Elemental Altus Notes Planned 30% Production Expansion at Cornerstone Karlawinda Royalty
Elemental Altus Notes Planned 30%
Production Expansion at Cornerstone
Karlawinda Royalty
Vancouver, British Columbia--(Newsfile Corp. - October 30, 2024) - Elemental Altus Royalties Corp.
(TSXV: ELE) (OTCQX: ELEMF) ("
Elemental Altus
" or the "
Company
") notes the announcement by
Capricorn Metals Ltd (ASX: CMM) ("
Capricorn
") of a material production expansion at the Karlawinda
Gold Project ("
Karlawinda
") where Elemental Altus holds an uncapped 2.0% Net Smelter Return
("
NSR
") royalty. Capricorn are targeting annual gold production of 150,000 ounces, driven by an
increase of total processing capacity to 6.5 Mtpa (Note 1). Karlawinda is a cornerstone asset for
Elemental Altus, contributing US$4.6 million in zero-cost revenue in 2023.
Highlights
Capricorn approved a major expansion at Karlawinda, targeting average annual gold production of
150,000 ounces, reflecting a 30% increase from the midpoint of production guidance FY2025
(Note 2)
Elemental Altus' uncapped 2% NSR royalty will provide approximately 3,000 Gold Equivalent
Ounces ("
GEOs
") annually to the Company based on the higher 150,000 ounce production rate
The increased production is due to an approximate 50% throughput increase from the installation
of a new three-stage crusher and ball mill circuit, increasing total processing capacity to 6.5 Mtpa
from the current 4.0 to 4.5 Mtpa
Following an estimated A$120 million investment, Capricorn are targeting completion of the
expanded plant by the end of Q2 2026
The expansion follows a recently announced 15% increase to the Mineral Reserves to 1,428
thousand ounces ("
koz
") gold, contained in 57.7 Mt with a grade of 0.8 g/t Au, equating to a 27%
increase to the Mineral Reserves after accounting for mining depletion up to July 2024 (Note 3)
Karlawinda remains a long life, low cost asset with a current mine life of 10 years based on Mineral
Reserves, with significant further potential to increase resources and reserves down dip of current
inventories
Frederick Bell, CEO of Elemental Altus, commented:
"We are excited to note Capricorn's Board approved a major A$120 million expansion at Karlawinda,
increasing production to 150,000 ounces per annum over an initial 10-year mine life. Karlawinda is a
cornerstone royalty for Elemental Altus, contributing US$4.6 million in revenue to the portfolio in 2023
and US$2.5 million in in H1 2024. The completion of the expansion study highlights the upside at the
project with planned production increases complementing resource growth to-date. In addition, the
production expansion is based on existing Reserves with the potential to both increase and convert
the Resource down dip, providing Elemental Altus with ongoing upside.
Capricorn's management team have an excellent track record of mine builds and expansions across
Australia and we look forward to following their progress."
Karlawinda Process Plant Expansion
Following the updated Mineral Reserve Estimate and Mineral Resource Estimate reported August 1,
2024 (Note 3), Capricorn have completed an evaluation of the economics of higher process plant
throughput at Karlawinda. Mine to mill studies examined delivery of ore directly to the processing plant to
minimise stockpiling and re-handling to reduce operating costs. Capricorn have opted for a parallel
three-stage crushing and ball mill circuit which provide an extra 2.5 Mtpa of capacity to the current 4.0 to
4.5 Mtpa. Capricorn have reported that long-lead procurement and detailed process plant engineering
have commenced.
Capricorn notes that the mining fleet won't need a material increase to achieve the 6.5 Mtpa target
throughput, and that a new proposed tailings storage facility will use waste from the existing Bibra Pit.
The expansion increases processing flexibility with an incremental contractor mining fleet and
earthmoving volume increase. The replicated flowsheet for the expanded processing facility also
provides synergies in equipment, maintenance and training. Existing gas infrastructure can deliver the
required increase in power generation, and future studies will assess potential cost reductions using
renewable energy.
Capricorn does not foresee any permitting issues with the expansion and noted that the work required
for the required permit applications has commenced. Capricorn also noted that the expansion and
related infrastructure fit within the current leases. The total capital investment for the expansion is A$120
million (approximately US$79 million) with an estimated 20-month payback.
The Karlawinda Expansion announcement follows a previously announced 15% to the Mineral Reserves
to 1,428 koz gold contained in 57.7 Mt with a grade of 0.8 g/t Au. This equates to a 27% increase to the
Mineral Reserves after accounting for mining depletion up to July 2024. All Karlawinda Mineral Reserves
are categorised as Probable Reserves. Indicated Resources were increased to 1,965 koz gold in 85.0
Mt with a grade of 0.7 g/t Au. Inferred Resources include a further 287 koz of gold in 13.6 Mt with a grade
of 0.7 g/t Au (Note 3).
Frederick Bell
CEO and Director
Corporate & Media Inquiries:
Tel: +1 604 646 4527
www.elementalaltus.com
Elemental Altus is a proud member of Discovery Group. For more information please visit:
www.discoverygroup.ca
or contact +1 604 646 4527.
About Elemental Altus Royalties Corp.
Elemental Altus is an income generating precious metals royalty company with 11 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. Capricorn's press
release and disclosure (including that referred to in this press release) includes inferred mineral
resources that are too speculative geologically to have economic considerations applied to them that
would enable them to be categorized as mineral reserves and there is no certainty that the forecast
production amounts will be realized.
Notes
1) "Karlawinda Expansion to Increase Annual Gold Production to 150,000 Ounces", dated October 29, 2024, at
https://capmetals.com.au/
2) "Karlawinda Gold Project FY24 Gold Production 113koz", dated July 4, 2024, at
https://capmetals.com.au/
3) "KGP Ore Reserve increases to 1.43 Million Ounces - Expansion Study Underway", dated August 1, 2024, at
https://capmetals.com.au/
Non-IFRS Measures
The Company has included certain performance measures which are non-IFRS and are intended to
provide additional information and should not be considered in isolation or as a substitute for measures
of performance prepared in accordance with IFRS. These non-IFRS measures do not have any standard
meaning under IFRS and other companies may calculate measures differently.
Gold Equivalent Ounces
Elemental Altus's adjusted royalty, streaming, and other revenue is converted to an attributable gold
equivalent ounce, or GEO, basis by dividing the royalty and other revenue from associates in a period by
the average gold price for the same respective period, plus the net gold ounces received in the period
from streaming investments. The presentation of this non-IFRS measure is intended to provide
additional information and should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Other companies may calculate these non-IFRS
measures differently. The production forecast was derived using information that is available in the public
domain as at the date hereof, which included guidance and estimates prepared and issued by
management of the operators of the mining operations in which Elemental Altus holds an interest. The
production forecast is sensitive to the performance and operating status of the underlying mines. None of
the information has been independently verified by Elemental Altus and may be subject to uncertainty.
There can be no assurance that such information is complete or accurate.
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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/228332