DENVER, Feb. 23 /CNW/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX: RGL), a
leading precious metals royalty company, is pleased to announce that Goldcorp
Inc. ("Goldcorp") increased its reserve estimate at the Penasquito project,
located in Zacatecas, Mexico, to 17.4 million contained ounces of gold, and
1.0 billion contained ounces of silver. These new reserve estimates reflect a
34% and 21% increase, in gold and silver reserves, respectively. Goldcorp
also announced that reserves increased 20% for both lead and zinc. Royal Gold
holds a 2.0% net smelter return royalty on all metal production from the
In addition, Barrick Gold Corporation ("Barrick") announced that it has
identified 2.4 million ounces of reserves at the Crossroads deposit, located
at the Cortez Pipeline Mining Complex ("Cortez") in Nevada. Royal Gold's
sliding-scale, gross smelter return royalty ("GSR2") covers the Crossroads
deposit. At gold prices above $470 per ounce the GSR2 royalty rate is 5.0%.
Barrick has not yet provided guidance on when Crossroads may be developed for
Tony Jensen, Royal Gold's President and Chief Executive Officer,
commented, "This is the second reserve increase at the Penasquito project
since we purchased the royalty in December 2006. Including this latest
addition, gold and silver reserves increased by 74% and 82%, respectively,
over this time period. The definition of reserves at the Crossroads deposit
more than doubles the reserves currently applicable to our royalties at Cortez
and is particularly gratifying as we have been steadfast believers in the
Crossroads project. These substantial reserve increases are expected to
enhance and extend our royalty revenue from these important assets, and also
highlight the cost free leverage Royal Gold has to exploration upside."
In addition to the updated reserve information, Goldcorp stated that the
first phase of the sulfide process plant remains on track for mechanical
completion by mid-2009 and commercial production at the start of 2010. The
bulk of the precious metal reserves and additional mineralization are situated
in the sulfide material. Goldcorp also stated that they are advancing three
optimization initiatives which include in-pit crushing and conveying,
construction of an independent gas-fired power plant, and metallurgy.
Goldcorp is also drilling a potential high-grade, underground zone.
Royal Gold is currently compiling reserves and additional mineralized
material from all of the operators of its royalty properties and expects to
provide additional public information in April.
Royal Gold is a precious metals royalty company engaging in the
acquisition and management of precious metal royalty interests. Royal Gold is
publicly-traded on the NASDAQ Global Select Market under the symbol "RGLD,"
and on the Toronto Stock Exchange under the symbol "RGL." The Company's web
page 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 statements regarding proven and probable
reserves, gold prices, the doubling of reserves at the Cortez Pipeline Mining
Complex, the Company's belief in the Crossroads deposit, the cost free
leverage Royal Gold has to exploration upside, the enhancement and extension
of royalty revenue from Penasquito and Cortez, and production start-up of the
Phase One sulfide plant at Penasquito. Factors that could cause actual
results to differ materially from forward-looking statements include, among
others, metal prices, decisions and activities of the operator of the
property, unanticipated grade, geological, metallurgical, processing or other
problems the operator may encounter, changes in project parameters as plans
continue to be refined, economic and market conditions, as well as other
factors described elsewhere in this press release and in our Annual Report on
Form 10-K, and other filings with the Securities and Exchange Commission.
Most of these factors are beyond Royal Gold's ability to predict or control.
In addition, the acquired royalty interests and the project are subject to
risks associated with conducting business in a foreign country, including
application of foreign laws to contract and other disputes, foreign
environmental laws and enforcement and uncertain political and economic
environments. Royal Gold disclaims any obligation to update any
forward-looking statement made herein. Readers are cautioned not to put undue
reliance on forward-looking statements.
Royal Gold, Inc.
For further information:
For further information: Karen Gross, Vice President and Corporate
Secretary of Royal Gold, Inc., +1-303-573-1660 Web Site: