Royal Gold Mining Inc. secures option on Bellechase Timmins Project
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NEWS RELEASE- For Immediate Distribution
ROYAL GOLD MINING INC.
(the “Company”)
TSXV – ROYL September 29, 2020
Royal Gold Mining Inc. secures option on Bellechase Timmins Project
Vancouver, BC – September 29, 2020 - The Company reports that it has acquired an option to acquire up to a
70-per-cent interest in the advanced -stage Bellec hasse Timmins gold property located in the Beauce
region of southern Quebec from Yorkton Ventures Inc. (the “Optionor”), an arms’ length party.
Terms of the Option
In order to acquire a 35-per-cent interest in the property, the Company will:
• Make a $250,000 cash payment prior to October 2, 2020 to the Optionor;
• Issue a $100,000 2 year 10% Promissory Note to the Optionor;
• Issue 1 million shares of the Company to the Optionor;
• Incur $200,000 of Property Expenditures within 12 months
In order to acquire an additional 35% resulting in a 70% interest, the Company shall make a cash payment
to the Optionor of $350,000 on or before April 15, 2021 and expend $250,000 in work expenditures prior
to September 30, 2023. A t that point a joint venture partnership will be formed where each party will
contribute their share of the project expenditures and costs or will be diluted down accordingly. The
Agreement is subject to regulatory approval.
The Optionor will initially be operator of the Bellechasse- Timmins property and budgets must be
approved by the Optionor . All technical components will be approved by a technical committee
comprising of two nominees of the Optionor and two nominees of the Company.
PROJECT SUMMARY
The Bellechasse Timmins (“B-T”) project, consists of 138 claims located in the Municipalite regionale de
Comte des Etchemins, approximately 80 kilometres southeast of Quebec City. The property is about
53km2 and covers 15km of favorable stratigraphy.
The project area has a well-developed and fully integrated infrastructure including an excellent network of
well-maintained all-weather roads, three -phase hydroelectric transmission lines, water sources, schools,
clinics and hospitals. There are grocery and hardware stores with major national chain outlets locally .
This makes it ideally suited for mining exploration and development with no major logistical
impediments or high-cost conditions and exploration work may be executed year round.
The Bellechasse- Timmins Gold Deposi t contains a historical 2012 SGS mineral resource of 171,000
ounces (2.9 million tonnes grading 1.83 g/t) of gold in the indicated category and an additional 95,000
ounces (2.17 million tonnes grading 1.36 g/t gold) in the inferred category using a lower cutoff of 0.6g/t
and a capping grade of 30g/t. The same resource with uncapped results in an indicated resource of
313,900 ounces of gold (2.9 million tonnes grading 3.36 g/t Au) and inferred resource of 102,000 ounces
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of gold (2.17 million tonnes grading 1.46 g/t Au) . Please refer to th is SEDAR link
https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00003913 for a copy of the
2012 report labelled technical report.
The B -T Deposit is a partially defined concentration of native gold and gol d-sulfide mineralization
localized by intricately folded and sheared diorite body. Gold is present in widely ranging values – high
grade values are frequently confined to linear zones defined by quartz veins and shears and lower grade
values are quite pervasive in many parts of the diorite complex seemingly irrespective of quartz or sulfide
associations. Indications from the historical work to date suggests the combined high and low grade
mineralization may achieve an economically viable balance.
The deposit is comprised of 4 known zones: T1 (Timmins), T2 (Timmins South), Ascot, 88 Zones. The
2012 SGS resource only included the T1 zone to a vertical depth of 300 meters and the T2 zone to 350
meters. Both zones have been drilled to depths of 450 meters and 400 meters respectively with seemingly
little character change to the mineralizing controls. Data to date suggest the diorite complex will continue
to depth.
In 2012, preliminary metallurgical testing provided excellent gold recoveries with an average of 77%
being simply gravity recoverable. Gold recovery using gravity separation ranged from 54% to an
outstanding 92%, while total gold recovery ranged from 97% to more than 99% with added cyanidation.
The tes t work was completed on 23 composite samples from the drill core. The selected composite
samples were from from different mineralized intersections at various depths with variable grades from
drill core that tested the T1 and T2 zones . The test work produced a total gold metallurgical balance that
shows calculated feed grade, tailing losses and overall gold recovery data. The main gold mineral is native
gold (native Au- Ag alloy, with Au >75%, Ag <25%). Semi-quantitative analysis on 2 select samples
resulted in the gold grains yields of 86.8% Au and 10.8% Ag, and 88.4% Au and 9.5% Ag in the second
sample. The results are supported by a high frequency of visible gold through the drill core. Additionally,
the associated sulfides primarily consisting of pyrite, pyrrhotite, arsenopyrite, galena and sphale rite are
typically less than 3%.
The surface quasi bulk sampling and trenching completed on the T1, T2 and 88 zones in 2006 through to
2012 suggest the drilling grades may be understated by as much as 50% however more extensive testing
is required.
Another priority target is the historically non -compliant partially defined Champagne VMS Deposit
which is typical of the deposit class worldwide. The non -compliant drilled resource of 290,000 tons
graded 2.1g/t gold, 18.5g/t silver, 0.40% copper, 2.68% zinc and 0.45% lead. The deposit is open in all
directions with immediate promise at depth and strike as witnessed by geological -geochemical-
geophysical anomalies. A VTEM (helicopter -borne time-domain electromagnetic) survey was flown over
the area in December 201 1. The VTEM survey results suggest that there are a significant number of high
priority targets that require drill testing.
Royal management believes further exploration on the Bellechasse -Timmins property, is warranted a nd
the potential to upgrade the historical mineral resource is very good along strike and to depth. Further it
believes that the potential for new discoveries is high with defined targets yet to be investigated.
The recently completed 43-101 summary report by Christian Derosier, on SEDAR, recommends an initial
two-phase program focused on the Bellechasse-Timmins Deposit for 2020-2021.
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The first phase will comprise of relogging the drill core with a focus on character izing the mineralization
including the quartz, quartz-carbonate-chlorite veins and veinlets associated sulphides and alterations as it
relates to the resource and broader exploration potential for the project.
Additionally, a resampling program consisting of B -T coarse rejects and drill core will be undertaken as
the Company believes the original fire assay gold values have been understated due to the nugget effect .
More detailed and complete analytical procedures will be investigated in order to try to achieve the truer
grade for the sampled intervals.
Upon completion of phase 1 a resource update will be undertaken.
The Phase 2 program will consist of at least 2,000 meters of HQ diamond drilling integrated with a more
optimized protocols. A resource upgrade will be completed afterwards integrating the additional data.
The above will be a preamble for further bulk sampling and more metallurgical testing to be undertaken
will the goal of completing a Preliminary Economic Assessment (PEA).
The Company looks forward to beginning the Phase 1 work shortly and will report results as they become
available.
Dr. Christian Derosier, P.Geo., D.Sc., is the qualified person (QP) as defined in National Instrument 43-
101 and, acting on behalf of Royal Gold Mining Inc. and Y orkton Ventures Inc , has reviewed and
approved the technical content of this news release.
For more information please visit www.sedar.com or contact:
Glen Macdonald, P.Geo., CEO
Royal Gold Mining Inc.
Telephone: (604) 719-8129
E-mail: [email protected]
Neither the TSX Venture Exchange nor it Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statements
Certain statements contained in this press release constitute for ward-looking information. These statements relate to future events or
future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar
expressions and statements relating to matters that a re not historical facts are intended to identify forward- looking information and are
based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future result s may
differ materially. In particular, this release contains forward-looking information. Various assumptions or factors are typically applied in
drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are
based on information c urrently available to the Company. Risk factors that could cause actual results or outcomes to differ materially
from the results expressed or implied by forward -looking information include, among other things: conditions imposed by the TSX
Venture Exchang e; changes in tax laws, general economic and business conditions; and changes in the regulatory regulation. The
Company cautions the reader that the above list of risk factors is not exhaustive. The forward-looking information contained in this
release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks , uncertainties
and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements
expressly qualify any forward-looking information contained herein.