DENVER--(BUSINESS WIRE)--
Royal Gold, Inc. (NASDAQ:RGLD) (together with its subsidiaries,
“Royal Gold” or the “Company”) is pleased to report that the Peak Gold
joint venture (“Peak Gold”), of which our Royal Alaska subsidiary is a
party, completed an estimate of mineralized material1 at the
Peak and North Peak deposits located near Tok, Alaska. The estimate of
measured and indicated resources2 contained within
mineralized material at a $1,400 per ounce gold pit shell consists of
11.3 million tonnes grading 3.46 grams per tonne (“gpt”) gold, 14.09 gpt
silver, and 0.16% copper.
“These initial results are a great start and Peak Gold has identified
several additional targets that will be pursued over the balance of the
year,” commented Tony Jensen, President and CEO of Royal Gold. “We are
encouraged by the robust grade and near surface characteristics of the
deposits, which are located just a few miles from the intersection of
Alaska Highways 1 and 2. We already own a royalty on the project and we
will continue to focus on opportunities in the future aligned with our
core business model. Peak Gold is progressing as we had hoped it would
to this point, and we have appreciated an excellent working relationship
with our host community of the Native Village of Tetlin and our joint
venture partner, Contango ORE, Inc.”
The measured and indicated resources were calculated with resource cones
at a gold price of $1,200 per ounce with a cut-off grade of 0.5 grams
per tonne and at $1,400 gold with a cut-off grade of 0.43 grams per
tonne.
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Measured and Indicated within $1200/oz Gold Pit Shell at a 0.50
g/t AuEq Cut-off Grade
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Grade > Cut-off
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Contained Metal
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Class
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Tonnage(kt)
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Au(g/t)
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Ag(g/t)
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Cu(%)
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Au(koz)
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Ag(koz)
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Cu(Mlbs)
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Measured
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484
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6.25
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16.73
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0.15
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97.3
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260.4
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1.6
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Indicated
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10,117
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3.51
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14.06
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0.16
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1,142.6
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4,573.3
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35.7
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M&I
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10,601
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3.64
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14.18
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0.16
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1,239.9
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4,833.7
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37.3
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Measured and Indicated within $1400/oz Gold Pit Shell at a 0.43
g/t AuEq Cut-off Grade
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Grade > Cut-off
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Contained Metal
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Class
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Tonnage(kt)
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Au(g/t)
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Ag(g/t)
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Cu(%)
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Au(koz)
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Ag(koz)
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Cu(Mlbs)
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Measured
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486
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6.22
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16.65
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0.15
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97.2
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260.2
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1.6
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Indicated
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10,808
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3.34
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13.97
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0.16
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1,159.5
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4,854.5
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38.0
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M&I
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11,294
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3.46
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14.09
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0.16
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1,256.7
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5,114.7
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39.6
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Equivalent Gold = Au + 0.0122 x Ag
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Mineralized material, of which measured and indicated resources are a
subset3, at various cut-off grades are show below.
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Grade > Cut-off
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Contained Metal
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Cut-off
(g/t AuEq)
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Tonnage(kt)
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Au(g/t)
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Ag(g/t)
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Cu(%)
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Au(koz)
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Ag(koz)
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Cu(Mlbs)
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0.30
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18,142
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2.62
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13.64
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0.15
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1,526
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7,957
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61
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0.40
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16,730
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2.81
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14.23
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0.16
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1,514
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7,656
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58
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0.50
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15,650
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2.98
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14.68
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0.16
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1,502
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7,387
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55
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0.60
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14,702
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3.15
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15.10
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0.16
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1,488
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7,139
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52
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0.70
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13,883
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3.30
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15.38
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0.16
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1,474
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6,864
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49
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0.80
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13,110
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3.46
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15.66
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0.16
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1,458
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6,602
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47
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0.90
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12,378
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3.62
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15.94
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0.16
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1,442
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6,343
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45
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1.00
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11,663
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3.80
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16.14
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0.17
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1,423
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6,053
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42
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Equivalent Gold = Au + 0.0122 x Ag
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____________________________________
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1
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The U.S. Securities and Exchange Commission does not recognize this
term. Mineralized material is that part of a mineral system that has
potential economic significance but cannot be included in the proven
and probable ore reserve estimates until further drilling and
metallurgical work is completed, and until other economic and
technical feasibility factors based upon such work have been
resolved. Investors are cautioned not to assume that any part or all
of the mineral deposits in this category will ever be converted into
reserves.
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2
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The terms measured and indicated resource are not SEC recognized
terms. Estimates of resources are subject to further exploration and
development, are subject to additional risks, and no assurance can
be given that they will eventually convert to future reserves.
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3
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The quantity and grade of Inferred Resources included in this
estimation are uncertain in nature and there has been insufficient
exploration to define these Inferred Resources as an Indicated or
Measured Mineral Resource and it is uncertain if further exploration
will result in upgrading them to an Indicated or Measured Mineral
Resource category.
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About Peak Gold
Peak Gold, LLC is a joint venture between Royal Alaska, LLC ("Royal
Alaska"), a wholly owned subsidiary of Royal Gold, and Contango ORE,
Inc. (“Contango Ore”). Peak Gold holds a 675,000 acre lease with the
Native Village of Tetlin and an additional 168,200 acres of State of
Alaska mining claims, all located near Tok, Alaska, on which Peak Gold
explores for minerals. Royal Alaska has the right to earn up to a 40%
membership interest in Peak Gold by making total contributions of up to
$30.0 million to Peak Gold by October 31, 2018. As of March 31, 2017,
Royal Alaska contributed approximately $20.0 million to Peak Gold and
held a 24.9% membership interest in the joint venture. Once Royal Alaska
has earned a 40% interest in the joint venture, Royal Alaska will have
the additional right to require Contango Ore to sell up to 20% of its
interest in Peak Gold in a sale of Royal Alaska’s entire 40% interest to
a bona fide third-party purchaser. Royal Gold also holds a 3.0% net
smelter return (“NSR”) royalty over the area of the Tetlin lease and
certain State of Alaska mining claims and a 2.0% NSR royalty over
certain other State of Alaska mining claims held by Peak Gold.
About Royal Gold
Royal Gold is a precious metals stream and royalty company engaged in
the acquisition and management of precious metal streams, royalties, and
similar production based interests. The Company owns interests on 193
properties on six continents, including interests on 38 producing mines
and 22 development stage projects. Royal Gold is publicly traded on the
NASDAQ Global Select Market under the symbol “RGLD.” The Company’s
website is located at www.royalgold.com.
Cautionary “Safe Harbor” Statement Under the Private Securities
Litigation Reform Act of 1995: With the exception of historical
matters, the matters discussed in this press release are forward-looking
statements that involve risks and uncertainties that could cause actual
results to differ materially from projections or estimates contained
herein. Such forward-looking statements include estimates of mineralized
material and measured and indicated resources provided by the Peak Gold
joint venture. Net gold and metal resources are subject to certain
assumptions and do not reflect actual ounces that will be produced. Like
any stream, royalty or similar interest on a non-producing or
not-yet-in-development project, our interests on development projects
are subject to certain risks, such as the ability of operators to bring
projects into production and operate in accordance with feasibility
studies, and the ability of Royal Gold to make accurate assumptions
regarding production and operating parameters, valuation and timing and
amount of payments. Factors that could cause actual results to differ
materially include, among others, precious metals and copper prices; the
ability of operators of development properties to finance project
construction to completion and bring projects into production as
expected; operators’ delays in securing or inability to secure necessary
governmental permits; decisions and activities of the operators of the
Company’s stream and royalty properties; unanticipated grade,
environmental, geological, seismic, metallurgical, processing, liquidity
or other problems the operators of the mining properties may encounter;
completion of feasibility studies; changes in operators’ project
parameters as plans continue to be refined; changes in estimates of
reserves and mineralization by the operators of the Company’s stream and
royalty properties; contests to the Company’s stream and royalty
interests and title and other defects to the Company’s stream and
royalty properties; errors or disputes in calculating stream deliveries
and royalty payments, or deliveries and payments not made in accordance
with stream and royalty agreements; economic and market conditions;
risks associated with conducting business in foreign countries; changes
in laws governing the Company and its stream and royalty properties or
the operators of such properties; and other subsequent events; as well
as other factors described in the Company’s Annual Report on Form 10-K,
Quarterly Report on Form 10-Q, and other filings with the Securities and
Exchange Commission. Most of these factors are beyond the Company’s
ability to predict or control. The Company disclaims any obligation to
update any forward-looking statement made herein. Readers are cautioned
not to put undue reliance on forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170602005214/en/
Source: Royal Gold, Inc.