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Royal Gold Announces Reserve Additions at Penasquito and Cortez Royalty Properties
DENVER, Feb. 23 /CNW/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX: RGL), a leading precious metals roy...
About this update from Red Lake Gold Inc
[{"type":"text","content":"\n\n\n\nDENVER, Feb. 23 /CNW/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX: RGL), a\nleading precious metals royalty company, is pleased to announce that Goldcorp\nInc. ("Goldcorp") increased its reserve estimate at the Penasquito project,\nlocated in Zacatecas, Mexico, to 17.4 million contained ounces of gold, and\n1.0 billion contained ounces of silver. These new reserve estimates reflect a\n34% and 21% increase, in gold and silver reserves, respectively. Goldcorp\nalso announced that reserves increased 20% for both lead and zinc. Royal Gold\nholds a 2.0% net smelter return royalty on all metal production from the\nPenasquito project.\n\n\n\n\n\nIn addition, Barrick Gold Corporation ("Barrick") announced that it has\nidentified 2.4 million ounces of reserves at the Crossroads deposit, located\nat the Cortez Pipeline Mining Complex ("Cortez") in Nevada. Royal Gold's\nsliding-scale, gross smelter return royalty ("GSR2") covers the Crossroads\ndeposit. At gold prices above $470 per ounce the GSR2 royalty rate is 5.0%. \nBarrick has not yet provided guidance on when Crossroads may be developed for\nproduction.\n\n\n\n\n\nTony Jensen, Royal Gold's President and Chief Executive Officer,\ncommented, "This is the second reserve increase at the Penasquito project\nsince we purchased the royalty in December 2006. Including this latest\naddition, gold and silver reserves increased by 74% and 82%, respectively,\nover this time period. The definition of reserves at the Crossroads deposit\nmore than doubles the reserves currently applicable to our royalties at Cortez\nand is particularly gratifying as we have been steadfast believers in the\nCrossroads project. These substantial reserve increases are expected to\nenhance and extend our royalty revenue from these important assets, and also\nhighlight the cost free leverage Royal Gold has to exploration upside."\n\n\n\n\n\nIn addition to the updated reserve information, Goldcorp stated that the\nfirst phase of the sulfide process plant remains on track for mechanical\ncompletion by mid-2009 and commercial production at the start of 2010. The\nbulk of the precious metal reserves and additional mineralization are situated\nin the sulfide material. Goldcorp also stated that they are advancing three\noptimization initiatives which include in-pit crushin...