Elemental Royalties Limited, (“Elemental”), a private company expanding a diversified portfolio of mineral royalties, is pleased to comment on the 2019 full year operating results announced by Premier Gold Mines Limited (“Premier”). Premier is the operator of the Mercedes gold-silver mine located in State of Sonora in northern Mexico, on which Elemental Royalties holds a 1% NSR royalty subject to a production hurdle.

Elemental notes that production at Mercedes during Q4 2019 was 12,274 Oz Au and 44,809 Oz Ag, compared to 22,465 Oz Au and 119,039 Oz Ag during Q4 2018. For 2019 mine production totalled 59,901 Oz Au and 191,306 Oz Ag compared to 68,719 Oz Au and 309,165 Oz Ag in 2018. The decrease in gold ounces produced compared to the prior year is primarily due to the lower grade delivered to the mill.

Unit operating costs on a co-product basis at Mercedes were cash costs of $1,244 and AISC of $1,388 per ounce of gold sold for the quarter and cash costs of $1,034 and AISC of $1,263 per ounce of gold sold for the year.

The exploration drilling program was finalized in Q3 2019 and Premier confirms that this will continue in 2020 with a focus on high-grade targets that may be upgraded to mineral resources and mineral reserves. Work is expected to include testing of the NW-SE major structure and the Diluvio-Lupita basin that hosts San Martin, Lupita Extension and Neo, the main discoveries from 2019. The budget will also explore the potential new deposit type at La Mesa, an extension of Santa Gertrudis deposit on Premier’s property.

The text above is Elemental Royalties’ comment to the operator’s news release and is not included within the original release. The original article is available using the links below.

Original Article: 
https://www.premiergoldmines.com/q4–ye-2019-results

Download PDF: 
http://www.elementalroyalties.com/_resources/news/2020/march-5-2020-pg-2019-q4-and-year-end-res001.pdf?v=0.454

About Elemental Royalties Limited

Elemental is a private company providing investors with exposure to a dividend-paying royalty company building a diverse portfolio of mining royalties, benefiting from ongoing royalty revenue, future exploration upside and low operating costs.

Since early 2017 Elemental has assembled a portfolio of five royalties over seven commodities in four countries, four of which cover producing mines. Immediate cash-flow has enabled the Company to limit dilutive fund-raisings to facilitate royalty acquisitions, and to pay a dividend from inception.

Elemental’s focus remains on securing royalties over advanced assets with established operators and credible counter-parties from a robust pipeline of potential royalty acquisitions across commodities and geographies.

For further information you are invited to visit the Company’s website www.elementalroyalties.com or contact:

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