Elemental Altus Notes Agreement for Further Development at Diba Royalty
Elemental Altus Notes Agreement for Further
Development at Diba Royalty
Vancouver, British Columbia--(Newsfile Corp. - September 5, 2024) - Elemental Altus Royalties Corp.
(TSXV: ELE) (OTCQX: ELEMF) ("
Elemental Altus
" or the "
Company
") is pleased to report that Allied
Gold Corporation ("
Allied
") (TSX: AAUC) has recently announced a settlement of terms for a protocol
agreement with the Government of Mali to secure approvals for advancing the development and
processing of the Diba deposit. In addition to expected milestone payments, Elemental Altus holds a 3%
NSR royalty on the first 226,000 ounces of gold production at the Diba and Lakanfla licences, and an
uncapped 2% NSR thereafter. The Diba deposit is ~12km from Allied's producing Sadiola Gold Mine.
Highlights
Diba to become Elemental Altus' newest producing gold royalty expected to contribute to the
portfolio from Q3 2024, with ramp up continuing in Q4 2024
Ore from the Diba open pit was first processed at the Sadiola Mill in Q2 2024 as part of industrial
scale tests to confirm and optimize processing parameters, yielding better than expected grades,
with Allied announcing the Diba deposit will contribute to increased intermediate-term oxide gold
production at Sadiola Gold Mine
Allied are also dedicated to further advancing optimization at the Sadiola Gold Mine, including
initiatives to improve recoveries, increase throughput and optimise mining inventory, as higher than
expected grades at Diba illustrate that initial production estimates may be exceeded
Frederick Bell, CEO of Elemental Altus, commented:
"It is an exceptional outcome to convert a low-cost exploration asset into a material royalty and have
that organically generated royalty be on track to generate revenue within 12 months of the sale. Allied
has been able to fast-track production at Diba; and further, it's very encouraging that there's been
positive grade reconciliation during initial processing. The Company continues to see value created
across the portfolio through ongoing investment by our partners.
We understand that Diba, an oxide and higher-grade ore body, is expected to significantly contribute
to Allied's production at Sadiola, which is targeting production of 200,000-230,000 ounces per annum
over the next two years, displacing lower-grade ore originally planned as mill feed. In addition, a
significant Resource remains within Elemental's royalty area that is yet to be incorporated into the
mine plan. We expect to materially benefit from Allied's continued resource definition, with the
objective of increasing the current Resource and making new discoveries attributable to Elemental.
We look forward to our Diba royalty becoming a material contributor to the Elemental Altus portfolio in
H2 2024 and beyond."
Sadiola (Diba) Gold Project, Western Mali
Elemental Altus' royalty on Allied's Sadiola gold mine covers a total area of 107km
2
, including the Diba
and Lakanfla satellite deposits (Figure 1). Sadiola is located in western Mali along the Senegal-Mali
shear zone, approximately 450km northwest of the capital city of Bamako.
As of December 31, 2023, Diba has a Proven and Probable Mineral Reserve Estimate of 6.1 million
tonnes at 1.43g/t Au for contained gold of 280,000 ounces, and a Measured and Indicated Mineral
Resource Estimate of 8.8 million tonnes at 1.33g/t for 377,000 ounces of gold, inclusive of Mineral
Reserves, both completed to CIM / NI 43-101 standards
1
. Elemental Altus also retains ongoing
exploration exposure to the additional satellite deposit, Lakanfla, which has a small historical Resource
and has demonstrated potential for carbonate-hosted karst targets similar to those seen at the nearby
gold deposits of Sadiola and Yatela.
Elemental Altus' sold the project to Allied in November 2023 for a sale consideration of cash, a royalty
and staged payments. The royalty comprises:
A 3% NSR royalty on the first 226,000 ounces produced from Diba
A 2% NSR royalty on all production thereafter from both Diba and Lakanfla
Additional staged payments as part of the consideration include:
US$1 million 90 days after commercial production
US$2 million within 90 days of production of 100,000 ounces from the Diba deposit, and;
Two US$1 million payments when cumulative production reaches each of 150,000 ounces and
then 200,000 ounces from Diba
Figure 1: ELE Royalty Coverage
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8358/222323_3063b19a3404cb64_001full.jpg
All necessary approvals for the development of Korali-Sud (Diba) and processing of its ore at the
Sadiola facilities are anticipated shortly, following the filing of a feasibility study and tolling agreement
with the mining authorities by Allied.
Frederick Bell
CEO and Director
Corporate & Media Inquiries:
Tel: +1 604 646 4527
Email:
Elemental Altus is a proud member of Discovery Group. For more information please visit:
www.discoverygroup.ca
or contact 604-646-4527.
(TSXV: ELE) | (OTCQX: ELEMF) | ISIN: CA28619K1093 | CUSIP: 28619K109
About Elemental Altus Royalties Corp.
Elemental Altus is an income 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. 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.
Qualified Person
Richard Evans, FAusIMM, is Senior Vice President Technical 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.
Notes
1) As reported in Allied's quarterly report "Allied Gold Announces Fourth Quarter and Year End 2023
Results: Establishing a Sustainable Production Platform Which Lays the Foundation For Significant
Growth at Improving Costs", dated March 26, 2024, at
https://alliedgold.com/
.
On behalf of Elemental Altus Royalties Corp.
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 include, but are not limited to, statements with respect to
the date that the name change is expected to become effective, whether shareholders will be required by
their broker to exchange their issued certificate for a new certificate or take any other action in
connection to the name change, the Company's ability to deliver a materially increased revenue profile
with a lower cost of capital, the future growth, development and focus of the Company, and the
acquisition of new royalties and streams. 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 Elemental Altus for the year ended
December 31, 2023. 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.
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