Fred Bell, CEO of Elemental Altus Royalties (TSX.V:ELE) (OTCQX:ELEMF), joins us to review the recent acquisition of 2 brownfields tungsten royalties, as well as a royalty partner update on the Diba Mine nearing first production.
In the news released to the market on July 22nd, Elemental Altus Royalties has acquired two existing royalties from Cornish Metals Inc. including an uncapped 4% net smelter return (“NSR”) royalty on the Mactung Project in Canada currently being advanced by Fireweed Metals Corp(TSX.V: FWZ) (OTCQX: FWEDF), and a 1% NSR royalty on the high-grade Cantung Project, a formerly operating tungsten mine in Canada.
Mactung, operated and owned by Fireweed Metals, is one of the largest, high-grade tungsten deposits in the world and one of the few high-grade tungsten deposits outside of China, that also has the Environmental Assessment completed as part of previous permitting. Fireweed Metals, a well-financed, Lundin Group company, has an experienced management team with a track record of securing funding for mine development. The next key catalyst on the Project will be a new PEA later in 2024, building on the updated Mineral Resource Estimate in 2023. Fred also briefly reviews the overlooked value in the previously operating Cantung Project, and why their team is bullish on the fundamentals of the tungsten markets as a strategic metal of importance.
Next we got a royalty partner update on the expected maiden production from the Diba Gold Project, operated by Allied Gold Corp (TSX: AAUC). Allied Gold has announced that their 12,000 meter drilling program is targeting extending the Mineral Resources at Diba. This is significant as the exploration program is designed to prioritize near-mine oxides and comes on top of the previously announced initial Proven and Probable Reserves of 280,000 ounces of gold at 1.43 g/t within the larger 377,000 ounces of gold in Measured and Indicated Resources that was announced in February 2024.
Diba is expected to materially contribute to production at Sadiola from mid-2024 and Allied have fast-tracked it into production this year, while simultaneously undertaking aggressive exploration to expand the Resource. Elemental Altus owns a 3% NSR royalty on the first 226,000 ounces produced at Diba and an uncapped 2% NSR royalty on all subsequent production. The consideration also included multiple production-based milestones totalling up to US$6 million and for which the Company has received the first US$1 million with further payments anticipated this year.
If you have any follow up questions for Fred regarding Elemental Altus Royalties, then please email me at Shad@kereport.com.
- In full disclosure, Shad is a shareholder of Elemental Altus Royalties at the time of this recording.
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