The company has 34 deeded royalties, two of which are producing, and 20 properties, which are optioned to third parties. Ely Gold's royalty and sale portfolio generated more than an estimated CA$3 million in revenue in fiscal year 2019. The company is currently seeking a line of credit with Eric Sprott to be able to participate in a broader range of royalty sales and to manage its future equity offerings in line with market conditions.
"This year has been a transformational year for the company, with several properties being optioned or sold," Ely Gold President and CEO Trey Wasser said in the release.
In 2019 the company acquired four producing or near-producing royalties: Fenelon, Isabella Pearl, Jerritt Canyon and Lincoln Hill. Here is what is happening with those:
Fenelon: The operator Wallbridge is getting Fenelon permitted for production and executing a 70,000–80,000 meter (70,000–80,000m) drill program there.
Isabella Pearl: The operator Gold Resource Corp. achieved commercial production at the mine in early October. Royalty payments to Ely Gold should start in Q4/19. Next to current operations is the Isabella Pearl Extension, on which Gold Resource has started exploration and Ely Gold has a 2.5% net smelter royalty.
Jerritt Canyon: Ely Gold is now getting a monthly royalty from Jerritt Canyon Gold calculated at $0.225 per ton.
Lincoln Hill: The operator Coeur Mining reported a Measured and Indicated gold mineral resource at Lincoln Hill of 364,000 ounces (364 Koz) at 0.34 grams per ton (0.34 g/t) gold and 10,000,000 ounces (10 Moz) of 9.6 g/t silver. Inferred ounces there are an estimated 255 Koz gold at 0.34 g/t and 8 Moz silver at 11.2 g/t. Coeur is expected to start confirmation drilling later this year.
Other royalties of Ely Gold and their news include:
Gold Rock: The operator Fiore Gold recently finished a 15-hole drill program that showed thick intervals of oxide gold mineralization inside and outside the current resource pit shells. Fiore aims to expand the mineral resource ahead of the preliminary economic assessment expected by year-end 2019.
Amsel and Danbo: Spectral analyses of rock samples from these two properties are underway. Results are expected to provide a detailed mineral map for Amsel.
Tuscarora: The operator OceanaGold commenced a 4,000m drill program there to follow up on priority targets identified from a geophysical survey and gravity and geological mapping done earlier in the year.
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