Nomad Royalty Company acquires a Royalty on the Blackwater Gold Project in Canada

Montreal, Québec – January 11, 2021

Nomad Royalty Company Ltd. (“Nomad” or the “Company”) (TSX: NSR and 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.

 

Figure 1: Plan View of the Ultimate Pit Limits and Mineral Tenure 515809

Figure 1: Plan View of the Ultimate Pit Limits and Mineral Tenure 515809

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:

Phase Year

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

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.

Figure 2: Section View of Blackwater Mineralization and 2020 PFS Pit Walls

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

Montréal (Québec) H3B 0G4

 

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.

Leave a Reply

Your email address will not be published. Required fields are marked *