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News Update


Firm Could Receive First Royalty Payment This Year from Fenelon Project
News Update

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Production at the property is expected to commence in late 2020.

Ely Gold Royalties Inc. (ELY:TSX.V; ELYGF:OTCQB) announced in a news release it could receive income from the Fenelon project in northern Quebec later in 2020.

"Ely's 2% Fenelon net smelter royalty will be a cornerstone of our royalty portfolio as we expect Wallbridge to receive its mining permit in late 2020," Ely Gold President and CEO Trey Wasser said in the release. Wallbridge Mining Co. is the 100% owner and operator of Fenelon.

Ely Gold provided a project update. One, Wallbridge is closer to getting approvals to commence 400–500 tons per day of production at Fenelon in the already-developed areas of the Main Gabbro zones. The developer is targeting H2/20 for that start-up.

Two, Wallbridge plans to drill 100,000–120,000 meters at Fenelon in 2020, completing 9,000 meters per month, the same rate as last year. Already in 2020 the gold company drilled 6,500 meters.

Currently, six rigs are at work on the property. Five are being used to exploration drill from surface, using widely spaced stepouts to delineate Fenelon gold system structure. Success in this regard will support a maiden resource estimate for the combined Fenelon gold system. That is expected in early 2021.

The remaining rig is being employed for underground definition drilling in the Main Gabbro zones near the existing mine workings.

Ely also reported that results from drilling at Fenelon so far in 2020 have been encouraging. One intercept, 43.47 grams per ton (43.47 g/t) gold (23.57 g/t gold cut) over 19 meters, in the Lower Tabasco zone, indicated great potential for similar high-grade intersections there. Also in that same zone, two subsequent holes, FA-20-110 and FA-20-115, hit intervals of strong mineralization, Ely noted.

Another encountered intercept, 83.18 g/t over 0.51 meters, highlighted potential for Area 51-style gold mineralization along the roughly 4 kilometer strike length of the Jeremie Pluton.

"We are very pleased by the continuation of the excellent Fenelon drill results being reported on by Wallbridge," Wasser staed. "Ely’s 2% Fenelon NSR will be a cornerstone of our royalty portfolio as we expect Wallbridge to receive its mining permit in late 2020. With current infrastructure reaching six levels, we could potentially receive royalty income from Fenelon late this year."

"This will be a transformative year for Ely, as it is now receiving cash generation from two royalties: the Jerritt Canyon per ton Processed Royalty and the 0.75% gross revenue royalty on the Isabella Pearl Mine operated by GORO Resources. The recently announced Regent Hill net profits interest is also expected to begin cash generation in late 2020," Wasser added.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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