Elemental Altus Notes Planned 30% Production Expansion at Cornerstone Karlawinda Royalty
Elemental Altus Royalties announces that Capricorn Metals plans a significant expansion at the Karlawinda Gold Project, where Elemental holds a 2.0% NSR royalty. The expansion targets annual gold production of 150,000 ounces, representing a 30% increase, through enhanced processing capacity to 6.5 Mtpa. The A$120 million expansion project is expected to complete by Q2 2026. Karlawinda's Mineral Reserves recently increased by 15% to 1,428,000 ounces gold, with a current mine life of 10 years. The project contributed US$4.6 million in revenue to Elemental Altus in 2023 and US$2.5 million in H1 2024.
Elemental Altus Royalties annuncia che Capricorn Metals prevede un'importante espansione presso il Karlawinda Gold Project, dove Elemental detiene una royalty NSR del 2,0%. L'espansione mira a una produzione annuale di oro di 150.000 once, rappresentando un incremento del 30%, grazie a una capacità di lavorazione potenziata a 6,5 Mtpa. Il progetto di espansione da 120 milioni di dollari australiani dovrebbe essere completato entro il secondo trimestre del 2026. Le riserve minerarie di Karlawinda sono recentemente aumentate del 15%, raggiungendo 1.428.000 once d'oro, con una vita utile della miniera attuale di 10 anni. Il progetto ha contribuito con 4,6 milioni di dollari USA di entrate a Elemental Altus nel 2023 e 2,5 milioni di dollari USA nel primo semestre del 2024.
Elemental Altus Royalties anuncia que Capricorn Metals planea una expansión significativa en el Karlawinda Gold Project, donde Elemental posee una regalía NSR del 2.0%. La expansión tiene como objetivo una producción anual de oro de 150,000 onzas, lo que representa un aumento del 30%, mediante una capacidad de procesamiento mejorada a 6.5 Mtpa. Se espera que el proyecto de expansión de A$120 millones se complete para el segundo trimestre de 2026. Las reservas minerales de Karlawinda aumentaron recientemente en un 15% a 1,428,000 onzas de oro, con una vida útil actual de la mina de 10 años. El proyecto contribuyó con US$4.6 millones en ingresos a Elemental Altus en 2023 y US$2.5 millones en el primer semestre de 2024.
Elemental Altus Royalties는 Capricorn Metals가 Karlawinda Gold Project에서 상당한 확장을 계획하고 있음을 발표했습니다. 이 프로젝트에서 Elemental은 2.0% NSR 로열티를 보유하고 있습니다. 이번 확장은 연간 150,000 온스의 금 생산을 목표로 하며, 처리 용량을 6.5 Mtpa로 증가시켜 30%의 성장을 도모합니다. A$120백만 규모의 확장 프로젝트는 2026년 2분기까지 완료될 것으로 예상됩니다. Karlawinda의 광물 매장량은 최근 15% 증가하여 1,428,000 온스의 금에 달하며, 현재 광산의 수명은 10년입니다. 이 프로젝트는 2023년에 Elemental Altus에 US$4.6백만의 수익을, 2024년 상반기에 US$2.5백만을 기여했습니다.
Elemental Altus Royalties annonce que Capricorn Metals prévoit une expansion significative du Karlawinda Gold Project, où Elemental détient une redevance NSR de 2,0%. L'expansion vise à atteindre une production annuelle d'or de 150 000 onces, ce qui représente une augmentation de 30%, grâce à une capacité de traitement améliorée à 6,5 Mtpa. Le projet d'expansion de 120 millions de dollars australiens devrait être achevé d'ici le deuxième trimestre 2026. Les réserves minérales de Karlawinda ont récemment augmenté de 15% pour atteindre 1 428 000 onces d'or, avec une durée de vie actuelle de la mine de 10 ans. Le projet a contribué à hauteur de 4,6 millions de dollars US aux revenus d'Elemental Altus en 2023 et de 2,5 millions de dollars US au premier semestre 2024.
Elemental Altus Royalties gibt bekannt, dass Capricorn Metals eine bedeutende Erweiterung des Karlawinda Gold Project plant, wo Elemental eine NSR-Royalty von 2,0% hält. Die Erweiterung zielt auf eine jährliche Goldproduktion von 150.000 Unzen, was einem Anstieg von 30% entspricht, durch eine verbesserte Verarbeitungsfähigkeit von 6,5 Mtpa. Das 120 Millionen A$ erweiterungsprojekt soll bis zum 2. Quartal 2026 abgeschlossen sein. Die Mineralreserven von Karlawinda haben sich kürzlich um 15% auf 1.428.000 Unzen Gold erhöht, mit einer aktuellen Lebensdauer der Mine von 10 Jahren. Das Projekt trug 2023 mit 4,6 Millionen US$ zu den Einnahmen von Elemental Altus bei und 2,5 Millionen US$ im ersten Halbjahr 2024.
- 30% production increase to 150,000 ounces annually
- 15% increase in Mineral Reserves to 1,428,000 ounces gold
- 50% throughput increase from 4.0-4.5 Mtpa to 6.5 Mtpa
- 10-year mine life based on current reserves
- US$4.6 million revenue contribution in 2023
- A$120 million capital investment required for expansion
- 20-month estimated payback period
Vancouver, British Columbia--(Newsfile Corp. - October 30, 2024) - Elemental Altus Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) ("Elemental Altus" or the "Company") notes the announcement by Capricorn Metals Ltd (ASX: CMM) ("Capricorn") of a material production expansion at the Karlawinda Gold Project ("Karlawinda") where Elemental Altus holds an uncapped
Highlights
Capricorn approved a major expansion at Karlawinda, targeting average annual gold production of 150,000 ounces, reflecting a
30% increase from the midpoint of production guidance FY2025 (Note 2)Elemental Altus' uncapped
2% NSR royalty will provide approximately 3,000 Gold Equivalent Ounces ("GEOs") annually to the Company based on the higher 150,000 ounce production rateThe increased production is due to an approximate
50% throughput increase from the installation of a new three-stage crusher and ball mill circuit, increasing total processing capacity to 6.5 Mtpa from the current 4.0 to 4.5 MtpaFollowing an estimated A
$120 million investment, Capricorn are targeting completion of the expanded plant by the end of Q2 2026The expansion follows a recently announced
15% increase to the Mineral Reserves to 1,428 thousand ounces ("koz") gold, contained in 57.7 Mt with a grade of 0.8 g/t Au, equating to a27% increase to the Mineral Reserves after accounting for mining depletion up to July 2024 (Note 3)Karlawinda remains a long life, low cost asset with a current mine life of 10 years based on Mineral Reserves, with significant further potential to increase resources and reserves down dip of current inventories
Frederick Bell, CEO of Elemental Altus, commented:
"We are excited to note Capricorn's Board approved a major A
Capricorn's management team have an excellent track record of mine builds and expansions across Australia and we look forward to following their progress."
Karlawinda Process Plant Expansion
Following the updated Mineral Reserve Estimate and Mineral Resource Estimate reported August 1, 2024 (Note 3), Capricorn have completed an evaluation of the economics of higher process plant throughput at Karlawinda. Mine to mill studies examined delivery of ore directly to the processing plant to minimise stockpiling and re-handling to reduce operating costs. Capricorn have opted for a parallel three-stage crushing and ball mill circuit which provide an extra 2.5 Mtpa of capacity to the current 4.0 to 4.5 Mtpa. Capricorn have reported that long-lead procurement and detailed process plant engineering have commenced.
Capricorn notes that the mining fleet won't need a material increase to achieve the 6.5 Mtpa target throughput, and that a new proposed tailings storage facility will use waste from the existing Bibra Pit. The expansion increases processing flexibility with an incremental contractor mining fleet and earthmoving volume increase. The replicated flowsheet for the expanded processing facility also provides synergies in equipment, maintenance and training. Existing gas infrastructure can deliver the required increase in power generation, and future studies will assess potential cost reductions using renewable energy.
Capricorn does not foresee any permitting issues with the expansion and noted that the work required for the required permit applications has commenced. Capricorn also noted that the expansion and related infrastructure fit within the current leases. The total capital investment for the expansion is A
The Karlawinda Expansion announcement follows a previously announced
Frederick Bell
CEO and Director
Corporate & Media Inquiries:
Tel: +1 604 646 4527
info@elementalaltus.com
www.elementalaltus.com
Elemental Altus is a proud member of Discovery Group. For more information please visit: www.discoverygroup.ca or contact +1 604 646 4527.
About Elemental Altus Royalties Corp.
Elemental Altus is an income generating precious metals royalty company with 11 producing royalties and a diversified portfolio of pre-production and discovery stage assets. The Company is focused on acquiring uncapped royalties and streams over producing, or near-producing, mines operated by established counterparties. The vision of Elemental Altus is to build a global gold royalty company, offering investors superior exposure to gold with reduced risk and a strong growth profile.
Qualified Person
Richard Evans, FAusIMM, is Senior Vice President Technical for Elemental Altus, and a qualified person under National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical disclosure contained in this press release. Capricorn's press release and disclosure (including that referred to in this press release) includes inferred mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the forecast production amounts will be realized.
Notes
1) "Karlawinda Expansion to Increase Annual Gold Production to 150,000 Ounces", dated October 29, 2024, at https://capmetals.com.au/
2) "Karlawinda Gold Project FY24 Gold Production 113koz", dated July 4, 2024, at https://capmetals.com.au/
3) "KGP Ore Reserve increases to 1.43 Million Ounces - Expansion Study Underway", dated August 1, 2024, at https://capmetals.com.au/
Non-IFRS Measures
The Company has included certain performance measures which are non-IFRS and are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These non-IFRS measures do not have any standard meaning under IFRS and other companies may calculate measures differently.
Gold Equivalent Ounces
Elemental Altus's adjusted royalty, streaming, and other revenue is converted to an attributable gold equivalent ounce, or GEO, basis by dividing the royalty and other revenue from associates in a period by the average gold price for the same respective period, plus the net gold ounces received in the period from streaming investments. The presentation of this non-IFRS measure is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these non-IFRS measures differently. The production forecast was derived using information that is available in the public domain as at the date hereof, which included guidance and estimates prepared and issued by management of the operators of the mining operations in which Elemental Altus holds an interest. The production forecast is sensitive to the performance and operating status of the underlying mines. None of the information has been independently verified by Elemental Altus and may be subject to uncertainty. There can be no assurance that such information is complete or accurate.
Neither the TSX-V nor its Regulation Service Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this press release.
Cautionary note regarding forward-looking statements
This news release contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as "may", "will", "should", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology.
Forward-looking statements and information include, but are not limited to, statements with respect to the date that the name change is expected to become effective, whether shareholders will be required by their broker to exchange their issued certificate for a new certificate or take any other action in connection to the name change, the Company's ability to deliver a materially increased revenue profile with a lower cost of capital, the future growth, development and focus of the Company, and the acquisition of new royalties and streams. Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies.
Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Elemental Altus to control or predict, that may cause Elemental Altus' actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to: the impact of general business and economic conditions, the absence of control over the mining operations from which Elemental Altus will receive royalties, risks related to international operations, government relations and environmental regulation, the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the impact of the COVID-19 pandemic; the possibility that future exploration, development or mining results will not be consistent with Elemental Altus' expectations; accidents, equipment breakdowns, title matters, labour disputes or other unanticipated difficulties or interruptions in operations; fluctuating metal prices; unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; currency fluctuations; regulatory restrictions, including environmental regulatory restrictions; liability, competition, loss of key employees and other related risks and uncertainties. For a discussion of important factors which could cause actual results to differ from forward-looking statements, refer to the annual information form of Elemental Altus for the year ended December 31, 2023. Elemental Altus undertakes no obligation to update forward-looking statements and information except as required by applicable law. Such forward-looking statements and information represents management's best judgment based on information currently available. No forward-looking statement or information can be guaranteed, and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/228332
FAQ
What is the expected annual gold production increase at Karlawinda for ELEMF's royalty?
When will the Karlawinda expansion project be completed for ELEMF?
How much revenue did ELEMF generate from Karlawinda in 2023?
What is the new processing capacity at Karlawinda after expansion?
