Comstock Announces 2021 Annual Meeting of Shareholders and Record Date

 

Virginia City, NV (March 25, 2021) – Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”) announces that the 2021 Annual Meeting of Shareholders is scheduled for Thursday, June 3, 2021, at the historic Gold Hill Hotel in Gold Hill, Nevada. The meeting will begin at 9:00 a.m. Pacific Time and will include an update on the Company’s corporate portfolio, geological developments and clean energy technologies.

The 2021 Annual Meeting schedule for June 3, 2021, is as follows:

8:00 am – 9:00 am   Continental Breakfast
9:00 am – 12:00 pm  2021 Annual Shareholders Meeting, Company Presentations, Q & A
12:00pm – 1:00 pm   Lunch will be served at the Gold Hill Hotel following the meeting
1:00 pm – 4:00 pm   Portfolio Investment Showcases (Comstock, LiNiCo, MCU & Sierra Springs)

For the convenience of Shareholders, they may view the Annual Meeting live via a webcast. The link for the webcast will be included in shareholder materials as well as posted on our website in the investors section.

Due to COVID-19 guidelines set by the State of Nevada and Storey County, seating is limited for Shareholders and is based on a first-come, first-served basis by registering at the Company website:
https://www.comstockmining.com/investors/asm2021/

The record date for the Annual Meeting is April 6, 2021. Only shareholders of record at the close of business on April 6, 2021, may vote at the meeting. The Company’s proxy statement will be sent to shareholders of record and will describe the matters to be voted upon.

About Comstock Mining Inc.

Comstock Mining Inc. is an emerging leader in sustainable, mineral development and production of environment-enhancing, increasingly scarce strategic and precious metals, focused on conservation-based waste, high-value, cash-generating, mineral and metals essential to meeting the rapidly increasing demand for clean energy technologies. The Company has extensive, contiguous property in the historic, world-class Comstock and Silver City mining districts (collectively, the “Comstock District”) with fully permitted, metallurgical labs and an operational, mineral processing and beneficiation platform that includes a growing portfolio of mercury remediation and gold extraction facilities. Additional information on Comstock is available online at www.comstockmining.com.

Forward-Looking Statements

This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: consummation of all pending transactions; project, asset or Company valuations; future industry market conditions; future explorations, acquisitions, investments and asset sales; future performance of and closings under various agreements; future changes in our exploration activities; future estimated mineral resources; future prices and sales of, and demand for, our products; future impacts of land entitlements and uses; future permitting activities and needs therefor; future production capacity and operations; future operating and overhead costs; future capital expenditures and their impact on us; future impacts of operational and management changes (including changes in the board of directors); future changes in business strategies, planning and tactics and impacts of recent or future changes; future employment and contributions of personnel, including consultants; future land sales, investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; the nature and timing of and accounting for restructuring charges and derivative liabilities and the impact thereof; contingencies; future environmental compliance and changes in the regulatory environment; future offerings of equity or debt securities; asset sales and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: counterparty risks; capital markets’ valuation and pricing risks; adverse effects of climate changes or natural disasters; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mining activities; contests over title to properties; potential dilution to our stockholders from our stock issuances and recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting businesses; permitting constraints or delays; decisions regarding business opportunities that may be presented to, or pursued by, us or others; the impact of, or the non-performance by parties under agreements relating to, acquisitions, joint ventures, strategic alliances, business combinations, asset sales, leases, options and investments to which we may be party; changes in the United States or other monetary or fiscal policies or regulations; interruptions in production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, cyanide, water, diesel fuel and electricity); changes in generally accepted accounting principles; adverse effects of terrorism and geopolitical events; potential inability to implement business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors or others; assertion of claims, lawsuits and proceedings; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; inability to maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.

Contact information

Comstock Mining Inc.
117 American Flat Rd
PO Box 1118
Virginia City, NV 89440
http://www.comstockmining.com

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
degasperis@comstockmining.com

Zach Spencer
Director of External Relations
Tel (775) 847-5272 ext.151
questions@comstockmining.com

Source: Comstock Mining

Research coverage of Comstock Mining (LODE) on Channelchek is provided by Noble Capital Markets, Inc. Please refer to the research disclosures on the most recent LODE report for more information.

Thursday, March 25, 2021

Chakana Copper Corp (CHKKF)(PERU:CA)
Drilling at Huancarama Reveals Second High-Grade Discovery

Noble Capital Markets research on Chakana Copper Corp is published under ticker symbols CHKKF and PERU:CA. The price target is in USD and based on ticker symbol CHKKF. Chakana Copper Corp is a Canadian-based minerals exploration company that is currently advancing the high-grade gold-copper-silver Soledad Project located in the Ancash region of Peru, a highly favorable mining jurisdiction with supportive communities. The Soledad Project consists of high-grade gold-copper-silver mineralization hosted in tourmaline breccia pipes. A total of 33,353 metres of drilling has been completed to-date, testing nine (9) of twenty-three (23) confirmed breccia pipes with more than 92 total targets. Chakana’s investors are uniquely positioned as the Soledad Project provides exposure to several metals including copper, gold, and silver.

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.

High-grade breccia pipe discovery at Huancarama. Chakana Copper announced the discovery of a second high-grade breccia pipe within the Huancarama Breccia Complex at the Soledad Project in Peru. The new high-grade breccia pipe (Huancarama West) is only 75 meters west of the previously announced Huancarama East discovery. To date, a total of 33 diamond core holes have been completed within the Huancarama Breccia Complex to delineate the boundaries of the breccia pipes.


Drill results highlight near-surface mineralization potential.  The company released results for six drill holes at Huancarama West and three drill holes at Huancarama East. Five of the six drill holes at Huancarama West intersected mineralized breccia starting at depths ranging from 2.75 to 4.0 meters with significant gold and silver intercepts. The three holes at Huancarama East confirmed that the …

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. 

Wednesday, March 24, 2021

Comstock Mining (LODE)
First Mercury Remediation System is Up and Running in the Philippines

Comstock Mining Inc. is an emerging innovator and leader in the sustainable extraction, valorization, and production of scarce natural resources, with a focus on high value strategic materials that are essential to meeting the rapidly increasing global demand for clean energy, carbon-neutrality, and natural products.

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.

First mercury remediation system operational in the Philippines. Comstock’s Clean Mercury Remediation Technologies (CMRT) joint venture with Mercury Clean Up LLC put the first commercial mercury remediation system into operation last week in Davao D’ Oro, Philippines. The unit has been deployed to recover and safely dispose of mercury from the Naboc River, along with recovering gold. According to Comstock management, the Head of the Philippine Department of Environment and Natural Resources (DENR), the country’s leading environmental regulator, stated that the Naboc River clean-up, if successful, could serve as a blueprint for treating other mercury contaminated areas in the country.


A significant growth opportunity.  The mercury remediation system, operating at up to 150 tons per hour, is the first of several planned in the region. Each system, well-suited for remote deployment, remediates mercury while extracting by-products, including gold, cleaned sand, soil and gravel for commercial use. The company plans to deploy another system this year and several additional systems …

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. 

Chakana Discovers Second High-Grade Breccia Pipe within Huancarama – Soledad Project, Peru

 

Intersects 11m of 6.29 g/t Au and 92.8 g/t Ag (7.66 g/t Au-eq) 14m
below surface

Vancouver, B.C., March 24, 2021 – Chakana Copper Corp. (TSX-V:
PERU; OTCQB: CHKKF; FRA: 1ZX) (the “Company” or “Chakana“), is pleased to announce the discovery of a second high-grade breccia pipe within the Huancarama Breccia Complex at the Soledad Project in Ancash, Peru (Table 1, Fig. 1). This new high-grade breccia pipe (Huancarama West) is located approximately 75m west of the previously announced Huancarama East discovery (see news releases starting January 12, 2021). To date, a total of thirty-three HQ diamond core holes have been completed within the Huancarama Breccia Complex to delineate the boundaries of the breccia pipes.

David Kelley, President and CEO commented, “The discovery of a second
high-grade tourmaline breccia pipe within the Huancarama Breccia Complex is an
exciting development for the project. The drill rig was set up 50m north of the
H5 breccia in an area with andesitic tuff exposed at surface. High-grade gold
and silver mineralization was encountered about 3m below surface, demonstrating
the significant potential of near-surface mineralization at Soledad. The
precious metal-rich nature of the mineralization may be related to oxidation
but also primary zonation. Often breccias at Soledad become strongly
mineralized at depth with copper in addition to precious metals.”

Huancarama West New Discovery
Table 1. Mineralized intervals from the new discovery at Huancarama West include:

DDH #	From – To (m)		Core Length (m)	Au g/t	Ag g/t	Cu %	Cu-eq %*	Au-eq g/t*
SDH21-170	No Significant Results
SDH21-171	3.00	45.00	42.00	0.84	26.8	0.03		1.24
including	33.00	42.00	9.00	1.76	108.0	0.09		3.31
and	54.00	57.00	3.00	0.79	7.14	0.01		0.90
SDH21-172	3.60	59.00	55.40	1.64	54.2	0.20		2.65
including	26.00	51.00	25.00	2.49	110.2	0.42	2.99	4.57
SDH21-173	4.00	111.00	107.00	0.46	17.7	0.06		0.78
SDH21-174	3.10	25.70	22.60	3.93	48.3	0.06		4.65
including	14.00	25.00	11.00	6.29	92.8	0.10		7.66
and	43.20	52.00	8.80	1.56	136.1	0.51	2.69	4.12
SDH21-175	2.75	15.80	13.05	5.47	45.5	0.03		6.11

* Cu_eq and Au_eq values were calculated using copper, gold, and silver. Metal prices utilized for the calculations are Cu – US$2.90/lb, Au – US$1,300/oz, and Ag – US$17/oz. No adjustments were made for recovery as the project is an early-stage exploration project and metallurgical data to allow for estimation of recoveries are not yet available. The formulas utilized to calculate equivalent values are Cu-eq (%) = Cu% + (Au g/t * 0.6556) + (Ag g/t * 0.00857) and Au-eq (g/t) = Au g/t + (Cu% * 1.5296) + (Ag g/t * 0.01307).

Six holes were drilled on the western side of the breccia complex to test for mineralization associated with the H4 and H5 breccias exposed at surface (Fig. 2). Holes SDH21-171 to SDH21-175 were drilled from a platform on the northwest side of the complex. No breccia is exposed at surface in this area, instead andesitic tuff with sericite alteration is exposed concealing the underlying breccia. All five holes intersected mineralized breccia starting at depths ranging from 2.75 to 4.0m depth below surface (Fig. 3). The breccia is partially oxidized to depths of 30m below surface. Significant mineralized intercepts were encountered, including 55.4m with 1.64 g/t Au and 54.2 g/t Ag (2.65 g/t Au-eq) starting at 3.6m, and 22.6m with 3.93 g/t Au and 48.3 g/t Ag (4.65 g/t Au-eq) starting at 3.1m below surface. Copper is low within the intervals reported due to oxidation and primary zoning within the breccia pipe. Examples of mineralized drill core from these holes are shown in Figure 5.

Huancarama East
Three additional drill holes from Huancarama East are also reported (Table 2). All three holes were designed to test the upper central part of the breccia pipe from the north side and drilled to the south-southeast (Fig. 2). The holes intersected volcanic host rock before entering mineralized tourmaline breccia (Figs. 2 and 4). Volcanic rock separates the H1 and H2 breccias that crop out at surface. Beneath the volcanic rock the two breccia bodies coalesce at depth, forming a larger breccia body with approximate dimensions of 100m x 65m and persisting to a depth of 290m below surface (see news release dated March 3, 2021). Holes SDH21-167 and SDH21-169 exited the breccia pipe on the south-southeast side. SDH21-168 was stopped prematurely in mineralized breccia at 105.1m depth due to proximity to open underground workings. The highest-grade interval occurs in SDH21-169 with 29.55m of 0.34 g/t Au, 0.80% Cu, and 87.3 g/t Ag (1.77% Cu-eq) starting at 84.45m down hole, including 7.55m with 0.98 g/t Au, 2.17% Cu, and 269.6 g/t Ag (5.12% Cu-eq). Examples of mineralized drill core from these holes are shown in Figure 5.

“These drill holes were successful in confirming the contact
between the overlying volcanic host rock and the underlying mineralized breccia
around the collapse zone. The breccia is closer to surface than previously
thought with depths ranging from 20-28m below surface, adding additional volume
to the breccia body. Infill drilling is currently underway at Paloma East and
Huancarama East. We look forward to reporting additional exploration results
from our fully-funded 26,000m drill program soon,” Kelley added.

Table 2. Mineralized intervals from three additional holes at Huancarama East include:

DDH #	From     –    To (m)		Core Length (m)	Au g/t	Ag g/t	Cu %	Cu-eq %*	Au-eq g/t*
SDH21-167	71.45	137.80	66.35	0.20	24.7	0.39	0.73	1.12
SDH21-168	79.00	105.10	26.10	0.39	16.2	0.50	0.89	1.37
SDH21-169	84.45	115.30	30.85	0.33	84.4	.77	1.77	2.70
including	84.45	92.00	7.55	0.98	269.6	2.17	5.12	7.82

* Cu_eq and Au_eq values were calculated using copper, gold, and silver. Metal prices utilized for the calculations are Cu – US$2.90/lb, Au – US$1,300/oz, and Ag – US$17/oz. No adjustments were made for recovery as the project is an early-stage exploration project and metallurgical data to allow for estimation of recoveries are not yet available. The formulas utilized to calculate equivalent values are Cu-eq (%) = Cu% + (Au g/t * 0.6556) + (Ag g/t * 0.00857) and Au-eq (g/t) = Au g/t + (Cu% * 1.5296) + (Ag g/t * 0.01307).

Huancarama Target Area and the Current Drill Program
The Huancarama Breccia Complex is located 300m south of and 400m above the deepest breccia intercept at Paloma. Within the complex there are five principal breccia bodies exposed at surface over approximately 200m horizontally (Fig. 6). There is a distinctive feature believed to be a collapse zone with dimensions of 50m by 30m. Unverified reports suggest that this may be due to small-scale mining. Two historic adits are in the complex, one trending north-northeast for 170m along the western side of H1 (Fig. 2), and a second shorter adit of 21m at H2. Surface sampling from the breccia bodies and channel sampling of the adits yielded strongly anomalous gold results (see news release dated November 19, 2019). In addition to several targets within the complex, numerous additional targets exist in the Huancarama and Paloma area.

Results reported here are part of the recently expanded and fully funded 2021 drill program of 26,000m. Combined with the drilling in 2020 that started last August, a total of approximately 32,000m is anticipated through 2021. Of this, 8,094m have been reported in 43 drill holes for the Paloma and Huancarama areas. For the 26,000m of drilling planned in 2021, the Company will complete 16,000m of resource definition drilling, and 10,000m of exploration drilling testing new targets. This drill program will be integral to the publication of a maiden resource in 2021.

About Chakana Copper
Chakana Copper Corp is a Canadian-based minerals exploration company that is currently advancing the Soledad Project located in the Ancash region of Peru, a highly favorable mining jurisdiction with supportive communities. The Soledad Project consists of high-grade gold-copper-silver mineralization hosted in tourmaline breccia pipes. A total of 42,728 metres of drilling has been completed to date, testing ten (10) of twenty-three (23) confirmed breccia pipes. The exploration team has identified 110 targets in total on the project, confirming that Soledad is a large, well-endowed mineral system with strong exploration upside. Chakana’s investors are uniquely positioned as the Soledad Project provides exposure to several metals including copper, gold, and silver. For more information on the Soledad project, please visit the website at www.chakanacopper.com.

Sampling and Analytical Procedures
Chakana follows rigorous sampling and analytical protocols that meet or exceed industry standards. Core samples are stored in a secured area until transport in batches to the ALS facility in Callao, Lima, Peru. Sample batches include certified reference materials, blank, and duplicate samples that are then processed under the control of ALS. All samples are analyzed using the ME-MS41 (ICP technique that provides a comprehensive multi-element overview of the rock geochemistry), while gold is analyzed by AA24 and GRA22 when values exceed 10 g/t by AA24. Over limit silver, copper, lead and zinc are analyzed using the OG-46 procedure. Soil samples are analyzed by 4-acid (ME-MS61) and for gold by Fire Assay on a 30g sample (Au-ICP21).

Results of previous drilling and additional information concerning the Project, including a technical report prepared in accordance with National Instrument 43-101, are made available on Chakana’s SEDAR profile at www.sedar.com.

Qualified Person
David Kelley, an officer and a director of Chakana, and a Qualified Person as defined by NI 43-101, reviewed and approved the technical information in this news release.

ON BEHALF OF THE BOARD
(signed) “David Kelley“
David Kelley
President and CEO

For further information contact:
Joanne Jobin, Investor Relations Officer
Phone: 647 964 0292
Email: 
jjobin@chakanacopper.com

Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the Exchange) accepts
responsibility for the adequacy or accuracy of this release.

Forward-looking Statement Advisory: This release may contain forward-looking statements.
Forward-looking statements involve known and unknown risks, uncertainties, and
other factors which may cause the actual results, performance, or achievements
of Chakana to be materially different from any future results, performance, or
achievements expressed or implied by the forward-looking statements. Forward
looking statements or information relates to, among other things, the
interpretation of the nature of the mineralization at the Soledad
copper-gold-silver project (the “Project”), the potential to expand
the mineralization, and to develop and grow a resource within the Project, the
planning for further exploration work, the ability to de-risk the potential
exploration targets, and our belief in the potential for mineralization within
unexplored parts of the Project. These forward-looking statements are based on
management’s current expectations and beliefs but given the uncertainties,
assumptions and risks, readers are cautioned not to place undue reliance on
such forward- looking statements or information. The Company disclaims any obligation
to update, or to publicly announce, any such statements, events or developments
except as required by law.

Full release with images can be viewed at www.chakanacopper.com

SOURCE: Chakana Copper

Comstock Announces Participation in Adelaide Capital Charity Battery Metals Pitch Battle

 

Virginia City, NV (March 23, 2021) – Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”) announced today that Mr. Corrado De Gasperis, its CEO, will participate in Adelaide Capital’s Battery Metals Pitch Battle on March 25th from 4:15 to 5:30 pm ET.
 

Please register here if you would like to attend: Adelaide Capital Battery Metals Pitch Battle. The webinar will also be live streamed on YouTube for those who are unable to access Zoom: YouTube Live Stream. A replay will be made available after the event on Adelaide Capital’s YouTube channel. 

The Pitch Battle is a charitable event in support of the Leukemia & Lymphoma Society of Canada.
 

“There are so many types of Leukemia and Lymphoma and they all impair lives.  We are proud to support real efforts for curing this illness and improving lives for the families so drastically impacted,” stated Comstock’s Executive Chairman and CEO, Corrado De Gasperis. “We are also In It To Win In, for such a great cause and we are sincerely honored to participate. If you are able to donate, please click on the link here: https://bit.ly/3r93cut and please note that the link will not be active until March 25th.”
 

About Comstock Mining
Inc. Comstock Mining Inc. is an emerging leader in sustainable, mineral development and production of environment-enhancing, increasingly scarce strategic and precious metals, focused on conservation-based waste, high-value, cash-generating, mineral and metals essential to meeting the rapidly increasing demand for clean energy technologies. The Company has extensive, contiguous property in the historic, world-class Comstock and Silver City mining districts (collectively, the “Comstock District”) with fully permitted, metallurgical labs and an operational, mineral processing and beneficiation platform that includes a growing portfolio of mercury remediation and gold extraction facilities.  Additional information on Comstock is available online at www.comstockmining.com.
 

Forward-Looking
Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: consummation of all pending transactions; project, asset or Company valuations; future industry market conditions; future explorations, acquisitions, investments and asset sales; future performance of and closings under various agreements; future changes in our exploration activities; future estimated mineral resources; future prices and sales of, and demand for, our products; future impacts of land entitlements and uses; future permitting activities and needs therefor; future production capacity and operations; future operating and overhead costs; future capital expenditures and their impact on us; future impacts of operational and management changes (including changes in the board of directors); future changes in business strategies, planning and tactics and impacts of recent or future changes; future employment and contributions of personnel, including consultants; future land sales, investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; the nature and timing of and accounting for restructuring charges and derivative liabilities and the impact thereof; contingencies; future environmental compliance and changes in the regulatory environment; future offerings of equity or debt securities; asset sales and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: counterparty risks; capital markets’ valuation and pricing risks; adverse effects of climate changes or natural disasters; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mining activities; contests over title to properties; potential dilution to our stockholders from our stock issuances and recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting businesses; permitting constraints or delays; decisions regarding business opportunities that may be presented to, or pursued by, us or others; the impact of, or the non-performance by parties under agreements relating to, acquisitions, joint ventures, strategic alliances, business combinations, asset sales, leases, options and investments to which we may be party; changes in the United States or other monetary or fiscal policies or regulations; interruptions in production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, cyanide, water, diesel fuel and electricity); changes in generally accepted accounting principles; adverse effects of terrorism and geopolitical events; potential inability to implement business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors or others; assertion of claims, lawsuits and proceedings; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; inability to maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.

Contact information

Comstock Mining Inc.
117 American Flat Rd
PO Box 1118
Virginia City, NV 89440
http://www.comstockmining.com

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
degasperis@comstockmining.com

Zach Spencer
Director of External Relations
Tel (775) 847-5272 ext.151
questions@comstockmining.com

Source: Comstock Mining

Research coverage of Comstock Mining (LODE) on Channelchek is provided by Noble Capital Markets, Inc. Please refer to the research disclosures on the most recent LODE report for more information.

Wednesday, March 24, 2021

Newrange Gold (NRGOF)(NRG:CA)
A Multi-Million Ounce Gold Resource in the Making at Pamlico?

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

Newrange Gold Corp is an exploration stage company focused on acquiring and exploring exploration and evaluation assets in Colombia and the United States. The Company operates in a single reportable operating segment-the acquisition, exploration, and development of mineral properties. Some of the projects acquired by the company are Pamlico gold project in Nevada and Rocky mountain project in Colorado. The company also holds an interest in the Yarumalito property, El Dovio property and Anori property in Colombia.

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.

IP geophysical survey. Newrange Gold announced the completion and interpretation of an expanded Induced Polarization (IP) geophysical survey on the Pamlico Project in Nevada. The survey comprised 56.35-line kilometers, bringing the total, including the 2019-2020 survey, to more than 76.5-line kilometers, covering the entire property. The new IP survey has been successful in further defining and extending known anomalies and identifying others that had not been previously recognized.


Pamlico project area enlarged with additional claim stakes.  Three large areas of anomalous chargeability were detected, all of which intruded on the property boundary such that the company has staked additional ground, more than doubling the size of the property. The Northwest, East, and Southeast Areas, are two to three kilometers in size with each containing more than one discrete zone of high …

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. 

What’s the Timeline for a U.S. Digital Currency?

 

Investment opportunities related to the adoption of a U.S. digital currency will undoubtedly change fortunes. But will we ever adopt crypto and are we even close? Actions by the Federal Reserve taken last year and a crescendo of recent statements from top officials suggests that it’s in the works. So the question is “When?” “In what form” and “Who stands to benefit from a Fedcoin?”

Central Bank
Digital Currencies (CBDC) Exploratory Phase

The Federal Reserve Bank of Boston has been collaborating with MIT on what they call the Digital Currency Initiative. They have been exploring together the use of existing and new technologies to build and test a digital currency platform. This includes assessing technology trade-offs, building a hypothetical CBDC, building scalable architecture, a cryptographic platform able to meet the needs of a digital U.S. dollar, speed, security, privacy, and flexibility. Separate from its collaboration with MIT the Boston Fed is evaluating other systems to better comprehend the pros and cons of the U.S. banking system supporting a CBDC.

In a panel discussion yesterday for the Bank of International Settlements (March 22, 2021), Fed Chair Powell exposed some of the Fed’s current thinking. He indicated that when it came to a CBDC, the U.S. has “an obligation to be on the cutting edge of understanding the technological challenges.” He also made clear that any expected benefits of a digital dollar wouldn’t rush the project and that the Fed wouldn’t proceed without support from Congress, preferably in the form of legislation.

The Federal Reserve Bank of Boston, Senior Vice President James Cunha who serves as a spokesman for this project has said the Boston Fed and MIT hope to unveil some of their work in the third quarter of 2021. This includes at least two prototype software platforms that could move, store, and settle transactions made with digital dollars. He did not say if either platform uses the blockchain technology that underlies other cryptocurrencies such as Bitcoin or Ethereum. Once the prototypes are released, Cunha said, others will be able to look at what was built and experiment with the open-source code.

The Fed’s work is intended to show what’s possible without taking a position on the major issues that are out of the purview of the Boston Fed.  The issues he says fall under the direction of Congress, the Treasury, and the Federal Reserve Bank. These include whether the Fed itself should host customer accounts, whether anonymity should be permitted, and what protections users would have in case of a cyber-breach or mistaken transaction. Any policy debate and exploration are separate issues. Discovering what can and can’t be done along with the weaknesses and strengths is the role of the Boston Fed; what to do with that information falls on others.

Around
the World

It’s difficult to have a discussion about any major issue of commerce without looking around the world and seeing what U.S. competitors are up to. The most aggressive mover on the CBDC front is China. The CCP is moving fast to develop its own digital currency, the digital Yuan. At the current pace, the Chinese CBDC will be in use at the 2022 Beijing Olympics.  This alone may force some worldwide use of their digital currency.

For its part, the European Central Bank had this to say, “We have not yet decided whether to issue a digital euro. We are currently in a preparation phase: we’re developing the concept, conducting practical experimentation, listening to the views of the broader public and engaging with stakeholders.” There doesn’t seem to be any urgency in the exploration or adoption of a digital Euro, “We will decide whether to launch a digital euro project towards the middle of 2021, in order to be prepared for the possible issuance of a digital euro at some point in the future,” they said.

 In February 2020, the Central Bank of Brazil (BCB) launched its own official payment network, Pix, which allows instant money transfer and QR code scanning. This digital payment method had its soft launch in November 2020. Brazil has scheduled mass adoption of Pix for this year. 

Washington View

The exploratory push of digital currency technology should not be confused with a push to adopt cashless dollars or other current cryptocurrencies. During the same BIS meeting on March 22, US Fed Chair Powell also had this to say about Bitcoin and other traded cryptocurrencies,” “They’re more of an asset for speculation, so they’re not particularly in use as a means of payment. It’s more a speculative asset. It’s essentially a substitute for gold rather than for the dollar.” So he believes that the current state of non-central bank digital currencies is that they are a gold substitute, not a dollar substitute. Gold is a speculative asset against inflation, civil unrest, and other issues of sovereign risk.

For her part, the former Fed Chair and current Treasury Secretary Janet Yellen spoke a month earlier and had this to say about digital currencies, “To the extent it is used, I fear it’s often for illicit finance. It’s an extremely inefficient way of conducting transactions, and the amount of energy that’s consumed in processing those transactions is staggering.”

It would seem clear from both of these statements that they lean away from any currently traded digital currencies.

Impact of Industries

The Fed and other central banks around the world are giving a lot of attention to digital currencies. China seems intent on developing a standard and introducing a digital Yuan early along with some required use. Brazil has already begun its digital payment system, and companies like Facebook that are financially stronger than many countries have plans of introducing their own crypto to the world. This level of disruption is sure to impact industries. There is no ability to clearly see the future, but assuming in the not-so-distant future many of the world’s transactions take place with a digital currency, these are the impacted industries.

Within financial services, facilitating payments is highly profitable for banks; international transactions generate billions in revenue for financial companies. Digital payments could allow a secure and cheap way of sending payments that cut down on the need for verification from third parties and beat the processing times of current bank transfers. The various cryptocurrencies themselves not tied to a central bank could be the most severe victims. Could it be the current speculative favorites whither? Although when the U.S. went off the gold standard, gold still maintained value, the value of various speculative currencies may quickly be undermined by an official “Fedcoin.” The winners could be blockchain companies and others that adopt the technology for non-currency applications. This could include the travel industry, crowdfunding where it helps with cybersecurity risks, and ridesharing could benefit from a less centralized dispatch system. Trucking could be helped by the technology now most thought of for cryptocurrency tracking — there are currently 500 members of BiTA, the blockchain transportation alliance.  Aerospace and defense companies are working with blockchain technology that has the potential to streamline parts inventory and authentication. Real estate and title issues can be improved with the ledger systems of blockchain to improve efficiency and accuracy.

More directly, a central bank digital currency could make consumers’ everyday transactions easier which by itself is stimulative. Money growth comes from the increased velocity of money. Certainly, an increased ability to transact digitally could be very stimulative throughout the economy.

 

Suggested Reading:

Cryptocurrency Gaining Bank’s Acceptance

Backed by the Full Faith and Credit of Blockchain

Is the Small Firm Effect for Microcaps Real?

Small Cap Names in a Big Crypto Market

 

 

Sources:

 https://www.coindesk.com/video/the-boston-feds-jim-cunha-cbdcs-are-here-and-theyre-real

https://www.ecb.europa.eu/euro/digital_euro/html/index.en.html

https://www.bcb.gov.br/htms/public/inovtec/Currency-in-the-Digital-Era.pdf

https://www.cbinsights.com/research/industries-disrupted-blockchain/#government

https://www.theguardian.com/business/2018/nov/19/why-central-bank-digital-currencies-will-destroy-bitcoin

Allegiant Gold Announces Participation in Noble Capital Markets Virtual Road Show Series

 

RENO, NV, March 23 2021 – Allegiant Gold Ltd. (AUAU: TSX-V) (AUXXF: OTCQX) today announced their participation in Noble Capital Markets’ Virtual Road Show Series, presented by Channelchek, scheduled for March 25, 2021.

The virtual road show will feature a corporate presentation from Allegiant President & CEO Peter Gianulis, followed by a Q & A session proctored by Noble Senior Research Analyst Mark Reichman, featuring questions submitted by the audience.

The live broadcast of the virtual road show is scheduled for March 25, 2021, at 1 PM EDT. Registration is free and open to all investors, at any level. Register Here (https://register.gotowebinar.com/register/6363353590282427918)

Noble’s research, as well as news and advanced market data on Allegiant is available on Channelchek.

About Allegiant

Allegiant owns 100% of 10 highly-prospective gold projects in the United States, 7 of which are located in the mining-friendly jurisdiction of Nevada. Four of Allegiant’s projects are farmed-out, providing for cost reductions and cash-flow. Allegiant’s flagship, district-scale Eastside project hosts a large and expanding gold resource and is located in an area of excellent infrastructure. Preliminary metallurgical testing indicates that both oxide and sulphide gold mineralization at Eastside is amenable to heap leaching.

About Noble Capital Markets

Noble Capital Markets, Inc. was incorporated in 1984 as a full-service SEC / FINRA registered broker-dealer, dedicated exclusively to serving underfollowed small / microcap companies through investment banking, wealth management, trading & execution, and equity research activities. Over the past 36 years, Noble has raised billions of dollars for these companies and published more than 45,000 equity research reports. www.noblecapitalmarkets.com email: contact@noblecapitalmarkets.com

About Channelchek

Channelchek (.com) is a comprehensive investor-centric portal – featuring more than 6,000 emerging growth companies – that provides advanced market data, independent research, balanced news, video webcasts, exclusive c-suite interviews, and access to virtual road shows. The site is available to the public at every level without cost or obligation. Research on Channelchek is provided by Noble Capital Markets, Inc., an SEC / FINRA registered broker-dealer since 1984. channelchek.vercel.app email: contact@channelchek.vercel.app

ON BEHALF OF THE BOARD
Peter Gianulis
CEO

For more information contact:
Investor Relations
(604) 634-0970 or
1-888-818-1364

ir@allegiantgold.com

Source: Allegiant Gold

Research coverage of Allegiant Gold (AUXXF) on Channelchek is provided by Noble Capital Markets, Inc. Please refer to the research disclosures on the most recent AUXXF report for more information.

Comstock and MCU Commence Philippine Mercury Remediation Operations;
First International Remediation and Extraction Facility is Now in Production

 

Virginia City, NV (March 23, 2021) – Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”) and Mercury Clean Up LLC (“MCU”), announced today that all of the site construction and mercury system set up and testing was completed in their Clean Mercury Remediation Technologies (“CMRT”) joint venture earlier this month with the system going operational last week. This represents the first commercial mercury remediation system in the province of Davao D’ Oro, Philippines, and the foundation for adding additional remediation systems into this unprecedented, eco-system-wide mercury remediation effort in the Philippines and leading achievement for the U.N’s Minamata Convention, the international treaty designed to protect human health and the environment from emissions and releases of mercury and mercury compounds. The international agreement strives to reduce mercury pollution from targeted activities, particularly artisanal and small-scale gold mining, responsible for the major release of mercury to the immediate environment.

Photo accompanying this announcement is available at https://www.comstockmining.com/press-releases/comstock-and-mcu-commence-philippine-mercury-remediation-operations/

“There is a real joy about being back into production, especially when our production cleans, remediates, and restores the environment back into its natural state.” stated Comstock’s Executive Chairman and CEO, Corrado DeGasperis. “This is the first of multiple systems MCU is dedicating to clean up this entire eco-system, not only reviving the 24-kilometer river, but the downstream irrigations, agriculture and communities it previously served. The social impact is incalculable and represents the baseline for mining-related contaminations across the entire country. The Country’s leading environmental regulator stated that the success of this cleanup will set the standard for the rest of country.”

Artisanal and Small-Scale Gold Mining (ASGM) Dilemma

Mercury?dependent ASGM uses a process known as amalgamation to dissolve gold from natural deposits. The amalgam is then typically isolated by hand and then heated to distill the mercury and isolate the gold. Problematically, mercury is hazardous to human health and the environment, where residual ASGM wastes contaminate water and soil and ultimately bioaccumulate into food chains. Mercury risks to children are particularly acute, with mercury emissions from ASGM disabling both physical and mental development. The process was regulated into near extinction by most countries, but upwards of 20 million people still use mercury to mine for gold in more than 70 countries, making mercury pollution from ASGM a U.N. prioritized global issue through the Minamata Convention. The Philippine Naboc River has long been a channel for effluents of mining activities in the area, as evidenced by the high levels of mercury and total suspended solids, according to the Philippine Department of Environment and Natural Resources (DENR), with hundreds of previous processing activities operating on Mt. Diwata without proper tailing ponds, releasing with their toxic, mercury-laden discharges into the Naboc River.

Proprietary Remediation and Extraction Process

The MCU mercury remediation system is the first of several planned by MCU, Comstock and CMRT in the region. Each system is mobile and specifically designed for remote deployment, to remediate mercury from existing amalgamation wastes while extracting residual by-products, including gold, cleaned sand, soil and gravel for commercial use. The mercury wastes are disposed in a safe and compliant manner, thereby repairing and enhancing local ecosystems, while the extracted gold and cleaned by-products provide multiple high-margin revenue streams.

“Each patent-pending core remediation system is expected to produce positive cash flow within just a few months of start-up, with fast full returns on capital deployed, typically in less than 18 months, depending on processing rates and the various by-products extracted from environment,” continued Mr. DeGasperis. “Our plan involves deploying another system this year and several additional systems thereafter, now that the first one is up and running, as we look toward expanding the social impact across the entire district and sustained, positive cash flow growth.”

About Comstock Mining Inc.

Comstock Mining Inc. is an emerging leader in sustainable, mineral development and production of environment-enhancing, increasingly scarce strategic and precious metals, focused on conservation-based waste, high-value, cash-generating, mineral and metals essential to meeting the rapidly increasing demand for clean energy technologies. The Company has extensive, contiguous property in the historic, world-class Comstock and Silver City mining districts (collectively, the “Comstock District”) with fully permitted, metallurgical labs and an operational, mineral processing and beneficiation platform that includes a growing portfolio of mercury remediation and gold extraction facilities.  Additional information on Comstock is available online at www.comstockmining.com.

Forward-Looking Statements

This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: consummation of all pending transactions; project, asset or Company valuations; future industry market conditions; future explorations, acquisitions, investments and asset sales; future performance of and closings under various agreements; future changes in our exploration activities; future estimated mineral resources; future prices and sales of, and demand for, our products; future impacts of land entitlements and uses; future permitting activities and needs therefor; future production capacity and operations; future operating and overhead costs; future capital expenditures and their impact on us; future impacts of operational and management changes (including changes in the board of directors); future changes in business strategies, planning and tactics and impacts of recent or future changes; future employment and contributions of personnel, including consultants; future land sales, investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; the nature and timing of and accounting for restructuring charges and derivative liabilities and the impact thereof; contingencies; future environmental compliance and changes in the regulatory environment; future offerings of equity or debt securities; asset sales and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: counterparty risks; capital markets’ valuation and pricing risks; adverse effects of climate changes or natural disasters; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mining activities; contests over title to properties; potential dilution to our stockholders from our stock issuances and recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting businesses; permitting constraints or delays; decisions regarding business opportunities that may be presented to, or pursued by, us or others; the impact of, or the non-performance by parties under agreements relating to, acquisitions, joint ventures, strategic alliances, business combinations, asset sales, leases, options and investments to which we may be party; changes in the United States or other monetary or fiscal policies or regulations; interruptions in production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, cyanide, water, diesel fuel and electricity); changes in generally accepted accounting principles; adverse effects of terrorism and geopolitical events; potential inability to implement business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors or others; assertion of claims, lawsuits and proceedings; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; inability to maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.

Contact information

Comstock Mining Inc.
117 American Flat Rd
PO Box 1118
Virginia City, NV 89440
http://www.comstockmining.com

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
degasperis@comstockmining.com

Zach Spencer
Director of External Relations
Tel (775) 847-5272 ext.151
questions@comstockmining.com

Source: Comstock Mining

Research coverage of Comstock Mining (LODE) on Channelchek is provided by Noble Capital Markets, Inc. Please refer to the research disclosures on the most recent LODE report for more information.

 

Digging Deeper Into Gold Investments – Understanding Royalty Companies

 

Investors have many options to gain exposure to gold. They may purchase gold bullion, gold coins, gold exchange-traded funds (ETF) and mutual funds, gold mining companies, or gold futures and options. Publicly traded equities of gold producers and royalty companies may offer an attractive way to invest given the disproportionate percentage impact higher commodity prices may have on a company’s bottom line and valuation for a given percentage increase in the commodity itself. While most investors are likely familiar with mining companies and how they operate, royalty companies may be less familiar.

Advantages of Owning Equity Shares of a Royalty
Company

Compared with investing in gold production companies, royalty businesses generally benefit from low overhead costs, geographically diversified asset portfolios, and exposure to multiple operators.  Additionally, they avoid costly exploration expense which is borne by operators while sharing the benefit and upside of exploration investment in properties where they retain a royalty interest.  Like mining companies, royalty businesses offer greater leverage to changes in gold prices than investing in bullion.  Lastly, royalty businesses generally seek to build portfolios of producing royalties that support dividend payments to shareholders.  It is important to keep in mind that revenues increase with rising gold prices, increasing production on its royalty properties, and a growing royalty portfolio, while costs remain relatively fixed and stable. This scenario positions royalty companies to thrive in good markets and weather more challenging sets of circumstances.

As a royalty company grows, it offers the potential for multiple expansion, dividend payments, and the ability to execute larger transactions which could accelerate its growth. Junior royalty companies generally perform well in their early years since they can grow rapidly based on an increasing capacity to transact larger deals. Additionally, junior royalty companies may become attractive acquisition candidates for a larger royalty company seeking to enlarge its royalty portfolio.

 

Allegiant Gold (AUXXF) Thursday March 25 @ 1:00pm EST Virtual Road Show (Learn More) Peter Gianulis – CEO Register Now

 

What is a Gold Royalty?

A gold royalty is a contract that gives the owner the right to a percentage of gold production or revenue. Since royalties typically cover the life of a mine, gold royalty companies benefit from the exploration upside that may extend the life of a mine and thus increase the amount of gold or revenue they receive from the mining company at no additional cost.

There are several ways to generate royalties. First, royalty businesses may help finance a development project in exchange for a royalty. Second, a royalty business may purchase existing royalties from third parties, and 3) a royalty company may take a property that they already own, sell it to a mining company, and retain a royalty on the property. 

There are several types of royalties. The two most common are NSR and NPI royalties. A net smelter returns (NSR) royalty is an agreement where the mining company agrees to pay the royalty owner a percentage of the revenue, less refining and smelting costs. A net profit interest (NPI) royalty entitles the royalty owner to a percentage of the profit from a mine.

A stream is a purchase agreement that provides the owner of the stream, in exchange for an upfront payment, the right to purchase all or a portion of one or more metals produced from a mine at a negotiated price for the life of the agreement. The negotiated price is generally at a significant discount to the spot price.

Investor Considerations:

It is important for investors to keep several factors in mind when conducting due diligence on prospective royalty company investments. These include: 1) management, 2) asset portfolio, 3) asset quality, 4) jurisdiction, and 5) valuation. 

Management. Should you bet on the horse or the jockey? It is important to evaluate management’s history and track record of creating value for shareholders. Does the management team reflect a balance of technical, financial, legal, and capital markets expertise? Is the board of directors comprised mostly of independent directors who provide a diversity of relevant experience and perspectives? Do they articulate clear objectives, and is their business model sound? Most importantly, do they focus on areas they know and employ a disciplined growth strategy, or are they seeking growth at any price?

Asset Portfolio. How is the company’s asset portfolio balanced between royalties that are producing cash flow streams versus royalties that are expected to produce cash flow within five years and/or longer? 

Asset Quality. Because royalty companies have little control over the decisions of the mining companies that control the properties on which the royalty interest is held, it is important for investors to evaluate the operators associated with the properties in the royalty portfolio. Are they well-capitalized major mining companies or small start-ups? Additionally, it is helpful to evaluate mineral resource estimates associated with properties in the portfolio and the operators’ plans for development.      

Jurisdiction. While geographic diversity is a selling point for most royalty companies, it is often helpful to consult the Fraser Institute’s Annual Survey of Mining Companies to check if royalty interests are in favorable mining jurisdictions versus high-risk areas.

Valuation. Royalty companies are often valued based on price to net asset value. Net asset value is the net present value (NPV) or discounted cash flow (DCF) of all future cash flow of a mining asset, less any debt plus cash. Price to net asset value is the company’s market capitalization divided by the net present value of all mining assets minus net debt. For those that pay a dividend, investors may also compare dividend growth rates and yield. Larger companies generally trade at higher valuation multiples which generally increase with scale due to lower perceived risk due to greater asset diversification and a proven track record of growth. As royalty companies grow, they may be able to establish and grow dividends to shareholders, offer greater liquidity due to listings on major exchanges, and benefit from broader research. Some may also benefit from their inclusion in stock indices. For those that pay a dividend, it is important to know whether the dividend is paid from operating cash flow or whether the company is borrowing to pay the dividend.

Company Spotlight: Ely Gold Royalties (ELY:CA)

Ely Gold Royalties Inc. is an emerging gold royalty company with a growing asset portfolio that includes 12 key assets with four producing royalties and eight that are expected to go into production by the end of 2025. Additionally, the company has 26 development assets, of which 15 are located at, or near, producing mines, and 7 are part of permitted projects or in the permitting process. With respect to the company’s 40 exploration projects, 12 are currently being drilled by junior exploration companies, and Ely is receiving option payments associated with 26 exploration properties. Option payments are generated through the company’s option/sales program, where properties are sold to third-party mining companies on a 100% basis, generally under four-year option payment agreements. Lastly, Ely Gold has a portfolio of 20 properties available for sale under its option/sale program. The company’s shares trade on the Toronto Venture Exchange under the ticker ELY, the OTCQX Best Market under the symbol ELYGF, and the Frankfurt Exchange under the ticker I4U.F.

The company’s asset portfolio is focused mainly on properties in the state of Nevada, a mining jurisdiction that ranked 1^st in terms of investment attractiveness among 77 mining jurisdictions in the 2020 Fraser Institute’s Annual Survey of Mining Companies and an area for which management is intimately familiar. Ely tends to increase its exposure to projects where it already owns royalty interests and is familiar with the project and operator. Ely Gold takes a focused asset-level approach. As they get to know a property, they may seek to increase exposure by trying to secure other royalty agreements linked to the same property. Additionally, the company has a portfolio of royalty interests that should support long-term growth.

Ely Gold differentiates itself among junior royalty companies with its royalty generation program. While many of its competitors focus on purchasing exploration and longer-term royalties, Ely Gold is developing projects to generate a revenue stream with its royalty sale portfolio. Properties are sold to third-party mining companies on a 100% basis, generally under four-year option payment agreements. Once payments are completed, and the property is sold, Ely retains a royalty interest. If payments are not completed, Ely gets the property back.  This approach has enabled Ely Gold to aggressively grow its portfolio with minimal dilution to shareholders.

Ely Gold’s management team has a unique combination of mining industry and capital markets experience.  They have a successful track record of generating projects, with a focus on and specialized knowledge of the Nevada market. While the company has largely focused its efforts on Nevada, it could consider other favorable mining jurisdictions, including in Latin America, where it has familiarity.

Take-Away

Investors have many options to gain exposure to gold. Royalty companies may be worth considering as a vehicle for exposure to gold. However, it is important for investors to understand their risk tolerance and return objective. The universe of royalty and streaming companies represents a broad range of market capitalizations, and many differences exist among their asset portfolios. Channelchek offers a starting point for investors to conduct due diligence and dig deeper.

 

Suggested Content:

Allegiant Gold C-Suite Interview (Video)

Aurania Resources NobleCon17 Presentation (Video)

Ely Gold Royalties NobleCon17 Presentation (Video)

Natural Resources Panel Discussion NobleCon17 (Video)

 

 

Sources:

4
Reasons Why We Believe in Royalty Companies, Slideshow, U.S. Global Investors, 2021

How
Precious Metals Royalty and Streaming Companies Create Value, Visual Capitalist, February 25, 2021.

Streaming
& Royalty Companies: Mutually Beneficial Arrangements for Everyone,
including Investors, ResourceWorld, Ellsworth Dickson, 2020

Photo Credit: Gold Nuggets, Dave
Bazaire, No Changes Made  

Monday, March 22, 2021

Sierra Metals (SMTS)(SMT:CA)
Solid 2020 Performance; 2021 Estimates Largely Unchanged

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

Sierra Metals Inc is a precious and base metals producer in Latin America. The company acquires, explores, extracts, and produces mineral concentrates consisting of silver, copper, lead, zinc and gold in Mexico and Peru. Its activity includes the operation of the Yauricocha Mine in Peru, and the Bolivar and Cusi mines in Mexico. Yauricocha is an underground polymetallic mine using the sublevel block caving and cut-and-fill mining methods. Bolivar is a copper-silver-zinc-gold underground mine using room-and-pillar mining method. The majority of the revenue is earned by selling of the mineral concentrates to its customers in Peru.

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.

Full year financial results. Sierra Metals reported full year 2020 adjusted net income attributable to shareholders of $29.6 million, or $0.18 per share, compared with $13.9 million, or $0.08 per share, in 2019. Adjusted EBITDA increased 48.6% to $97.0 million compared with $65.3 million in the prior year. Our EPS and EBITDA estimates were $0.20 and $101.3 million. Variances to our estimates were attributed to modestly higher expense. Despite the impact of government-mandated shutdowns during the second quarter and work-flow adjustments due to COVID-19, the company posted strong earnings and cash flow growth in 2020.


Planned expansions.  Management anticipates receipt in the second quarter of the final permit to increase throughput at the Yauricocha mine by 20% to 3,600 tonnes per day. The company recently published preliminary economic assessments for all three mines which support planned expansions and is working toward completion of preliminary feasibility studies. Longer-term expansions could increase …

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. 

Sierra Metals Reports 2020 Consolidated Financial Results Including A 49% Increase In Adjusted Ebitda To $97.0 Million

 

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX:SMT) (BVL:SMT) (NYSE American:SMTS):

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210318005988/en/

Conference Call March 19, 2021 at 10:30 AM (EDT)

(All $ figures reported in USD)

• Revenue from metals payable of $246.9 million in 2020 increased by 8% from $229.0 million in 2019;
• Adjusted EBITDA of $97.0 million in 2020 increased 49% from $65.3 million in 2019 due to higher consolidated revenues and lower operating costs at Yauricocha and Bolivar;
• Operating cash flows before movements in working capital of $99.0 million in 2020 increased 49% from $66.4 million in 2019;
• 2020 consolidated copper production of 44.3 million pounds an 11% increase, consolidated silver production of 3.5 million ounces a 3% increase, consolidated zinc production of 81.9 million pounds a 1% increase, consolidated lead production of 33.0 million pounds a 7% decrease, and consolidated gold production of 13,771 ounces an 18% increase respectively compared to 2019;
• Consolidated All-In sustaining costs (“AISC”) ⁽¹⁾ per copper equivalent pound ⁽²⁾ sold of $2.12 in 2020, or 8% lower than AISC in 2019, driven by lower cash costs and the increase in copper equivalent pounds sold in 2020 compared to 2019;
• $71.5 million of cash and cash equivalents as at December 31, 2020;
• Net Income attributable to shareholders of $0.14 per share;
• Net Debt of $27.9 million as at December 31, 2020
• A shareholder conference call to be held Friday, March 19, 2021, at 10:30 AM (EDT)

(1) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A.
(2) Silver equivalent ounces and copper and zinc equivalent pounds for Q4 2020 were calculated using the following realized prices: $24.30/oz Ag, $3.32/lb Cu, $1.22/lb Zn, $0.89/lb Pb, $1,859/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q4 2019 were calculated using the following realized prices: $17.42/oz Ag, $2.69/lb Cu, $1.07/lb Zn, $0.92/lb Pb, $1,506/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for full year 2020 were calculated using the following realized prices: $20.59/oz Ag, $2.80/lb Cu, $1.03/lb Zn, $0.83/lb Pb, $1,771/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for full year 2019 were calculated using the following realized prices: $16.29/oz Ag, $2.73/lb Cu, $/1.14lb Zn, $0.91/lb Pb, $1,404/oz Au.

Sierra Metals Inc. (TSX:SMT) (BVL:SMT) (NYSE American:SMTS) (“Sierra Metals” or the “Company”) today reported revenue of $246.9 million and an adjusted EBITDA of $97.0 million on the throughput of 2.8 million tonnes and metal production of 118.2 million copper equivalent pounds (or 16.1 million silver equivalent ounces or 321.6 million zinc equivalent pounds), for the year ended December 31, 2020.

The Company achieved annual throughput that was 6% higher than the 2019 annual throughput despite the various COVID-19 related operational challenges, including government-mandated shutdowns in the second quarter of the year. Annual 2020 consolidated silver, copper, zinc, and gold production increased 3%, 11%, 1%, and 18%, respectively, while lead production decreased by 7% compared to 2019.

Despite the continued COVID-19 related operational challenges in Q4 2020, consolidated quarterly ore throughput of 778,236 tonnes increased by 6% over Q4 2019, as higher throughput from the Mexican operations was partially offset by a 3% decline in throughput from the Yauricocha mine.

Copper equivalent production at Yauricocha declined 20% during Q4 2020 due to a 3% decrease in quarterly throughput combined with lower head grades and recoveries. At Bolivar, 10% higher ore throughput and higher recoveries were partially offset by lower head grades resulting in Q4 2020 copper equivalent pounds production that was in line with Q4 2019. Q4 2020 silver equivalent production at the Cusi mine was 83% higher than Q4 2019 due to 35% higher throughput realized, in addition to higher silver and gold head grades as well as 65% higher gold recoveries as compared to Q4 2019.

Luis Marchese, CEO of Sierra Metals, stated:“Sierra Metals had a solid performance in 2020 with a marked increase in adjusted EBITDA as well as solid production despite the exceptionally challenging year we had while dealing with the COVID-19 pandemic. Overall, the Company did a great job of managing and improving operations while controlling and maintaining costs. I want to thank all of our employees for their significant efforts in helping the Company achieve these remarkable results.”

He continued, “Looking ahead, we expect this year to be an exciting one for the Company. We continue advancing important projects, completing operational improvements, and advancing exploration at all three mines. We hope to receive the final permit required to increase throughput by 20% to the 3,600 tonne per day level at Yauricocha in the second quarter of the year. Furthermore, we recently completed and published Preliminary Economic Assessments with favorable economics for expansions at all three mines, examining an increase in throughput starting in 2024. We continue to work toward the completion of Preliminary Feasibility Studies for all mines. COVID-19 is still challenging us, and case counts remain high in Mexico and Peru. However, policies and practices are in place to manage these issues while prioritizing the health of our employees and surrounding communities.”

He concluded, “The Company continues to have a strong balance sheet, and liquidity with metal prices expected to remain strong this year. These strengths should benefit the Company as we continue with our growth and improvement plans. Management also remains optimistic that we can find further operational efficiencies with the larger scale of the Company operations.”

The following table displays selected financial and operational information for the three months and year ended December 31, 2020:

Q4 and 12M 2020 Financial Highlights

		Three Months Ended						Twelve Months Ended
(In thousands of dollars, except per share and cash cost amounts, consolidated figures unless noted otherwise)		December 31, 2020			December 31, 2019			December 31, 2020			December 31, 2019
Operating
Ore Processed / Tonnes Milled			778,236			731,500			2,828,877			2,671,853
Silver Ounces Produced (000’s)			922			871			3,465			3,375
Copper Pounds Produced (000’s)			10,626			11,308			44,262			39,890
Lead Pounds Produced (000’s)			7,630			9,924			32,972			35,454
Zinc Pounds Produced (000’s)			21,612			25,590			81,868			81,083
Gold Ounces Produced			3,363			3,615			13,771			11,632
Copper Equivalent Pounds Produced (000’s) 1			29,267			32,510			118,214			111,678
Zinc Equivalent Pounds Produced (000’s) 1			79,521			81,919			321,638			267,658
Silver Equivalent Ounces Produced (000’s) 1			3,996			5,016			16,097			18,721
Cash Cost per Tonne Processed		$	44.42		$	53.91		$	40.81		$	50.37
Cost of sales per AgEqOz2		$	9.76		$	9.61		$	8.67		$	8.53
Cash Cost per AgEqOz2		$	9.56		$	9.94		$	8.29		$	8.33
AISC per AgEqOz2		$	18.72		$	16.18		$	15.59		$	13.82
Cost of sales per CuEqLb2		$	1.33		$	1.48		$	1.18		$	1.42
Cash Cost per CuEqLb2		$	1.31		$	1.54		$	1.13		$	1.39
AISC per CuEqLb2		$	2.56		$	2.50		$	2.12		$	2.30
Cost of sales per ZnEqLb2		$	0.49		$	0.59		$	0.43		$	0.59
Cash Cost per ZnEqLb2		$	0.48		$	0.61		$	0.41		$	0.58
AISC per ZnEqLb2		$	0.94		$	0.99		$	0.78		$	0.95
Cash Cost per ZnEqLb (Yauricocha)2		$	0.42		$	0.46		$	0.37		$	0.46
AISC per ZnEqLb (Yauricocha)2		$	0.91		$	0.83		$	0.78		$	0.79
Cash Cost per CuEqLb (Yauricocha)2		$	1.16		$	1.17		$	1.01		$	1.12
AISC per CuEqLb (Yauricocha)2		$	2.47		$	2.11		$	2.11		$	1.91
Cash Cost per CuEqLb (Bolivar)2		$	1.35		$	2.06		$	1.13		$	1.73
AISC per CuEqLb (Bolivar)2		$	2.34		$	2.92		$	1.88		$	2.86
Cash Cost per AgEqOz (Cusi)2		$	15.70		$	42.12		$	16.62		$	21.38
AISC per AgEqOz (Cusi)2		$	28.18		$	56.64		$	25.26		$	30.89
Financial
Revenues		$	76,218		$	64,634		$	246,888		$	229,038
Adjusted EBITDA2		$	31,127		$	19,104		$	96,982		$	65,257
Operating cash flows before movements in working capital		$	32,259		$	19,951		$	99,005		$	66,359
Adjusted net income attributable to shareholders2		$	8,638		$	7,228		$	29,569		$	13,874
Net income (loss) attributable to shareholders		$	7,603		$	4,534		$	23,419		$	4,431
Cash and cash equivalents		$	71,473		$	42,980		$	71,473		$	42,980
Working capital		$	70,885		$	49,922		$	70,885		$	49,922

Revenue from metals payable of $246.9 million in 2020 increased by 8% from $229.0 million in 2019. Higher revenue was primarily a result of higher copper sales from the Bolivar mine attributable to increased throughput and higher average realized prices for copper, gold and silver compared to 2019.

Yauricocha’s cash cost per copper equivalent payable pound was $1.01 (2019 – $1.12), and AISC per copper equivalent payable pound of $2.11 (2019 – $1.91). Lower cash costs resulted from a decrease in cost per tonne attributable to lower labour and contractor costs due to operational challenges related to COVID-19. Cash costs for the year were 10% lower despite the $4.8 million of charges related to the COVID-19, such as the cost of cleaning supplies, medical tests and costs related to quarantine employees and contractors. The increase in the AISC per copper equivalent payable pound for 2020 compared to 2019 was a result of lower copper equivalent pounds sold and higher treatment and refining costs. Other sustaining costs were in-line with these costs incurred in 2019.

Bolivar’s cash cost per copper equivalent payable pound was $1.13 (2019 – $1.73), and AISC per copper equivalent payable pound was $1.88 (2019 – $2.86). Lower unit costs at Bolivar were a result of the 48% increase in copper equivalent pounds sold during 2020 as compared to 2019.

Cusi’s cash cost per silver equivalent payable ounce was $16.62 (2019 – $21.38), and AISC per silver equivalent payable ounce was $25.26 (2019 – $30.89). Costs were lower during the year due to lower contractor costs related to underground development. Silver equivalent ounces sold during 2020 were 5% higher than 2019, despite the production lost due to the care and maintenance period, as silver and gold grades increased in Q4 2020.

Adjusted EBITDA⁽¹⁾ of $97.0 million for 2020 is a 49% increase from the adjusted EBITDA of $65.3 million for 2019. This increase was a combined result of the higher consolidated revenue and lower operating costs per tonne at Yauricocha and Bolivar.

Cash flow generated from operations before movements in working capital of $99.0 million for 2020 increased compared to $66.4 million in 2019. The increase in operating cash flow is mainly the result of higher revenues generated and lower operating costs, as mentioned earlier.

Net Income attributable to shareholders for 2020 was $23.4 million (2019: $4.4 million) or $0.14 per share (basic and diluted) (2019: $0.03).

Cash and cash equivalents of $71.5 million and working capital of $70.9 million as at December 31, 2020, compared to $43.0 million and $49.9 million, respectively, at the end of 2019. Cash and cash equivalents increased during 2020 due to $67.0 million of operating cash flows after taxes and changes in working capital, offset by cash used in investing activities in Mexico and Peru of $34.2 million and interest payment of $4.1 million on the senior secured credit facility.

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

Project Development

In October 2020, the Company reported positive results of a Preliminary Economic Assessment (“PEA”) for doubling its output at the Bolivar Mine to 10,000 tonnes per day (“tpd”). The PEA results indicated an incremental benefit of after-tax NPV (@8%) of $57.4 million and an IRR of 27.9%. A National Instrument 43-101 (“NI 43-101”) technical report was filed on SEDAR and with the U.S. Securities and Exchange Commission on November 5, 2020;

In November 2020, the Company announced an update on the Cusi Mineral Resource Estimate, which included an 18% increase in the Measured and Indicated Resources and a 200% increase in the Inferred Resources. This update was followed up by a NI 43-101 technical report on December 22, 2020;

In December 2020, the Company filed a NI 43-101 PEA technical report for the Yauricocha Mine with favourable economics including an incremental after-tax NPV (@8%) of $28.4 million and an IRR of 35.7% to increase the production to 5,500 tpd from 3,780 tpd. The technical report also contained an increase in the Mineral Resource estimate for the Yauricocha Mine. The update included a 26% increase in the Measured and Indicated Mineral Resources and a 79% increase in the Inferred Resource estimate; and;

In December 2020, the Company reported the results of a PEA for doubling its output at the Cusi Mine to 2,400 tpd, which indicated an after-tax incremental NPV (@8%) of $28.1 million and IRR of 46.8%. A 43-101 technical report for this PEA was filed on January 6, 2021.

Exploration Highlights

Peru:

• Exploration activities at the Yauricocha mine were suspended between March 16, 2020, to October 31, 2020, due to restrictions related to COVID-19; and

• Of the planned 25,000 meters of drilling planned for the year, only 10,120 meters could be completed, which included 5,088 meters of underground drilling and 5,032 meters of brownfield surface exploration.

Mexico:

Bolivar

• The Infill Drilling program was carried in the El Gallo and Bolivar West. 6,971 meters of drilling was completed, including 6,413 meters at Bolivar West and 558 meters at El Gallo; and

• Brownfield exploration drilling program was completed for 19,372 meters, which included mainly 11,184 meters at Bolivar West and 7,222 meters at La Montura (El Salto) zone, with the remaining meters drilled in the copper porphyry.

Cusi

• The Infill Drilling program was carried in the NorthEast System, with the objective to define the continuity and the grades of this system. 9,752 meters of drilling was completed, including 1,884 meters of definition drilling into this system; and

• Brownfield exploration drilling program started at Promontorio vein, and La Gloria Vein and 3,975 meters of drilling were completed during the year.

Annual SEC Filing completed by Sierra Metals

Sierra Metals has completed its annual SEC filing. Copies of these documents can be found at www.sierrametals.com on the Investors Page under Financial Information. Shareholders may request a hard copy of the complete audited financial statements free of charge upon request.

Conference Call Webcast

Sierra Metals’ senior management will host a conference call on Friday, March 19, 2021, at 10:30 AM (EDT) to discuss the Company’s financial and operating results for the three months and year ended December 31, 2020.

Via Webcast:

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

https://event.on24.com/wcc/r/2947459/6CFF80ECA94506BA22260486A6292C76

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. A confirmation will be sent through email, including dial-in details and unique conference call codes for entry after registering.

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

http://www.directeventreg.com/registration/event/4514269

Quality Control

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 Bolsa de Valores de Lima and on the Toronto Stock Exchange 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

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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 (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the date of the 2020 Shareholders’ Meeting and the anticipated filing of the Compensation Disclosure. 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 the Company’s annual information form dated March 30, 2020 for its fiscal year ended December 31, 2019 and other risks identified in the Company’s filings with Canadian securities regulators and the United States Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company’s forward-looking information. Forward-looking information includes statements about the future and is 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 such 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
Vice President, Investor Relations
Sierra Metals Inc.
Tel: +1 (416) 366-7777
Email: info@sierrametals.com

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

Source: Sierra Metals Inc.