Ely Gold - 2012 Annual General Meeting and Corporate Update
July 26, 2012
Ely Gold & Minerals Inc. ("Ely Gold") is pleased to announce the
results of its 2012 Annual General Meeting, held on June 28, 2012.
Messrs. John Brownlie, C.F. (Trey) Wasser, Stephen Kenwood and Ron
Husband were re-elected to the Board of Directors, and Marco Antonio
Galindo was elected as a new director. Smythe, Ratcliffe LLP was
re-appointed as the Company's auditor.
At the post-AGM directors' meeting, Mr. Brownlie was re-appointed
Executive Chairman of the Board, Mr. Wasser was re-appointed as
President and Chief Executive Officer, and Scott Kelly was re-appointed
as Chief Financial Officer and Secretary.
Mr. Galindo is a welcome addition to the Board. He is a Chemical
Engineer graduated from the University of Sonora, Mexico with over 15
years experience in metallurgy process design, development, mining
operations and management. His career with Mexican precious and base
metals producers has included positions such as General Manager of
Capital Gold's Mexican operations and Senior Process Engineer /
Assistant General Manager of Alamos Gold Corporation. His work history
also includes senior positions with companies such as Grupo Mexico
(Cananea Mine), Phelps Dodge Corporation (Santa Gertrudis Mine) and
Eldorado Gold Corp. (La Colorada Mine); and active participation during
the construction and start up of other mine operations such as Magistral
Mine, Minera Fernanda S.A. de C.V. and Grupo Minero FG S.A. de C.V.
Mr. Galindo is currently the V.P. of Operations for Oro Mining Ltd., a
TSX Venture Exchange company. He is fluent in both Spanish and English.
1. Mt. Hamilton
Several milestones have been achieved in the past 12 months at our Mt
Hamilton property. The Bankable Feasibility Study, released in February
2012, shows robust economics and no environmental hurdles to permitting.
The study contemplates a heap leach mine producing 54,000 GOE annually.
The Net Present Value at $1500 gold (5% discount) is estimated at
$198.5 million. Ely Gold's carried interest is 20%, which equates to
$39.7 million of the estimated NPV. Permitting with the state and
federal agencies is currently being submitted. Our Joint venture
partner, Solitario Exploration & Royalty Corp. ("Solitario;" NYSE
MKT: XPL; TSX: SLR) is the manager of Mt. Hamilton LLC and holds an 80%
Mt. Hamilton LLC has initiated an aggressive 2012 drilling program with
the intention of converting inferred resources to reserves at the
Centennial pit as well as upgrading mineralization around the nearby
historic NE Seligman pit area. The Seligman deposit, situated
approximately 2,000 feet north of the planned Centennial pit, was
partially mined by Rea Gold Corp. from 1995-1997. The goal of the 2012
drill program is to add reserves in these two resource areas that could
extend the current estimated mine life by 3-4 years.
In June 2012, Sandstorm Gold purchased a 2.4% net smelter returns
royalty on the Mt. Hamilton gold project from Mt. Hamilton LLC for
US$10.0 million. As part of the agreement, Mt. Hamilton LLC will have
the option, for a period of 30 months, to repurchase up to 100% of the
NSR for US$12 million, provided that Mt. Hamilton LLC enters into a gold
stream agreement with Sandstorm that has an upfront deposit of no less
than US$30 million. The proceeds from Sandstorm will be used to fully
fund the 2012 drill program, other project development, and permitting
for mine construction. The Sandstorm agreement is a credible first step
towards full project financing for Mt. Hamilton.
2. Northern Star Mining Corp.
On July 5, 2011, Ely Gold announced that it had entered into two
separate amending agreements providing for completion of its initial
acquisition of outstanding Senior Secured Notes ("Notes") issued by
Northern Star Mining Corp. ("NSM") to occur ten business days following
the date on which title to the NSM assets is vested in the Note holders
by Court Order. The purpose of the amendments was to ensure that Ely
Gold would receive an interest in the NSM assets in the first instance
rather than an interest in the Notes.
The bankruptcy proceedings are taking much longer than anticipated, and
market conditions have changed in the interim. Accordingly, Ely Gold
has notified the Note holders that while it remains interested in
acquiring an interest in the NSM assets, it will be necessary to discuss
new terms at such time as the bankruptcy proceedings are concluded and
the Note holders are in a position to deal with the NSM assets. Ely
Gold cannot state with certainty when such proceedings will be concluded
or whether the Note holders will agree to new terms which are more
favorable to Ely Gold than the previously negotiated terms.
3. Corporate Development
Management continues to evaluate projects in North America with a focus
on near term production. The difficult market environment is generating
interesting opportunities for corporate finance and property
acquisition. Ely Gold is well positioned to take advantage of these
opportunities with significant mining expertise, a strong cash position
and important relationships at major financial institutions.
On Behalf of the Board of Directors
Signed "Trey Wasser"
Trey Wasser, President & CEO
For further information, please contact Ely Gold & Minerals Inc. at 604-488-1104.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but
not limited to comments regarding the timing and content of upcoming
work programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore, involve inherent
risks and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.