HAYDEN, ID, March 27, 2013 /CNW/ - Americas Bullion Royalty Corp. (TSX: AMB) (the "Company") is pleased to announce that Midway Gold Corp.
("Midway") announced the receipt of a key permit required for
production at its Pan Gold Project in Nevada. A Water Pollution
Control Permit has been received from the State of Nevada. This
announcement closely follows publication of the Draft Environmental
Impact Statement (DEIS). According to Midway, the Pan project is on
track to start construction in late 2013 with production targeted for
mid-2014. Americas Bullion holds a sliding scale royalty on the Pan
Project under which a 4% Gross Production Royalty is payable when gold
is above USD $450/oz.
According to its press release of March 26, 2013 ("the release"), Midway
received the Water Pollution Control Permit, which authorizes the
construction, operation and closure of approved mining facilities in
White Pine County. The Nevada Division of Environmental Protection
determined that the proposed operation will not degrade the waters of
the state and that public safety and health will be protected. There
are no surface waters in the project area and the proposed pit does not
reach the groundwater table.
The other major milestone noted in the release was the completion and
publication of the DEIS by the U.S. Bureau of Land Management, which is
now available for public review.
Pan Gold Project, Nevada
According to the release, the Pan Project represents nearly a US$100
million capital investment in a part of Nevada that welcomes new
investment and associated economic opportunities (see Midway
Feasibility Study dated December 19, 2011). Geologically, the project
is an oxidized, Carlin-style gold deposit mineable by shallow, open pit
methods and treatable by heap leaching. Midway's Feasibility Study
dated December 19, 2011 shows the after-tax NPV 5% of the project
ranging from $123 million at $1,200/oz gold to $344M at $1,900/oz gold.
The after-tax IRR grows from 32% to 79% using the same gold price range
(see Midway press release dated November 15, 2011).
Based on Midway's news release of November 15, 2011, the Pan Project has
proven reserves of 487,000 oz gold at a grade of 0.60 g/t and probable
reserves of 377,000 oz gold at a grade of 0.51 g/t, for a total of
864,000 oz gold at a grade of 0.56 g/t, using updated NI 43‐101
compliant mineral reserve estimates. The mine plan used by Midway in
the feasibility study is based on producing 17,000 short tons of ore
per day over an 8-year period and assumes 75% recoveries, with
production exceeding 81,000 oz gold per annum. Based on this mine plan,
Americas Bullion calculates that the annual cash flow to the Company
from its Pan royalty would, assuming a $1,600/oz gold price, be $5.2 MM
(from which advance royalty payments of approximately $1,000,000 to
date, would be deducted from the first year's payment). Also, the
Company determined that total royalty payments over the eight-year
period would exceed $41 million (see the Company's press release dated
December 5, 2011).
The technical content of this news release has been reviewed and
approved by Michael Maslowski Bsc, CPG, the Company's Chief Operating
Officer and a Qualified Person as defined by National Instrument
About Midway Gold Corp.
Midway Gold Corp. is a precious metals company with a vision to explore,
design, build and operate gold mines in a manner accountable to all
stakeholders while assuring return on shareholder investments.
Americas Bullion Royalty Corp.
Americas Bullion Royalty Corp. is a precious metals royalty and
streaming company designed to provide revenue as well as lower risk
exposure to shareholders through project diversity in stable,
mining-friendly jurisdictions. The Company's existing 34 property
portfolio, comprising more than 100,000 acres predominantly in Nevada,
is highlighted by Gross in-kind Royalties on Midway Gold's Pan and Gold
Rock deposits, as well as 2 separate royalties covering more than 34
square miles at Barrick Gold's Bald Mountain project in Nevada.
The Company's royalty portfolio includes several royalty projects that
have disclosed an intention to commence production, some as early as
2014, which would provide the Company with significant additional
royalty revenues. The Company's prime royalty portfolio is unique in
the mineral royalty industry due to its ability to receive the majority
of projected revenues in-kind (gold bullion as opposed to cash), its concentration of gross royalties
with no exposure to operator cost, as well as its security of future
revenues with no buyback or buyout provisions.
No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein. This
press release contains projections and forward-looking information that
involve various risks and uncertainties regarding future events. Such
forward-looking information can include without limitation statements
based on current expectations involving a number of risks and
uncertainties and are not guarantees of future performance. There are
numerous risks and uncertainties that could cause actual results and
Americas Bullion's plans and objectives to differ materially from those
expressed in the forward-looking information. Actual results and future
events could differ materially from those anticipated in such
information. These and all subsequent written and oral forward-looking
information are based on estimates and opinions of management on the
dates they are made and are expressly qualified in their entirety by
this notice. Except as required by law, Americas Bullion assumes no
obligation to update forward-looking information should circumstances
or management's estimates or opinions change.
SOURCE: Americas Bullion Royalty Corp.
For further information:
Americas Bullion Royalty Corp.
Scott Powell, Director of Investor Relations
Janet Lee-Sheriff, Vice President Communications and First Nation Relations