VANCOUVER, BC, June 16,
2022 /CNW/ - Electric Royalties Ltd. (TSXV: ELEC)
(OTCQB: ELECF) ("Electric Royalties" or the "Company") is pleased
to provide an asset update on its current royalty portfolio.
Brendan Yurik, CEO of Electric
Royalties, commented: "A tremendous first half
of 2022 has seen 24 exciting developments across 11 assets within
our royalty portfolio. Drilling is underway at the high-grade
copper-cobalt Millennium project in Australia with assays expected later this
year. Drill results have been received on the promising Seymour
Lake lithium project in Ontario
and the operator has announced that a resource estimate is
imminent. Metallurgical development milestones are being advanced
at our Battery Hill manganese royalty as Manganese X Energy Corp.
kicks off a pilot plant program after years of rigorous test work
in partnership with Kemetco. Initial processing test results at the
Cancet lithium project are promising, showcasing a fairly simple
process and indicating potential to produce a 6% lithium spodumene
concentrate suitable for the battery market. And lastly, Sayona
Mining has been very busy as operator of our Authier lithium royalty, having raised over
$150 million this past month alone
and announcing a pre-feasibility study incorporating the
Authier lithium project into a
combined production scenario with the nearby North American Lithium
mine, located 60 km north of Val-d'Or,
Quebec.
"Investors are rightly concerned about ongoing inflation
levels, but as a royalty company, we're protected from capital cost
inflation as when the time comes to build mines, Electric Royalties
has no required contribution to any inflated costs. We're also
largely protected against mine operating cost inflation, other than
treatment and smelting charges for net smelter royalties. The value
of our royalties is directly proportional to the price of the
metals we are targeting and prices have been rising steadily with
lithium alone increasing substantially this past
year."
Highlights since the Company's previous development update on
May 11, 2022:
- Millennium Copper-Cobalt Royalty – Global Energy Metals
Corp. (TSXV: GEMC) announced on June 2,
2022, the completion of Phase 1 reverse circulation drilling
at the Millennium cobalt-copper-gold project in Queensland, Australia, with 1,580 metres of
drilling conducted predominantly in the South and Central resource
areas. This campaign infilled existing mineralization, targeted
both shallow and deep extensions to the existing mineralization,
and completed several pre-collars in preparation for diamond
drilling.
Global Energy Metals reported encouraging visual observations with
copper oxide and/or sulphides noted in all holes and mineralization
noted in all host rocks. Moreover, chalcopyrite and cobaltite have
been observed within broad alteration halos not within the current
resource envelope.
Phase 2 of the reverse circulation drill program in the North
resource area, along with metallurgical and deeper diamond drilling
in the South and Central resource areas, is scheduled mid June for
approximately 1,600 metres. Metallurgical and deeper diamond
drilling work is the first priority of the drill program, which
will then expand into the northern parts of the Central resource
area and some scoping of the Northern resource area. All drilling
assay results are expected by late September, with metallurgical
test work planned following the completion of Phase 2 drilling.
- Seymour Lake Lithium Royalty – Green Technology
Metals Limited (ASX: GT1) announced on May
19, 2022 the assay results for the remaining seven holes
from its Phase 1 step-out drilling at the Seymour Lake Project's
North Aubry deposit in Ontario,
Canada. The Phase 1 drilling program was designed to
evaluate potential along-strike and down-dip extensions of the
North Aubry deposit that were open and untested. The program
consisted of 16 holes drilled over 5,826 metres.
Results to date from Phase 1 drilling at North Aubry suggest
continuous mineralization to depth and both the northern and
down-dip extents of the pegmatite are open to further expansion. As
a result of the Phase 1 drilling success at North Aubry, Green
Technology Metals has commenced further step-out drilling to test
the on-strike and down-dip potential of the pegmatites. Logging
from these holes demonstrates host pegmatites occur a substantial
distance down-dip from the nearest previous pegmatite
intercept.
All announced results from the Phase 1 program are planned to be
incorporated in an updated Mineral Resource estimate for Seymour
Lake, which remains on track for completion during Q2 2022.
Observations from the current, ongoing drill program indicate
substantial potential upside to the Seymour Lake Mineral Resource
estimate.
Phase 2 (Central Aubry zone) and Phase 3 (Pye prospect) diamond
drilling at Seymour Lake are underway. There is currently no
Mineral Resource estimate at either the Central Aubry zone or Pye
prospect, with the existing Seymour Lake Mineral Resource estimate
comprised solely of the North and South Aubry deposits. At Central
Aubry, seven holes have been completed to date for approximately
1,292 metres. At the Pye prospect (located approximately 1 km east
of the Aubry complex), six holes have been completed to date for
approximately 1,383 metres. Results from the first five holes at
Central Aubry and Pye did not include significant lithium
intercepts. Initial drilling at Pye identified
lithium-cesium-tantalum type pegmatites with geological continuity
of over 250 metres and remains a target for further exploration.
Drilling will continue at Pye and Central Aubry once the ground
conditions improve sufficiently to allow rig movements.
- Battery Hill Manganese Royalty – Manganese X Energy
Corp. (TSXV: MN) announced on May 17,
2022, that it has initiated a number of ongoing discussions
with potential strategic partners seeking high-purity manganese
products. Furthermore, the company announced that it has started
the development of the pilot plant program for the Battery Hill
manganese project in New Brunswick,
Canada. Manganese X intends to engage an engineering firm to
design the work for its field pilot plant, which will utilize its
innovative solution to produce high-purity manganese sulphate
without the use of selenium. The goal of the field pilot plant is
to demonstrate Manganese X's proprietary process under near
commercial-scale operating conditions incorporating a modular
design.
- Cancet Lithium Royalty – Winsome Resources Limited (ASX:
WR1) announced on June 1, 2022, that
it has received metallurgical results from test work on two
lithium-bearing composite samples from the Cancet lithium project
in Quebec, Canada. Samples were
sourced from split drill core from the Phase 1 drilling campaign
which was previously completed at Cancet. The recoveries point to
the potential for the mineralized material from Cancet to be
beneficiated to a 6% lithium oxide concentrate using just dense
media separation. Winsome expects these high recoveries to result
in a lower environmental impact for the project due to less
comminution (crushing), and a reduction in power and chemical
requirements. This may result in lower capital costs and
potentially quicker approvals for the project.
- Authier Lithium Royalty – Sayona Mining Limited (ASX:
SYA) announced a pre‐feasibility study (PFS) for its flagship North
American Lithium (NAL) Project in Québec, Canada on May 23,
2022. The PFS integrates the Authier Lithium Project with
the NAL operation into Sayona's Abitibi Lithium Hub. Long-lead
equipment has been pre-ordered in anticipation of the restoration
of operations at NAL and in an effort to launch production ahead of
other North American lithium projects. Sayona Mining plans to
release an updated feasibility study for the Authier Project in Q2
2022. Electric Royalties holds a 0.5% gross revenue royalty on the
Authier Project.
David Gaunt, P.Geo., a qualified
person who is not independent of Electric Royalties, has reviewed
and approved the technical information in this release.
About Electric Royalties
Ltd.
Electric Royalties is a royalty company established to take
advantage of the demand for a wide range of commodities (lithium,
vanadium, manganese, tin, graphite, cobalt, nickel, zinc and
copper) that will benefit from the drive toward electrification of
a variety of consumer products: cars, rechargeable batteries, large
scale energy storage, renewable energy generation and other
applications.
Electric vehicle sales, battery production capacity and
renewable energy generation are slated to increase significantly
over the next several years and with it, the demand for these
targeted commodities. This creates a unique opportunity to invest
in and acquire royalties over the mines and projects that will
supply the materials needed to fuel the electric revolution.
Electric Royalties has a growing portfolio of 19 royalties,
including one royalty that currently generates revenue. The Company
is focused predominantly on acquiring royalties on advanced stage
and operating projects to build a diversified portfolio located in
jurisdictions with low geopolitical risk, which offers investors
exposure to the clean energy transition via the underlying
commodities required to rebuild the global infrastructure over the
next several decades towards a decarbonized global
economy.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange), nor any other regulatory body or securities
exchange platform, accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statements Regarding Forward-Looking
Information and Other Company Information
This news release includes forward-looking information and
forward-looking statements (collectively, "forward-looking
information") with respect to the Company within the meaning of
Canadian securities laws. This news release includes
information regarding other companies and projects owned by such
other companies in which the Company holds a royalty interest,
based on previously disclosed public information disclosed by those
companies and the Company is not responsible for the accuracy of
that information, and that all information provided herein is
subject to this Cautionary Statement Regarding Forward-Looking
Information and Other Company Information. Forward
looking information is typically identified by words such as:
believe, expect, anticipate, intend, estimate, postulate and
similar expressions, or are those, which, by their nature, refer to
future events. This information represents predictions and actual
events or results may differ materially. Forward-looking
information may relate to the Company's future outlook and
anticipated events and may include statements regarding the
financial results, future financial position, expected growth of
cash flows, business strategy, budgets, projected costs, projected
capital expenditures, taxes, plans, objectives, industry trends and
growth opportunities of the Company and the projects in which it
holds royalty interests.
While management considers these assumptions to be
reasonable, based on information available, they may prove to be
incorrect. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company or these
projects to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. These risks, uncertainties and other
factors include, but are not limited to risks associated with
general economic conditions; adverse industry events; marketing
costs; loss of markets; future legislative and regulatory
developments involving the renewable energy industry; inability to
access sufficient capital from internal and external sources,
and/or inability to access sufficient capital on favourable terms;
the mining industry generally, the Covid-19 pandemic, recent market
volatility, income tax and regulatory matters; the ability of the
Company or the owners of these projects to implement their business
strategies including expansion plans; competition; currency and
interest rate fluctuations, and the other risks.
The reader is referred to the Company's most recent filings
on SEDAR as well as other information filed with the OTC Markets
for a more complete discussion of all applicable risk factors and
their potential effects, copies of which may be accessed through
the Company's profile page at www.sedar.com and at
otcmarkets.com.
www.electricroyalties.com
www.renmarkfinancial.com
SOURCE Electric Royalties Ltd.