn: Sierra Metals Inc | Instagram: sierrametals

Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws related to the Company (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the Company’s operations, including anticipated developments in the Company’s operations in future periods, the Company’s planned exploration activities, the adequacy of the Company’s financial resources, and other events or conditions that may occur in the future. Statements concerning mineral reserve and resource estimates may also be considered to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if and when the properties are developed or further developed. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in our Annual Information Form dated March 30, 2021 in respect of the year ended December 31, 2020 and other risks identified in the Company’s filings with Canadian securities regulators and the U.S. Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above is not exhaustive of the factors that may affect any of the Company’s forward-looking information. Forward looking information includes statements about the future and are inherently uncertain, and the Company’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company’s statements containing forward-looking information are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update forward-looking information if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

Mike McAllister
V.P., Investor Relations
Sierra Metals Inc.
+1 (416) 366-7777
Email: info@sierrametals.com

Ed Guimaraes
CFO
Sierra Metals Inc.
+1(416) 366-7777

Luis Marchese
CEO
Sierra Metals Inc.
+1(416) 366-7777

Source: Sierra Metals Inc.

Thursday, May 06, 2021

Great Bear Resources Ltd. (GTBAF)(GBR:CA)
A Tier One Gold Deposit in the Making?

Noble Capital Markets research on Great Bear Resources is published under ticker symbols GTBAF and GBR:CA. The price target is in USD and based on ticker symbol GTBAF. Great Bear Resources Ltd is a gold exploration company. It explores for mineral properties in the Red Lake District in Ontario, Canada. Its property portfolio includes Great Bear’s Red Lake Properties with the flagship Dixie project, Pakwash property, and Sobel property.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Initiating coverage. We are initiating coverage of Great Bear Resources Ltd. Great Bear’s Dixie Project, located in the prolific Red Lake Mining District in Ontario, Canada, offers the potential to become one of the world’s few Tier 1 gold mines. Tier 1 gold mines are generally defined as those that produce at least 500 thousand gold ounces per year, a mine life exceeding 10 years, and costs in the lower half of the industry cost curve. While the company has not published a maiden resource estimate, based on drilling results over the life of the project, we estimate mineral endowment potential of at least 10.0 million gold ounces with significant growth potential.


Exploration program yielding significant discoveries.  The Dixie project includes several gold-bearing zones, including the LP Fault, Hinge, and Dixie Limb zones. Currently, most of the company’s drilling activities have focused on the LP Fault. The company has released results for 283 LP Fault drill holes and anticipates at least 117 additional LP fault drill holes will be completed by the end of …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Aurania Finds New Epithermal Target: Gold Found In Streams

 

Toronto, Ontario, May 04, 2021 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) reports on a new epithermal target called Kuripan in its Lost Cities – Cutucu Project (“Project”) in southeastern Ecuador.  Gold has been panned from streams that drain the target area.

The streams where gold was panned drain an area in which silica veinlets that have typical epithermal characteristics, occur in volcanic tuff.  Results from stream sediment sampling show that, in addition to gold and silver, the area is enriched in pathfinder elements such as naturally occurring arsenic and antimony.

Aurania’s Chairman & CEO, Dr. Keith Barron commented, “After focusing on our silver-zinc discovery in the last few press releases, I’m very pleased to report that we have an exciting new target where we’ve been able to pan gold from streams draining an area that has an epithermal signature.  Furthermore, indications from the field are that this is an “intermediate-sulphidation” epithermal system – the same type of mineralization as Lundin Gold’s Fruta del Norte mine 100 kilometres to the south of us in the Cordillera del Condor.”

Geological Details of the Kuripan Target

Gold was panned from streams over an area of approximately 12 square kilometres (Figure 1).  Pan concentrates returned values of up to 1 gram per tonne (“g/t”) and the gold grains have an irregular shape consistent with a local source (Figure 2).  Stream sediment sample results have elevated concentrations of silver, arsenic and antimony (Figure 1), and mercury, molybdenum, selenium and thallium.

The target area lies within a sequence of black shales and siltstones of the Jurassic Santiago Formation.  These strata are extensively silicified in the target area and some chalcedonic silica contains casts of adularia (Figure 2), a key alteration mineral found in low- and intermediate- sulphidation epithermal systems.  Banded chalcedonic veinlets are located in volcanic tuff, which is not an ideal host for epithermal veins because the rock is not sufficiently brittle for intense veining to occur.  The target for well-developed epithermal veins is the thick lavas beneath the area in which gold occurs at surface.

A clay-altered diatreme breccia is located near the target area and near where the adularia casts were found (Figure 1). The diatreme is reminiscent of the lower parts of the maar-diatreme systems at Crunchy Hill and Yawi.

The occurrence of adularia with extensive manganese oxide staining suggests that the mineralized system is an intermediate-sulphidation epithermal.

Next Steps

Soil sampling teams are operating in the Kuripan area – the intention being to define the area from which the gold is being eroded into the streams.  More detailed geological mapping is underway to refine the target with emphasis on the distribution of brittle lavas that lie beneath the target area.

 

Figure 1.  a. Plan view of distribution of gold values in pan concentrate samples in the Kuripan target area.  Also shown is the location of silica with casts of adularia. b. Distribution of silver in stream sediment samples. c. Distribution of naturally occurring arsenic in stream sediment samples. d. Distribution of antimony in stream sediment samples.

 

Figure 2.  a. Field guide panning in the Kuripan target area.  b. Gold grains from one of the sample sites in a wooden pan. c. Chalcedonic silica from a banded vein. d. Casts of weathered-out adularia crystals evident in chalcedonic silica.

Sample Analysis & Quality Assurance / Quality Control (“QAQC”) 

Laboratories: The stream and pan concentrate samples were prepared for analysis at MS Analytical (“MSA”) in Cuenca, Ecuador, and the analyses were done in Vancouver, Canada.

Sample preparation: The pan concentrate samples were jaw-crushed to 10 mesh (crushed material passes through a mesh with apertures of 2 millimetres (“mm”)), from which a one-kilogram sub-sample was taken.  The sub-sample was crushed to a grain size of 0.075mm and a 200-gram (“g”) split was set aside for analysis.

The stream sediment samples were wet-sieved through a 20 mesh (0.84mm) screen in the field and placed in cloth bags so that excess water could drain.  The samples were transported from the field to Aurania’s field office in Macas, Ecuador and batched for delivery to at MSA in Cuenca, for drying and screening at 80 mesh (0.18mm sieve aperture).  The -80 mesh silt was packaged by MSA for analysis.

Analytical procedure:  Approximately 0.25g of pan concentrate pulp or -80# soil underwent four-acid digestion and analysis for 48 elements by ICP-MS.

Stream sediment: a 0.5g split of the -80 mesh fraction of the stream silt underwent digestion with aqua regia and the liquid was analyzed for 48 elements by ICP-MS.

Apart from being analyzed by ICP-MS, gold was also analyzed by fire assay with an ICP-AES finish.

QAQC: Aurania personnel inserted a certified standard pulp sample, alternating with a field blank, at approximate 20 sample intervals in all sample batches. Aurania’s analysis of results from its independent QAQC samples showed the batches reported on above, lie within acceptable limits.  In addition, the labs reported that the analyses had passed their internal QAQC tests.

Qualified Person

The geological information contained in this news release has been verified and approved by Jean-Paul Pallier, MSc.  Mr. Pallier is a designated EurGeol by the European Federation of Geologists and a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

About Aurania

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America.  Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at  https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.

For further information, please contact:

Carolyn Muir VP Investor Relations Aurania Resources Ltd. (416) 367-3200 carolyn.muir@aurania.com

Dr. Richard Spencer President Aurania Resources Ltd. (416) 367-3200 richard.spencer@aurania.com

Neither the TSX Venture 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 release.

Forward-Looking Statements

This news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Aurania. Forward-looking statements include estimates and statements that describe Aurania’s future plans, objectives or goals, including words to the effect that Aurania or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Aurania, Aurania provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to Aurania’s objectives, goals or future plans, statements, exploration results, potential mineralization, the corporation’s portfolio, treasury, management team and enhanced capital markets profile, the estimation of mineral resources, exploration, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, the effects of COVID-19 on the business of the Company including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restrictions on labour and international travel and supply chains, and those risks set out in Aurania’s public documents filed on SEDAR. Although Aurania believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Aurania disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Aurania Finds New Epithermal Target: Gold Found In Streams

 

Toronto, Ontario, May 04, 2021 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) reports on a new epithermal target called Kuripan in its Lost Cities – Cutucu Project (“Project”) in southeastern Ecuador.  Gold has been panned from streams that drain the target area.

The streams where gold was panned drain an area in which silica veinlets that have typical epithermal characteristics, occur in volcanic tuff.  Results from stream sediment sampling show that, in addition to gold and silver, the area is enriched in pathfinder elements such as naturally occurring arsenic and antimony.

Aurania’s Chairman & CEO, Dr. Keith Barron commented, “After focusing on our silver-zinc discovery in the last few press releases, I’m very pleased to report that we have an exciting new target where we’ve been able to pan gold from streams draining an area that has an epithermal signature.  Furthermore, indications from the field are that this is an “intermediate-sulphidation” epithermal system – the same type of mineralization as Lundin Gold’s Fruta del Norte mine 100 kilometres to the south of us in the Cordillera del Condor.”

Geological Details of the Kuripan Target

Gold was panned from streams over an area of approximately 12 square kilometres (Figure 1).  Pan concentrates returned values of up to 1 gram per tonne (“g/t”) and the gold grains have an irregular shape consistent with a local source (Figure 2).  Stream sediment sample results have elevated concentrations of silver, arsenic and antimony (Figure 1), and mercury, molybdenum, selenium and thallium.

The target area lies within a sequence of black shales and siltstones of the Jurassic Santiago Formation.  These strata are extensively silicified in the target area and some chalcedonic silica contains casts of adularia (Figure 2), a key alteration mineral found in low- and intermediate- sulphidation epithermal systems.  Banded chalcedonic veinlets are located in volcanic tuff, which is not an ideal host for epithermal veins because the rock is not sufficiently brittle for intense veining to occur.  The target for well-developed epithermal veins is the thick lavas beneath the area in which gold occurs at surface.

A clay-altered diatreme breccia is located near the target area and near where the adularia casts were found (Figure 1). The diatreme is reminiscent of the lower parts of the maar-diatreme systems at Crunchy Hill and Yawi.

The occurrence of adularia with extensive manganese oxide staining suggests that the mineralized system is an intermediate-sulphidation epithermal.

Next Steps

Soil sampling teams are operating in the Kuripan area – the intention being to define the area from which the gold is being eroded into the streams.  More detailed geological mapping is underway to refine the target with emphasis on the distribution of brittle lavas that lie beneath the target area.

 

Figure 1.  a. Plan view of distribution of gold values in pan concentrate samples in the Kuripan target area.  Also shown is the location of silica with casts of adularia. b. Distribution of silver in stream sediment samples. c. Distribution of naturally occurring arsenic in stream sediment samples. d. Distribution of antimony in stream sediment samples.

 

Figure 2.  a. Field guide panning in the Kuripan target area.  b. Gold grains from one of the sample sites in a wooden pan. c. Chalcedonic silica from a banded vein. d. Casts of weathered-out adularia crystals evident in chalcedonic silica.

Sample Analysis & Quality Assurance / Quality Control (“QAQC”) 

Laboratories: The stream and pan concentrate samples were prepared for analysis at MS Analytical (“MSA”) in Cuenca, Ecuador, and the analyses were done in Vancouver, Canada.

Sample preparation: The pan concentrate samples were jaw-crushed to 10 mesh (crushed material passes through a mesh with apertures of 2 millimetres (“mm”)), from which a one-kilogram sub-sample was taken.  The sub-sample was crushed to a grain size of 0.075mm and a 200-gram (“g”) split was set aside for analysis.

The stream sediment samples were wet-sieved through a 20 mesh (0.84mm) screen in the field and placed in cloth bags so that excess water could drain.  The samples were transported from the field to Aurania’s field office in Macas, Ecuador and batched for delivery to at MSA in Cuenca, for drying and screening at 80 mesh (0.18mm sieve aperture).  The -80 mesh silt was packaged by MSA for analysis.

Analytical procedure:  Approximately 0.25g of pan concentrate pulp or -80# soil underwent four-acid digestion and analysis for 48 elements by ICP-MS.

Stream sediment: a 0.5g split of the -80 mesh fraction of the stream silt underwent digestion with aqua regia and the liquid was analyzed for 48 elements by ICP-MS.

Apart from being analyzed by ICP-MS, gold was also analyzed by fire assay with an ICP-AES finish.

QAQC: Aurania personnel inserted a certified standard pulp sample, alternating with a field blank, at approximate 20 sample intervals in all sample batches. Aurania’s analysis of results from its independent QAQC samples showed the batches reported on above, lie within acceptable limits.  In addition, the labs reported that the analyses had passed their internal QAQC tests.

Qualified Person

The geological information contained in this news release has been verified and approved by Jean-Paul Pallier, MSc.  Mr. Pallier is a designated EurGeol by the European Federation of Geologists and a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

About Aurania

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America.  Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at  https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.

For further information, please contact:

Carolyn Muir VP Investor Relations Aurania Resources Ltd. (416) 367-3200 carolyn.muir@aurania.com

Dr. Richard Spencer President Aurania Resources Ltd. (416) 367-3200 richard.spencer@aurania.com

Neither the TSX Venture 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 release.

Forward-Looking Statements

This news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Aurania. Forward-looking statements include estimates and statements that describe Aurania’s future plans, objectives or goals, including words to the effect that Aurania or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Aurania, Aurania provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to Aurania’s objectives, goals or future plans, statements, exploration results, potential mineralization, the corporation’s portfolio, treasury, management team and enhanced capital markets profile, the estimation of mineral resources, exploration, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, the effects of COVID-19 on the business of the Company including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restrictions on labour and international travel and supply chains, and those risks set out in Aurania’s public documents filed on SEDAR. Although Aurania believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Aurania disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Golden Predator Mining Corp. Announces Termination of Arrangement Agreement with Viva Gold Corp

 

VANCOUVER, British Columbia, May 03, 2021 (GLOBE NEWSWIRE) — Golden Predator Mining Corp. (TSX.V: GPY; OTCQX: NTGSF) (“Golden Predator“) announces that the Company and Viva Gold Corp. (“Viva Gold”) have mutually agreed to terminate the arrangement agreement dated March 2, 2021 for the proposed acquisition of all of the issued and outstanding shares of Viva Gold by Golden Predator. Golden Predator also advises, regardless of the terminated Agreement with Viva Gold, Golden Predator will proceed with its plans to distribute 8,620,000 common shares of C2C Gold Corp. to shareholders of record of Golden Predator Mining Corp. by way of a return of capital transaction. A date of record will be announced.

Golden Predator will continue to focus on advancing its Brewery Creek project in the Yukon through the permitting renewal process. The Company is working with the Yukon Department of Energy, Mines and Resources, and the Yukon Water Board to renew its mining and water use licenses, with the ongoing support of the Tr’ondek Hwech’in First Nation.

ABOUT GOLDEN PREDATOR MINING CORP.
Golden Predator is advancing the past-producing Brewery Creek Mine towards a timely resumption of mining activities in Canada’s Yukon. The project has established resources grading over 1.0 g/t Gold and both a technical report and Bankable Feasibility Study underway to define the economics of a restart of heap leach operations at the Brewery Creek Mine. The 180 km² brownfield property is located 55 km by road from Dawson City, Yukon and operates under a Socio-Economic Accord with the Tr’ondëk Hwëch’in First Nation. The Company also holds the Marg Project, with a 43-101 compliant resource, the Gold Dome Project and Grew Creek Project. For additional information on Golden Predator and the Brewery Creek Mine, please visit our website: www.goldenpredator.com.

FOR ADDITIONAL INFORMATION:

Neither the TSX Venture 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 release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Golden Predator Mining Corp. Announces Termination of Arrangement Agreement with Viva Gold Corp

 

VANCOUVER, British Columbia, May 03, 2021 (GLOBE NEWSWIRE) — Golden Predator Mining Corp. (TSX.V: GPY; OTCQX: NTGSF) (“Golden Predator“) announces that the Company and Viva Gold Corp. (“Viva Gold”) have mutually agreed to terminate the arrangement agreement dated March 2, 2021 for the proposed acquisition of all of the issued and outstanding shares of Viva Gold by Golden Predator. Golden Predator also advises, regardless of the terminated Agreement with Viva Gold, Golden Predator will proceed with its plans to distribute 8,620,000 common shares of C2C Gold Corp. to shareholders of record of Golden Predator Mining Corp. by way of a return of capital transaction. A date of record will be announced.

Golden Predator will continue to focus on advancing its Brewery Creek project in the Yukon through the permitting renewal process. The Company is working with the Yukon Department of Energy, Mines and Resources, and the Yukon Water Board to renew its mining and water use licenses, with the ongoing support of the Tr’ondek Hwech’in First Nation.

ABOUT GOLDEN PREDATOR MINING CORP.
Golden Predator is advancing the past-producing Brewery Creek Mine towards a timely resumption of mining activities in Canada’s Yukon. The project has established resources grading over 1.0 g/t Gold and both a technical report and Bankable Feasibility Study underway to define the economics of a restart of heap leach operations at the Brewery Creek Mine. The 180 km² brownfield property is located 55 km by road from Dawson City, Yukon and operates under a Socio-Economic Accord with the Tr’ondëk Hwëch’in First Nation. The Company also holds the Marg Project, with a 43-101 compliant resource, the Gold Dome Project and Grew Creek Project. For additional information on Golden Predator and the Brewery Creek Mine, please visit our website: www.goldenpredator.com.

FOR ADDITIONAL INFORMATION:

Neither the TSX Venture 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 release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Monday, May 03, 2021

Aurania Resources (AUIAF)(ARU:CA)
Tiria-Shimpia Increasing in Potential as a Target

As of April 24, 2020, Noble Capital Markets research on Aurania Resources is published under ticker symbols (AUIAF and ARU:CA). The price target is in USD and based on ticker symbol AUIAF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Aurania Resources Ltd. is a Canada-based junior mining exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities-Cutucu Project, is in southeastern Ecuador in the Province of Morona-Santiago. The company also has several minor projects in Switzerland.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Management provides an update. On April 27, management hosted a conference call for investors to update them on the progress at the Lost Cities project. A replay is available on Aurania’s website. The company has two drills operating, including at the Kuri-Yawi epithermal gold and porphyry copper target and the Tsenken N1 copper-silver target. Management indicated that stream sediment sampling and regional exploration had identified two new target areas, including a new area of silver-zinc called Shimpia North.


Encouraging grab sample results.  Shimpia North is an extension of the high-grade silver-zinc-lead mineralization at Tiria-Shimpia and increases the length of the Tiria-Shimpia target to 22 kilometers from 15 kilometers. During the initial reconnaissance exploration in this new area, the Shimpia target yielded promising results from six grab samples, including from both outcrop and boulders …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Aurania Confirms New Discovery That Extends Tiria-Shimpia to 22km

Toronto, Ontario, April 30, 2021 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) reports on the discovery of Shimpia North, an area in which elevated metal values have been found in streams draining a ridge that is seven kilometres (“km”) long.  Shimpia North is an extension to the high-grade silver-zinc-lead mineralization at Tiria-Shimpia in the Company’s Lost Cities – Cutucu Project (“Project”) in southeastern Ecuador.  Shimpia North extends the Tiria-Shimpia target from 15 km to a total length of 22 km.

Outcropping mineralization in the first reconnaissance exploration in this new area gave a grade of 40 grams per tonne (“g/t”) silver in an extensively weathered gossan (iron-rich residue that remains after intense weathering of sulphide-rich rock) and, among other samples, a boulder of barite in a stream returned 19g/t silver, 6.5% lead and 1.1% zinc.

Aurania’s Chairman & CEO, Dr. Keith Barron commented, “Shimpia North appears to have the same character, style and mineralization type as Tiria-Shimpia, though it is displaced to the northwest.  I consider it to be part of the same system. This may be the distal expression of the copper/silver -in-sediment system we have traced further to the south across country for 23 kilometres.  In any case, the Cutucu is proving to be a rare case of a metal-rich basin, that though uplifted and exposed has appeared to not be eroded to significant extent.  The siliceous sinters we find at Kuri-Yawi are evidence of the original land surface in the Jurassic, when we expect the mineralizing event took place.  What I find astounding is that Cretaceous and younger cover rocks have been stripped off to just the right erosional level to expose mineralization.  Otherwise, we would never have guessed it was there.  Equally significant, our very large land parcel has allowed us to piece this story together.  If we had had a postage stamp type parcel, we never would have guessed the magnitude of these mineralizing systems.  Serendipity has worked in our favour.”

Rock-chip and stream sediment sampling that highlights the extent of the mineralized zone, corresponds closely with high potassium detected in radiometric data from the Company’s geophysical survey completed in 2017.  The potassium enrichment feature extends approximately 10 km beyond the area investigated so far (Figure 1), providing an invaluable exploration guide to finding possible further extensions of the mineralized system.  Though it is not yet confirmed, it is believed the potassium mineral is langbeinite, a potassium magnesium sulphate which could potentially occur with the other sulphates like barite, celestite, or gypsum.  The Company has commenced selection of drill sites at the Tiria-Shimpia target area and expects to begin drilling in this quarter.

Geological Details of the Area Sampled at Shimpia North

The mineralization is sediment-hosted, found parallel to the sedimentary layering in limestone intercalated with sandstone.   Hard rock samples contain galena (lead sulphide) and sphalerite (zinc sulphide) with barite (barium sulphate) and celestite (strontium sulphate).   Gossan, weathered rock in which the sulphide minerals have been removed by oxidation to leave an iron oxide residue, has also been encountered.  Although zinc and lead would have been leached out of the gossans, these residues allow us to map out the original extent of the sulphide-rich layers at surface, which could guide us to fresh, sulphide-rich rock below the weathered zone as illustrated in Figure 2.

 

Figure 1.  Image of potassium radiometric data from the geophysical survey that Aurania carried out over the Lost Cities – Cutucu Project in 2017 showing the distribution of silver in rock-chip samples and lead in stream sediment samples.  (Red and purple are areas rich in potassium, blue and green have little potassium). Lead was selected to demonstrate the extent of the Tiria-Shimpia and Shimpia North target areas because it is not easily leached – hence its distribution provides a footprint that is faithful to the extent of the mineralization.

 

Table 1.  Selected analytical results for grab samples of rocks from the Shimpia target (Ag is silver, Pb is lead and Zn is zinc).

 

 

 

Figure 2.  Gossan found on the jungle floor was excavated to reveal fresh, sulphide-bearing mineralization below the weathered layer at Shimpia North.

 

Sample Analysis & Quality Assurance / Quality Control
(“QAQC”)

Laboratories: The stream and rock samples were prepared for analysis at MS Analytical (“MSA”) in Cuenca, Ecuador, and the analyses were done in Vancouver, Canada.

Sample preparation: The rock samples were jaw-crushed to 10 mesh (crushed material passes through a mesh with apertures of 2 millimetres (“mm”)), from which a one-kilogram sub-sample was taken.  The sub-sample was crushed to a grain size of 0.075mm and a 200-gram (“g”) split was set aside for analysis.

The stream sediment samples were wet-sieved through a 20 mesh (0.84mm) screen in the field and placed in cloth bags so that excess water could drain.  The samples were transported from the field to Aurania’s field office in Macas, Ecuador and batched for delivery to at MSA in Cuenca, for drying and screening at 80 mesh (0.18mm sieve aperture).  The -80 mesh silt was packaged by MSA for analysis.

Analytical procedure:  Approximately 0.25g of rock pulp or -80# soil underwent four-acid digestion and analysis for 48 elements by ICP-MS.  For the over-limit samples, those that had a grade of greater than 1% lead and zinc, or 100g/t silver, 0.4 grams of pulp underwent digestion in four acids and the resulting liquid was diluted and analyzed by ICP-MS.

Stream sediment: a 0.5g split of the -80 mesh fraction of the stream silt underwent digestion with aqua regia and the liquid was analyzed for 48 elements by ICP-MS.

Apart from being analyzed by ICP-MS, gold was also analyzed by fire assay with an ICP-AES finish.

QAQC: Aurania personnel inserted a certified standard pulp sample, alternating with a field blank, at approximate 20 sample intervals in all sample batches. Aurania’s analysis of results from its independent QAQC samples showed the batches reported on above, lie within acceptable limits.  In addition, the labs reported that the analyses had passed their internal QAQC tests.

Qualified Person

The geological information contained in this news release has been verified and approved by Jean-Paul Pallier, MSc.  Mr. Pallier is a designated EurGeol by the European Federation of Geologists and a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

About Aurania

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America.  Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at  https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.

 

For further information, please contact:

Carolyn Muir

VP Investor Relations

Aurania Resources Ltd.

(416) 367-3200

carolyn.muir@aurania.com

 

Dr. Richard Spencer

President

Aurania Resources Ltd.

(416) 367-3200

richard.spencer@aurania.com

 

Neither the TSX Venture 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 release.

Forward-Looking Statements

This news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Aurania. Forward-looking statements include estimates and statements that describe Aurania’s future plans, objectives or goals, including words to the effect that Aurania or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Aurania, Aurania provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to Aurania’s objectives, goals or future plans, statements, exploration results, potential mineralization, the corporation’s portfolio, treasury, management team and enhanced capital markets profile, the estimation of mineral resources, exploration, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, the effects of COVID-19 on the business of the Company including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restrictions on labour and international travel and supply chains, and those risks set out in Aurania’s public documents filed on SEDAR. Although Aurania believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Aurania disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Friday, April 30, 2021

Ely Gold Royalties (ELYGF)(ELY:CA)
Building on a Solid Track Record

As of April 24, 2020, Noble Capital Markets research on Ely Gold Royalties is published under ticker symbols (ELYGF and ELY:CA). The price target is in USD and based on ticker symbol ELYGF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. Ely Gold Royalties Inc is an emerging royalty company with producing and development assets focused in Nevada and the Western US. It offers shareholders a low-risk leverage to the current price of gold and low-cost access to long-term gold royalties.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

2020 was a year of significant growth. In 2020, the company significantly enlarged its asset portfolio via acquisition and option agreements. Ely’s current portfolio includes 12 key assets including 4 producing royalties, 26 development assets, and 43 exploration assets. Ely also owns 20 additional mineral properties which are being marketed for sale. In 2020, the company doubled the number of key assets, increased the number of producing royalties, purchased 12 development portfolio royalties on properties near producing mines or part of larger resources, and added 13 properties to its sale portfolio.


2020 financial results.  Total revenue increased 60.8% to C$3.3 million compared to C$2.1 million during 2019 and our estimate of C$3.5 million. Royalty revenue increased to C$2.2 million, while option proceed revenue decreased 12.8% to C$1.0 million. Gains associated with the disposal of mineral interests amounted to C$118.2 thousand compared to C$918.4 thousand in 2019. Ely Gold Royalties reported …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.