south32 royalty portfolio acquisition ele november 2020 · 2020. 11. 26. · south32 royalty...

South32 Royalty Portfolio Acquisition

November 2020| ELE

Forward Looking Statements

2

Market and Industry Data

This corporate presentation includes market and industry data and forecast that were obtained from third-party sources, industry publications and publicly available information. Third-party sources generally state that

the information therein has been obtained from sources believed to be reliable, but there can be no assurances as to the accuracy or completeness of included information. Although management believes it to be

reliable, management has not independently verified any of the data from third-party sources referred to in this presentation or analyzed or verified the underlying studies or surveys relied upon or referred to by such

sources, or ascertained the underlying economic assumptions relied upon by such sources.

Forward-Looking Statements

This corporate presentation contains “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of the United States Private

Securities Litigation Reform Act of 1995, (together, “forward-looking statements”), concerning the business, operations and financial performance and condition of the Company. Forward-looking statements include, but

are not limited to, statements with respect to the future price of gold, the estimation of mineral reserves and mineral resources; the realization of Mineral Reserve estimates; and the timing and amount of estimated

future production. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans,” “expects” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,”

“forecasts,” “intends,” “anticipates” or “does not anticipate,” “believes,” “projects” or variations of such words and phrases or state that certain actions, events or results “may,” “could,” “would,” “might” or “will be taken,”

“occur” or “be achieved.” Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties

and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements,

including, but not limited to, volatility in the price of gold, discrepancies between anticipated and actual production by companies in our portfolio, risks inherent in the mining industry to which the companies in our

portfolio are subject, regulatory restrictions, the impact of the current COVID-19 pandemic on the companies in our portfolio, activities by governmental authorities (including changes in taxation), currency fluctuations

and the accuracy of the mineral reserves, resources and recoveries set out in the technical data published by the companies in our portfolio. Although management of the Company has attempted to identify important

factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be

no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on

forward-looking statements. The Company cautions readers not to place undue reliance on forward-looking statements, as forward-looking statements involve significant risks and uncertainties. Forward-looking

statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. The

Company does not undertake to update any forward-looking statements except in accordance with applicable Canadian securities laws. Readers are directed to the Company’s Filing Statement filed under the

Company’s profile on SEDAR (www.sedar.com) for a complete list of applicable risk factors.

Investors are advised that National Instrument 43-101 Standards for disclosure for Mineral Projects (“NI 43-101”) of the Canadian Securities Administrators requires that each category of Mineral Reserves and Mineral

Resources be reported separately. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

JORC Code

Certain Resource and Reserve estimates covering properties related to certain mining assets in this corporate presentation have been prepared in reliance upon the JORC Code. Estimates based on JORC Code are

recognized under NI 43-101 in certain circumstances. In each case, the Mineral Resources and Mineral Reserves included in this presentation are based on estimates previously disclosed by the relevant property owner

or operator, without reference to the underlying data used to calculate the estimates. Accordingly, the Company is not able to reconcile the Resource and Reserve estimates prepared in reliance on JORC Code with that

of CIM definitions. The Company previously sought confirmation from its Qualified Person who is experienced in the preparation of Resource and Reserve estimates using CIM and JORC Code, of the extent to which an

estimate prepared under JORC Code would differ from that prepared under CIM definitions. The Company was advised that, while the CIM definitions are not identical to those of JORC Code, the Resource and Reserve

definitions and categories are substantively the same as the CIM definitions mandated in NI 43-101 and will typically result in reporting of substantially similar Reserve and Resource estimates.

Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources

This corporate presentation uses the terms “measured”, “indicated”, and “inferred” Mineral Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the

United States Securities and Exchange Commission does not recognize these terms. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, 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. Under Canadian rules, estimates of inferred Mineral Resources mat not form the basis of feasibility or

other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are

also cautioned not to assume that all or part of an inferred Mineral Resource exist or is economically or legally mineable.

Qualified Person

Richard Evans, FAusIMM, is Senior Vice President, Technical for the Company and a qualified person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the

scientific and technical disclosure contained in this presentation.

| ELE

South32 Royalty Portfolio Acquisition

3

• Acquisition of three high quality gold royalties in Western

Australia from South32 for US$40m in cash and US$15m in

Elemental Equity

• Karlawinda is a transformative asset for Elemental: 2% NSR

royalty with first gold expected Q2/2021, targeting annual

production of 110,000 – 125,000oz over the long term, with

upside potential in the medium term

• Significant cash flow from mid-2021 – expected to

approximately double existing revenue alongside further

growth from 2022

• Re-weights Elemental to Western Australia – a tier 1 jurisdiction

• Elemental welcomes South32 as a cornerstone shareholder

• Strong support from existing shareholders, new investors, and

US$25 million Term Loan with Sprott Resource Lending

Kwale4%

Mt Pleasant1%

Mercedes4%

Wahgnion17%

Amancaya19%

Karlawinda42%

Laverton13%

Kwale8%

Mt Pleasant2%

Mercedes10%

Wahgnion38%

Amancaya42%

Kenya2%

Chile17%

Australia6%

Burkina Faso60%

Mexico15%

Kenya1%

Chile7%

Australia60%

Burkina Faso25%

Mexico7%

• Elemental Royalties’ valuation now underpinned by Australian gold assets

Three Australian Gold Royalties

4

Elemental has agreed to acquire the South32 Royalty Portfolio, comprising gold royalties in Western Australia with near term production

• Karlawinda – 2% Net Smelter Royalty

─ Operator: Capricorn Metals (ASX: CMM)

─ Development Stage: Construction

─ Market Cap(1): US$433m

─ Life of Mine: 12 years

─ First Production: H1/2021

─ Targeted Production: 110-125kozpa

• Laverton – 2% Gross Revenue Royalty

─ Operator: Focus Minerals (ASX: FML)

─ Development Stage: Brownfield Restart


─ First Production: Estimated 2022

• Western Queen – A$6-20/oz Royalty

─ Operator: Rumble Resources (ASX: RTR)

─ Development Stage: Advanced Exploration


• Material revenue contributions from 4 mines from 2021, 6 from 2022

Evolution of NAV by Country

Evolution of 2022E Revenue Split by Royalty

1 S&P Market Intelligence as of November 20, 2020, Company Filings, and Elemental Estimates

5

The South32 Royalty Portfolio acquisition provides the catalyst for a material re-rating

Source: S&P Capital IQ, *Elemental Estimates: Gold Price US$1,900/oz Q4/2020, US$1,850/oz 2021, US$1,800/oz thereafter. Assumes first production from Karlawinda in 2021, Laverton in 2022 and Western Queen in 2023.

1. Equity calculations assume a C$12m private placement at C$1.50/share, 13,065,100 shares issued to South32, and 653,255 shares issued to Sprott Resource Lending. 1.31 CAD:USD

2. Estimate following transaction completion

Current Elemental Shares Outstanding (m) 44.5

South32 Consideration Shares1 (m) 13.1

Private Placement1 (m) 8.7

Pro Forma Shares Outstanding (m) 66.2

Share Price (C$/share) 1.50

Pro Forma Market Capitalisation (US$m) 76.0

Net Cash/(Debt)2 (US$m) (20.7)

Pro Forma Enterprise Value (US$m) 96.7

A Transformational Combination

Small-Mid Cap Gold Royalty Universe (2020E Revenue, US$m) Pro Forma Capitalisation

MetricsElemental

Today

Elemental

Pro FormaChange

# Royalties 6 9 ↑ 50%

Market Cap US$51m US$76m ↑ 49%

Enterprise Value US$41m US$97m ↑ 139%

NAV* US$43m US$74m ↑ 72%

2022E Revenue* US$5.4m US$11.8m ↑ 121%

1.13.1 3.5

5.2

11.8

24.8

42.9

Vox Metalla Ely Elemental Elemental2022E

Nomad Maverix

Acquisition moves

Elemental into Mid Cap

Royalty Universe

Existing

Institutions

22.8%

Directors and

Management

17.5%

HNW/Retail

26.9%

New Equity

13.1%

South32

19.7%

Transformational Revenue Growth

6

Addition of South32 Royalty Portfolio gives Elemental a pathway beyond US$10m Annual Revenue by 2022

Source: Elemental Estimates. Gold Price US$1,900/oz Q4/2020, US$1,850/oz 2021, US$1,800/oz thereafter. Assumes first production from Karlawinda in 2021, Laverton in 2022 and Western Queen in 2023

0.4

1.4

2.4

5.2

7.9

11.8

14.5

-

2

4

6

8

10

12

14

16

2017 2018 2019 2020 2021E 2022E 2023E

Reven

ue (

US$m

)

Kwale Amancaya Mt Pleasant

Wahgnion Mercedes Karlawinda

Laverton Western Queen

C$0.50

C$1.00

C$1.50

C$2.00

2017 2018 2019 2020

MERCEDES

1.0% NSR

FROM JULY 2022

AMANCAYA

2.25% NSR

WAHGNION

1.0% NSR

2

3

1

4

KWALE

0.25% GRR

Corporate Timeline

7

South32 Royalty Portfolio is Elemental’s 4th transformational acquisition, and 1st after TSX-V listing

LAVERTON

2.0% GRR

KARLAWINDA

2.0% NSR

WESTERN

QUEEN

A$6-20/OZ

South32 Royalty

Portfolio

South32 Royalty

Portfolio

LAVERTON

2.0% GRR

KARLAWINDA

2.0% NSR

WESTERN

QUEEN

A$6-20/OZ

Upgraded Elemental Royalties Portfolio

8

WAHGNION

1.0% NSR

MERCEDES

1.0% NSR

FROM JULY 2022

AMANCAYA

2.25% NSRKWALE

0.25% GRR

PANTON

0.5% NSR

MT PLEASANT

A$10/OZ OR

5% NPI

Existing Principal Royalties Other Royalties Management and BoardS32 Royalties

The addition of three Australian gold royalties enhances and diversifies the Elemental Royalties Portfolio

Kwale4%

Amancaya14%

Mt Pleasant1%

Wahgnion16%

Mercedes3%

Karlawinda47%

Laverton15%

9

NAV – Contribution by Asset (% of total) NAV – Contribution by Country (% of total)

South32 Royalty Portfolio acquisition will significantly increase diversification within the portfolio, increase average mine life and lower geopolitical risk, increasing the overall attractiveness and rating of the pro forma business

Key Assets - Average Mine Life (Years)2022E Revenue by Asset (%)

Kenya2%

Chile17%

Australia6%

Burkina Faso60%

Mexico15%

Kenya1%

Chile7%

Australia60%

Burkina Faso25%

Mexico7%

Kwale9%

Amancaya37%

Mt Pleasant3%

Wahgnion42%

Mercedes9%

Wahgnion57%

Amancaya18%

Mercedes16%

Other9%

Source: Elemental Assumptions. Mine life assumptions for Amancaya, Mercedes, and Wahgnion from Canaccord Research

Karlawinda39%

Wahgnion22%

Laverton20%

Amancaya7%

Mercedes6%

Other6%

0

2

4

6

8

10

12

14

16

Aman. Merc. Wahg. Aman. Merc. Wahg. Karl. Lave.

ELE ELE Pro Forma

Value Creation + Increased Diversification

1.52.4

4.54.0

5.2

1.5

6.5

7.9

1.5

2.4

6.0

10.5

13.1

2

4

6

8

10

12

14

16

2019 2020 2021E 2022E 2023E

Elemental Elemental PFUS$m

The South32 Royalty Portfolio will provide a material revenue contribution from 2021, expanding margins after accounting for Elemental’s low overheads. Increased scale is expected to increase funding opportunities and facilitate future growth

Enhanced Financial Returns and Scale to Facilitate Growth Options

10

Revenue1 (US$m) Adjusted EBITDA2 (US$m) EBITDA Margin (%)

↑ 178% ↑ 447%

1. Gold Price US$1,900/oz Q4/2020, US$1,850/oz 2021, US$1,800/oz thereafter. Assumes first production from Karlawinda in 2021, Laverton in 2022 and Western Queen in 2023

2. Adjusted EBITDA is calculated as Earnings before Interest, Tax, Depreciation, Amortisation, and unusual non-recurring items including RTO expenses and may not relate to underlying operating performance of the Company

2.4

5.25.8

5.4

6.6

2.1

6.5

7.9

2.4

5.2

7.9

11.8

14.5

2

4

6

8

10

12

14

16

2019 2020 2021E 2022E 2023E

Elemental Elemental PFUS$m

71%74%

77% 75%80%

6%14%

11%

71%74%

83%

89%91%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2019 2020 2021E 2022E 2023E

Elemental Elemental PF

Project

Location: Pilbara, WA

Operator: Capricorn Metals Ltd

ASX: CMM

Market Capitalisation US$433m

Commodity: Gold

Mine Type: Open pit

Stage: Construction

Targeted Production: 110-125koz Au

Mine Life:

(Reserves only)12 years

Royalty

Royalty: 2% NSR

Production: Commissioning Q1‘21, First Pour Q2 ‘21

Reserves & Resources

Reserves: 1.2Moz @ 0.9 g/t Au

Resources (Ind): 1.7Moz @ 0.8g/t Au

Resources (Inf): 0.4Moz @ 0.7g/t Au

11

Source: CMM ASX Release ‘Karlawinda Gold Project Ore Reserves Increase to 1.2MOz’ dated April 17, 2020 available on the Company’s website at www.capmetals.com.au and ASX at www.asx.com.au Mineral Reserves are included in Mineral Resources.

Market Capitalisation from Capital IQ as of November 20, 2020. Mineral Reserve and Resource Statement in Appendix. Estimated production and revenue based on 59koz Au produced in 2021 at a US$1,850/oz gold price and 140koz Au produced in

2022 at a US$1,800/oz gold price

South32 Royalty Acquisition: Karlawinda

http://www.capmetals.com.au/

http://www.asx.com.au/

Project

Location: Yilgarn, WA

Operator: Focus Minerals Ltd

ASX: FML


Commodity: Gold

Mine Type: Open pit & underground

Stage: Feasibility (Stage 1 PFS due December 2020)

Estimated

Production:40-120kozpa Au

Royalty

Royalty: 2% GRR

Production: Stage 1 Open Pit, estimated 2022

Reserves & Resources1

Resources (M&I): 0.49Moz @ 2.1g/t Au


South32 Royalty Acquisition: Laverton

12

Source: FML ASX release ‘Beasley Ck Resource Grows by 29pc’ dated August 20, 2020 and FML Corporate Presentation dated February 18, 2020 available at the Company’s website at www.focusminerals.com.au and ASX at www.asx.com.au

*Reserves and Resources within the royalty area. Mineral Reserves are included in Mineral Resources. Market Capitalisation from Capital IQ as of November 20, 2020. Mineral Reserve and Resource Statement in Appendix

Estimated production and revenue based on Elemental estimates of 43koz Au produced in 2022 and 91koz Au produced in 2023 at a US$1,800/oz gold price

http://www.focusminerals.com.au/


Project

Location: Yilgarn, WA

Operator: Rumble Resources Ltd

ASX: RTR


Commodity: Gold

Mine Type: Open pit & underground

Stage: Advanced Exploration

Estimated Production: 25-50kozpa Au

Royalty

Royalty: A$6-20/oz + 2% non Au

Estimated Production: 2023+




13

Source: Monax Mining Ltd ASX: MOX release ‘Western Queen Mineral Resource’ dated January 1, 2018 available at ASX at www.asx.com.au

Market Capitalisation of Rumble Resources Ltd from Capital IQ as of November 20, 2020. Mineral Reserve and Resource Statement in Appendix

Estimated production and revenue based on 43koz Au produced in 2022 at a US$1,800/oz gold price and 91koz Au produced in 2023 at a US$1,800/oz gold price

South32 Royalty Acquisition: Western Queen


Appendix 1 Asset Information

Project

Location: Burkina Faso

Operator: Teranga Gold

TSX: TGZ

Market Capitalisation US$1.8bn

Commodity: Gold

Mine Type: Open pit

Stage: Production

2020E Production: 150-165koz Au

Mine Life:

(Reserves only)11 years

Royalty

Royalty: 1% NSR

Deal Date: January 2020

YTD 2020 Revenue: US$1.94m


Reserves: 1.55Moz @ 1.59 g/t Au



Portfolio: Wahgnion

15

Source: NI 43-101 Technical Report on the Wahgnion Gold Operations dated July 31, 2019 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com.

Mineral Reserves are included in Mineral Resources. Market Capitalisation from Capital IQ as of November 20, 2020. Mineral Reserve and Resource Statement in Appendix

2020 estimated production and revenue based on production guidance, published on August 8, 2020, on Teranga’s website at a US$1,900/oz gold price

Project

Location: Chile

Operator: Austral Gold Ltd

ASX: AGD


Commodity: Gold & Silver

Mine Type: Open pit & Underground

Stage: Production

2019 Production: 56koz Au, 527koz Ag

Mine Life:

(Reserves only)

2 years, ongoing exploration for Resource

conversion and new prospects in royalty area

Royalty

Royalty: 2.25% GRR

Deal Date: June 2018

2019 Revenue: US$1.7m


Reserves: 102koz Au @ 6.3g/t Au, 470koz Ag @ 29g/t Ag

Resources (M&I): 171koz Au @ 8.8g/t Au, 748koz Ag @ 38g/t Ag

Resources (Inf): 140koz Au @ 5.9g/t Au, 426koz Ag @ 18g/t Ag

Portfolio: Amancaya

16

Source: Austral Gold Limited’s 2019 Annual Report dated March 5, 2020. The report is prepared in accordance with NI 43-101 and is available on the Austral Gold’s website at www.australgold.com and SEDAR at www.sedar.com

Mineral Reserves are included in Mineral Resources. Market Capitalisation from Capital IQ as of November 20, 2020. Mineral Reserve and Resource Statement in Appendix

Project

Location: Mexico

Operator: Premier Gold Ltd

TSX: PG


Commodity: Gold & Silver

Mine Type: Underground

Stage: Operating

2019 Production: 60koz Au, 191koz Ag

Mine Life:

(Reserves only)

6 years, awaiting updated Reserve and Resource

estimate following 40,840m 2019 drilling program

Royalty

Royalty: 1% NSR after hurdle (July 2022)

Deal Date: June 2018

2019 Revenue: n/a


Reserves: 395koz Au @ 3.6g/t Au, 2.7Moz Ag @ 25g/t Ag

Resources (M&I): 356koz Au @ 3.4g/t Au, 4.0Moz Ag @ 38g/t Ag

Resources (Inf): 231koz Au @ 4.2g/t Au, 2.0Moz Ag @ 36g/t Ag

Portfolio: Mercedes

17Source: Premier Gold Mines Limited’s Management Discussion and Analysis for the year ending December 31, 2019. The report is prepared in accordance with NI 43-101 and is available on Premier’s company profile at www.sedar.com

Mineral Reserves are not included in Mineral Resources. Market Capitalisation from Capital IQ as of November 20, 2020. Mineral Reserve and Resource Statement in Appendix

Portfolio: Other Assets

18

Asset Information Kwale Mt Pleasant Panton

Location: Kenya West Australia West Australia

Operator: Base Resources Ltd Zijin Mining Group Panoramic Resources Ltd

ASX/AIM: BSE HKSE: 2899 ASX: PAN

Market Capitalisation US$250m Market Capitalisation US$32.5bn Market Capitalisation US$195m

Commodity: Mineral Sands Gold Platinum, Palladium, Gold

Mine Type: Open Pit Open-pit & underground Open-pit & Underground

Stage: Production Production Historical feasibility study

2019 Production:74kt Rutile, 348kt Ilmenite,

31kt Zircon2.2koz Au -

Mine Life:

(Reserves only)4 years - -

Royalty

Royalty: 0.25% GRR A$10/oz or 5% NPI 0.5% NSR

Deal Date: Feb 2017 Sept 2017 Feb 2017

2019 Revenue: US$0.5m US$0.02m n/a


Reserves: 1.4Mt HM @ 3.4% HM -

Resources (M&I): 2.4Mt HM @ 3.1% HM 469koz Au @ 1.9g/t1 879koz Pt @ 2.3g/t, 963koz Pd @ 2.5g/t

Resources (Inf): - 711koz Au @ 2.8g/t1 129koz Pt @ 1.9g/t, 139koz Pd @ 2.0g/t

Source: Market Capitalisation from Capital IQ as of November 20, 2020

Note 1: The Mount Pleasant royalty contains a historical resource estimate based on the Norton Gold Fields Limited announcement dated February 3, 2015, titled “January 2015 Mineral Resource & Ore Reserve update”, which was prepared in accordance with

the JORC Code, and is available on the ASX website at https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01596085 . Elemental believes that the resources disclosed are reliable but should not be relied on as a current

resource estimate, and no qualified person of Elemental has done sufficient work to classify the above estimate as current mineral resources. Elemental is not treating the historical estimate as current Mineral Resources or Mineral Reserves.

Other sources: Base Resources Ltd.’s ASX announcement dated August 13, 2020, “2020 Mineral Resources and Ore Reserves Statement”. The ASX announcements are prepared in accordance with the JORC Code. The ASX announcements are available on Base

Resources’ website at https://baseresources.com.au/investors/announcements/. Mineral Reserves are included in Mineral Resources. Panoramic Resources Ltd.’s ASX announcements dated September 30, 2015, titled “Mineral Resources and Ore Reserves at

June 30, 2015”, The ASX announcement is prepared in accordance with the JORC Code and is available on Panoramic’s website at https://panoramicresources.com/asx-announcements/. Mineral Reserves are included in Mineral Resources.

https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01596085

https://baseresources.com.au/investors/announcements/

https://panoramicresources.com/asx-announcements/

Appendix 2 Royalty Portfolio Acquisition –

Reserves and Resources

Mineral Reserve and Resource Estimates

20

Indicated Resources

ProjectTonnes

(Mt)

Grade

(g/t Au)

Contained Metal

(koz Au)

Karlawinda1 67.2 0.8 1,722

Laverton Gold Project2

Telegraph 0.6 2.1 44

Beasley Creek 3.0 2.2 216

Beasley Creek South 0.8 3.6 87

Wedge 2.7 1.7 141

Total Laverton Gold Project 7.1 2.1 487

Western Queen3 0.2 3.5 27

Inferred Resources

ProjectTonnes

(Mt)

Grade

(g/t Au)

Contained Metal

(koz Au)

Karlawinda1 19.5 0.7 422

Laverton Gold Project2

Telegraph 0.5 1.4 25

Beasley Creek 0.6 1.7 31

Beasley Creek South 0.3 3.6 30

Wedge 0.7 1.1 27

Lancefield 3.9 6.3 793

Total Laverton Gold Project 6.0 4.7 905

Western Queen3 0.7 4.0 92

Sources:

1. Capricorn Metals’ ASX announcement dated April 17, 2020, titled “Gold Reserves Increase 35% to 1.2 Million Ounces”. The ASX announcements are prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore

Reserves (“JORC Code”). The ASX announcements are available on Capricorn’s website: http://capmetals.com.au/investor-centre/asx-announcements/

2. Focus Minerals’ ASX announcement dated October 20, 2020, titled “115% Increase to Burtville Mineral Resource “. The ASX announcements are prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore

Reserves (“JORC Code”). The ASX announcements are available on Focus’ website: http://www.focusminerals.com.au/investors/news-announcements/.

3. Rumble Resources’ ASX announcement dated August 6, 2020, titled “Option to Acquire the High-Grade Western Queen Project“. The ASX announcements are prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources

and Ore Reserves (“JORC Code”). The ASX announcements are available on Rumble’s website: http://www.rumbleresources.com.au/asx_announcements.php

Probable Reserves

ProjectTonnes

(Mt)

Grade

(g/t Au)

Contained Metal

(koz Au)

Karlawinda1 43.5 0.9 1,201

http://capmetals.com.au/investor-centre/asx-announcements/

http://www.focusminerals.com.au/investors/news-announcements/

http://www.rumbleresources.com.au/asx_announcements.php

Appendix 3 Existing Elemental

Reserves and Resources

Mineral Reserve Estimates

22

Proven Reserves

ProjectTonnes

(Mt)

Grade

(g/t Au)

Contained Metal

(koz Au)

Grade

(g/t Ag)

Contained Metal

(koz Ag)

Amancaya1 0.3 6.9 59 32.0 274

Mercedes2 0.2 9.0 56 81.0 503

Wahgnion3 2.9 1.37 130 - -

HM Assemblage

Material

(Mt)

In Situ HM

(Mt)

HM

(%)

Ilmenite

(%)

Rutile

(%)

Zircon

(%)

Kwale South Dune4 35 1.2 3.5% 58% 14% 6%

Probable Reserves

ProjectTonnes

(Mt)

Grade

(g/t Au)

Contained Metal

(koz Au)

Grade

(g/t Ag)

Contained Metal

(koz Ag)

Amancaya1 0.2 5.5 43 25.0 196

Mercedes2 3.2 3.3 339 21.7 2,222

Wahgnion3 27.4 1.61 1,420 - -

HM Assemblage

Material

(Mt)

In Situ HM

(Mt)

HM

(%)

Ilmenite

(%)

Rutile

(%)

Zircon

(%)

Kwale South Dune4 5 0.2 2.9% 51% 12% 5%

Total Mineral Reserves

ProjectTonnes

(Mt)

Grade

(g/t Au)

Contained Metal

(koz Au)

Grade

(g/t Ag)

Contained Metal

(koz Ag)

Amancaya1 0.5 6.3 102 29.0 470

Mercedes2 3.4 3.6 395 25.1 2,725

Wahgnion3 30.3 1.59 1,550 - -

HM Assemblage

Material

(Mt)

In Situ HM

(Mt)

HM

(%)

Ilmenite

(%)

Rutile

(%)

Zircon

(%)

Kwale South Dune4 40 1.4 3.4% 57% 13% 6%

Sources:

1. Austral Gold Limited’s 2019 Annual Report dated March 5, 2020. The report is prepared in accordance with NI 43-101 and is available on the Austral Gold’s website at www.australgold.com and SEDAR at www.sedar.com

2. Premier Gold Mines Limited’s Management Discussion and Analysis for the year ending December 31, 2019. The report is prepared in accordance with NI 43-101 and is available on Premier’s company profile at www.sedar.com

3. NI 43-101 Technical Report on the Wahgnion Gold Operations dated July 31, 2019 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com

4. Base Resources Ltd.’s ASX announcement dated August 13, 2020, “2020 Mineral Resources and Ore Reserves Statement”. The ASX announcements are prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and

Ore Reserves (“JORC Code”). The ASX announcements are available on Base Resources’ website at https://baseresources.com.au/investors/announcements/

http://www.sedar.com/




Mineral Resource Estimates

23

Measured Resources

Project

Tonnes

(Mt)

Grade

(g/t Au)

Contained Metal

(koz Au)

Grade

(g/t Ag)

Contained Metal

(koz Ag)

Amancaya1 0.3 10.2 101 49.0 480

Mercedes2 0.3 3.3 27 51.2 417

Wahgnion3 3.3 1.36 140

HM Assemblage

Material

(Mt)

In Situ HM

(Mt)

HM

(%)

Ilmenite

(%)

Rutile

(%)

Zircon

(%)

Kwale South Dune4 55 1.8 3.2% 58% 14% 6%

Tonnage

(Mt)

Grade

(g/t Pt)

Grade

(g/t Pd)

Grade

(g/t Au)

Grade

(% Cu)

Grade

(% Ni)

Contained

(koz Pt)

Contained

(koz Pd)

Panton5 6.5 2.1 2.3 0.3 0.06% 0.25% 441 475

Indicated Resources

ProjectTonnes

(Mt)

Grade

(g/t Au)

Contained Metal

(koz Au)

Grade

(g/t Ag)

Contained Metal

(koz Ag)

Amancaya1 0.3 7.3 70 28.0 269

Mercedes2 3.0 3.4 329 36.9 3564

Wahgnion3 46.4 1.50 2,230

Mount Pleasant – Tuart6 3.6 1.8 212

Mount Pleasant - Racetrack6 4.3 1.9 257

HM Assemblage

Material

(Mt)

In Situ HM

(Mt)

HM

(%)

Ilmenite

(%)

Rutile

(%)

Zircon

(%)

Kwale South Dune4 20 0.6 2.9% 52% 12% 6%

Tonnage

(Mt)

Grade

(g/t Pt)

Grade

(g/t Pd)

Grade

(g/t Au)

Grade

(% Cu)

Grade

(% Ni)

Contained

(koz Pt)

Contained

(koz Pd)

Panton5 5.6 2.4 2.7 0.3 0.08% 0.28% 438 488

Sources:

1. Austral Gold Limited’s 2019 Annual Report dated March 5, 2020. The report is prepared in accordance with NI 43-101 and is available on the Austral Gold’s website at www.australgold.com and SEDAR at www.sedar.com. Mineral Reserves are included in Mineral Resources.

2. Premier Gold Mines Limited’s Management Discussion and Analysis for the year ending December 31, 2019. The report is prepared in accordance with NI 43-101 and is available on Premier’s company profile at www.sedar.com. Mineral Reserves are not included in Mineral Resources.

3. NI 43-101 Technical Report on the Wahgnion Gold Operations dated July 31, 2019 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com. Mineral Reserves are included in Mineral Resources.

4. Base Resources Ltd.’s ASX announcement dated August 13, 2020, “2020 Mineral Resources and Ore Reserves Statement”. The ASX announcements are prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”).

The ASX announcements are available on Base Resources’ website at https://baseresources.com.au/investors/announcements/. Mineral Reserves are included in Mineral Resources.

5. Panoramic Resources Ltd.’s ASX announcements dated September 30, 2015, titled “Mineral Resources and Ore Reserves at June 30, 2015”, The ASX announcement is prepared in accordance with the JORC Code and is available on Panoramic’s website at https://panoramicresources.com/asx-

announcements/. Mineral Reserves are included in Mineral Resources.

6. The Mount Pleasant royalty contains a historical resource estimate based on the Norton Gold Fields Limited announcement dated February 3, 2015, titled “January 2015 Mineral Resource & Ore Reserve update”, which was prepared in accordance with the JORC Code, and is available on the

ASX website at https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01596085 . Elemental believes that the resources disclosed are reliable but should not be relied on as a current resource estimate, and no qualified person of Elemental has done sufficient work

to classify the above estimate as current mineral resources. Elemental is not treating the historical estimate as current mineral resources or mineral reserves







Mineral Resource Estimates (continued)

24

Total Measured and Indicated Resources

ProjectTonnes

(Mt)

Grade

(g/t Au)

Contained Metal

(koz Au)

Grade

(g/t Ag)

Contained Metal

(koz Ag)

Amancaya1 0.6 8.8 171 38.0 748

Mercedes2 3.3 3.4 356 38.1 3981

Wahgnion3 49.6 1.49 2370

Mount Pleasant - Tuart 3.6 1.8 211

Mount Pleasant - Racetrack 4.3 1.9 258

HM Assemblage

Material

(Mt)

In Situ HM

(Mt)

HM

(%)

Ilmenite

(%)

Rutile

(%)

Zircon

(%)

Kwale South Dune4 75.0 2.4 3.1% 56% 13% 6%

Tonnage

(Mt)

Grade

(g/t Pt)

Grade

(g/t Pd)

Grade

(g/t Au)

Grade

(% Cu)

Grade

(% Ni)

Contained

(koz Pt)

Contained

(koz Pd)

Panton5 12.2 2.3 2.5 0.3 0.07% 0.26% 879 963

Inferred Resources

ProjectTonnes

(Mt)

Grade

(g/t Au)

Contained Metal

(koz Au)

Grade

(g/t Ag)

Contained Metal

(koz Ag)

Amancaya1 0.7 5.9 140 18.0 426

Mercedes2 1.7 4.2 231 36.1 1997

Wahgnion3 5.2 1.41 240

Mount Pleasant - Tuart6 1.9 3.8 232

Mount Pleasant - Racetrack6 6.3 2.4 480

HM Assemblage

Material

(Mt)

In Situ HM

(Mt)

HM

(%)

Ilmenite

(%)

Rutile

(%)

Zircon

(%)

Kwale South Dune4 - - - - - -

Tonnage

(Mt)

Grade

(g/t Pt)

Grade

(g/t Pd)

Grade

(g/t Au)

Grade

(% Cu)

Grade

(% Ni)

Contained

(koz Pt)

Contained

(koz Pd)

Panton5 2.2 1.9 2.0 0.3 0.11% 0.31% 129 139

Sources:

1. Austral Gold Limited’s 2019 Annual Report dated March 5, 2020. The report is prepared in accordance with NI 43-101 and is available on the Austral Gold’s website at www.australgold.com and SEDAR at www.sedar.com. Mineral Reserves are included in Mineral Resources.

2. Premier Gold Mines Limited’s Management Discussion and Analysis for the year ending December 31, 2019. The report is prepared in accordance with NI 43-101 and is available on Premier’s company profile at www.sedar.com. Mineral Reserves are not included in Mineral Resources.

3. NI 43-101 Technical Report on the Wahgnion Gold Operations dated July 31, 2019 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com. Mineral Reserves are included in Mineral Resources.

4. Base Resources Ltd.’s ASX announcement dated August 13, 2020, “2020 Mineral Resources and Ore Reserves Statement”. The ASX announcements are prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”).

The ASX announcements are available on Base Resources’ website at https://baseresources.com.au/investors/announcements/. Mineral Reserves are included in Mineral Resources.

5. Panoramic Resources Ltd.’s ASX announcements dated September 30, 2015, titled “Mineral Resources and Ore Reserves at June 30, 2015”, The ASX announcement is prepared in accordance with the JORC Code and is available on Panoramic’s website at https://panoramicresources.com/asx-

announcements/. Mineral Reserves are included in Mineral Resources.

6. The Mount Pleasant royalty contains a historical resource estimate based on the Norton Gold Fields Limited announcement dated February 3, 2015, titled “January 2015 Mineral Resource & Ore Reserve update”, which was prepared in accordance with the JORC Code, and is available on the

ASX website at https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01596085 . Elemental believes that the resources disclosed are reliable but should not be relied on as a current resource estimate, and no qualified person of Elemental has done sufficient work

to classify the above estimate as current mineral resources. Elemental is not treating the historical estimate as current mineral resources or mineral reserves







south32 royalty portfolio acquisition ele november 2020 · 2020. 11. 26. · south32 royalty...

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