Royalty Covers 110 Unpatented Mining Claims Near the Producing Gold Bar Mine in Eureka County, Nevada
Vancouver, British Columbia, September 16, 2019 - Ely Gold Royalties Inc.(TSX-V: ELY, OTCQB: ELYGF), through its wholly owned subsidiary Nevada Select Royalty, Inc, (collectively “Ely Gold” or the “Company”) has acquired a one percent (1%) net smelter returns royalty covering two separate properties (the “Scoonover Royalty”), located in Eureka County, Nevada. Ely Gold paid US$25,000 for the assignment of 100% of the Scoonover Royalty from an arms-length third party.
The Scoonover Royalty covers 110 unpatented mining claims, located on the Battle Mountain-Eureka Trend (the “Claims”), that are currently held by McEwenMining Inc. (“McEwen”). The Claims are adjacent to the Goldstone Pit at McEwen’s Gold Bar Mine(see Figure 1). McEwen achieved commercial production at Gold Bar on May 23, 2019 (see news release, May 23, 2019).
Trey Wasser, Ely Gold’s President & CEO commented, “We are pleased to add this exciting exploration royalty to our portfolio. This asset is yet another example of our strategy of acquiring or generating royalties that are “at or near” producing mines”.
Limited modern exploration on the Claims has been conducted by Atlas Precious Metals in 1985-1995 and Romarco Minerals from 2005-2007. Romarco’s geologic mapping focused on the structural setting and the pronounced alteration of the Devils Gate and Webb Formations similar to the Rain Mine. A 7,210-foot drill program included 10 vertical holes. Four of these holes showed very thick (300-500 feet) intervals of detectable gold and prominent northeast and northwest structural zones indicating a very favorable setting for Rain-type mineralization. (1)
Stephen Kenwood, P. Geo, is a director of the Company and a Qualified Person as defined by NI 43-101. Mr. Kenwood has reviewed and approved the technical information in this press release. The Company does not intend to file a technical report supporting disclosure with respect to acquisition of this royalty interest.
Source: Romarco Minerals Inc
Figure 1 Scoonover Claims
About Ely Gold Royalties Inc.
Ely Gold Royalties Inc. is a Vancouver-based, emerging royalty company with development assets focused in Nevada and Quebec. Its current portfolio includes 33 Deeded Royalties and 20 properties optioned to third parties. Ely Gold’s royalty portfolio includes producing royalties, fully-permitted mines and development projects that are at or near producing mines. The Company is actively seeking opportunities to purchase existing third-party royalties for its portfolio and all the Company’s Option Properties are expected to produce royalties, if exercised. The royalty and option portfolios are currently generating significant revenue. Ely Gold is well positioned with its current portfolio of over 20 available properties to generate additional operating revenue through option and sale transactions. The Company has a proven track record of maximizing the value of its properties through claim consolidation and advancement using its extensive, proprietary data base. All portfolio properties are sold or optioned on a 100% basis, while the Company retains royalty interests. Management believes that due to the Company’s ability to generate third-party royalty transactions, its successful strategy of organically creating royalties, its equity portfolio and its current low valuation, Ely Gold offers shareholders a low-risk leverage to the current price of gold and low-cost access to long-term mineral royalties.
This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, including statements regarding the Company’s acquisition of the Scoonover Royalty. The Company is not aware of any stated plans for further near-term exploration and development of the Claims, and the Company’s outlook for the expected performance of its royalty and option portfolios. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. The risk of political uncertainties and regulatory or legal disputes or changes in the jurisdictions where the Company carries on its business that might interfere with the Company's business and prospects. The reader is urged to refer to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.
Neither the 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.