Elemental Royalties Limited, (“Elemental”), a private company expanding a diversified portfolio of mineral royalties, is pleased to comment on the recent announcement made by Premier Gold Mines Limited (“Premier”) of that company’s Q2 2019 operating results. 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 Q2 2019 was 15,532 Oz Au and 51,354 Oz Ag compared to 13,780 Oz Au and 44,366 Oz Ag during Q2 2018.  Year to date, mine production totalled 33,146 Oz Au and 109,035 Oz Ag compared to 28,789 Oz Au and 101,736 Oz Ag in the prior year to date. Premier attributes the increased gold production to higher mined grades from the new Rey de Oro and Lupita zones as well as consistent stope production from the Diluvio zone.

Unit operating costs at Mercedes during the period, on a co-product basis, were cash costs of $1,053 and all-in sustaining costs (AISC) of $1,254 per ounce of gold sold and year to date, on a co-product basis,  cash costs of $926 and all-in sustaining costs (AISC) of $1,177 per ounce of gold sold.  To date, sustaining capital costs at Mercedes are $6.6M.

Although production from Mercedes in 2019 is weighted to the second half with increased output from Diluvio planned to account for approximately half of the gold ounces produced, Elemental notes that this is trending towards the low end of guidance and the high-end of projected costs.  Mining during the second half of the year will draw more heavily on the Rey de Oro and Lupita zones where grades are higher, which Premier hope will help to bring down costs.

Exploration activities continued during Q2 with a total of 11,281 meters of drilling targeting Diluvio, Marianas and Barrancas veins to replace reserves, support mine production, test extensions of the main mine trends and to test new geological targets.

Capital expenditures were primarily required for exploration and underground mine development to support transition to the new mining zones. For Q2 2019, total capital expenditures at Mercedes were $4.5M which includes $2.4M of sustaining capital, $1.2M of exploration capital and $0.7M of expansionary capital. Capital spending in the Q2 2018 was $4.4M.

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/q2-2019-final-results

Download PDF:

http://elementalroyalties.com/_resources/news/2019/2019-q2-pr-pgm-final.pdf?v=0.310

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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