Osisko Announces Preliminary Q1 2021 Deliveries and Agreement to Acquire Spring Valley Royalties - Seite 2
Sandeep Singh, President and CEO of Osisko commented: “First quarter deliveries were above our expectations as our portfolio continued to perform well. We are particularly pleased with the quarter given that our GEOs grew by 6% over the fourth quarter, despite the planned deferment of ore stacking at the Eagle mine during the winter months. Production from the Eagle mine should continue to ramp up throughout the year. Moreover, the acquisition of additional royalties on the Spring Valley project will add additional exposure to a high quality asset in a proven mining jurisdiction. It has the potential to become a significant North American gold mine and builds on our already strong growth profile.”
SPRING VALLEY ROYALTY
Spring Valley is a pre-feasibility stage, heap-leach, open-pit gold project located in Pershing County, Nevada, USA. The asset is 100%-owned by Waterton Global Resource Management (“Waterton”), a mining-focused private equity firm. The project hosts a historic NI 43-101 resource of 49Mt grading 0.94g/t gold for 1.49Moz of gold in the measured resource category, 80Mt grading 0.79g/t gold for 2.03Moz of gold in the indicated resource category and 21Mt grading 0.73g/t gold for 0.49Moz of gold in the inferred resource category. These resources were reported within a US$1,500/oz gold resource shell by Midway Gold in its 2014 technical report available on SEDAR. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources. Historical estimates are not to be treated as current mineral resources.
Osisko has agreed to acquire four separate royalties on Spring Valley:
- A sliding scale 2.5% NSR royalty (with the maximum royalty percentage of 2.5% applicable when the gold price is above US$700/oz. This royalty is payable once 500,000 ounces of gold are recovered from Spring Valley) on claims overlying the core of the current Spring Valley deposit. Along with its existing 0.5% NSR, Osisko now holds, in aggregate, a 3.0% NSR over these core claims;
- Two separate 1.0% NSR royalties (for a total 2.0% NSR royalty) on key Spring Valley claims overlying the prospective high-grade northeastern portion of the deposit;
- A 0.5% NSR royalty over the broader Spring Valley property which is additive to the two royalties covering the northeastern portion of Spring Valley described in the bullet above.
Figure 1. Map showing the distribution of grade thickness over the Spring Valley royalty claims. The grade thickness map and resource pit outline was produced by Barrick Gold but published by Midway. The royalty labels represent totals and include the 0.5% NSR royalty already owned by Osisko.