Business
Elemental Altus Completes Sale of Diba Gold Project in Mali to Allied Gold for Royalty and Milestone Payments
Royalty Expected to Generate Material near Term Income Vancouver, British Columbia--(Newsfile Co...
About this update from Elemental Royalty Corporation
[{"type":"text","content":"Elemental Altus Completes Sale of Diba Gold Project in Mali to Allied Gold for Royalty and Milestone PaymentsRoyalty Expected to Generate Material near Term IncomeVancouver, British Columbia--(Newsfile Corp. - November 9, 2023) - Elemental Altus Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) (\"Elemental Altus\" or \"the Company\") announces the closing of the previously announced sale of the 'shovel-ready' Korali-Sud Small Scale Mining Licence (\"Korali-Sud\") & the highly prospective Lakanfla Exploration Licence (\"Lakanfla\") (combined \"Diba\" or \"the Project\") to Allied Gold Corporation (\"Allied\"). The Project is located approximately 15km from Allied's Sadiola gold mine (\"Sadiola\") in Western Mali. Allied has announced its intention to fast-track production at Diba in H1 2024 to complement existing oxide ore sources in the Sadiola mine plan.Highlights:Completion of sale of Diba Project in western Mali to Allied Gold for royalty and cash milestone paymentsUncapped Net Smelter Return (\"NSR\") royalty expected to generate material near term income:3.0% on first 226,000 ounces of gold produced from the defined Diba deposit 2.0% on all future production in excess of 226,000 ounces from the ProjectUS$1 million payable on closing and up to US$5 million in deferred production based milestonesSadiola expected to produce an average of 230,000 ounces over 2024 and 2025 with the addition of Diba:Up to 1.8 million tonnes per year to be trucked 15km to the Sadiola processing plantSimple open pit mining of typically soft ores, with oxidation down to 70mInvestment of US$12 million in 2023 and 2024 for development including haul roadDiba hosts a NI 43-101 compliant Preliminary Economic Assessment1 (\"PEA\") which confirmed a Mineral Resource Estimate (\"MRE\") of:312,000 ounces of gold with a grade of 1.24 g/t in the Indicated Category, including 199,000 ounces of gold in oxides with an average grade of 1.52 g/t; and362,000 ounces of gold at 0.88 g/t in the Inferred Category Additional excellent potential exists for further expansion beyond the existing MRE within the 107 square km Project area: Historical drill results including 4.78 g/t over 12m from Diba NW prospect and 1.23 g/t Au over 127m from the Lakanfla Central prospectLakanfla has existing MRE and potential for 'Yatela type' carbonate-hosted karst targets Steven Poulton, E...