Elemental Royalties Notes Increased Wahgnion Planned Average Annual Production and Increased 2020 Guidance
Elemental Royalties Notes Increased
Wahgnion Planned Average Annual Production
and Increased 2020 Guidance
/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE
SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES
./
VANCOUVER, BC
,
Aug. 6, 2020
/CNW/ - Elemental Royalties Corp. ("
Elemental
" or "the
Company
") (TSX-V: ELE) is pleased to note that Teranga Gold Corporation ("
Teranga
") (TSX:
TGZ) has reported an updated life of mine plan and increased 2020 production guidance at its
Wahgnion Gold Operation ("
Wahgnion
"), located in southwest
Burkina Faso
,
West Africa
.
Elemental acquired a 1% net smelter royalty over Wahgnion from a third party in
January 2020
.
Highlights:
Teranga has increased Wahgnion's 2020 production guidance to between 150,000 – 165,000
ounces, a 15% – 18% increase from earlier guidance of 130,000 – 140,000 ounces
Since commissioning, Wahgnion's processing plant has performed approximately 25% above
nameplate capacity for throughput and gold recovered
Teranga has also updated the Life of Mine plan to accommodate higher throughput capacity,
increasing annual expected production by 25% with a corresponding reduction of mine life to 10
years based on the currently-defined Mineral Reserve
Annual gold production is expected to average 150,000 ounces through 2025
A multi-year drilling and exploration program has commenced with the goal of extending mine
life to 15 years at three existing deposit areas and more than a dozen exploration targets
"Since acquiring the royalty on Wahgnion in January we have been encouraged by the significant
outperformance at the mine and Teranga's announcement of increased guidance has a very positive
impact for Elemental" commented
Frederick Bell
, CEO. "The increase in expected production at a
time of record gold prices is excellent news for the Company following our recent listing. We are
also pleased that Teranga have announced a substantial drilling and exploration program that has
the potential to extend mine life beyond the existing plan."
For further information please reference Teranga's
August 6, 2020
press release filed to its issuer
profile at
www.sedar.com
.
About the Wahgnion Gold Operation:
The Wahgnion Gold Operation is a conventional carbon-in-leach operation located southwest
Burkina
Faso
, 510 km southwest of the capital city
Ouagadougou
. The mining licence covers an area of 89
km
2
mine license within a 933 km
2
exploration land package covering the Paleoproterozoic Birimian
Senoufo Belt. Wahgnion will have multiple deposits feeding into a central mill and owner-operated
conventional truck and shovel open-pit mining. First gold was poured in
August 2019
with commercial
production declared on 1
st
November 2019
.
Qualified Person:
Richard Evans
, FAusIMM, is Senior Vice President Technical for Elemental, 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.
About Elemental:
Elemental is a gold focused royalty company with a portfolio of five royalties over producing assets
spanning
Burkina Faso
,
Chile
,
Mexico
,
Kenya
and Western Australia. The portfolio is heavily
weighted towards precious metals and producing royalties, providing a diversified foundation of
revenue from the outset, while minimising shareholder dilution.
On behalf of Elemental Royalties Corp.
Frederick Bell
CEO and Director
Elemental Royalties Corp. is a proud member of Discovery Group. For more information please
visit: discoverygroup.ca or contact 604-653-9464.
Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is
defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the
adequacy or accuracy of this press release.
Forward-Looking Statements
This press release contains certain "forward looking statements" and certain "forward-looking
information" as defined under applicable Canadian and U.S. 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. The forward-looking information contained herein is provided for the
purpose of assisting readers in understanding management's current expectations and plans
relating to the future. Readers are cautioned that such information may not be appropriate for other
purposes. Forward-looking statements and information include, but are not limited to, statements
with respect to the Company's financial guidance, outlook, proposed plans for acquiring additional
royalty and similar interests and the potential of such interests to provide returns and the
completion of mine expansion under construction phases at the mines or properties that the
Company holds an interest in. 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 information is subject to known and
unknown risks, uncertainties and other factors that may cause the actual actions, events or results
to be materially different from those expressed or implied by such forward-looking information,
including but not limited to: the impact of general business and economic conditions; the absence
of control over mining operations from which Elemental will receive royalty payments and risks
related to those mining operations, including risks related to international operations, government
and environmental regulation, delays in mine construction and operations, actual results of mining
and current exploration activities, conclusions of economic evaluations and changes in project
parameters as plans continue to be refined; accidents, equipment breakdowns, title matters, labor
disputes or other unanticipated difficulties or interruptions in operations; problems inherent to the
marketability of gold and other metals; the inherent uncertainty of production and cost estimates
and the potential for unexpected costs and expenses; industry conditions, including fluctuations in
the price of the primary commodities mined at such operations, fluctuations in foreign exchange
rates and fluctuations in interest rates; government entities interpreting existing tax legislation or
enacting new tax legislation in a way which adversely affects Elemental; stock market volatility;
regulatory restrictions; liability, competition, loss of key employees , other related risks and
uncertainties. Elemental undertakes no obligation to update forward-looking information except as
required by applicable law. Such forward-looking information represents management's best
judgment based on information currently available. No forward-looking statement 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.
Cautionary Note to U.S. Persons Concerning Estimates of Reserves and Measured, Indicated
and Inferred Resources
Information contained or referenced in this press release or in the documents referenced herein
concerning the properties, technical information and operations of Elemental has been prepared in
accordance with requirements and standards under Canadian securities laws, which differ from the
requirements of US securities laws. The terms "mineral resource", "measured mineral resource",
"indicated mineral resource", "inferred mineral resource" "mineral reserve", "probable mineral
reserve," and "proven mineral reserve" used in this press release or in the documents incorporated
by reference herein are mining terms as defined in accordance with NI 43-101 under guidelines
set out in the Definition Standards for Mineral Resources and Mineral Reserves adopted by the
Canadian Institute of Mining, Metallurgy and Petroleum Council on May 10, 2014. While such
terms are recognized and required by Canadian securities laws, they are not recognized by SEC
standards and normally are not permitted to be used in reports filed with the SEC. Investors are
cautioned not to assume that all or any part of the disclosed mineral resource estimates will ever
be confirmed or converted into reserves that meet the definitions used by the SEC. Disclosure of
contained ounces are or may be permitted disclosure under regulations applicable to Elemental;
however, the SEC normally only permits issuers to report mineralization that does not constitute
"reserves" by SEC standards as in-place tonnage and grade without reference to unit of production
measures. Accordingly, certain information contained in this press release or in the documents
incorporated by reference herein concerning descriptions of mineralization and mineral resources
under these standards may not be comparable to similar information made public by US
companies subject to reporting and disclosure requirements of the SEC.
SOURCE
Elemental Royalties Corp.
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For further information:
about Elemental Royalties Corp. or this news release, please visit our
website at www.elementalroyalties.com or by email at [email protected].
CO: Elemental Royalties Corp.
CNW 10:04e 06-AUG-20