All amounts are in U.S. dollars unless otherwise
indicated.
VANCOUVER, BC, Nov. 2, 2022
/PRNewswire/ - Maverix Metals Inc. ("Maverix" or the
"Company") (NYSE American: MMX) (TSX: MMX) is pleased to announce
that it has sold approximately 7,900 attributable gold equivalent
ounces1,2 ("GEOs") during the three months ended
September 30, 2022 and the Company
remains on track to achieve its adjusted guidance of 28,000 to
31,000 attributable GEOs for 2022.3
Ryan McIntyre, President of
Maverix, commented, "We are thrilled to see several of our royalty
counterparties announce positive operational updates contributing
to our impressive GEO sales this quarter, highlighted by the
continued operating success at Camino Rojo as well as further
encouraging drilling results at Beta Hunt and Eskay Creek. Having
sold approximately 7,900 GEOs in the third quarter, we are well on
track to meet our adjusted 2022 guidance. Our portfolio continues
to see several underlying development assets advance and our
organic pipeline grow with the recent acquisitions of a royalty
portfolio from Barrick and a royalty on the Sleeping Giant mine
located in the prolific Abitibi region of Quebec. We are also pleased to announce that
Maverix is now a participant in the United Nations Global Compact
and we look forward to integrating its principles into our business
and working with our counterparties towards long term environmental
protection and social benefits in the communities where they
operate."
Asset Updates
Camino Rojo (2% NSR)
On October 11, 2022, Orla Mining
Ltd. ("Orla") announced gold production of 28,876 ounces from
Camino Rojo for the third quarter 2022, and 77,580 ounces year to
date. Camino Rojo's processing throughput for the third quarter
averaged 19,200 tonnes per day ("tpd"), exceeding nameplate
capacity of 18,000 tpd. Orla also increased its 2022 gold
production guidance to 100,000 to 110,000 ounces from 90,000 to
100,000 ounces.
For more information, please refer to orlamining.com and see the
news release dated October 11,
2022.
South Railroad (2% NSR)
On August 12, 2022, Orla announced
it had completed the previously announced acquisition of Gold
Standard Ventures Corp. ("Gold Standard"). Gold Standard's key
asset is the high-quality, open pit, heap leach South Railroad
project located in the prolific Carlin trend in Nevada. A feasibility study completed in
February 2022 outlined a 10.5 year
mine life with total gold production of over one million ounces and
average annual gold production of 124,000 ounces. Permitting
activities at South Railroad are currently underway and Orla is
continuing the 2022 sulphide exploration program started by Gold
Standard as well as increasing exploration spending by $1.5 million to accelerate the upgrade and
definition of new oxide resources.
For more information, please refer to orlamining.com and see the
news releases dated September 12,
2022 and August 12, 2022.
Beta Hunt (4.75% Gold Royalty and 1.5% Nickel
Royalty)
On October 13, 2022, Karora
Resources Inc. ("Karora") announced record gold production of
38,437 ounces from its Beta Hunt and Higginsville mines in
Western Australia, including 2,436
ounces of "coarse gold" from Beta Hunt. Development of the second
decline at Beta Hunt is rapidly advancing and Karora expects it to
be functioning by the end of the second quarter of 2023,
significantly ahead of the original schedule. The Beta Hunt
expansion represents the backbone of Karora's growth plan and is
expected to approximately double the production capacity of the
mine.
On October 25, 2022, Karora
announced two significant new developments resulting from
wide-spaced gold exploration drilling at Beta Hunt. The second set
of strong gold drill results from the new Mason Zone supports
Karora's interpretation of a significant gold mineralized system
parallel to and west of the Larkin Zone and continues to provide
confidence in the development of the Mason Zone into a significant
new mining opportunity. In addition, Western Flanks deep drilling
has now intersected Main Shear mineralization up to 250 metres
below the current mineral resource at the southern end of the zone
at higher grades than the current resource. Western Flanks is Beta
Hunt's largest shear zone and these results provide more confidence
for the expansion of the key resource asset in support of Karora's
growth plan.
Additionally, on August 12, 2022,
Karora announced a positive nickel preliminary economic assessment
("PEA") for Beta Hunt which outlines an eight year mine life to
produce a total of 9,435 tonnes of payable nickel with significant
potential for both expansion and mineral resource additions. Karora
expects nickel production to ramp up significantly from current
production levels beginning in 2023. Beta Hunt was previously a
primary nickel mine for over 40 years and produced over 60,000
tonnes of nickel from an exceptionally large nickel resource
system.
For more information, please refer to karoraresources.com and
see the news releases dated October 25,
2022, October 13, 2022, and
August 12, 2022.
Hope Bay (1% NSR)
On August 11, 2022, Agnico Eagle
Mines Ltd. announced exceptional drill results at Hope Bay and
increased the 2022 exploration and development budget by 75% to
$56 million. Drilling and the
development of exploration drifts will continue at the Doris
deposit in order to accelerate exploration from underground in the
high potential areas for more efficient mineral resource conversion
and mine development for future production resumption. The
near-term focus is on exploration drilling and evaluating the
potential to develop a 4,000 tpd underground operation, which is
double the current mill capacity and would increase gold production
to 250,000 to 300,000 ounces per year. Exploration at Hope Bay is
expected to continue through 2023 while larger production scenarios
are being evaluated.
For more information, please refer to agnicoeagle.com and see
the news release dated August 11,
2022 and the presentation titled "Gold Forum Americas 2022",
dated September 20, 2022.
Eskay Creek (0.5% NSR)
On October 25, 2022, Skeena
Resources Ltd. ("Skeena") announced drilling results from its 2022
regional and near mine exploration programs at the Eskay Creek
gold-silver project located in the Golden Triangle of British Columbia. Infill drilling successfully
confirmed the continuity of gold-silver mineralization in the 23
Zone and has expanded mineralization to surface intersecting 1.13
grams per tonne ("g/t") gold and 6.6 g/t silver over 96.02 metres.
Drilling at the 21A West Zone continued to build upon the in-pit
mineralization discovered in 2021, which intersected high-tenor
gold mineralization averaging 8.78 g/t gold and 13 g/t silver over
34 metres, recently expanded by a 2022 drill hole. Additionally, in
the 21A West Zone, a very wide interval of continuous dacite hosted
gold-silver mineralization was intersected grading 1.12 g/t gold
and 4.7 g/t silver over 109.82 metres. This new occurrence of
feeder style mineralization occurs 150 metres vertically below
surface and below the current engineered pit. Due to the lack of
historical drilling in this portion of the 21A Zone, the area was
considered as barren waste rock for the 2022 resource estimate and
feasibility study, which outlined an initial 9 year mine life with
average annual production of 269,000 ounces gold and 7,412,000
ounces silver. Skeena is currently performing expansion and infill
drilling with six helicopter supported drill rigs with the focus to
expedite not only the organic growth of open pittable resources in
the 23, 21A West and 22 Zones, but to infill these new zones for
ultimate conversion to probable reserves.
For more information, please refer to skeenaresources.com and
see the news releases dated October 25,
2022, October 18, 2022 and
September 8, 2022.
Fenn-Gib (1% – 2.5% NSR)
On October 18, 2022, Mayfair Gold
Corp. ("Mayfair") announced an increase of the mineral resources at
the Fenn-Gib gold project located in the Timmins region of Ontario. The Fenn-Gib deposit now hosts
open-pit indicated resources of approximately 118.1 million tonnes
at 0.81 g/t gold containing approximately 3.1 million ounces of
gold and inferred resources of approximately 13.8 million tonnes at
0.70 g/t gold containing approximately 0.3 million ounces of gold.
Mayfair also announced a maiden
underground inferred resource of 1.0 million tonnes at 3.22 g/t
gold containing 0.1 million ounces of gold. The updated mineral
resource estimate includes assay results up to July 31, 2022, accounting for approximately
67,000 metres of the planned 110,000 metre drill program. The
remaining infill and expansion drill program is ongoing with gold
mineralization continuing to be intersected in all holes reported
to date. Based on the continuing success, Mayfair expects to declare a further resource
update in the second quarter of 2023 on completion of the drill
program and Mayfair believes the
potential exists for a further significant increase in the Fenn-Gib
resource.
For more information, please refer to mayfairgold.ca and see the
news releases dated October 18,
2022.
Lagunas Norte (2% NSR)
On August 19, 2022, the CEO of
Boroo Pte Ltd. ("Boroo"), Dulguun Erdenebaatar, spoke at The
Executive Spotlight at PDAC 2022 event providing an update on
Boroo, its development projects and future plans to expand the
Lagunas Norte mining operation in Peru and the pre-feasibility results for the
refractory sulphide ore project ("PMR"), where Maverix has its
royalty. The PMR project has current reserves of 29.7 million
tonnes at an average gold grade of 2.5 g/t gold containing 2.4
million ounces of gold. When complete, the PMR project is expected
to produce 170,000 to 200,000 ounces of gold per year over a 10
year life.
For more information, please refer to boroomc.com.sg and see the
news release dated August 19,
2022.
Sleeping Giant Royalty
Acquisition
On September 22, 2022, Abcourt
Mines Inc. ("Abcourt") announced that Maverix acquired a 2% net
smelter return ("NSR") royalty on all metallic and non-metallic
minerals mined or otherwise recovered on each of the Géant Dormant
and Dormex claims (the "Royalty") of the Sleeping Giant mine.
Maverix made a $2 million cash
payment to Abcourt as consideration for the Royalty.
The Sleeping Giant mine is a past-producing, fully permitted
underground mine located in Abitibi, Quebec with an operating 750 tpd mill located
on the property. From 1987 to 2014 the mine produced over one
million ounces of gold. Abcourt is preparing the restart of
Sleeping Giant with the technical teams who are currently
establishing the mining plans from the reserves defined in the 2019
feasibility study. The plan is to rehabilitate the old drifts and
raises for a rapid restart at low capital cost. The surface
infrastructure, the mill and the tailing storage facility are being
maintained and prepared for start-up in 2023. Abcourt is currently
working to complete the financial package for the 2023
start-up.
For more information, please refer to abcourt.ca and see the
news releases dated October 5, 2022
and September 22, 2022.
United Nations Global
Compact
Maverix is pleased to announce that it has joined the United
Nations Global Compact (the "UN Global Compact"), the world's
largest corporate sustainability initiative. Formed in 2000, the UN
Global Compact comprises over 17,000 companies across 177
countries. As a participant, Maverix has voluntarily committed to
align its operations and strategy with the ten universally accepted
principles in the areas of human rights, labour, environment, and
anti-corruption, and to take action to support the broader UN
Global Compact goals, including the Sustainable Development
Goals.
The UN Global Compact provides members with a principle-based
framework, best practices, resources and networking events with a
goal to strengthen corporate sustainability practices for the
betterment of society.
Joining the UN Global Compact is an important part of Maverix's
focus on sustainability in its strategy and operations.
|
|
(1)
|
Please refer to the
Non-IFRS Measures section at the end of this news
release.
|
(2)
|
These figures are
unaudited and are subject to change. As the Company has not
finished its quarter-end close procedures, the anticipated
financial information presented in this press release is
preliminary, subject to final quarter-end closing adjustments, and
may change materially.
|
(3)
|
The sales of GEOs
during the three month period ended September 30, 2022 and the
Company's adjusted attributable GEO guidance for 2022 excludes any
GEOs earned pursuant to the Company's Omolon Hub royalty
interests.
|
Qualified Person
Brendan Pidcock, P.Eng., is Vice
President, Technical Services for Maverix, and a qualified person
under National Instrument 43-101 – Standards of Disclosure for
Mineral Projects ("NI 43-101"), has reviewed and approved the
scientific and technical disclosure contained in this news
release.
About Maverix
Maverix is a gold-focused royalty and streaming company with a
globally diversified portfolio of over 140 assets. Maverix's
mission is to increase per share value by acquiring precious metals
royalties and streams. Its shares trade on both the NYSE American
and the TSX under the symbol "MMX".
Cautionary statements to U.S. investors
Information contained or referenced in this press release or in
the documents referenced herein concerning the properties,
technical information and operations of Maverix has been prepared
in accordance with requirements and standards under Canadian
securities laws, which differ from the requirements of the U.S.
Securities and Exchange Commission ("SEC") under subpart 1300 of
Regulation S-K ("S-K 1300"). The terms "mineral resource" and
"inferred mineral resource" used in this press release or in the
documents incorporated by reference herein are mining terms as
defined in accordance with NI 43-101 under guidelines set out in
the Definition Standards for Mineral Resources and Mineral Reserves
adopted by the Canadian Institute of Mining, Metallurgy and
Petroleum Council. While the terms are substantially similar to the
same terms defined under S-K 1300 there are differences in the
definitions. Accordingly, there is no assurance any mineral
resources that the Company may report under NI 43-101 will be the
same as resource estimates prepared under the standards adopted
under S-K 1300. Because the Company is eligible for the
Multijurisdictional Disclosure System adopted by the SEC and
Canadian Securities Administrators, the Company is not required to
present disclosure regarding its mineral properties in compliance
with S-K 1300. Accordingly, certain information contained in this
press release concerning descriptions of mineralization and mineral
resources under these standards may not be comparable to similar
information made public by US companies subject to reporting and
disclosure requirements of the SEC.
Non-IRFS Measures
Maverix has included certain performance measures in this news
release that do not have any standardized meaning prescribed by
International Financial Reporting Standards ("IFRS") including
adjusted net income, total GEOs sold, average realized gold price
per GEO, average cash cost per GEO, cash operating margin and cash
flow from operating activities excluding changes in non-cash
working capital. Adjusted net income is calculated by excluding the
effects of the non-cash cost of sales related to the prepaid gold
interests, non-cash change in fair value of the prepaid gold
interests, other income/expenses, impairment charges,
gains/(losses) on sale or amendments of royalty and streams and
unusual non-recurring items. The Company believes that adjusted net
income is a useful measure of the Company's performance because it
adjusts for items which may not relate to or have a
disproportionate effect on the period in which they are recognized,
impact the comparability of our core operating results from period
to period, are not always reflective of the underlying operating
performance of our business and/or are not necessarily indicative
of future operating results. The Company's royalty revenue and
silver sales are converted to a GEO basis by dividing the royalty
revenue and silver sales for a period by the average gold price
based on the LBMA Gold Price PM Fix per ounce for the same
respective period. These GEOs when combined with the gold ounces
sold from the Company's gold streams and prepaid gold interests
equal total GEOs sold. Average realized gold price per GEO is
calculated by dividing the total revenue by the GEOs sold. Average
cash cost per GEO is calculated by dividing the total cost of
sales, less depletion less non-cash cost of sales of the prepaid
gold interests, by the GEOs sold. In the precious metals mining
industry, these are common performance measures but do not have any
standardized meaning. Cash operating margin is calculated by
subtracting the average cash cost per GEO sold from the average
realized gold price per GEO sold. The Company presents cash
operating margin as it believes that certain investors use this
information to evaluate the Company's performance in comparison to
other companies in the precious metal royalty and streaming sector
who present results on a similar basis. The Company has also used
the non-IFRS measure of operating cash flows excluding changes in
non-cash working capital. This measure is calculated by adding back
the decrease or subtracting the increase in changes in non-cash
working capital to or from cash provided by (used in) operating
activities. The presentation of these non-IFRS measures is intended
to provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. Other companies may calculate these
non-IFRS measures differently. The 2022 forecast herein assumes a
gold price of $1,750 per ounce and a
silver price of $21.00 per ounce. The
forecast was derived using information that is available in the
public domain as at the date hereof, which included guidance and
estimates prepared and issued by management of the operators of the
mining operations in which Maverix holds an interest. The forecast
is sensitive to the performance and operating status of the
underlying mines. None of the information has been independently
verified by Maverix and may be subject to uncertainty. There can be
no assurance that such information is complete or accurate.
Maverix's business, operations, financial condition, and financial
outlook could be materially adversely affected by the continued
impact of the COVID-19 global health pandemic. At this time,
Maverix cannot reasonably estimate the duration of any potential
business disruptions, impact to underlying operations that Maverix
holds an interest in or any related financial impact that is
related to or caused by COVID-19.
Cautionary note regarding forward-looking statements
This release contains certain "forward looking statements" and
certain "forward-looking information" as defined under applicable
Canadian and U.S. securities laws. Forward-looking statements and
information can generally be identified by the use of
forward-looking terminology such as "may", "will", "should",
"expect", "intend", "estimate", "anticipate", "believe",
"continue", "plans" or similar terminology. The forward-looking
information contained herein is provided for the purpose of
assisting readers in understanding management's current
expectations and plans relating to the future. Readers are
cautioned that such information may not be appropriate for other
purposes. Forward-looking statements and information include, but
are not limited to, statements with respect to the Company's annual
guidance and or organic growth in respect of its portfolio of
assets, developments in respect of Maverix's portfolio of royalties
and streams, developments at certain of the mines, projects or
properties that underlie the Company's interests, and Maverix's
commitment to align its operations with the principles of the UN
Global Compact. Forward-looking statements and information are
based on forecasts of future results, estimates of amounts not yet
determinable and assumptions that, while believed by management to
be reasonable, are inherently subject to significant business,
economic and competitive uncertainties and contingencies.
Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual actions,
events or results to be materially different from those expressed
or implied by such forward-looking information, including but not
limited to: the impact of general business and economic conditions;
the absence of control over mining operations from which Maverix
will purchase gold and other metals or from which it will receive
royalty payments and risks related to those mining operations,
including risks related to international operations, government and
environmental regulation, delays in mine construction and
operations, actual results of mining and current exploration
activities, conclusions of economic evaluations and changes in
project parameters as plans continue to be refined; accidents,
equipment breakdowns, title matters, labor disputes or other
unanticipated difficulties or interruptions in operations; problems
inherent to the marketability of gold and other metals; the
inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses; industry conditions,
including fluctuations in the price of the primary commodities
mined at such operations, fluctuations in foreign exchange rates
and fluctuations in interest rates; government entities
interpreting existing tax legislation or enacting new tax
legislation in a way which adversely affects Maverix; stock market
volatility; regulatory restrictions; liability, competition, the
potential impact of epidemics, pandemics or other public health
crises, including the current outbreak of the novel coronavirus
known as COVID-19 on Maverix's business, operations and financial
condition, loss of key employees, as well as those risk factors
discussed in the section entitled "Risk Factors" in Maverix's
annual information form dated March 16,
2022, available at www.sedar.com. Maverix 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 are advised not to place
undue reliance on forward-looking statements or information.
Maverix undertakes no obligation to update forward-looking
information except as required by applicable law. Such
forward-looking information represents management's best judgment
based on information currently available.
Technical and third-party information
The disclosure herein and relating to properties and operations
on the properties in which Maverix proposes to acquire a royalty,
stream or other interest is based on information publicly disclosed
by the owners or operators of these properties and information/data
available in the public domain as at the date hereof, and none of
this information has been independently verified by Maverix.
Specifically, as a royalty or stream holder or prospective royalty
or stream holder, Maverix has limited, if any, access to properties
included in its asset portfolio and the Royalty Portfolio.
Additionally, Maverix may from time to time receive operating
information from the owners and operators of the properties, which
it is not permitted to disclose to the public. Maverix is dependent
on, (i) the operators of the properties and their qualified persons
to provide information to Maverix, or (ii) on publicly available
information to prepare disclosure pertaining to properties and
operations on the properties on which Maverix holds or proposes to
acquire a royalty, stream or other interest, and generally has
limited or no ability to independently verify such information.
Although Maverix does not have any knowledge that such information
may not be accurate, there can be no assurance that such
third-party information is complete or accurate. Some information
publicly reported by operators may relate to a larger property than
the area covered by Maverix's royalty, stream or other interest.
Maverix's royalty, stream or other interests often cover less than
100% and sometimes only a portion of the publicly reported mineral
reserves, mineral resources, and production of a property.
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SOURCE Maverix Metals Inc.