NRG 2021-02-23 Newrange Intersects New High-Grade Gold Zone at Pamlico_ Drills 12.47 grams per tonne Au over 4.5 meters

 

VANCOUVER, BRITISH COLUMBIA, February 23, 2021 (TSXV: NRG, US: NRGOF, Frankfurt: X6C) – Newrange Gold Corp. (“Newrange” or the “Company”) is pleased to announce that continued Reverse Circulation (RC) drilling at the Pamlico Project in Nevada has discovered high-grade, oxide gold mineralization approximately 85 meters east of the Merritt Zone. Hole P21-115, drilled at -60°, intersected several high-grade structures assaying up to 22.35 grams gold per metric tonne (g/t Au) over 1.5 meters surrounded by lower grade halos, very similar in nature to the Merritt Zone itself.

The uppermost zone of gold mineralization starts at 15.2 meters downhole, returning 4.38 g/t Au over 13.7 meters, including 12.47 g/t Au over 4.5 meters from 16.77 to 21.34 meters. Other high-grade intervals of note include 5.52 g/t Au over 7.62 meters from 92.99 to 100.61 meters, including 22.35 g/t Au from 94.51 to 96.04, and 13.01 g/t Au over 1.5 meters from 123.48 to 125.00 meters. The rocks between these zones are variably mineralized such that the entire 123.5 meter interval averages 1.13 g/t Au. All mineralization is within 117 meters of surface.

It is not yet clear if this new zone is continuous with the Merritt Zone, which was previously thought to have been cut off to the east in the direction of hole P21-115. A follow-up drill program is being planned in order to determine the attitude, size and true width of the new zone which remains open to the north and east and to depth. This new mineralized zone is completely oxidized and, being so close to surface, is well within common open-pit mining limits.

“The discovery of more high-grade gold mineralization close to the Merritt Zone is an exciting development and appears to validate our hypothesis that multiple high-grade zones surrounded by halos of lower grade exist over a much broader area,” stated Robert Archer, Newrange’s CEO. “While historic mining may have removed some gold from the hills, we are confident that other, buried zones remain to be found. Our new, intrusive-related exploration model is being validated by drill-testing of Induced Polarization (IP) targets and the extension of the geophysical survey to cover the entire property is indicating that the entire system may be several kilometers in size.”

Refining the Model

A good exploration model comprises both empirical (fact-based) and genetic (theoretical) components. As field work progresses, data are fed into the model and it is constantly being refined in an iterative manner in order to maximize the odds of success. Given the association of gold mineralization with pyrite at Pamlico and the depth of oxidation, IP has been critical in detecting remnant pyrite below the oxidation level that could give clues as to the distribution and even the origin of the pyrite-gold mineralization. To this end, the RC drill holes targeting shallow IP anomalies in the ‘Line 5 area’ of the property have confirmed the presence of fine-grained pyrite and a relatively flat-lying series of ‘stacked’ zones of gold mineralization.

Drill holes P20-111 and 112 and P21-113 and 116 were all drilled in the area of hole P20-091 that first detected the gold-pyrite association near the western margin of the large ‘Line 5’ IP anomaly (see Newrange news release for December 1, 2020). These holes have now collectively defined gold mineralization starting at a consistent vertical depth of 110-120 meters and, in most cases, continuing to the bottom of the holes. The mineralization appears to be consistent over a distance of at least 200 meters east-west but has only been defined over a distance of about 50 meters in a north-south direction. Gold grades and intercept lengths appear to be increasing to the east, towards the ‘main’ chargeability anomaly. The uppermost zone ranges in thickness from 30 to 80 meters and higher-grade sections are typically found at or near the upper and/or lower boundaries. Individual 1.5 meter samples attain grades of up to 3.83 g/t Au while thicker intervals include 0.75 g/t Au over 18 meters within 0.4 g/t Au over 50.3 meters in hole P20-091 and 0.58 g/t Au over 35 meters in hole P20-111. Several other flat-lying zones exist below this in the 0.25-0.35 g/t Au range over thicknesses of 4.5 to 21.0 meters.

As this is the first time that this style of mineralization has been found on the property, it is unknown whether these grades and thicknesses are representative but the continuity of the mineralization and the apparent increase in grade towards an anomaly that is at least 1,000 meters north-south and hundreds of meters wide is very encouraging. Two vertical holes, P21-120 and P21-121, recently drilled from the top of the limestone ridge overlying the main anomaly were successful in penetrating the limestone into the underlying volcanic rocks. The latter contain disseminated pyrite in both holes and copper mineralization was observed in hole P21-121. Assays are pending for both of these holes.

Geophysics

The current IP survey being conducted at Pamlico when combined with the Company’s 2019 IP survey will cover the entire property, including the target area known as the Skarn Zone. As previously noted, gold bearing skarn systems form some of the largest and most important deposits in the world and some of the most important are found in Nevada, including at Battle Mountain, Carlin, Cove-McCoy, and many other districts.

A large chargeability anomaly extending more than 2.5 kilometers north-south and at least a kilometer east-west has been detected in the vicinity of the Skarn Zone and may be reflecting sulfides introduced by the same system that caused the skarn alteration of the overlying limestones. It is important to note that this anomaly appears to be entirely separate from the ‘Line 5 anomaly’ currently being drill-tested. A full interpretation of the combined IP survey is expected within about three weeks and the Company will release the results at that time.

Next Steps

With the discovery of additional high-grade gold mineralization so close to the Merritt Zone, a follow-up program of RC drilling is being prepared to delineate this new zone. Bids for a diamond drilling program are being evaluated and a contractor will be chosen in the next few days. At present, a minimum of 5 holes are contemplated in approximately 2,000 meters to test the deep chargeability anomaly in the 2019-2020 IP survey and to test the new anomaly in the Skarn area. It is likely that this program will be expanded once underway as the current IP survey is completed and interpreted and as assay results for holes P21-120 and 121 are received. Diamond drilling is anticipated to begin in approximately three weeks.

Quality Assurance – Quality Control

Mr. Robert G. Carrington, P. Geo, a Qualified Person as defined by National Instrument 43-101, the President and Chairman of the Company, has reviewed, verified and approved for disclosure the technical information contained in this news release. All drilling was conducted by Reverse Circulation (RC) methods using a five inch diameter center return bit. All drilling was supervised by professional geologists. Samples were collected on 1.5 meter (5 foot) intervals. Drill cuttings were captured in a vacuum augmented, closed system cyclone, then riffle split in a three-tiered Jones-type splitter. Samples were then securely stored and delivered to Paragon Geochemical Laboratories in Sparks, Nevada for sample preparation and analysis. Samples were dried then stage crushed to 80% passing 10 mesh. A 300 gram sub-sample was then split out and pulverized to 90% passing 140 mesh from which 1 Assay Ton, approximately 30 gram samples were split for analysis by fire assay (FA) with an OES finish. Samples assaying in excess of 5 g/t Au were re-assayed by fire assay with a gravimetric finish. Silver was determined by fire assay with an atomic absorption finish. In addition to the QA – QC conducted by the laboratory, the Company inserts blanks, standards and certified reference material (CRM) at a rate of not less than 1 in 20. Duplicate samples are collected for all drill samples. Duplicate samples are submitted at a rate of 1in 40.

About Pamlico

Discovered in 1884, the Pamlico District rapidly gained a reputation as being one of Nevada’s highest-grade districts. Held by private interests for most of its history, the property remains underexplored in terms of modern exploration. A new geological model being developed for the Pamlico Project by Newrange suggests that past production may be just the exposed manifestation of a much larger, and mostly buried, gold-bearing system.

Located 12 miles southeast of Hawthorne, Nevada, along US Highway 95, the project enjoys excellent access and infrastructure, a mild, year-round operating climate and strong political support from Mineral County, one of the most pro-mining counties in the pro-mining state of Nevada.

About Newrange Gold Corp.

Newrange is a precious metals exploration and development company focused on near to intermediate term production opportunities in favorable jurisdictions including Nevada, Ontario and Colorado. With numerous drill intercepts of near surface oxide gold mineralization to 340 grams gold per metric tonne, the Company’s flagship Pamlico Project is poised to become a significant new Nevada discovery. Focused on developing shareholder value through exploration and development of key projects, the Company is committed to building sustainable value for all stakeholders. Further information can be found on our website at www.newrangegold.com.

Signed: “Robert Archer”
CEO & Director

For further information contact:

Sharon Fleming
Corporate Communications
Phone: 760-898-9129
Email: info@newrangegold.com

Dave Cross
Chief Financial Officer and Corporate Secretary
Phone: 604-669-0868
Email: dcross@crossdavis.com

Website: www.newrangegold.com

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statement: Some of the statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of Newrange Gold Corp. Actual results may differ materially from those currently anticipated in such statements.

SOURCE: Newrange Gold

 

 

Chakana Copper Accelerates Drill Program With Second Rig, Provides Exploration Update at Soledad, Peru

 

Vancouver, B.C., February 18, 2021– Chakana Copper Corp. (TSX-V: PERU; OTCQB: CHKKF; FRA: 1ZX) (the “Company” or “Chakana”), has added a second drill rig to its Soledad project located in Ancash, Peru in order to accelerate both the exploration and resource drilling programs. The Board of Directors has approved an expanded 26,000m drill program for the 2021 calendar year, with 16,000m of resource drilling for inclusion in the Company’s Soledad maiden resource estimate expected later this year. Resource drilling will focus on recent discoveries at Paloma East, Paloma West, and Huancarama (Fig. 1). Resource drilling is expected to also be completed on Breccia 7 (Bx 7), a previous discovery announced in 2019 (see news release dated July 29, 2019). An additional 10,000m of scout drilling will be allocated to test numerous high quality exploration targets that have already been identified. Resource definition drilling includes both step-out and in-fill core holes in close proximity to known mineralization of possible economic interest.

Currently, one drill rig continues to conduct scout drilling on the west side of the Huancarama Breccia Complex where recent drilling has confirmed a blind breccia pipe immediately north of the H5 breccia body exposed at surface (Fig. 2). A total of twenty-five drill holes have now been completed at Huancarama. Once scout drilling is completed, this drill rig will focus on resource definition drilling at Huancarama. The second drill rig has been deployed to the Paloma area where resource drilling has been initiated at Paloma East (Fig. 3). Resource drilling is also planned for Paloma West, and additional exploration drilling will be conducted in the greater Paloma area. A third drill rig dedicated to exploration drilling is scheduled to arrive on the property in early April 2021.

David Kelley, President and CEO commented: “Adding a second drill rig at Soledad, to accelerate the project, is an exciting development. We are now fully funded for our 26,000m drill program in 2021 with $9.3 million in treasury. We look forward to releasing additional exploration results from Huancarama, and resource drilling results from Paloma in the near future.”

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.

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 – Drone image looking north-northeast at the Huancarama Breccia Complex showing drill rig set up on the west side of the complex.

Figure 3 – Drone image looking east showing second drill rig initiating resource drilling at Paloma East (prominent outcrop in center of image). Note the Hercules mine in the upper right side of the image (1.5 km distant).

SOURCE: Chakana Copper

Comstock Secures Majority Interest in Lithium-Ion Battery Recycling Company; Facility Plans 10,000 Tons Per Year of 99.9% Pure Lithium-ion Cathodes for Clean Energy Transition

 

Virginia City, NV (February 17, 2021) – Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”) today announced transactions securing the rights to a majority equity stake in LINICO Corporation (“LiNiCo”), a lithium-ion battery (“LIB”) recycling company who recently acquired a state-of-the-art battery metal recycling facility from Aqua Metals, Inc. (“Aqua Metals”) (NASDAQ: AQMS) located in the Tahoe Reno Industrial (“TRI”) Center in Storey County, Nevada. The Company will pay $4,500,000 in cash and 3,000,000 shares of its restricted common stock, representing up to $10,750,000 in consideration for up to a 64% ownership stake in LiNiCo. Aqua Metals is investing $2,000,000 for a 10% stake in LiNiCo.

LiNiCo will use the proceeds to increase its direct strategic investment in Green Li-ion Pte, Ltd. (“Green Li-ion”), purchase Green Li-ion’s patented process equipment, with exclusive rights for the U.S. market, enabling the production of 99.9% pure lithium-ion cathodes. LiNiCo’s Chief Executive Officer and Founder, Michael Vogel commented, “Our agreements accelerate the race towards reducing carbon emissions by valorizing critical metals and supporting the increasingly high demand for electric vehicles (“EVs”). Aligning ourselves with Comstock, Green Li-ion and Aqua Metals creates a unique ecosystem of complimentary companies.”

LiNiCo’s facility was designed for, and perfectly situated to, receive, crush, and separate battery materials into black mass. Green Li-ion’s technology has been proven to convert black mass into rejuvenated, high purity, battery grade metals and essentially pure cathodes for a fraction of the cost and time of conventional solutions.

Extraordinary Growth

Lithium-ion battery production capacity has increased tenfold in the past decade. According to a recent report from the International Energy Agency (“IEA”), demand for lithium is expected to significantly increase to fill global demand for electric vehicles (“EVs”). ARK Invest recently concluded that EV sales will increase to about 40% of global auto sales within five to six years. Tesla (NASDAQ: TSLA) CEO Elon Musk recently provided a similar estimate, tweeting his view that the industry could produce 30 million EVs per year by 2027.

Hitting that output will require about 1.8 million tons per year of lithium carbonate equivalent (“LCE”), or about five times more than the entire lithium mining industry produces today, and fifteen times the total LCE used in new EVs in 2020. The miners and manufacturers can scale up to meet that demand, however, according to a January 2020 USGS mineral commodity summary, there are only about 80 million tons of identified lithium resources worldwide, and EV batteries are typically landfilled after eight to ten years of use. A recent report by independent analysts, Yole Développement estimated that expired LIBs are landfilled annually with over $300 million in strategic metals, an amount estimated to grow to over $1.2 billion in strategic metals by 2025 and $24 billion by 2040.

Creating Closed Loop Systems for Clean Energy with Climate Smart Mining

“Continued advances in energy storage are inevitable, but no resource is infinite, and most of that lithium will need to be recovered and reused at some point,” said Corrado De Gasperis, Comstock’s Executive Chairman and CEO. “We see spent lithium-ion batteries as a potent industrial mineral, and – as with any resource, we need the right team, technology, and infrastructure to extract and process it. This transaction assembles all three into an ecosystem of aligned partners, operating systemically on a common goal.”

LiNiCo plans to commence production later this year, building toward cathode production capacity of about 10,000 tons per year. At just 33% of that rate and 60% of applicable commodity prices, the LiNiCo facility should generate more than $100 million in sales with pre-tax operating income margins exceeding 30%, adding 40 good paying Nevada jobs and making a landmark contribution to Comstock’s Environmental, Social and Corporate Governance (“ESG”), Product and Process Stewardship and Climate Smart Mining goals.

Mr. De Gasperis concluded, “We believe that this acquisition builds on Comstock’s strategy for developing high-cash generating, conservation-based processes that valorize these increasingly strategic, critical resources. We have now diversified into the critical electrification metals, including silver, lithium, nickel and cobalt, complementing and expanding on our existing precious metal processing competencies. Our objective is to renew these scarce resources while driving sustained value growth for all of our stakeholders – financial, natural and social. We are passionate stewards of our environment, developing closed loop projects that offset the environmental and social costs of conventional mining practices.”

Remarkably, each ton of conventionally mined lithium extraction can require nearly 2,000 tons of water utilization whereas LiNiCo’s process and the existing water recycling system in LiNiCo’s state-of-the art facility only consumes a tiny fraction of that amount to produce the same output, significantly enhancing conservation. LiNiCo’s battery recycling facility is located in the immediate vicinity of Tesla’s Gigafactory #1 in TRI Center.

About LINICO Corporation (“LiNiCo”)

LINICO Corporation is a cleantech startup, with a state-of-the art battery metals recycling facility focused on commercializing economically viable and environmentally sustainable technologies for lithium-ion battery recycling. LiNiCo’s goal is to alleviate the global reliance on harmful mining activities that are used in the production of critical metals, to support the increasingly high demand and shortage of these critical metals, to close-the-loop on sustainable practices for end-of-life lithium-ion batteries and to support a clean energy economy. To learn more, please visit www.linico.io.

About Green Li-Ion Pte, Ltd.

Green Li-Ion solves the existential risk to the precious metals industry and the environment. With patented deep technology that is cleaner, faster and four times more profitable than current lithium ion battery recycling. Green Li-Ion technology is the only closed loop technology to fully rejuvenate the lithium ion battery cathode for the circular economy. Green Li-Ion’s Multi-Cathode technology and GLMC-1 control unit enhances current lithium ion battery recycling lines to produce 99.9% pure cathodes. To learn more please visit www.greenli-ion.com.

About Aqua Metals, Inc.

Aqua Metals, Inc. (NASDAQ: AQMS) is a leading innovator in lead battery metal recycling with its patented hydrometallurgical AquaRefining™ technology. The modular Aqualyzers™ cleanly generate ultra-pure metal one atom at a time, closing the sustainability loop for the rapidly growing energy storage economy. Aqua Metals’ offerings include equipment supply, services and licensing of the AquaRefining technology to recyclers across the globe. Aqua Metals is based in McCarran, Nevada. To learn more, please visit www.aquametals.com.

About Comstock Mining Inc.

Comstock Mining Inc. (NYSE: LODE) (the “Company”) 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, gold and silver extraction facilities. To learn more, please visit 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 operating margins; available resources; environmental conservation outcomes; 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 for

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

 

Sierra Metals Reports Q4-2020 Financial Results At Its Sociedad Minera Corona Subsidiary In Peru

 

Consolidated Financial Results for Sierra Metals to Be Released on March 18, 2021

(All metal prices and amounts reported in USD)

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX:SMT, BVL:SMT, NYSE AMERICAN:SMTS) (“Sierra Metals” or the “Company”) announces the filing of Sociedad Minera Corona S.A.’s (“Corona”) unaudited Financial Statements and the Management Discussion and Analysis (“MD&A”) for the fourth quarter of 2020 (“Q4 2020”).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210216005467/en/

The Company holds an 81.8% interest in Corona. All amounts are presented in US dollars unless otherwise stated and have not been adjusted for the 18.2% non-controlling interest.

Corona’s Highlights for the Three Months Ended December 31, 2020

• Revenues of US$45.2 million vs. US$42.2 million in Q42019
• Adjusted EBITDA of US$22.5 million vs. US$17.9 million in Q4 2019
• Total tonnes processed decreased by 3% to 311,946 vs. 321,701 in Q4 2019
• Net production revenue per tonne of ore milled increased by 8% to US$148.13
• Cash cost per copper equivalent payable pound decreased by 1% at US$1.16 in Q4 2020
• All-in sustaining cost (“AISC”) per copper equivalent payable increased 17% to US$2.47 in Q4 2020
• Copper equivalent production of 18.4 million pounds vs. 23.1 million pounds in Q4 2019
• US$65.0 million of cash and cash equivalents as at December 31, 2020
• US$92.0 million of working capital as at December 31,2020

Annual throughput of 1,117,860 was in line with the 2019 annual production, despite the impact of COVID-19 related shutdowns faced in Q2 2020 and other COVID-19 related challenges throughout the year. Throughput for Q4 2020 decreased by 3% as compared to Q4 2019, as a result of operational downtimes and minor production disruptions. Copper and zinc equivalent metal production in Q4 2020 decreased by 20% and 14%, respectively, due to lower throughput and lower head grades. Additionally, lower workforce availability continued to impact mine development, leading to lower ore contribution from the high-grade cuerpos chicos zones. Year over year, copper equivalent production decreased 4% in 2020 compared to the prior year. During 2020, zinc and gold’s annual production increased 1% and 3%, respectively, while copper and lead annual production decreased by 2% and 9%. Silver production for 2020 was in line with the 2019 annual silver production.

Q4 2020 revenues increased by 7% compared to Q4 2019 as a result of higher metal prices realized. Annual revenues were 6% lower due to the impact of a 66% increase in the treatment and refining costs. Adjusted EBITDA increased by 25% and 4% during Q4 2020 and the year respectively compared to the same periods of 2019, as operating costs excluding COVID-19 costs were lower than the prior year.

Cash and cash equivalents increased by $30 million during the year due to a combined result of a 27% increase in operating cash flows and a decrease of 26% in cash used in investing activities, as some capital expenditures were deferred considering the uncertainties related to the impacts of COVID-19. Cash costs per copper equivalent payable pound for 2020 decreased by 10% due to lower operating costs per tonne. AISC per copper equivalent payable pound for 2020 increased 10% primarily due to a 66% increase in treatment and refining costs partially offset by lower cash costs.

Luis Marchese,CEO of Sierra Metals,commented, “I am pleased with Yauricocha’s performance in the fourth quarter of 2020, which saw increases in revenue and adjusted EBITDA compared to the same quarter in 2019. The Company also realized increased EBITDA but lower revenue on a year over year basis primarily due to lower incomes resulting from significant increases to the treatment and refining charges. Overall, the Company performed well and produced solid results, given the challenging year we had due to the effects of dealing with the COVID-19 pandemic. I want to thank all employees for their efforts to help the Company achieve these results.”

He continued, “Looking ahead, 2021 is an exciting time for the Company as we continue advancing important projects, operational improvements, and exploration at Yauricocha. We also look forward to receiving the necessary permits at Yauricocha to increase throughput by 20% to the 3,600 tonne per day level. Furthermore, we recently completed and published a Preliminary Economic Assessment at Yauricocha with favourable economics to examine increasing throughput to 5,500 tonnes per day starting in 2024. We look forward to releasing a Preliminary Feasibility Study in the coming months to support that expansion further.”

He concluded, “Corona continues to have a solid balance sheet and strong liquidity. Management remains optimistic that continued operational efficiencies can be obtained at the Yauricocha Mine as well as capitalizing on further operational and resource growth opportunities.”

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

1 Adjusted EBITDA includes adjustments for depletion and depreciation, interest expense and other financing costs, interest income, share-based compensation, Foreign Exchange (gain) loss and income taxes; see non-IFRS Performance Measures section of the Company’s MD&A.
2 All-In Sustaining Cost per copper equivalent pound sold are non-IFRS performance measures and include cost of sales, treatment and refining charges, sustaining capital expenditures, general and administrative expense, and selling expense, and exclude workers’ profit sharing, depreciation, and other non-cash provisions; Cash cost per copper equivalent pound sold, net production revenue per tonne of ore milled, and cash cost per tonne of ore milled are non- IFRS performance measures; see non-IFRS Performance Measures section of the Company’s MD&A.

Corona’s Financial Highlights for the Three Months and Year Ended December 31, 2020

• Revenues of $45.2 million for Q4 2020 compared to $42.2 million in Q4 2019 and revenues of $146.9 million for the year ended December 31, 2020, compared to $156.0 million for the same period in 2018. The increase in revenues during Q4 2020 compared to Q4 2019 was primarily driven by higher realized prices for all metals except lead. Revenues were higher for the quarter despite significant increases in the treatment and refining charges and lower metal sales resulting from lower throughput and grades. Revenues for the year ended December 31, 2020, were 6% lower than the same period in 2019 due to the 66% increase in treatment and refining charges offset by the increase in the average realized sale price for gold (9%) and zinc (4%). Average realized prices in 2020 were higher for copper (3%), silver (26%) and gold (26%), but lower for zinc (10%) and lead (9%) as compared to the average realized prices in 2019.
• Cash cost per copper equivalent pound sold at the Yauricocha Mine of $1.16 for Q4 2020 compared to $1.17 for Q4 2019; and $1.01 for the year ended December 31, 2020, compared to $1.12 for the same period in 2019. All-in sustaining cost (“AISC”) per copper equivalent pound sold of $2.47 for Q4 2020 compared to $2.11 for Q4 2019 and $2.11 for the year ended December 31, 2020, comparedto $1.91 for the same period in 2019. The increase in the AISC per copper equivalent payable pound for Q4 2020 and full year 2020 comparedto the same periods in 2019 was a combined result of higher treatment and refining charges and lower copper equivalent payable pounds sold.
• Adjusted EBITDA of $22.5 million for Q4 2020 compared to $17.9 million for Q4 2019 and $66.3 million for the year ended December 31, 2020, comparedto $64.0 million for the same period in 2019.
• Operating cash flows before movements in working capital was $23.3 million for Q4 2020, compared to US$18.3 million for Q4 2019, and $65.0 million for the year ended December 31, 2020, compared to $63.9 million for the same period in 2019. An increase in operating cash flows resulted from an increase in gross margins compared to 2019, mainly due to lower workforce and contractor costs.
• Cash and cash equivalents of $65.0 million as at December 31, 2020, compared to $35.0 million as at December 31, 2018. The increase in cash and cash equivalents was driven largely by operating cash flows of $48.6 million (after movement in working capital) offset by capital expenditures of $19.2 million.
• Net income of $11.5 million, or $0.32 per share for Q4 2019, compared to net income of $10.3 million, or $0.29 per share for Q4 2019. Net income of $28.2 million, or $0.78 per share, for the year ended December 31, 2020, compared to $34.6 million, or $0.96 per share, for the same period in 2019.

Corona’s Operational Highlights for the Three Months and Year Ended December 31, 2020

The following table displays the production results for the three months and year ended December 31, 2020, for further production details please refer the Company’s Q4 production press release dated January 18, 2021:

1 Daily throughput is calculated using 350 operating days for the year.
2 Copper equivalent pounds were calculated using the following realized prices: for Q4 2020 – $24.30/oz Ag, $3.32/lb Cu, $1.22/lb Zn, $0.89/lb Pb, $1,859/oz Au, for Q4 2019 – $17.42/oz Ag, $2.69/lb Cu, $1.07/lb Zn, $0.92/lb Pb, $1,506/oz Au, for full year 2020 – $20.59/oz Ag, $2.80/lb Cu, $1.03/lb Zn, $0.83/lb Pb, $1,771/oz Au, for full year 2019 – $16.29/oz Ag, $2.73/lb Cu, $/1.14lb Zn, $0.91/lb Pb, $1,404/oz Au.

Sierra Metals to release Q4/YE 2020 Financial Results on March 18, 2021

The Company will release Q4-2020 financial results on Thursday March 18, 2021, after the Market close. Senior Management will also host a webcast and conference call on Friday March 19, 2021, at 10:30am EDT. Details of the Conference Call and Webcast are as follows:

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

All technical data contained in this news release has been reviewed and approved by:

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 to Sierra Metals 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 or contact:

Continue to Follow, Like and Watch our progress:

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

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.

Idaho Champion Reports Results of 2020 Core Drilling at Champagne Project, Idaho including 1.04 g/t Gold Equivalent over 42.98 Metres

 

Toronto, ON – February 16, 2021 – Idaho Champion Gold Mines Canada Inc. (CSE: ITKO; OTCQB: GLDRF; FSE: 1QB1)(“Idaho Champion” or the “Company“) is pleased to report the results from its 2020 diamond core (“Core“) drilling campaign at its 100% controlled Champagne Gold Project (“Champagne“) near the city of Arco, Butte County, Idaho.

2020 Champagne Drilling Highlights:

• Drill hole DDH-CC-20-02 intersected 1.04 g/t gold equivalent (“AuEq”) for the interval 123.14-166.12 m (42.98 m core length), including 1.22 g/t AuEq for the interval 123.14-157.06 m (31.93 m core length).
• Drill hole DDH-CC-20-02 was collared at Mine Hill in the approximate center of the unmined 300 m interval between the North and South Pits (Bema Gold c. 1989-90).
• This mineralized interval is associated with shallow induced polarization anomalies in chargeability and resistivity as reported in the Idaho Champion press release dated Feb 2, 2021.

“Core drilling and results of our IP survey have provided data to better formulate a conceptual geologic model for the Champagne District,” stated President and CEO, Jonathan Buick. “The promising mineralization from the program demonstrates there is gold in the system below the historic mined pits where we are confident that we can identify additional resources. Our evolving geologic model indicates that the base, or roots, of a larger system that may have been the feeder for all mining in this district lies off to the west. This large body of anomalous chargeability will be drill tested in 2021.”

Champagne Drilling Technical Summary

The 2020 core drilling program consisted of seven (7) diamond drill holes totaling 2,818 Metres (Fig. 1). Five core holes (DDH-CC-20-01 through DDH-CC-20-05) were positioned on Mine Hill in the vicinity of the North and South Pits and two core holes (DDH-CC-20-06 and DDH-CC-20-07) were located further north near the Ella Mine breccia vein.

Three holes (DDH-CC-20-01, -02, -07) intersected promising precious metals mineralization, with the strongest presence of gold and silver intersected in DDH-CC-20-02. The spatial relationships of these three holes to results of the recently completed induced polarization (IP) survey are represented in Figs. 2-3 (see also Idaho Champion press release of February 2, 2021). An inferred low-angle detachment fault represented in Fig. 2 is interpreted to have displaced the shallow IP anomaly at Mine Hill from a larger and deeper anomaly 800 m west of Mine Hill.

Figure 1: Champagne Gold Project 2020 Exploration Drill Hole Locations

Figure 2: Cross sections showing downhole AuEq intervals (red disks) plotted on 3D IP chargeability model. High AuEq values are associated with chargeability highs. The large, buried IP chargeability high is currently interpreted to be the center of the mineralizing system. Details about the recently competed IP survey at Champagne can be found in Idaho Champion’s news release dated 2 February 2021.

Figure 3: 2020 Idaho Champion Core and Reverse Circulation Drill Holes and 2020 3D IP Chargeability Model

DDH-CC-20-01 (Fig. 4) was inclined westward beneath the central part of the North Pit across a series of mineralized and altered breccia and fractured intervals. The intervals represent a sheeted pyritiferous breccia zone, the upper oxidized portion of which was mined for gold and silver in the North Pit. Below the pit floor, the breccia intervals in the intercept were found to be separated by intervals of less-altered andesite. DDH-CC-20-01 is interpreted to have progressed from the very top of the hydrothermal mineralizing system down into increasingly gold-bearing parts of the system. This gradient of increasing gold with depth also correlates to intervals of increased levels of anomalous pathfinder metals (principally As, Hg, Sb, and Bi).

Figure 4: Champagne Gold Project Drill Section and AuEq Results: DDH-CC-20-01

DDH-CC-20-02 (Fig. 5) was sited to test the projected trace of the Last Chance Zone, which had historically been exploited for oxide-silver (Horn Silver Mine) and deeper lead-zinc-silver sulfide mineralization. The reported common occurrence of accessory famatinite (copper-antimony sulfosalt) and aikinite (copper-bismuth sulfosalt) with the sulfide ore is also of exploration interest. The Last Chance Zone was intersected between drilling depths of 123.14 to 166.12 Metres and is comprised of strongly pyritized breccia and brecciated andesite with sulfide intervals approaching semi-massive character.

The results show that the zinc and lead values appear to be tapering off down hole, but anomalous gold content continues to depth, as does silver and copper. The pathfinder metal mercury reaches very high levels with scattered intervals of strong arsenic and scattered intervals of anomalous antimony and bismuth. A fault that is interpreted as a low-angle detachment structure was encountered below the intersection of the Last Chance Zone.

Figure 5. Drill Section and AuEq Results: DDH-CC-20-02

DH-CC-20-07 (Fig. 6) was designed to test the Ella Mine breccia vein but is interpreted to have instead pierced the detachment fault at shallow depth. The hole was advanced through propylitically altered footwall ash-fall and crystal tuff units in an effort to penetrate the eastern edge of the IP anomaly on Lines 4 and 5. Strong sericite-silica alteration and well-developed mosaic brecciation was intersected beginning at a depth of 340 m. The pyrite content increased to 3 – 8% with the sericite and silica alteration and is accompanied by anomalous silver, zinc, lead and arsenic (as well as weakly anomalous gold values). At depths of 441.96 to 452.63 Metres, anomalous silver (up to 42.3 g/t), copper (up to 0.22%), and anomalous gold (up to 0.107 g/t) occur within a brecciated interval. Zinc, lead, and arsenic are also anomalous within this interval. At a depth of 475 m, the hole returned to dominantly propylitic alteration with diminished pyrite content. The direction and angle of the hole suggests that only the outer-most edge of the IP anomaly was intersected.

Quality Assurance/Quality Control Procedure

Idaho Champion Gold adheres strictly to a regimented drill core handling and processing procedure. Core from the drill rig(s) is logged for lithology, mineralization, structure, alteration, and veining. During the logging process 1 to 2 meter samples are delineated by company geologists. Core is then photographed and sawn in half. Following sawing, individual samples are extracted from core boxes and inserted into individual sacks with a unique waterproof sample number tag and sealed. The remaining half-core is left in core boxes for post-cut photographing and storage. Sacks containing samples are kept indoors on site until they are transported to the assay lab.

Quality control (QC) samples are inserted into the sample stream such that there is one QC sample for every ten drill core samples. These QC samples consist of certified standards (known metallic content) and blanks (known barren of metals). Two styles of blank material were used: a coarse blank and a pulverized blank. QC sample insertions alternate between standard and blank.

The first sample shipment was delivered to ALS Geochemistry’s facility in Elko, NV. All subsequent sample shipments were delivered to American Assay Labs (AAL) in Sparks, NV. ALS and AAL conform to ISO 17025 requirements. All drill samples and coarse blanks are crushed to 70% passing 2mm at the assay lab, and 1 kg material is split and pulverized to 85% passing 75 micron. All samples are processed by 30 gram fire assay- Inductively coupled plasma optical emission spectrometry (ICP-OES). Samples are additionally analyzed for 35, 36, or 61 multi-element analysis by ICP-OES and/or inductively coupled plasma mass spectrometry (ICP-MS). Samples containing Au or Ag above detection limits by ICP-OES analysis are automatically re-analyzed by fire assay with a gravimetric finish.

All drill intervals reported in this release are calculated using a 0.10 g/t gold cut-off grade and a maximum of 3 Metres consecutive waste.

About the Champagne Project

The Champagne Mine* was operated by Bema Gold as a heap leach operation on an epithermal gold-silver system that occurs in volcanic rocks. Bema Gold drilled 72 shallow reverse circulation holes on the project, which complement drilling and trenching from other previous operators. The property has had no deep drilling or significant modern exploration since the mine closure in early 1992. The Champagne Deposit contains epigenetic style gold and silver mineralization that occurs in strongly altered Tertiary volcanic tuffs and flows of acid to intermediate composition. Champagne has a near surface cap of gold-silver mineralization emplaced by deep-seated structures that acted as conduits for precious metal rich hydrothermal fluids. Higher grade zones in the Champagne Deposit appear to be related to such feeder zones.

* The Company cautions that the information about the past-producing mine may not be indicative of mineralization on Champion’s property, and if mineralization does occur, that it will occur in sufficient quantity or grade that would result in an economic extraction scenario. The historic data were simply used to evaluate the prospective nature of the property. The Company has not yet conducted sufficient exploration to ascertain if a mineral resource is present on the property.

Qualified Person

The technical information in this press release has been reviewed and approved by Peter Karelse P.Geo., a consultant to the Company, who is a Qualified Person as defined by NI 43-101. Mr. Karelse has more than 30 years of experience in exploration and development.

About Idaho Champion

Idaho Champion is a discovery-focused gold exploration company that is committed to advancing its 100% owned highly prospective mineral properties located in Idaho, United States. The Company’s shares trade on the CSE under the trading symbol “ITKO”, on the OTCQB under the trading symbol “GLDRF”, and on the Frankfurt Stock Exchange under the symbol “1QB1”. Idaho Champion is vested in Idaho with the Baner Project in Idaho County, the Champagne Project located in Butte County near Arco, and four cobalt properties in Lemhi County in the Idaho Cobalt Belt. Idaho Champion strives to be a responsible environmental steward, stakeholder and a contributing citizen to the local communities where it operates. Idaho Champion takes its social license seriously, employing local community members and service providers at its operations whenever possible.

For further information, please visit the Company’s SEDAR profile at www.sedar.com or the Company’s corporate website at www.idahochamp.com.

Cautionary Statements

Neither the Canadian Securities Exchange nor its regulation services provider has reviewed or accepted responsibility for the adequacy or accuracy of this press release

This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company. Although the Company believes that the expectations and assumptions on which such forward-looking information is based on are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. The Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Investor Contacts

Nicholas Konkin
Marketing and Communications
Phone: 416-567-9087
Email address: nkonkin@idahochamp.com

Source: Idaho Champion

Ely Gold Royalties Acquires Heavy Rare Earth El Campo Project, California

 

Samples Return up to 8.60% Total Critical Rare Earth Oxides Located 3.2 Miles from MP Material’s Mountain Pass Mine

Vancouver, British Columbia, Canada, February 12, 2021. Ely Gold Royalties Inc. (TSX-V:ELY, OTCQX:ELYGF) (“Ely Gold” or the “Company”) is pleased to report nine assayed samples of total rare earth oxides (“REO”) at its El Campo Project (“El Campo”) located in San Bernardino County, California. El Campo encompasses five contiguous unpatented mining claims that are surrounded by mining claims held by MP Materials (NYSE: MP) which make up the Mountain Pass Mine Property (“Mountain Pass”). Mountain Pass is the only operating rare earth mine in the Western Hemisphere.. El Campo is located along strike and 3.2 miles southeast of Mountain Pass (see Figure #1). Ely Gold Acquired El Campo through staking.

Since acquiring El Campo, Ely Gold has collected and analyzed a total of nine bedrock samples which returned up to 8.60% total Rare Earth Oxides (“REO”), similar in grade to Mountain Pass ore. The REO mineralization is hosted by syenite and shokonite dikes. The mineralized zones sampled are carbonatite composed of calcite and or dolomite, barite and bastnasite and are up to 20 feet wide at surface.

El Campo’s REO content is made up of heavy rare earth elements Nd, Pr, La, Ce & Sm. The elevated higher-value elements, Neodymium-Praseodymium (“NdPr”) are important for producing permanent magnets used in electric vehicles and wind turbines while the Samarium (“Sm”) is important for defense applications such as drones and cruise missles. All nine of the samples, which returned REO values of 4% or greater, are summarized in the table below:

El Campo Project Sampling Program Highlights

Trey Wasser, President and CEO commented; “we are excited with the impressive grades from our initial sampling that suggest the potential to outline a high-grade rare earth deposit at our El Campo Project. The proximity to the high-grade Mountain Pass Mine, North America’s only operating rare earth mine, makes this a very exciting project. El Campo will be placed in our “properties available for sale” portfolio, The sale of El Campo will generate Ely Gold’s first rare earth royalty”..

Figure 1

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.

Source: Ely Gold Royalties