Isabella Pearl, located on Nevada’s Walker Lane gold belt, began production in April 2019, only ten months after breaking ground. The mine produced 10,883 ounces of gold in 2019. Gold Resource Corporation forecasts production of 27,000 ounces in 2020 (see March 2, 2020 news release).
Overview — a Growing Asset
Ely Gold Royalties acquired the Isabella Pearl royalty in October of 2018. This purchase marks the fifth transaction the Company has completed in concert with Gold Resource Corporation’s (GORO) consolidation of its Nevada Mining Unit, encompassing over 10,100 hectares (25,000 acres) of development and exploration lands along Nevada’s south-central Walker Lane mineral belt. The remaining three properties of the Unit—County Line, Mina Gold and EastCamp Douglas—are in various stages of exploration.
Total Ely Gold property sales to GORO of US $1,500,000 have created the following royalty structure:
0.75% GRR on current reserves on the Isabella Claims;
2.5% NSR on the exploration ground at Isabella Pearl;
2.5% NSR at County Line;
2-3% NSR at Mina Gold; and
2% NSR on certain claims at Camp Douglas.
Reserves,Grades and Operations
Isabella Pearl contains Proven and Probable reserves estimated at 2,934,400 tonnes grading 2.28 grams per tonne, which equates to 214,800 gold ounces. Future production development anticipates two adjacent open pits with the Isabella pit averaging approximately 1 gram per tonne gold with mineral outcropping at the surface, and the Pearl pit averaging approximately 3.7 grams per tonne gold with a higher-grade core averaging nearly 5 grams per tonne gold. The project estimates an average 5:1 strip ratio with metallurgical tests estimating gold recoveries for crushed oxide rock of 81% and run of mine ore (ROM) of 60% using conventional heap leaching. Small amounts of silver are expected in recoveries, which would be treated as by-product credits against gold production costs.
As Isabella Pearl is fully developed and other satellite properties are fully explored, Ely Gold’s royalty interests are expected to become significant income-producing assets.