The North American Gold Royalty Company

Rawhide

15% NPI

LOCATION Mineral County, Nevada
OPERATOR Rawhide Mining LLC (private company)
MINERALS Au, Ag
ROYALTY 15% Net Profits Interest (NPI)
STATUS Production
REVENUE Late 2020

Rawhide is a producing gold and silver open-pit heap leach mine located along the Walker Lane Trend of western Nevada. The mine has operated continually since 1990, with total production of 1.7M ounces of gold and 14.4M ounces of silver to date. The project is owned by Coral Reef Capital, a private investment firm based in New York City.

Overview – Situated Amongst Multiple Historic Mines

The Rawhide mine is located approximately 50 miles from Fallon, Nevada amidst multiple historic mines. These operations, including Comstock, Round Mountain, Borealis, and Tonapah, produced more than 1M ounces of gold. Rawhide is a fully permitted open pit heap leaching operation currently producing gold and silver doré. Rawhide was formerly operated as a subsidiary of Kennecott Corporation prior to Coral Reef Capital partnering with the Rawhide mine management team to acquire the property from Rio Tinto Plc in 2010.

Net Profits Interest (NPI) Structure on Regent Hill

The 15% NPI was purchased from Pilot Gold USA Inc., a Delaware corporation and wholly-owned subsidiary of Liberty Gold Corp., in December 2019. The NPI covers the Regent Hill Property of the Rawhide Mine. Regent Hill was recently permitted for production in early 2019 and is now in initial stages of production. NPI payments to Ely Gold are expected to begin in late 2020.

The purchased agreement also includes a “Gold Bonus Payment” after 115,000 ounces of gold have been placed onto the leach pad. The Gold Bonus Payment is paid on every gold equivalent ounce placed on the leach pad as follows:

Gold Price (per oz.) Bonus (per oz.)
Over $1800 gold $29.050
$1700 to $1800 gold $27.275
$1600 to $1700 gold $17.500
$1500 to $1600 gold $11.550
$1400 to $1500 gold $5.775
Less than $1400 gold $0

Operations

Gold-silver mineralization at Rawhide has been mined historically from a series of low sulfidation epithermal veins, vein swarms and replacement zones. Lower-grade, bulk tonnage mineralization is the focus of current operations. Rawhide Mining received a mine expansion permit earlier this year covering the Regent satellite deposit, upon which Ely Gold’s NPI is based.

Ely Gold News Release Dated Dec 18, 2019

Coral Reef Capital