Royalties Inc. Hires SLR to Update Bilbao Economics
Royalties Inc. Hires SLR to Update Bilbao
Economics
Toronto, Ontario--(Newsfile Corp. - January 16, 2026) -
Royalties Inc. (CSE: RI) (OTCID: ROYIF)
(or
"the
Company
") is pleased to announce that it has hired SLR Consulting (Canada) Ltd. ('SLR') to
provide an updated economic analysis based on information in the 2014 PEA using current metal
pricing for sensitivity analysis to assess the effect of increased commodity prices on the economics of
the Bilbao project.
SLR will also carry out a high-level assessment of potential high iron-oxide ore processing technologies
to identify suitable methods for extracting value from the oxide portion of the deposit which was excluded
from the PEA plan, potentially adding tonnage to the project. A report is expected to be completed within
a month.
Bilbao Silver-Zinc-Lead Project
Royalties Inc., through its Mexican subsidiaries, currently holds a 100% interest in the Bilbao zinc-silver-
lead-copper project located approximately 500km northwest of Mexico City in the southeastern part of
the State of Zacatecas. Bilbao is a polymetallic, replacement-style, silver-zinc-lead, skarn-type
replacement sulphide deposit with a deeply weathered oxide cap.
In 2014 Runge Pincock Minarco (Canada) Limited (RPM) delivered an independent Technical Report in
accordance with NI 43-101 containing an updated resource estimate and preliminary economic
assessment (PEA) on the Bilbao Project based on three year trailing average prices of: Silver
US$30.24/ounce, Zinc US$0.94/lb, and Lead US$1.01/lb. This compares to the recent significant
increase in spot prices for Silver to US$92 per ounce, Zinc US$1.50/lb, and Lead US$0.93/lb equating
to a doubling of the potential annual revenue.
The mine plan incorporated in the PEA targeted the extraction of only the lower, unoxidized, sulphide
zone based on a production rate of 2,000 tonnes per day, or 720,000 tonnes per year with an average
grade of 2.1%, 1.4% and 63.96 g/t of zinc, lead and silver, respectively, over a mine life of approximately
eight years.
The mineral processing plant described in the PEA projected on average, 16,913 dry tonnes per year of
silver-rich lead concentrate, and 26,966 dry tonnes per year of zinc concentrate, constituting an average
combined total of approximately 20 million pounds of zinc, 17 million pounds of lead, and one million
ounces of silver, per year.
"With the silver price tripling over the last year and expected to continue to be strong, it is time to revisit
the economics of our Bilbao project and to focus on the high-grade silver potential as well as how to
increase tonnage. Also, a review of prior exploration reports and drill results from 2010-2013, identified
8 targets for potential satellite mineralization around the main Bilbao deposit," stated Tim Gallagher,
CEO.
Qualified Person
Scientific and technical information disclosed in this press release was prepared by or under the
supervision of and approved by Gerry J. Gauthier, P. Eng., a Director and former President of the
Company and a 'qualified person' within the meaning of NI 43-101.
About SLR Consulting
https://www.slrconsulting.com/ca/sectors/mining/
SLR provides a broad range of social, environmental and engineering consulting services to the mining
sector. SLR Consulting (Canada) Ltd. and its predecessor company Roscoe Postle Associates Inc. has
completed many assignments in Mexico, including Mineral Resource and Mineral Reserve estimates
and audits, Pre-feasibility and Feasibility Studies, due diligence for merger and acquisition purposes,
stock exchange filings and regulatory requirements and mineral property valuations.
About Royalties Inc.
Royalties Inc. owns a 100% interest, subject to a 1.5% NSR owned as a separate asset, on the
Bilbao silver-zinc-lead project which needs an update on the impact of the increase in the silver
price from US$30 per oz in the 2014 PEA.
Royalties Inc. owns 88% of Minera Portree de Zacatecas, S.A. de C.V ("MPZ") which holds a
Zacatecas Appeals court confirmed claim to a 2% NSR established in 2002 on five mining
concessions called the 'Portree claims', a portion of which is on the Mala Noche Footwall Zone, the
main source of production at the Cozamin mine where Capstone Copper Corp. ("Capstone") has
been mining since 2010. Capstone attempted to assign this royalty to themselves without the
knowledge, consent or proper payment to MPZ, the longstanding and rightful owner since 2002. As
a final step in the Mexico legal process, Capstone filed an amparo with the Federal Collegiate
Tribunal, which has not yet been officially accepted.
Royalties Inc. has a 5% stake in
Music Royalties Inc
. ("MRI"), which has paid out over $14 million in
72 monthly dividends since 2019 from 31 cash-flowing catalogs with 7,000 songs generating a
7.2% annual yield.
For further information contact Royalties Inc. at
www.royaltiesinc.com
.
Tim Gallagher
CEO & Director
(416) 925-0090
Connor Gallagher
Investor Relations
(647) 921-2206
Andrew Robertson
Director
(416) 317-0137
Neither the CSE, nor its Regulation Services Provider accepts responsibility for the adequacy or
accuracy of this press release.
Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of applicable securities
laws. All statements contained herein that are not clearly historical in nature may constitute forward-
looking information. In some cases, forward-looking information can be identified by words or phrases
such as "may", "will", "expect", "likely", "should", "would", "plan", "anticipate", "intend", "potential",
"proposed", "estimate", "believe" or the negative of those terms, or other similar words, expressions,
and grammatical variations thereof, or statements that certain events or conditions "may" or "will"
happen, or by discussions of strategy. Where the Company expresses or implies an expectation or
belief as to future events or results, such expectation or belief is based on assumptions made in good
faith and believed to have a reasonable basis. However, forward-looking statements are subject to
risks, uncertainties, and other factors, which could cause actual results to differ materially from future
results expressed, projected or implied by such forward-looking statements. Such risks include, but
are not limited to: sufficient capital and financing required in order to fulfill the Company's business
plans and strategy may not be obtained as expected; that the Company will not be able to pay future
dividends; and other risks related to the Company as disclosed in the documents filed on the
Company's profile at SEDAR+ at
www.SEDARplus.ca
. Accordingly, readers are cautioned not to place
undue reliance on forward-looking statements contained in this press release and they are expressly
qualified in their entirety by this cautionary statement. The forward-looking statements herein are
made as at the date hereof and are based on the beliefs, estimates, expectations, and opinions of
management on such date.
The Company does not undertake any obligation to update publicly or
revise any such forward-looking statements whether as a result of new information, future events or to
explain any material difference between subsequent actual events and such forward-looking
information, except as required under applicable securities law.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/280617