Ely Gold Royalties Options Spanish Moon Project, Nye County, Nevada

 

Ely Gold Retains 3% NSR with 100% Option to Navy Resources

Vancouver, British Columbia, Canada, January 27, 2021. Ely Gold Royalties Inc. (TSX-V:ELY, OTCQX:ELYGF) (“Ely Gold” or the “Company”) is pleased to announce that through its wholly-owned subsidiary, Nevada Select Royalty Inc (“Nevada Select”), it has entered into an option agreement (the “Agreement”) with Navy Resources (“Navy”) (TSX-V: NVY), whereby Navy will have the option to purchase 100% of the Spanish Moon Project (“Spanish Moon” or the “Property”) with Ely Gold retaining a 3% Net Smelter Royalty (“NSR”). The Spanish Moon Project is located approximately 13 km SE of the active Round Mountain mine that has produced over 15 million ounces of gold (see Figure 1). Closing of the Agreement (the “Effective Date”) is subject to final approval of the TSX Venture Exchange (“TSXV”).

The Property

Spanish Moon is in Nye County, Nevada and includes seventy (70) unpatented mining claims (the “Nevada Select Claims”) which are approximately 97 km north-northeast of the town of Tonopah, Nevada and thus has proximal infrastructure and is easily accessible, being withhin 1.5 hours drive to Tonopah. The Nevada Select Claims are situated between two intrusions that provide the heat, structural preparation and fluid flow required for Carlin-type deposits. The later emplaced calderas in the area can provide the additional heat and fluids in preferred host rock, which are delineated as silty limestone across the property package, capable of producing large Carlin style systems.

The consolidation of the Spanish Moon District also includes a lease/option for the acquisition of 87.25% of two patented mining claims (the “Barcelona Claims”) negotiated by Navy and Nevada Select. The Agreement allows Nevada Select a right of first refusal (“ROFR”) for the Barcelona Claims should Navy terminate the Agreement.

Jerry Baughman, President of Nevada Select commented, “Ely Gold’s consolidation of the patented and unpatented claim groups in the Spanish Moon District represents the first time that this district will be explored as a single project. This is exactly the kind of high-quality, under-explored property that Ely Gold continues to generate and option to exceptional exploration partners. Navy intends to explore a number of target-ready zones that have been identified at Spanish Moon. We look forward to a long relationship with this seasoned group of geologists on this important Property”.

The Agreement

Navy will have the option to purchase 100% of the Property for the total purchase price of US$750,000 and 750,000 common shares of Navy (the “Navy Shares”) payable as follows:

1. USD$50,000 Cash Payment upon entering into the Ely Agreement (on the “Effective Date”);
2. The issue of 150,000 Navy Shares within 5 business days of the Effective Date;
3. USD$75,000 Cash Payment and 150,000 Navy Shares on or before the first anniversary of the Effective Date;
4. USD$125,000 Cash Payment and 200,000 Navy Shares on or before the second anniversary of the Effective Date;
5. USD$250,000 Cash Payment and 250,000 Navy Shares on or before the third anniversary of the Effective Date; and
6. USD$250,000 Cash Payment on or before the fourth anniversary of the Effective Date, upon which the Option Exercise will be complete.

Ely Gold will retain a NSR of 3% on the Nevada Select Claims and the Barcelona Claims. Navy may reduce the 3% NSR to a 2% NSR for a one-time payment of $1,000,000. The Agreement provides for an area of interest as outlined in Figure 1. Navy is responsible for all Property holding costs and payments related to the Barcelona Claims during the term of the Agreement. Navy has also reimbursed Nevada Select for its 2020 staking costs.

Qualified Person

Stephen Kenwood, P. Geo, is director of the Company and a Qualified Person as defined by NI 43-101. Mr. Kenwood has reviewed and approved the technical information in this press release.

About Ely Gold Royalties Inc.

Ely Gold Royalties Inc. is a Nevada focused gold royalty company. Its current portfolio includes royalties at Jerritt Canyon, Goldstrike and Marigold, three of Nevada’s largest gold mines, as well as the Fenelon mine in Quebec, operated by Wallbridge Mining. The Company continues to actively seek opportunities to purchase producing or near-term producing royalties. Ely Gold also generates development royalties through property sales on projects that are located at or near producing mines. Management believes that due to the Company’s ability to locate and purchase third-party royalties, its strategy of organically creating royalties and its gold focus, Ely Gold offers shareholders a favourable leverage to gold prices and low-cost access to long-term gold royalties in safe mining jurisdictions.

On Behalf of the Board of Directors
Signed “Trey Wasser”
Trey Wasser, President & CEO

For further information, please contact:

Trey Wasser, President & CEO
trey@elygoldinc.com

972-803-3087

Joanne Jobin, Investor Relations Officer
jjobin@elygoldinc.com

647 964 0292

FORWARD-LOOKING CAUTIONS: This press release contains certain “forward-looking statements” within the meaning of Canadian securities legislation, including, but not limited to, statements regarding completion of the Transaction. Forwardlooking statements are statements that are not historical facts; they are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “aims,” “potential,” “goal,” “objective,” “prospective,” and similar expressions, or that events or conditions “will,” “would,” “may,” “can,” “could” or “should” occur, or are those statements, which, by their nature, refer to future events. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the Company’s inability to control whether the buy-down right will ever be exercised, and whether the right of first refusal will ever be triggered, uncertainty as to whether any mining will occur on the property covered by the Probe Royalty such that the Company will receive any payment therefrom, and the general risks and uncertainties relating to the mineral exploration, development and production business. The reader is urged to refer to the Company’s reports, publicly available through the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effect.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Figure 1.

Source: Ely Gold Royalties

Golden Predator Reports Brewery Creek Mine 2020 Drill Results

Significant thicknesses of gold mineralization in 16 of 16 holes

 

Vancouver, BC, January 25, 2021: Golden Predator Mining Corp. (TSX.V:GPY, OTCQX:NTGSF) (the “Company”) today announces the initial results from 16 of 32 reverse circulation drill holes from the 2020 work program at its licensed 100%-owned Brewery Creek mine project ?located approximately 55 km by road from Dawson City, Yukon.

Drill program highlights include:

• 12.19 m of 1.90 g/t gold from a depth of 76.2 m in drill hole RC20-2683;
• 9.14 m of 2.02 g/t gold from a depth of 6.1 m in drill hole RC20-2687;
• 10.67 m of 1.30 g/t gold from a depth of 4.57m and 15.24 m of 1.63 g/t gold from a depth of 36.58 m in drill hole RC20-2688;
• 21.34 m of 0.83 g/t gold from a depth of 22.86 m in drill hole RC20-2690; and
• 7.62 m of 2.28 g/t gold from a depth of 54.86 m in drill hole RC20-2692

A total of 32 reverse circulation drill holes, totaling 3,706 m, were completed between the Golden and Lucky resource areas in the fall of 2020. The 2020 program was designed to infill within and around two fences of 2019 drilling that encountered mineralization along a 400m gap where there had been no previous drilling between the Golden and Lucky resource areas. The objective was to establish sufficient drill density in this 400m gap to be able to incorporate the Lucky resource into the greater Keg pitshell.

Brewery Creek maps can be viewed at: https://www.goldenpredator.com/_resources/maps/GPY-20-02-Brewery-Creek-2020-Initial-Drill-Results-FINAL.pdf

2020 Brewery Creek Exploration Program – Initial Drill Results

The gold assays for the initial 16 drill holes of the program are reported in this release with significant thicknesses of gold mineralization present in all 16 of the drill holes. The collars of 9 of the drill holes are located outside of the current Golden resource area and the other 7 are located on the eastern margin of the current Golden resource area.

Other significant mineralized intervals include 30.48 m of 0.55 g/t gold from a depth of 77.72 m in drill hole RC20-2682 and multiple intercepts in drill hole RC20-2693 including 21.34 m of 0.32 g/t gold from 25.91 m, 25.91 m of 0.41 g/t gold from 51.82 m, 18.29 m of 0.41 g/t gold from 88.39 m and 9.14 m of 0.41 g/t gold from a depth of 114.3 m.

Gold mineralization is controlled by fractures oriented sub-parallel to the main thrust zone and a series of high angle conjugate fractures developed within main shear zone. Composite mineralized intercepts thicknesses range from 6.10 m to 74.68 m with an average composite mineralized thickness of 31.18 m in these 16 drill holes. Mineralization encountered in these 16 holes consists of sulfide, transitional and lesser amounts of oxide material. Within the area of this drilling the eastern strike extension of the mineralized zone is not yet defined, and the zone remains open at depth down dip. The remaining 16 holes which have in part targeted this eastern extension up to the Lucky resource area will be released when assays are complete.

To view a complete table of results: https://www.goldenpredator.com/_resources/news/BRC-DrillAssays-2020-20210121.pdf.

2020 Exploration Drill Program

The 2020 Brewery Creek drill program consisted of exploration, in-fill, geotechnical, hydrogeologic and metallurgical drilling to advance the Bankable Feasibility Study currently underway and projected for completion in Q1/21. A total of 32 infill reverse circulation drill holes totaling 3,706 m were completed in the gap area between the eastern edge of Golden and western edge of Lucky.

The infill drill program built upon Golden Predator’s successful 2019 program that established continuity of mineralization within the licensed Reserve Trend between the eastern edge of the Canadian-Fosters-Kokanee-Golden pits (Keg pitshell) east to the Lucky pit. The 32 reverse circulation drill holes drilled in 2020 were designed to fill in and expand the gold resource between the eastern Golden zone and western Lucky zone. The targeted mineralization between these zones has been offset by a high-angle normal fault and was previously untested until 2019 when the zone was intersected with multiple drill holes.

Infill drilling within this 400 m gap between the eastern edge of the Fosters to Golden trend and the western edge of the Lucky zone is also to increase the density of drilling to convert Inferred resources to Indicated resources and confirm continuity of mineralization between the two deposits while testing for additional resources. The goal is to establish and confirm continuous mineralization along the Fosters-Canadian-Kokanee-Golden-Lucky zones for mine design now in progress as a part of the Brewery Creek Bankable Feasibility Study (BFS).

Brewery Creek Mine: Resources¹

Materials on the heap leach pad were not included in the resource update. Mineral Resources estimates conducted within a pit shell developed at $2,000/oz gold with an internal cut-off grade calculated at $1,500/oz gold was used to report mineral resource inventories

The resource estimate is based on a recovery model created from assay data, bottle and column leach test work and historic recovery analysis instead of a less accurate visual oxide-sulfide boundary developed from geologist drill logs. Sedimentary and intrusive rocks, which have distinct metallurgical characteristics, were estimated separately based on gold-grade distribution analysis.

The current 2020 Mineral Resources Estimate supersedes the 2019 Mineral Resource Estimate. A supporting NI 43-101 Technical Report is filed on SEDAR at www.sedar.com.?

Brewery Creek Mine Work Plan

The Brewery Creek Mine is a licensed brownfields heap leach gold mine that was operated by Viceroy Minerals Corporation from 1996 to 2002. Brewery Creek is authorized to restart mining activities as defined within the Quartz Mining License and Water License. The Company intends to resume mining and processing of licensed deposits when supported by an independent study that outlines technical and economic viability. The 180 km2 property is located 55 km east of Dawson City and is accessible year-round by paved and improved gravel roads. Significant infrastructure remains in place, allowing for a timely restart schedule under existing operating licenses.

A Bankable Feasibility Study (BFS) is being conducted by Kappes Cassiday & Associates of Reno, Nevada which will include a multi-year mine plan for the advancement of the Brewery Creek project. The BFS will include an inventory of the mineralized material remaining on the heap and mine planning (completed by Tetra Tech Inc of Golden, Colorado) for the resumption of the mining of material from leachable resources contained within the licensed area and reported in the Company’s Mineral Resource Estimate. The BFS will include all the key parameters involved in reconstructing or adding necessary infrastructure including a crushing facility, the Adsorption-Desorption-Recovery (“ADR”) plant and assay lab and an implementation schedule, sourcing, and economic cash flow model sufficiently detailed to move directly into procurement, development and construction if economically warranted. Any production decisions would be dependent on the outcome of a study demonstrating positive technical and economic viability.

Sampling Methodology, Quality Control and Assurance

Analyses for drill samples were performed by SGS Canada, Inc., ALS Canada and Bureau Veritas, Canada with sample preparation in Whitehorse, YT and assaying in Burnaby, North Vancouver and Vancouver, BC respectively. Drill samples were analyzed for gold using a 30 gram fire assay with atomic absorption finish (SGS-GO FAA30V10 method, ALS-Au AA-25 method and BV-FA430 method). Quality controls standards include standard reference material, certified blank and field duplicate samples in every sample dispatch.

The technical content of this news release has been reviewed and approved by Jeff Cary, CPG, a Qualified Person as defined by National Instrument 43-101 and a consultant to the Company.

About Golden Predator Mining Corp.

Golden Predator is advancing the past-producing Brewery Creek Mine towards a timely resumption of mining activities, under its Quartz Mining and Water Licenses, in Canada’s Yukon. With established resources grading over 1.0 g/t gold the Company is completing a Bankable Feasibility Study for the restart of heap leach operations. The Brewery Creek Mine project operates with a Socio Economic Accord with the Tr’ondëk Hwëch’in First Nation.

For additional information on Golden Predator Mining Corp.:
Janet Lee-Sheriff
Chief Executive Officer
(604) 260-8435
info@goldenpredator.com
www.goldenpredator.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations that the Brewery Creek will advance to an early production decision, or the extent of any additional mineral resource that could result from incorporating 2019 exploration drilling. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.

1. The 2020 Mineral Resource Estimate was conducted in accordance with CIM guidelines and is reported in a NI 43-101 Technical Report which will be filed on SEDAR and the Company’s website within 45 days.

Source: Golden Predator Mining

 

Chakana Copper Intersects 120.4m Of 0.51 G/T Au, 0.83% Cu, And 34.6 G/T Ag (1.46% Cu-Eq; 3.71 G/T Au-Eq) From 101.3m At Huancarama, Soledad Project, Peru

 

Vancouver, B.C., January 25, 2021 – Chakana Copper Corp. (TSX-V: PERU; OTCQB: CHKKF; FRA: 1ZX) (the “Company” or “Chakana”), is pleased to release results for two additional drill holes from the recently-announced discovery at the Huancarama Breccia Complex, within the Soledad Project in Ancash, Peru (Fig. 1). The holes complement the initial eight holes that were published on January 12, 2021. Drilling at Huancarama is ongoing where eighteen HQ diamond core holes have been completed thus far.

Mineralized intervals from two additional holes at Huancarama include:

* 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).

Holes SDH20-161 and SDH20-162 were drilled to the northeast from the south side of the breccia complex (Figures 2 and 3). Both holes intersected continuous mineralization across the breccia body previously defined by the first eight holes and an historical tunnel that transects the breccia. Hole SDH20-161 was oriented directly beneath a collapse zone and intersected 107m with 0.28 g/t Au, 0.42% Cu, and 33.7 g/t Ag (1.36 g/t Au-eq) starting at 86m; hole SDH20-162, drilled beneath the west edge of the collapse zone, encountered 120.4m with 0.51 g/t Au, 0.83% Cu, and 34.6 g/t Ag (3.71 g/t Au-eq) from 101.3m depth, including 72.2m with 0.79 g/t Au, 1.32% Cu, and 46.9 g/t Ag (3.42 g/t Au-eq) from 101.3m. A higher-grade zone of 30.0m with 1.44 g/t Au, 2.55% Cu, and 88.2 g/t Ag (6.50 g/t Au-eq) starting at 109.0m depth occurs within this interval. Examples of mineralized drill core from these holes are shown in Figure 4.

David Kelley, President and CEO commented, “these two holes were drilled from a new platform on the south side of the Huancarama Breccia Complex and confirm the breccia geometry previously reported with approximate horizontal dimensions of 100m by 50m, one of the largest breccias we have discovered to date at Soledad. The mineralized breccia crops out at surface and extends to a vertical depth of approximately 225m below surface and is open at depth. The results demonstrate good continuity of mineralization within the breccia with excellent grades. The high-grade zone within hole SDH20-162 shows copper sulfide-cemented breccia and the late copper sulfide replacement process that we have seen in several other high grade breccia pipes at Soledad. Drilling is ongoing at Huancarama and we look forward to reporting additional drill results in the near future.”

Huancarama Target Area and the Phase 3b 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 (Fig. 5). 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 ongoing Phase 3b drill program, which is fully funded from the Company’s current treasury and is anticipated to see 15,000 metres completed. Phase 3b is testing a cluster of high-grade, gold-enriched tourmaline breccia pipe targets within the Paloma and Huancarama target areas. Thirty holes have now been reported from the Phase 3b program.

About Chakana Copper

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. For more information on the Soledad project, please visit the website a 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.

Figure 1 – View looking north showing breccia pipes and occurrences within the northern Soledad cluster. Pipes that have been drilled in previous campaigns are shown in red. Targets shown in green are the focus on this 15,000m drill campaign. Other pipes and occurrences remain to be tested by drilling. Additional breccia pipes occur on the south half of the property and are not shown here.

Figure 2 – Map of the Huancarama Breccia Complex and drill hole lithology in holes completed to date. Red represents tourmaline breccia based on the first ten holes and lithology mapped in the underground tunnel. Black dotted outlines show surface expression of mapped breccias; white dashed line shows collapse zone. Location of section line for Figure 3 indicated.

Figure 3 – Section looking northwest highlighting the drill holes at Huancarama reported in this release. Light red 3D shape shows preliminary shape of breccia based on the first eight holes and lithology mapped in the underground tunnel.

Figure 4 – Core photos from Huancarama: SDH20-161 (74.5m) chalcopyrite-cemented tourmaline breccia; SDH20-162 – examples of high-grade copper sulfide (chalcopyrite) replacement within the interval of 118.4m to 122.07 Core diameter is 6.35cm (HQ) in all instances.

Figure 5 – Drone image looking northeast at the Huancarama Breccia Complex showing the five principal tourmaline breccia bodies exposed at surface (H1-H5), historic adit portal, and drill platforms. Note drill rig in center of image.

SOURCE: Chakana Copper