Gold Royalty Receives Initial Royalty Payments on Newmont’s Producing Borden Mine
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Vancouver, British Columbia – July 5, 2022 - Gold Royalty Corp. (“Gold Royalty” or the “Company”) (NYSE American: GROY - https://www.commodity-tv.com/ondemand/companies/profil/gold-royalty-corp/) is pleased to announce that it has begun to receive royalty payments related to its Borden Lake net smelter return (“NSR”) royalty (the “Royalty”) over Newmont Corporation’s (“Newmont”) producing Borden Mine located in Ontario, Canada. Ely Gold Royalties Inc, a wholly owned subsidiary of Gold Royalty, originally purchased the Royalty on May 6, 2020. The Royalty included a five (5) kilometer area of interest (“AOI”) with a 0.50% NSR (the “AOI Royalty”) on certain claims within the AOI (the “AOI Claims”). (See Ely Gold press release dated May 28, 2020)
It has now been confirmed that mining at the Borden Mine (“Borden” or “Borden Mine”) is occurring on the AOI Claims and therefore Newmont has begun making royalty payments under the AOI Royalty. Gold Royalty has received approximately $1.4 million in royalty back payments. The AOI Royalty has been registered on the mining licence with the Ministry of Mining in Ontario.
David Garofalo, Chairman and CEO of Gold Royalty commented: “Borden brings another high-quality cash flowing asset into our portfolio. Along with the expected start of production at Beaufor this month, we will have eight royalties on producing assets and twenty assets in development supporting our industry leading revenue growth profile. As the former CEO of Goldcorp, I recall our team developing Borden as a next generation, environmentally friendly mine, and I am excited for Gold Royalty to now be a part of this asset as a royalty holder.”
The Borden Mine
The Borden Mine is operated by Newmont near Chapleau, Ontario as part of the larger Porcupine complex near Timmins. Described on Ontario’s Invest Ontario website as the “mine of the future”, Borden features state-of-the-art health and safety controls, digital mining technologies and processes, and low-carbon energy vehicles. In addition, Borden’s all-electric underground fleet eliminates diesel particulate matter from the underground environment and lowers greenhouse gas emissions. This helps to reduce energy costs, protect employee health and minimize impacts to the environment.
Newmont commenced production at Borden in late 2019 and the initial mine plan outlined a seven-year mine life extending to 2027 projecting over 100,000 ounces of annual production. Production from Borden was 521,086 tonnes grading 6.67 g/t Au at 93.7% recovery for 104,648 ounces of gold in 20201 and 588,262 tonnes grading 5.84 g/t Au at 93.76% recovery for 103,524 ounces of gold in 20212. The most recently available Mineral Reserves and Mineral Resources statement for the Borden mine was published by the project’s former owner, Goldcorp Inc., as outlined below:
Borden Gold Project Mineral Reserve and Mineral Resource Estimate3 (June 30, 2016)
- Proven and Probable Mineral Reserves of 0.95 million ounces gold (4.12 million tonnes grading 7.14 g/t gold)
- Measured and Indicated Mineral Resources of 0.56 million ounces gold (3.02 million tonnes grading 5.77 g/t gold)
- Inferred Mineral Resources of 0.41 million ounces gold (2.30 million tonnes grading 5.49 g/t gold)
Notes to Mineral Reserves and Resources:
- 2014 CIM Definition Standards were followed for the definition of Mineral Resources
- Mineral Resources are exclusive of Mineral Reserves
- Mineral Reserves were estimated using a gold price of US$1,200/oz
- Mineral Resources were estimated using a gold price of US$1,400/oz
- Quantities reported on 100% basis
- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
- All figures have been rounded to reflect the relative accuracy of the estimates
The Royalty covers several unpatented claims including a claim over the southeast portion of the Borden underground mine workings. The early years of the mine life have focused on the near surface, northwest portion of the mine, with the later years of the mine life now focused at depth, under the Company’s Royalty coverage. The Royalty also covers prospective land between one and three kilometers to the northwest of the Borden Mine. Refer to Figure 1 for the location of the Borden underground mine workings relative to the Company’s Royalty coverage.
Figure 1: Surface image taken from the Borden Mine Closure Plan Report4 showing a projection of planned mine development. Underground workings are shown extending to depth to the southeast on the Company’s Royalty. Numerous drill pads located on the Company’s Royalty can be seen to the northwest of the mine development. An overlay (dark blue) has been added to illustrate claims subject to the Royalty.
Footnotes
- Report of Activities 2020, Resident Geologist Program, Timmins Regional Resident Geologist Report: Timmins and Sault Ste. Marie Districts; Ontario Geological Survey, Open File Report 6374, 114p
- Report of Activities 2021, Resident Geologist Program, Timmins Regional Resident Geologist Report: Timmins and Sault Ste. Marie Districts; Ontario Geological Survey, Open File Report 6384, 151p.
- Borden Mineral Reserves and Mineral Resources as disclosed in Goldcorp Inc.’s 2016 Annual Report. Note that production commenced at Borden in 2019 and the 2016 Mineral Reserves and Resources Statement does not capture subsequent depletion from mining nor exploration additions. Newmont currently consolidates reporting for Porcupine which includes Borden. #BBD0E0 »