METALLA PROVIDES UPDATE ON GOSSELIN & CÔTÉ ROYALTY AND 2024 CATALYSTS
- IAMGOLD announced an increase in Gosselin Mineral Resource estimate with 4.4 million Indicated gold ounces and 3.0 million Inferred ounces.
- Metalla's President & CEO, Brett Heath, highlighted the potential of the Gosselin deposit and its significant growth.
- IAMGOLD plans to focus on further exploration at Gosselin with a 35,000-meter drill hole program to probe potential extensions and depth of the deposits.
- Beedie Capital will convert C$1.5 million of accrued interest into common shares, increasing their equity ownership to 9.99% of Metalla.
- Metalla's royalty interest covers 6% of Côté and 100% of Gosselin's Mineral Resources and Reserves at a rate of 1.35%.
- None.
Insights
The announcement by Metalla Royalty & Streaming Ltd. regarding the substantial increase in the Mineral Resource estimates for the Gosselin deposit, where the company holds a 1.35% Net Smelter Return royalty, is a significant development. This increase in resources could potentially enhance the company's future revenue streams derived from the royalty, especially considering the scale of the deposits mentioned. The 32% and 74% increases in Indicated and Inferred ounces, respectively, are substantial and exceed industry norms for year-over-year resource growth, which typically hovers in the single-digit percentage range.
Furthermore, the equity ownership increase by Beedie Capital through the conversion of C$1.5 million of interest into common shares at a below-market conversion price of C$3.49 per share, compared to a principal conversion price of C$6.00, could be indicative of strong confidence in Metalla's future prospects by Beedie. However, it also dilutes existing shareholders' equity. The market's response to such news typically weighs the potential for future growth against the immediate dilutive effect. The stock market reaction would depend on how investors balance the long-term royalty revenue upside with the short-term equity dilution.
Metalla Royalty & Streaming Ltd.'s position in the market is bolstered by the updated resource estimates and the exploration plans laid out by IAMGOLD Corporation. The mining sector values such updates highly, as they provide a clearer picture of the asset's potential and longevity. The 35,000-meter drill program is an aggressive exploration strategy indicating a commitment to expanding the known resources, which could lead to an increase in the life of the mine and, by extension, the duration of royalty payments Metalla can expect.
The company's diversified portfolio, with notable catalysts expected in 2024, including production starts and mine restarts from various ventures, showcases a strategic approach to risk distribution. This diversification is critical in the mining industry, where the development of individual assets can be fraught with technical, regulatory and market risks. The expected Environmental and Social Impact Assessment approval for the Taca Taca project and state environmental permits for the Copper World mine are examples of regulatory milestones that can significantly affect project timelines and, consequently, the timing of royalty income.
The technical aspects of the Gosselin deposit update are noteworthy within the mining industry. The reported increase in resource estimates, particularly the growth in Indicated and Inferred resources, suggests a successful exploration campaign, bolstered by the 57 diamond drill holes totaling 34,790 meters in 2023. The geology of the deposit, as indicated by the drill intercepts and the potential dimensions approaching those of the adjacent Côté deposit, presents a favorable outlook for the continuity and expansion of the mineralization.
The mention of the highly prospective corridor at depth, measuring up to 850 meters in strike length, represents a significant exploration upside. The potential to further expand the Gosselin resource below the 600-meter vertical depth extent of the current resources pit shell indicates that the deposit may not only be large in scale but also in depth, which is an attractive quality in a mining asset. It is important to note that the technical review by a Qualified Person, as per NI 43-101 standards, lends credibility to these updates, providing assurance to stakeholders regarding the integrity of the reported data.
Beedie Capital to increase equity ownership to
(All dollar amounts are in
IAMGOLD Corporation ("IAMGOLD") (TSX: IMG) (NYSE: IAG) announced by press release on February 15, 20241 that the updated Gosselin Mineral Resource estimate increased, for a total of 4.4 million Indicated gold ounces in 161.3 million tonnes ("Mt") at 0.85 grams per tonne gold ("g/t Au"), and 3.0 million Inferred ounces (123.9 Mt at 0.75 g/t Au). This represents an estimated increase of 1.1 million ounces in Indicated and 1.3 million ounces in Inferred, representing a
Brett Heath, President & CEO of Metalla commented, "Gosselin continues to show that it has potential to become a very significant asset. In 2023 we saw an increase of 2.4 million ounces from 57 diamond drill holes totaling 34,790 meters. Gosselin stands as a substantial deposit on its own with 7.4 million ounces. Combined with Côté, they host an estimated Measured and Indicated Mineral Resource of 16.5 million ounces, and an additional 4.2 million ounces of Inferred resources. This places the project in an elite league among global gold mines of large scale. In the upcoming year, IAMGOLD indicated that it will focus on further exploration with a 35,000-meter drill hole program at Gosselin, aiming to probe potential extensions of the breccias between resource pits, as well as delving deeper beneath the mineralized envelopes to ascertain the full extent of these promising deposits."
According to IAMGOLD, drilling to date suggests the Gosselin deposit has the potential to approach similar dimensions as the adjacent Côté deposit. Drill intercepts obtained from the newly discovered West Breccia have significantly expanded this breccia body which now measures 250 meters by 170 meters and extends for a depth of approximately 400 meters. This has helped to highlight a highly prospective corridor at depth measuring up to 850 meters in strike length that remains to be tested between the Gosselin West Breccia and the Côté Deposit hydrothermal breccia. This represents a priority exploration opportunity to further expand the Gosselin resource below the 600-meter vertical depth extent of the current 2023 resources pit shell.
CÔTÉ & GOSSELIN RESERVE & RESOURCE ESTIMATE AS OF DECEMBER 31, 20231
Côté | Gosselin | |||||||
Tonnes | Gold | Tonnes | Gold | Royalty | ||||
(000's) | (g/t) | (000's) | (000's) | (g/t) | (000's) | (000's) | ||
Proven & Probable | 234,644 | 1.01 | 7,610 | - | - | - | 6.2 | |
Measured & Indicated | 444,773 | 0.84 | 12,067 | 161,300 | 0.85 | 4,420 | 69.4 | |
Inferred Resources | 60,591 | 0.61 | 1,184 | 123,900 | 0.75 | 2,980 | 41.2 | |
For royalty ounce calculation, Metalla estimates |
2024 Portfolio Catalysts2:
- G Mining Ventures Tocantinzinho production expected in H2 2024 (
0.75% GVR) - Agnico Eagle Mines Amalgamated Kirkland first production anticipated in H2 2024 (
0.45% NSR) - Polymetals Resources Endeavor mine financing update and mine restart expected end of 2024 (
4% NSR) - Agnico Eagle Mines Wasamac updated development study anticipated in H1 2024 (
1.5% NSR) - Agnico Eagle Mines Fosterville mine drilling at Harrier zone and further extensions of
Phoenix decline towards royalty boundary (2.5% NSR) - Taca Taca Environmental and Social Impact Assessment approval expected in 2024 (
0.42% NSR) - Hudbay Minerals Copper World mine state environmental permits expected mid-2024 (
0.315% NSR) - Sierra Madre Gold & Silver's La Guitarra mine restart study anticipated in Q2 2024 (
2% NSR) - Silver Storm Mining's La Parrilla mine plan technical study expected in Q4 2024 (
2% NSR)
Beedie Capital ("Beedie") will increase their equity position by electing to convert
The technical information contained in this news release has been reviewed and approved by Charles Beaudry, geologist M.Sc., member of the Association of Professional Geoscientists of
Metalla was created to provide shareholders with leveraged precious and strategic metal exposure by acquiring royalties and streams. Our goal is to increase share value by accumulating a diversified portfolio of royalties and streams with attractive returns. Our strong foundation of current and future cash-generating asset base, combined with an experienced team, gives Metalla a path to become one of the leading royalty companies.
For further information, please visit our website at www.metallaroyalty.com.
ON BEHALF OF METALLA ROYALTY & STREAMING LTD.
(signed) "Brett Heath"
President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accept responsibility for the adequacy or accuracy of this release.
Notes:
- Please see IAMGOLD Corporation's press release dated February 15, 2024
- Please see G Mining Ventures Corp.'s press release dated January 15, 2024, Agnico Eagle Mines Limited's press release dated February 15, 2024, Polymetals Resources' Mine Restart Study for the Endeavor Mine dated October 16, 2023, First Quantum Minerals Ltd.'s Management's Discussion and Analysis for the year ended December 31, 2023, and filed under First Quantum's SEDAR+ profile on www.sedarplus.ca, the Technical Report titled "Phase I Pre-Feasibility Study and Updated Mineral Resources Estimates, Copper World Project,
Pima County, Arizona , USA", with an effective date of July 1, 2023, and filed under Hudbay Minerals Inc.'s SEDAR+ profile on www.sedarplus.ca on September 8, 2023, Sierra Madre Gold and Silver Ltd's Press Release dated February 8 2024, Silver Storm Mining Ltd.'s February 2024 corporate presentation.
Information contained on any website or document referred to or hyperlinked in this press release shall not be deemed to be a part of this press release.
Metalla has included certain performance measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards (IFRS) including attributable gold equivalent ounces (GEOs). The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow.
Attributable GEOs are a non-IFRS financial measure that is composed of gold ounces attributable to the Company, plus an amount calculated by taking the expected revenue by the Company from payable silver ounces, copper pounds, lead pounds and zinc pounds attributable to the Company, less material costs, divided by the price of gold. The Company presents attributable GEOs as it believes that certain investors use this information to evaluate the Company's performance in comparison to other streaming and royalty companies in the precious metals mining industry who present attributable ounces on a similar basis
The presentation of these non-IFRS financial measures 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 financial measures differently.
Metalla has limited, if any, access to the properties on which Metalla holds a royalty, stream or other interest. Metalla is dependent on (i) the operators of the mines or properties and their qualified persons to provide technical or other information to Metalla, or (ii) publicly available information to prepare disclosure pertaining to properties and operations on the mines or properties on which Metalla holds a royalty, stream or other interest, and generally has limited or no ability to independently verify such information. Although Metalla does not have any knowledge that such information may not be accurate, there can be no assurance that such third-party information is complete or accurate. Some information publicly reported by operators may relate to a larger property than the area covered by Metalla's royalty, stream or other interests. Metalla's royalty, stream or other interests can cover less than
Unless otherwise indicated, the technical and scientific disclosure contained or referenced in this press release, including any references to mineral resources or mineral reserves, was prepared in accordance with Canadian NI 43-101, which differs significantly from the requirements of the
"Inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Historical results or feasibility models presented herein are not guarantees or expectations of future performance.
This release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities legislation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur, or be achieved. Forward-looking statements include, but are not limited to, the statements regarding the drill program at Gosselin by IAMGOLD and the timing thereof; the potential for the Gosselin deposit to reach similar dimensions as the Côté deposit; the commencement of production at Tocantinzinho and the timing thereof; the commencement of production at Amalgamed Kirkland and the timing thereof; Endeavor's mine financing update and mine restart and the timing thereof; the results of Wasamac's updated development study and the timing thereof; the drilling at Harrier zone at the
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 Metalla to control or predict, that may cause Metalla's 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: that the drill program at Gosselin may not happen at all or in the anticipated timeline; that the Gosselin deposit may not have the same dimensions as the Côté deposit; production may not start at Tocantinzinho at all or in the anticipated timeline; production may not start at Amalgamated Kirkland at all or in the anticipated timeline; Endeavor's mine financing update and mine restart may not occur at all or in the anticipated timeline; the results of Wasamac's updated development study may not be released at all or in the anticipated timeline; drilling at the Harrier zone at the
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SOURCE Metalla Royalty and Streaming Ltd.
FAQ
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