Elemental Altus Completes Sale of Diba Gold Project in Mali to Allied Gold for Royalty and Milestone Payments Royalty Expected to Generate Material near Term Income
Elemental Altus Completes Sale of Diba Gold
Project in Mali to Allied Gold for Royalty and
Milestone Payments
Royalty Expected to Generate Material near Term Income
Vancouver, British Columbia--(Newsfile Corp. - November 9, 2023) - Elemental Altus Royalties Corp.
(TSXV: ELE) (OTCQX: ELEMF) ("
Elemental Altus
" or "the
Company
") announces the closing of the
previously announced sale of the 'shovel-ready' Korali-Sud Small Scale Mining Licence (
"Korali-Sud")
& the highly prospective Lakanfla Exploration Licence (
"Lakanfla"
) (combined
"Diba"
or "
the Project
")
to Allied Gold Corporation ("
Allied
"). The Project is located approximately 15km from Allied's Sadiola
gold mine ("
Sadiola
") in Western Mali. Allied has announced its intention to fast-track production at Diba
in H1 2024 to complement existing oxide ore sources in the Sadiola mine plan.
Highlights:
Completion of sale of Diba Project in western Mali to Allied Gold for royalty and cash milestone
payments
Uncapped Net Smelter Return ("
NSR
") royalty expected to generate material near term income:
3.0% on first 226,000 ounces of gold produced from the defined Diba deposit
2.0% on all future production in excess of 226,000 ounces from the Project
US$1 million payable on closing and up to US$5 million in deferred production based milestones
Sadiola expected to produce an average of 230,000 ounces over 2024 and 2025 with the addition
of Diba:
Up to 1.8 million tonnes per year to be trucked 15km to the Sadiola processing plant
Simple open pit mining of typically soft ores, with oxidation down to 70m
Investment of US$12 million in 2023 and 2024 for development including haul road
Diba hosts a NI 43-101 compliant Preliminary Economic Assessment
1
("
PEA
") which confirmed a
Mineral Resource Estimate ("
MRE
") of:
312,000 ounces of gold with a grade of 1.24 g/t in the Indicated Category, including 199,000
ounces of gold in oxides with an average grade of 1.52 g/t; and
362,000 ounces of gold at 0.88 g/t in the Inferred Category
Additional excellent potential exists for further expansion beyond the existing MRE within the 107
square km Project area:
Historical drill results including 4.78 g/t over 12m from Diba NW prospect and 1.23 g/t Au
over 127m from the Lakanfla Central prospect
Lakanfla has existing MRE and potential for 'Yatela type' carbonate-hosted karst targets
Steven Poulton, Executive Chairman of Elemental Altus, commented:
"We are delighted to close the sale of the strategically located Diba gold project in western Mali to
Allied for cash and an uncapped royalty. Allied intend to fast-track Diba into production in the first half
of 2024 with the typically soft oxide ores mined by open pit and trucked 15km by Allied to their CIP
processing plant at Sadiola. Allied also intend to undertake further exploration at the Project, with the
objective of increasing the resource and making new discoveries.
"We expect this deal to be highly accretive for the Company and contribute meaningfully to Elemental
Altus' near-term revenue growth from the initial 3.0% NSR on the first 226,000 ounces and 2.0% on all
further ounces. In addition, Elemental Altus has received US$1 million in cash on closing and is
entitled to receive further deferred production based milestone payments of up to US$5 million."
SPA Key Terms and Advisors
As announced by the Company on July 20, 2023, under the Share & Purchase Agreement ("
SPA
") the
Company has sold its 100% owned subsidiary Legend Mali (BVI) III Inc. ("
Legend
") which indirectly
owns 100% of Korali-Sud & Lakanfla licenses in western Mali. The consideration is comprised of a
3.0% NSR royalty on the first 226,000 ounces of production from the Diba deposit at Korali-Sud and a
2.0% NSR royalty on production thereafter from both Korali-Sud and Lakanfla.
Allied have paid US$1 million in cash on closing and will pay a further US$1 million 90 days after
commercial production or the earlier of December 31, 2025, if commercial production has not occurred.
Allied will make a further payment of US$2 million within 90 days of production of 100,000 ounces from
the Diba deposit and an additional US$1 million payment when cumulative production reaches each of
150,000 ounces and then 200,000 ounces from the Diba deposit within Korali-Sud.
Elemental Altus' financial advisor for the transaction was National Bank Financial.
Project Location
The 107km
2
Korali-Sud Small Scale Mining Licence and Lakanfla Exploration Licence are located 5km
apart in the Kayes region of western Mali along the Senegal-Mali shear zone, approximately 450km
northwest of the capital city of Bamako (see
Map 1
). The Project is contiguous with the multi-million
ounce Sadiola gold mine licence acquired by Allied Gold Corporation from the previous operators
AngloGold Ashanti and IAMGOLD Corporation, and 35km south of the multi-million ounce Yatela former
gold mine.
Map 1. Location of the Diba Gold Project and Sadiola Gold Mine
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8358/186923_63b6f2e4d4590be6_001full.jpg
Project: Geology and Mineralisation
Korali-Sud Small Scale Mining Licence
Mineralisation at the Diba deposit in the Korali-Sud licence is sediment-hosted with a series of stacked
quartz lenses within sedimentary packages that are typically between 20 and 40m thick (see
Map 2
).
The lenses are shallow-dipping at approximately 30 degrees angled to the east/east-southeast. The
Diba deposit is considered to be controlled by a number of northwest and northeast orientated
structures, with gold occurring as fine-grained disseminations in localised high-grade, calcite-quartz
veinlets. Alteration at the Diba deposit is typically albite-hematite+/-pyrite, although pyrite content is
generally very low (<1%). The weathering profile at the Diba deposit is estimated to be up to 70m
vertical depth, resulting in extensive oxidation from surface. The oxide gold mineralisation at the Diba
deposit is predominantly found in saprolite within 50m of surface and across a compact 700m x 700m
area.
Lakanfla Licence
The Lakanfla licence hosts a significant number of active and historic artisanal gold workings coincident
with significant geochemical and gravity anomalies. The workings surround the Kantela granodiorite
intrusion and cover an area of approximately 900m x 500m. The gold mineralisation at Lakanfla is
typically hosted within breccia zones which cut the granodiorite and surrounding carbonate
metasediments similar to the Sadiola and Yatela deposits.
Map 2: Cross section of the Diba Gold Deposit
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8358/186923_63b6f2e4d4590be6_002full.jpg
On behalf of Elemental Altus Royalties Corp.
Frederick Bell
CEO and Director
Corporate & Media Inquiries:
Tel: +1 604 243 6511 (ext. 2700)
Email:
Elemental Altus is a proud member of Discovery Group. For more information please visit:
www.discoverygroup.ca
or contact +1 604 653 9464.
TSX.V: ELE | OTCQX: ELEMF | ISIN: CA28619K1093 | CUSIP: 28619K109
About Elemental Altus Royalties Corp.
Elemental Altus is a revenue generating precious metals royalty company with 10 producing royalties
and a diversified portfolio of pre-production and discovery stage assets. The Company is focused on
acquiring uncapped royalties and streams over producing, or near-producing, mines operated by
established counterparties, as well as generating royalties on new discoveries. The vision of Elemental
Altus is to build a global gold royalty company, offering investors superior exposure to gold with reduced
risk and a strong growth profile.
About Allied Gold Corporation
Allied is a Canadian-based, TSX listed (TSX: AAUC) gold producer with a significant growth profile and
mineral endowment which operates a portfolio of three producing assets and development projects
located in Côte d'Ivoire, Mali, Ethiopia and Egypt. Led by a team of mining executives with operational
and development experience and proven success in creating value, Allied Gold aspires to become a
mid-tier next generation gold producer in Africa and ultimately a leading senior global gold producer.
1
The Project Mineral Resource and Mineral Reserve Estimates quoted are those published in Altus Strategies 2022 NI 43-101 report: "Altus
Strategies: Diba & Lakanfla Project Heap Leach Preliminary Economic Assessment (NI43-101), Mali" dated August 1, 2022, effective as at August 1,
2022; Report author: Matthew Field, BSc, BSc Hons, MSc, PhD as Principal Consulting Geologist with Mining Plus UK Ltd
Qualified Person
Steven Poulton, Executive Chairman for Elemental Altus, and a qualified person under National
Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the
scientific and technical disclosure contained in this press release.
Neither the TSX-V nor its Regulation Service Provider (as that term is defined in the policies of the TSX-
V.) accepts responsibility for the adequacy or accuracy of this press release.
Cautionary note regarding forward-looking statements
This news release contains certain "forward looking statements" and certain "forward-looking
information" as defined under applicable Canadian securities laws. Forward-looking statements and
information can generally be identified by the use of forward-looking terminology such as "may", "will",
"should", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology.
Forward-looking statements and information are based on forecasts of future results, estimates of
amounts not yet determinable and assumptions that, while believed by management to be reasonable,
are inherently subject to significant business, economic and competitive uncertainties and
contingencies.
Forward-looking statements and information are subject to various known and unknown risks and
uncertainties, many of which are beyond the ability of Elemental Altus to control or predict, that may
cause Elemental Altus' actual results, performance or achievements to be materially different from those
expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties
and other factors set out herein, including but not limited to: the impact of general business and
economic conditions, the absence of control over the mining operations from which Elemental Altus will
receive royalties, risks related to international operations, government relations and environmental
regulation, the inherent risks involved in the exploration and development of mineral properties; the
uncertainties involved in interpreting exploration data; the potential for delays in exploration or
development activities; the geology, grade and continuity of mineral deposits; the impact of the COVID-
19 pandemic; the possibility that future exploration, development or mining results will not be consistent
with Elemental Altus' expectations; accidents, equipment breakdowns, title matters, labour disputes or
other unanticipated difficulties or interruptions in operations; fluctuating metal prices; unanticipated costs
and expenses; uncertainties relating to the availability and costs of financing needed in the future; the
inherent uncertainty of production and cost estimates and the potential for unexpected costs and
expenses, commodity price fluctuations; currency fluctuations; regulatory restrictions, including
environmental regulatory restrictions; liability, competition, loss of key employees and other related risks
and uncertainties. For a discussion of important factors which could cause actual results to differ from
forward-looking statements, refer to the annual information form of the Company for the year ended 31
December, 2022. Elemental Altus undertakes no obligation to update forward-looking statements and
information except as required by applicable law. Such forward-looking statements and information
represents management's best judgment based on information currently available. No forward-looking
statement or information can be guaranteed, and actual future results may vary materially. Accordingly,
readers are advised not to place undue reliance on forward-looking statements or information.
All of the results of the PEA on the Project constitute forward-looking information, including estimates of
internal rates of return, net present value, future production, estimates of cash cost, assumed long term
price for gold of US$1,750 per ounce, proposed mining plans and methods, mine life estimates, cash
flow forecasts, metal recoveries, and estimates of capital and operating costs. Furthermore, with respect
to this specific forward-looking information concerning the development of the Project, the Company has
based its assumptions and analysis on certain factors that are inherently uncertain. Uncertainties include
among others: (i) the adequacy of infrastructure; (ii) unforeseen changes in geological characteristics;
(iii) changes in the metallurgical characteristics of the mineralisation; (iv) the ability to develop adequate
processing capacity; (v) the price of gold; (vi) the availability of equipment and facilities necessary to
complete development; (vii) the size of future processing plants and future mining rates, (viii) the cost of
consumables and mining and processing equipment; (ix) unforeseen technological and engineering
problems; (x) accidents or acts of sabotage or terrorism; (xi) currency fluctuations; (xii) changes in laws
or regulations; (xiii) the availability and productivity of skilled labour; (xiv) the regulation of the mining
industry by various governmental agencies; (xv) political factors, including political stability.
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