Elemental Altus Royalties Corp. notes the recent announcement by Capricorn Metals Limited of an increase in Ore Reserves and Mineral Resources at the producing Karlawinda gold mine in Western Australia. Elemental Altus owns a 2.0% Net Smelter Return royalty on Karlawinda.

Capricorn has replaced depletion of gold reserves by 201%, with the declaration of an updated JORC 2012 compliant Ore Reserve of 53.0 million tonnes at a grade of 0.8 g/t for 1,344,000 oz of contained gold. This represents a 28% increase from the Ore Reserve declared in March 2020 and a 12% increase once depletion through mining is taken into account. The current Ore Reserve underpins a mine-life of over 12 years with annual gold production rates of 110,000 oz to 120,000 oz.

Between March and August this year, Capricorn drilled 30,518 m as part of a resource definition programme. As a result of this and a further 187,068 m of grade control drilling, Capricorn has now announced an increase in the Mineral Resource at Karlawinda to 82.3 million tonnes in the Indicated category grading 0.7 g/t for 1,945,000 oz of contained gold plus a further 16.9 million tonnes in the Inferred category grading 0.6 g/t for 346,000 oz of contained gold. This represents a 13% increase on the March 2020 estimate and a 7% increase after depletion.

Capricorn reports that the 947,000 oz of gold delineated in the Mineral Resource Estimate, in both Indicated and Inferred categories, but not currently included in the Ore Reserve Estimate are primarily located down dip of the mine's current pit design. This highlights the potential for further conversion of resources to reserves and mine-life extensions. Cut-off grades remain unchanged from the March 2020 estimates.

The Ore Reserve Estimate was based on a gold price of AUD 1,900/oz (approximately USD 1,220/oz), while the Mineral Resource Estimate applied AUD 2,200/oz (approximately USD 1,410/oz).