High-Grade Expansion at Mercedes Mine
November 21, 2019
Elemental Royalties Limited, (“Elemental”), a private company expanding a diversified portfolio of mineral royalties, is pleased to comment on the recent announcement made by Premier Gold Mines Limited (“Premier”) providing an update from its ongoing 42,000m drilling program. Premier is the operator of the Mercedes gold-silver mine located in State of Sonora in northern Mexico, on which Elemental Royalties holds a 1% NSR royalty subject to a production hurdle.
Elemental notes that drilling is currently focused on delineating new mineral resources in the Lupita Extension area as well as confirming potentially important discoveries at San Martin and Neo.
Highlights from October drilling include:
- San Martin exploration drilling expands high grade zone with:
- 1.4 m of 15.80 g/t Au & 69.00 g/t Ag
- 4.6 m of 10.03 g/t Au & 57.65 g/t Ag
- Ongoing delineation program at Lupita Extension – highlights:
- 8.9 m of 9.41 g/t Au & 34.15 g/t Ag
- 3.6 m of 7.96 g/t Au & 31.69 g/t Ag
The Lupita Extension hosts a 3m wide silicified vein of typical low-sulphidation epithermal textures and diagnostic green quartz, where drilling was designed to expand the Lupita resource to the west. After a successful Phase 1 program of 18 drill holes with a 60m spacing, Phase 2 started in May 2019 on a 30m grid, aiming to create indicated mineral resource for the year end.
The Phase 2 drill program completed a total of 87 drillholes, of which 17 still have assays pending. Based on drilling to-date, the average true width of Lupita Extension is approximately 2.9m grading 5.56 g/t Au. Minimum mining widths in the Lupita area in 2020 are expected to be reduced from 4m to 3m, minimizing dilution in future mining at Lupita Extension. Development to access the Lupita Extension, which is displaying grades well in excess of the current reserve grade at Mercedes, is planned for H1-2020.
San Martin is a target located 600m to the west of Lupita, discovered with an intercept of 1.5 m of 5.56 g/t Au (L19-396D) in May 2019. A further 10 drillholes suggest an average true width of approximately 3.2m grading 6.95 g/t Au. The two new intercepts recently drilled at San Martin continue to expand high grade mineralization with 1.4 m of 15.80 g/t Au & 69.00 g/t Ag in L19-457D and 4.6 m of 10.3 g/t Au & 57.65 g/t Ag in L19-496D.
More delineation is planned for 2020 with the intent to upgrade mineralization to an Indicated mineral resource. Given a spacing of less than 60m of drilling at San Martin during 2019, a portion of the mineralization will warrant inclusion into mineral resources at year end.
The text above is Elemental Royalties’ comment to the operator’s news release and is not included within the original release. The original article is available using the links below.
About Elemental Royalties Limited
Elemental is a private company providing investors with exposure to a dividend-paying royalty company building a diverse portfolio of mining royalties, benefiting from ongoing royalty revenue, future exploration upside and low operating costs.
Since early 2017 Elemental has assembled a portfolio of five royalties over seven commodities in four countries, four of which cover producing mines. Immediate cash-flow has enabled the Company to limit dilutive fund-raisings to facilitate royalty acquisitions, and to pay a dividend from inception.
Elemental’s focus remains on securing royalties over advanced assets with established operators and credible counter-parties from a robust pipeline of potential royalty acquisitions across commodities and geographies.
For further information you are invited to visit the Company’s website www.elementalroyalties.com or contact:
|Elemental Royalties Limited|
|T: +44 (0)203 983 7040|
Cautionary Note Regarding Forward Looking Statements
This press release may contain statements which constitute “forward-looking”, including statements regarding the plans, intentions, beliefs and current expectations of the Company, and its directors, or officers with respect to the future business activities and operating performance of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions or the negative thereof, as they relate to the Company, or its management, are intended to identify such forward-looking statements.
Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward-looking statements as a result of various factors.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. These forward-looking statements speak only as at the date of this press release. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements.