Royal Gold, Inc. (NASDAQ:RGLD) (together with its
subsidiaries, “Royal Gold” or the “Company”) is pleased to report
that the Peak Gold joint venture (“Peak Gold”), of which our Royal
Alaska subsidiary is a party, completed an estimate of mineralized
material1 at the Peak and North Peak deposits located near Tok,
Alaska. The estimate of measured and indicated resources2 contained
within mineralized material at a $1,400 per ounce gold pit shell
consists of 11.3 million tonnes grading 3.46 grams per tonne
(“gpt”) gold, 14.09 gpt silver, and 0.16% copper.
“These initial results are a great start and Peak Gold has
identified several additional targets that will be pursued over the
balance of the year,” commented Tony Jensen, President and CEO of
Royal Gold. “We are encouraged by the robust grade and near surface
characteristics of the deposits, which are located just a few miles
from the intersection of Alaska Highways 1 and 2. We already own a
royalty on the project and we will continue to focus on
opportunities in the future aligned with our core business model.
Peak Gold is progressing as we had hoped it would to this point,
and we have appreciated an excellent working relationship with our
host community of the Native Village of Tetlin and our joint
venture partner, Contango ORE, Inc.”
The measured and indicated resources were calculated with
resource cones at a gold price of $1,200 per ounce with a cut-off
grade of 0.5 grams per tonne and at $1,400 gold with a cut-off
grade of 0.43 grams per tonne.
Measured and Indicated within $1200/oz Gold Pit Shell at
a 0.50 g/t AuEq Cut-off Grade
Grade > Cut-off
Contained Metal Class Tonnage(kt)
Au(g/t) Ag(g/t) Cu(%) Au(koz)
Ag(koz) Cu(Mlbs)
Measured 484
6.25 16.73 0.15 97.3 260.4 1.6
Indicated 10,117 3.51 14.06
0.16 1,142.6 4,573.3 35.7
M&I 10,601 3.64 14.18
0.16 1,239.9 4,833.7 37.3
Measured and Indicated within $1400/oz
Gold Pit Shell at a 0.43 g/t AuEq Cut-off Grade
Grade > Cut-off
Contained Metal Class Tonnage(kt)
Au(g/t) Ag(g/t) Cu(%) Au(koz)
Ag(koz) Cu(Mlbs)
Measured 486
6.22 16.65 0.15 97.2 260.2 1.6
Indicated 10,808 3.34 13.97
0.16 1,159.5 4,854.5 38.0
M&I 11,294 3.46 14.09
0.16 1,256.7 5,114.7 39.6 Equivalent Gold = Au
+ 0.0122 x Ag
Mineralized material, of which measured and indicated resources
are a subset3, at various cut-off grades are show below.
Grade > Cut-off Contained Metal
Cut-off
(g/t AuEq)
Tonnage(kt) Au(g/t) Ag(g/t)
Cu(%) Au(koz) Ag(koz) Cu(Mlbs)
0.30
18,142 2.62 13.64
0.15
1,526 7,957 61
0.40
16,730 2.81 14.23
0.16
1,514 7,656 58
0.50
15,650 2.98 14.68
0.16
1,502 7,387 55
0.60
14,702 3.15 15.10
0.16
1,488 7,139 52
0.70
13,883 3.30 15.38
0.16
1,474 6,864 49
0.80
13,110 3.46 15.66
0.16
1,458 6,602 47
0.90
12,378 3.62 15.94
0.16
1,442 6,343 45
1.00
11,663 3.80 16.14
0.17
1,423 6,053 42 Equivalent Gold = Au + 0.0122 x
Ag
____________________________________
1 The U.S. Securities and Exchange Commission does not
recognize this term. Mineralized material is that part of a mineral
system that has potential economic significance but cannot be
included in the proven and probable ore reserve estimates until
further drilling and metallurgical work is completed, and until
other economic and technical feasibility factors based upon such
work have been resolved. Investors are cautioned not to assume that
any part or all of the mineral deposits in this category will ever
be converted into reserves. 2 The terms measured and indicated
resource are not SEC recognized terms. Estimates of resources are
subject to further exploration and development, are subject to
additional risks, and no assurance can be given that they will
eventually convert to future reserves. 3 The quantity and grade of
Inferred Resources included in this estimation are uncertain in
nature and there has been insufficient exploration to define these
Inferred Resources as an Indicated or Measured Mineral Resource and
it is uncertain if further exploration will result in upgrading
them to an Indicated or Measured Mineral Resource category.
About Peak Gold
Peak Gold, LLC is a joint venture between Royal Alaska, LLC
("Royal Alaska"), a wholly owned subsidiary of Royal Gold, and
Contango ORE, Inc. (“Contango Ore”). Peak Gold holds a 675,000 acre
lease with the Native Village of Tetlin and an additional 168,200
acres of State of Alaska mining claims, all located near Tok,
Alaska, on which Peak Gold explores for minerals. Royal Alaska has
the right to earn up to a 40% membership interest in Peak Gold by
making total contributions of up to $30.0 million to Peak Gold by
October 31, 2018. As of March 31, 2017, Royal Alaska contributed
approximately $20.0 million to Peak Gold and held a 24.9%
membership interest in the joint venture. Once Royal Alaska has
earned a 40% interest in the joint venture, Royal Alaska will have
the additional right to require Contango Ore to sell up to 20% of
its interest in Peak Gold in a sale of Royal Alaska’s entire 40%
interest to a bona fide third-party purchaser. Royal Gold also
holds a 3.0% net smelter return (“NSR”) royalty over the area of
the Tetlin lease and certain State of Alaska mining claims and a
2.0% NSR royalty over certain other State of Alaska mining claims
held by Peak Gold.
About Royal Gold
Royal Gold is a precious metals stream and royalty company
engaged in the acquisition and management of precious metal
streams, royalties, and similar production based interests. The
Company owns interests on 193 properties on six continents,
including interests on 38 producing mines and 22 development stage
projects. Royal Gold is publicly traded on the NASDAQ Global Select
Market under the symbol “RGLD.” The Company’s website is located at
www.royalgold.com.
Cautionary “Safe Harbor” Statement Under the Private
Securities Litigation Reform Act of 1995: With the exception of
historical matters, the matters discussed in this press release are
forward-looking statements that involve risks and uncertainties
that could cause actual results to differ materially from
projections or estimates contained herein. Such forward-looking
statements include estimates of mineralized material and measured
and indicated resources provided by the Peak Gold joint venture.
Net gold and metal resources are subject to certain assumptions and
do not reflect actual ounces that will be produced. Like any
stream, royalty or similar interest on a non-producing or
not-yet-in-development project, our interests on development
projects are subject to certain risks, such as the ability of
operators to bring projects into production and operate in
accordance with feasibility studies, and the ability of Royal Gold
to make accurate assumptions regarding production and operating
parameters, valuation and timing and amount of payments. Factors
that could cause actual results to differ materially include, among
others, precious metals and copper prices; the ability of operators
of development properties to finance project construction to
completion and bring projects into production as expected;
operators’ delays in securing or inability to secure necessary
governmental permits; decisions and activities of the operators of
the Company’s stream and royalty properties; unanticipated grade,
environmental, geological, seismic, metallurgical, processing,
liquidity or other problems the operators of the mining properties
may encounter; completion of feasibility studies; changes in
operators’ project parameters as plans continue to be refined;
changes in estimates of reserves and mineralization by the
operators of the Company’s stream and royalty properties; contests
to the Company’s stream and royalty interests and title and other
defects to the Company’s stream and royalty properties; errors or
disputes in calculating stream deliveries and royalty payments, or
deliveries and payments not made in accordance with stream and
royalty agreements; economic and market conditions; risks
associated with conducting business in foreign countries; changes
in laws governing the Company and its stream and royalty properties
or the operators of such properties; and other subsequent events;
as well as other factors described in the Company’s Annual Report
on Form 10-K, Quarterly Report on Form 10-Q, and other filings with
the Securities and Exchange Commission. Most of these factors are
beyond the Company’s ability to predict or control. The Company
disclaims any obligation to update any forward-looking statement
made herein. Readers are cautioned not to put undue reliance on
forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20170602005214/en/
Royal Gold, Inc.Karli Anderson, 303-575-6517Vice
President Investor Relations
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