- Abitibi Royalties has received its 2020 year-end gold reserve and resource estimate as well as production estimates for 2021-2023
- The average net smelter return interest was 3 per cent across zones
- The company expects to generate additional cash from project payments under mining option agreements, option premiums, dividends, capital gains and interest in 2021
- Abitibi Royalties is engaged in the business of acquiring, exploring, evaluating and promoting its mineral properties and other projects
- Abitibi Royalties (RZZ) is down 1.98 per cent and is trading at C$22.79 per share
Abitibi Royalties has received the 2020 year-end gold reserve and resource estimate that was completed by Agnico Eagle Mines Limited and Yamana Gold.
The estimate took place at the company’s Canadian Malartic Mine and covered portions of the Barnat, Odyssey, East Malartic, Jeffrey, and Gouldie zones.
The purpose of the estimate was to determine Abitibi’s net smelter return (NSR) interests.
For the Odyssey, East Malartic, Barnat, & Jeffrey zones, the estimate indicated a net smelter return (NSR) of three per cent and an inferred gold grade of 2.02 g/t.
The inferred mineral resource is part of a mineral resource estimate for which tonnage, grade and mineral content can be estimated. Geological evidence is sufficient to imply but not verify geological and grade continuity.
Additionally, Barnat is estimated to have 0.92 g/t proven and probable reserves on top of the resource estimates.
The Gouldie zone is estimated to contain an inferred gold grade of 1.26 g/t at a two per cent NSR.
Canadian Malartic is budgeting approximately US$4 million to test for possible extensions of the East Gouldie Zone.
In 2021, Abitibi Royalties projects that it will mine approximately 10,850 ounces of gold and 13,730 ounces of silver. By 2023, those estimates are projected to have increased to 36,100 ounces of gold and 36,100 ounces of silver.
The company will notify shareholders if royalty production is materially different than the estimated amounts shown above for 2021.
The company also expects to generate additional cash from project payments under mining option agreements, option premiums, dividends, capital gains and interest in 2021.
Abitibi Royalties Inc is engaged in the business of acquiring, exploring, evaluating and promoting its mineral properties and other projects.
Abitibi Royalties (RZZ) is down 1.98 per cent and is trading at C$22.79 per share as of 10:27 am ET.