Elemental Altus Notes Completion of Lundin Mining's Acquisition of Caserones
Elemental Altus Notes Completion of Lundin
Mining's Acquisition of Caserones
Vancouver, British Columbia--(Newsfile Corp. - July 19, 2023) - Elemental Altus Royalties Corp. (TSXV:
ELE) (OTCQX: ELEMF)
("
Elemental Altus
" or "
the
Company
") notes that Lundin Mining Corporation
("Lundin Mining") (TSX: LUN) has closed the acquisition of 51% of the Caserones copper-molybdenum
mine ("Caserones") in Chile. Additionally, Lundin Mining have announced H1 2023 production results,
released an updated NI 43-101 technical report at Caserones, and highlighted the optimisation and
exploration potential at the mine. Elemental Altus holds an effective 0.473% NSR on the project.
Acquisition Highlights
Caserones produced approximately 69,700 metric tonnes of copper and 2,400 metric tonnes of
molybdenum in the first half of 2023 and has guided 60,000 tonnes to 65,000 tonnes of copper and
1,500 tonnes to 2,000 tonnes of molybdenum in the second half of 2023
Production guidance for Caserones for both 2024 and 2025 is 110,000 to 120,000 tonnes of
copper and 1,500 to 2,500 tonnes of molybdenum
Reserves include 850 million tonnes of material grading 0.30% total copper and 0.014%
molybdenum containing 2.55 million tonnes of total copper and 76,000 tonnes molybdenum
Measured and Indicated Resources
1
include 1,023 million tonnes of material grading 0.31%
copper and 0.010% molybdenum containing 3.15 million tonnes of total copper and 105,000
tonnes of molybdenum
The currently reported Mineral Resource only includes drilling up to the end of 2017, with over
20,000m of subsequent drilling not yet included
Outlined in the initial purchase agreement, provisions have also been made for Lundin Mining to
potentially draw an additional $400 million (non-committed) to be used towards the purchase of an
additional 19% interest in Caserones
Royalty Highlights
On July 12, 2023 Elemental Altus announced the acquisition of an additional 0.030% NSR royalty
on Caserones resulting in the Company now holding an effective 0.473% NSR on the project
The royalty area covers 170 square kilometres and includes all current reserves and resources and
many regional targets.
The company recognises the benefits of having Lundin Mining as partners given their strong
community engagement and expertise in the region.
Lundin Mining has noted that many opportunities exist to improve upon the life-of-mine plan which
includes the regions significant exploration potential.
Frederick Bell, CEO of Elemental Altus, commented:
"The acquisition of a majority interest in Caserones by Lundin Mining and strong first half
performance confirms Caserones as a cornerstone long-life revenue generating asset in our portfolio.
The operating company generated approximately US$120 million in the first six months of the year
with significant exploration potential remaining to be unlocked across the licence package. We look
forward to seeing the synergies the nearby Lundin infrastructure may provide for future exploration
and optimisation at Caserones."
Caserones Mine Overview
The Caserones mine is a large, open-pit porphyry copper-molybdenum deposit, located within a 170km
2
land package at an elevation of approximately 4,300m above sea level in the borough of Tierra Amarilla,
in the Atacama region of northern Chile. The mine is approximately 15km from the border with Argentina,
162km southeast of the city of Copiapó and 800km north of the capital, Santiago.
Located at the southern end of the well-documented Maricunga mineral belt, the geology of Caserones
comprises an Early-Miocene porphyry system associated with a cluster of dacite porphyries and
breccias intruding Palaeozoic granitic, volcanic, and metamorphic rocks. Caserones has a well-
developed supergene enrichment profile of oxide copper and secondary chalcocite that overlies
hypogene sulfide (chalcopyrite-molybdenite) mineralisation. The mine produces copper and
molybdenum concentrates from a conventional crusher, mill and flotation plant, as well as copper
cathodes from a dump leach, solvent extraction and electrowinning plant and has been in operation
since 2014.
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.
On behalf of Elemental Altus Royalties Corp.
Frederick Bell
CEO and Director
Corporate & Media Inquiries:
Jacy Zerb, VP Investor Relations
Direct: +1 604-243-6511 ext. 2700
Elemental Altus is a proud member of Discovery Group. For more information please visit:
www.discoverygroup.ca
or contact 604-653-9464.
TSXV: ELE | OTCQX: ELEMF | ISIN: CA28619K1093 | CUSIP: 28619K109
1
The Caserones Mineral Resource and Mineral Reserve Estimates quoted are those published in
Lundin Mining's recent NI 43-101 report: "Technical Report on the Caserones Mining Operation" dated
13 July, 2023, effective as at 31 December 2022; and they are reported to 2014 CIM Definition
Standards, assuming open pit mining.
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.
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 the Company for the year ended
December 31, 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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/173992