The agreement provides EMX with cash payments, additional equity interests in MPG and work commitments during a fifteen month option period. Upon exercise of the option EMX will receive additional payments of cash and shares of MPG along with annual advance royalty payments, royalty interests and other considerations.
MPG is currently an EMX partner on the Company's nearby Queensland Gold project. Together with the Queensland Gold project, the addition of Yarrol and Mt Steadman to MPG's portfolio builds a substantial property package with a diverse suite of mineral deposits and occurrences in central
Commercial Terms Overview: All terms in US Dollars unless otherwise indicated. Upon execution, MPG will make a cash payment of
Pursuant to the agreement, MPG can acquire 100% interests in the Projects during a fifteen month option period by: Paying EMX an additional
A 5% gross royalty ('Gross Royalty') on each project for mineral sands and other non-refined mineral products
Advance royalty payments that commence upon the second anniversary of the execution of the option agreement. These will be set at 20 ounces of gold per year per project, escalating to 40 ounces of gold per year per project upon publication of maiden JORC compliant resources, and further escalating to 65 ounces of gold per year if a resource that contains greater than 1.5 million ounces of gold (or gold equivalent) is defined
Milestone payments of
Within 51 months of executing the agreement, MPG will have the right to re-purchase 0.5% of the NSR Royalty on each project for
Yarrol was the site of historical gold mining activities in the 1800's through the 1930's, with historical gold production averaging 10 g/t.1 Further exploration and assessments conducted in the 1980's and 1990's led to the definition of two historical gold resources. Gold mineralization at Yarrol is present as quartz sulfide veins and zones of silicification developed in and around Permian-aged dioritic intrusions. EMX conducted a two-hole confirmation drill program in late 2022, resulting in the intersection of 17.8 meters averaging 4.01 grams per tonne (g/t) gold from 61 meters in drill hole DD22-YA187, and 12 meters at 0.91 g/t gold from 92 meters in drill hole DD22-YA188.
In late 2021, while conducting exploration programs to expand the known zones of gold mineralization, EMX geologists encountered zones of cobalt-enriched manganese oxide mineralization on the northern side of the Project area. This led to an expansion of the land position, as well as new exploration programs targeting the manganese and cobalt mineralization. Surface sampling programs demonstrated that the zones of manganese oxide mineralization encountered in the field consistently averaged over 1% cobalt, accompanied by enrichments in both nickel and copper.
Through 2022 and early 2023, EMX continued to advance the Company's understanding the manganese-cobalt mineralization with surface sampling programs and reconnaissance-style shallow drilling with an air core drill rig. These techniques helped map out the manganese oxide horizons, which vary from tens of centimeters to several meters in thickness and appear to extend for several kilometers along strike. Also present are considerable thicknesses of heavy mineral sands accumulations in beds up to tens of meters in thickness. EMX and MPG are now studying ways to approach further assessments of both the manganese-cobalt mineralization and the heavy mineral sands potential on the project.
Several historic mines are located on the Mt Steadman project (Mt Steadman, Venus and
In the 1990's mineralized sheeted vein swarms (IRGS style mineralization) were recognized at the Fitzroy prospect, where over 4000 meters of shallow drilling led to the definition of historic gold resources1. Examples of historical drill intercepts at Mt Steadman's Fitzroy prospect include reverse circulation drill holes with intercepts that include 23 meters from surface averaging 1.04 g/t gold in drill hole RC95MS7, 24 meters from surface averaging 1.13 g/t gold in RC85MS10, and 26 meters from surface averaging 1.00 g/t in RC95MS44 (true widths unknown).
Planned MPG Work Programs. MPG has notified EMX that it intends to continue surface sampling work and additional drilling on the Projects in 2023. Drilling by MPG will initially focus on the zones of cobalt-rich manganese mineralization at the Yarrol project in addition to preliminary metallurgical test work on the cobalt rich manganiferous materials and heavy mineral sands occurrences.
Comments on Sampling, Assaying, and QA/QC. EMX's drill and surface samples were collected in accordance with accepted industry standards and best practices. The samples were submitted to
Comments on Historical Mineral Resources at Yarrol and Nearby Mines and Deposits. The historical mineral resources at Yarrol were reported in 2010 by
The nearby mines and deposits in the region provide geologic context for
About EMX. EMX is a precious, base and battery metals royalty company. EMX's investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company's common shares are listed on the NYSE American Exchange and the
Contact:
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Email: Dave@emxroyalty.com
Forward-Looking Statements
This news release may contain 'forward-looking statements' that reflect the Company's current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserve and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as 'estimate,' 'intend,' 'expect,' 'anticipate,' 'will', 'believe', 'potential' and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company's future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company's MD&A for the quarter ended
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