Nomad Royalty Company Acquires a Royalty on the Blackwater Gold Project in Canada
MONTREAL, Jan. 11, 2021 - Nomad Royalty Company Ltd. ("Nomad" or the "Company") (TSX: NSR) (OTCQX: NSRXF) is pleased to announce that it has completed a royalty purchase agreement with private vendors ("Vendors") to acquire an existing net smelter return royalty (the "Royalty") on the Blackwater Gold project (the "Property") located in British Columbia, Canada (the "Royalty Purchase") for total consideration of approximately US$3.0 million (the "Purchase Price"). Vincent Metcalfe, Chief Executive Officer of Nomad, commented on the transaction, "We are very pleased to announce the acquisition of a royalty on a large gold deposit with significant potential for resource expansion, and with a clear path to development. The Blackwater Gold project represents one of the few sizeable near-shovel ready projects worldwide. Furthermore, the addition of the royalty now adds British Columbia, Canada to Nomad's growing list of jurisdictions where we own precious metal royalties and streams."
The Blackwater Gold Project:
The Property is located in central British Columbia, approximately 160 km southwest of Prince George, 446 km northeast of Vancouver and is accessible by major highway and access/service roads. The Property is 100% owned and operated by Artemis Gold (the "Operator"). The Operator has recently revised the development approach for the Blackwater Gold project and released a revised pre-feasibility study in August 2020. A definitive feasibility study is currently underway and scheduled for mid-2021. The start of construction is planned for the second quarter of 2022, with anticipated production in 2024.
The Royalty:
The Royalty consists of a 0.21% net smelter return royalty on all metals and minerals produced from mineral tenure 515809 which covers a portion of the Blackwater Gold project and the higher-grade starter pit area. Figure 1.
The Blackwater Gold Project Highlights:
The Operator's revised development approach includes a reduced initial development capital, a focus on high-grade starter zone located in the southwestern zone of the deposit and improved gold and silver recoveries. The Proven & Probable Reserves currently stand at 334.0 million tonnes at grades of 0.75 g/t Gold and 5.8 g/t Silver for contained 8.0 Million ounces of Gold and 62.3 million ounces of Silver.
Blackwater Gold Project Summary:
| Location | British Columbia, Canada |
| Ownership | 100% |
| Status | Pre-Feasibility Study |
| Type of Mine | Open Pit, CIP Mill |
| Gold Reserves | 8 Million ounces |
| Silver Reserves | 60 Million ounces |
| Gold Resources | 11.7 Million ounces |
| Silver Resources | 122.4 Million ounces |
| Phase 1 | Years 1-5 |
| Initial Development Capital | CAD$592 Million |
| Throughput | 5.5 Million TPA |
| Average Annual Gold Production | 248,000 |
| AISC ($oz Au) | US$508 |
| Phase 2 | Years 6-10 |
| Expansion Capital | CAD$426 Million |
| Throughput | 12.0 Million TPA |
| Average Annual Gold Production | 420,000 |
| AISC ($oz Au) | US$529 |
| Phase 3 | Years 11-17 |
| Expansion Capital | CAD$380 Million |
| Throughput | 20.0 Million TPA |
| Average Annual Gold Production | 442,000 |
| AISC ($oz Au) | US$529 |
| Phase 4 | Years 18-23 |
| Expansion Capital | nil |
| Throughput | 20.0 Million TPA |
| Average Annual Gold Production | 189,000 |
| AISC ($oz Au) | US$807 |
| LOM | 23 Years |
| Payback Period | 2.0 years |
| After-Tax IRR | 35% |
| After Tax NPV (5%) | CAD$2,247 Million |
Source: Artemis Gold Company Filings
The Potential Resource Upside:
In November 2020, the Operator began the first 35,000 metre grade control program which will focus on delineating an area in the southwestern portion of the Blackwater pit (scheduled in the 2020 PFS to be mined in year 1 of operations), which returned significant near surface high-grade mineralized intercepts.
The Blackwater Gold project has a high level of drilling density with more than 300,000 metres of diamond drilling previously completed, ultimately supporting its current 2020 PFS Mineral Resource estimate (with 75% of the Measured and Indicated Mineral Resource in the Measured category). However, despite the extent of the drilling to date, the deposit remains open to potentially substantial expansion. As illustrated in Figure 2 (attached), the deposit remains open to the north, north-west and at depth in the southwest. The Operator plans to complete a limited diamond drill program in 2021 to test for extensions to the known mineralization of the deposit in the directions that remain open.
Source : Artemis Gold Company Filings
The Purchase:
The Purchase Price was satisfied by Nomad paying approximately US$1.7 million (C$2.2 million) in cash and by the issuance of 1,583,710 shares of the Company to the Vendor.
QUALIFIED PERSON
Vincent Cardin-Tremblay, P. Geo., Vice President, Geology of Nomad Royalty is the "Qualified Person" as defined in National Instruments NI 43-101 who has reviewed and approved the technical content of this news release.
ABOUT NOMAD
Nomad Royalty Company Ltd. is a gold & silver royalty company that purchases rights to a percentage of the gold or silver produced from a mine, for the life of the mine. Nomad owns a portfolio of 14 royalty, stream, and gold loan assets, of which 6 are on currently producing mines. Nomad plans to grow and diversify its low-cost production profile through the acquisition of additional producing and near-term producing gold & silver streams and royalties. For more information please visit: www.nomadroyalty.com.
Nomad Royalty Company Ltd.
500-1275 ave. des Canadiens-de-Montréal
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nomadroyalty.com
Forward-looking statements
Certain statements contained in this press release may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that Nomad expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "scheduled" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Nomad believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include the impossibility to acquire royalties, streams and to fund precious metal streams, gold prices, Nomad's royalty and stream interests, access to skilled consultants, results of mining operations, exploration and development activities for properties with respect to which Nomad holds a royalty or stream, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government or court approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations, market prices, continued availability of capital and financing and general economic, market or business conditions. Nomad cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the forward looking statements contained herein should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Nomad believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. Nomad undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law.
SOURCE Nomad Royalty Company Ltd.
Contact
about Nomad Royalty Company, please visit our website at www.nomadroyalty.com or email us: Vincent Metcalfe, CEO, vmetcalfe@nomadroyalty.com; Joseph de la Plante, CIO, jdelaplante@nomadroyalty.com