Business
Royal Gold Announces Substantial Increases in Reserves At Penasquito Royalty Property
Royal Gold Announces Substantial Increases in Reserves At Penasquito Royalty Property.
About this update from Red Lake Gold Inc
[{"type":"text","content":"\n\n\n\nDENVER, Colo., JUNE 28 /CNW/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX:\nRGL), the world's leading precious metals company, today announced that\nongoing exploration and development drilling by Goldcorp Inc. ("Goldcorp") at\nthe Penasquito project in Zacatecas, Mexico has allowed Goldcorp to update its\nreserve estimate of 13 million contained ounces of gold and 864 million\ncontained ounces of silver. These new reserve estimates reflect a 31% and 50%\nincrease in gold and silver reserves, respectively, over the June 2006 reserve\nupdate. Goldcorp also announced that proven and probable lead and zinc\nreserves both increased 60%. Royal Gold holds a 2.0% net smelter return\n("NSR") royalty on all metal production from the Penasquito project. Tables\ndisplaying updated royalty reserves (Table 1) and additional mineralization\n(Table 2) are presented at the end of this release.\n\n\nTony Jensen, Royal Gold's President and Chief Executive Officer,\ncommented, "As we anticipated when we acquired this royalty in January, this\nproject has exhibited great upside potential with the possibility of further\nreserve growth over time. We are very pleased with our investment in this\nroyalty property and the potential future revenue impact from these expanded\nreserves. The Penasquito royalty will be a cornerstone asset in our portfolio\nover much of the next two decades."\n\n\nIn addition to the updated reserve information, Goldcorp stated that\nconstruction progress at Penasquito remains on schedule for initial heap\nleaching of oxide ore during 2008 and start-up of the first milling and\nflotation circuit by late 2009. Goldcorp is also analyzing the potential for\nan expansion in the mill throughput from 100,000 tonnes per day to 130,000\ntonnes per day to accelerate the production profile. Goldcorp also reported\nthat nine core rigs are active on the property with a drilling campaign in\nprogress to test the extent of a new high grade zone and define additional\nmineralization which may be mineable by underground methods concurrent with\nopen pit operations.\n\n\nRoyal Gold is a precious metals royalty company engaging in the\nacquisition and management of precious metal royalty interests. Royal Gold is\npublicly traded on the NASDAQ Global Select Market under the symbol "RGLD,"\nand on the To...