Vancouver - Gold Royalty Corp. (NYSE American: GROY) ('Gold Royalty' or the 'Company'), Abitibi Royalties Inc. (TSXV: RZZ) (OTCQX: ATBYF) ('Abitibi Royalties') and Golden Valley Mines and Royalties Ltd. (TSXV: GZZ) are pleased to announce an update on certain royalties that will form part of the new Gold Royalty upon closing of the transactions announced on September 7, 2021.
This news release highlights the internal growth that exists across the new Gold Royalty's cash flowing, development and exploration stage royalties for selected key assets. Going forward, the Company expects to issue royalty and asset updates to shareholders quarterly.
Update on Cash Flowing Royalties
In addition to cash generated from the new Gold Royalty's Project and Royalty Generator Model and marketable securities, the Company will have six royalty interests on five producing mines, which include portions of the Canadian Malartic open pit, Jerritt Canyon (two royalties), Isabella Pearl, Marigold and the Rawhide Mine.
Jerritt Canyon Mine - Nevada (0.50% Net Smelter Return Royalty 'NSR' & Per Ton Royalty)
New Owner, Excess Plant Capacity, 25 High Priority Exploration Targets Being Drilled
The Jerritt Canyon Mine has been in production since 1981 having produced over 9.5 million ounces of gold during its 40-year production history, with peak annual production having exceeded 450,000 gold ounces. In 2020, Jerritt Canyon produced 112,749 ounces of gold at a cash cost of US$1,289 per ounce according to First Majestic Silver Corp. ('First Majestic'). The 119 square mile land package at Jerritt Canyon holds significant exploration potential, but has been starved of capital for nearly 20 years under various owners. Gold Royalty believes that First Majestic, which acquired the mine in April 2021, possesses the experience and resources to transform the mine once again into a significant gold producer.
First Majestic purchased Jerritt Canyon for share consideration totaling US$470 million and 5 million share purchase warrants on April 30, 2021. On August 16, 2021, First Majestic announced that during May and June of 2021 (62 days) Jerritt Canyon produced 18,762 ounces of gold and processed 146,611 tons of ore. There remains significant opportunity to increase the mining and processing rates at the mine under First Majestic's ownership as the processing plant on average is operating at approximately 2,200 tpd which is approximately 50% of its designed capacity.
Recent drilling announced by First Majestic on July 13, 2021 successfully intersected 1.65 grams per tonne ('gpt') gold over 76.2 metres, including 4.63 gpt gold over 7.6 metres at the Waterpipe II area. First Majestic reports that this area of the property is developing into a target with open pit potential. Over the next 6 to 12 months, First Majestic has planned an aggressive exploration program to follow-up and test more than 25 near-mine and greenfield targets. At the end of the second quarter of 2021, five drill rigs were operating at Jerritt Canyon.
The combination of First Majestic's ownership, excess processing capacity and the mine's exploration potential, should continue to benefit the new Gold Royalty for many years to come.
Isabella Pearl Mine - Nevada (0.375% - 3.0% NSR)
Currently One of the Word's Lowest Cost Mines - Exploration Key Driver
Gold Royalty holds a 0.375% NSR on the operating portion of the Isabella Pearl Mine located in Nevada. Isabella Pearl is operated by Fortitude Gold Corp. ('Fortitude'). During the second quarter of 2021, the Isabella Pearl Mine produced 14,579 ounces of gold at an all-in sustaining cost of US$628 per ounce, making it one of the world's lowest cost gold producers during the quarter.
Near mine exploration drill results (650 metres north-west of Isabella Pearl) released on August 24, 2021 by Fortitude from the Scarlet (2.5% NSR) area returned substantial widths and gold grades that intercepted oxide mineralization with potential to be processed at Fortitude's Isabella Pearl heap leach pad and gold process plant. Drill highlights include 1.57 gpt gold over 19.81 metres, 1.56 gpt gold over 19.81 metres, 2.23 gpt gold over 16.76 metres and 1.60 gpt gold over 24.38 metres. The drill program at Scarlet was designed to further define the lower oxide-sulfide boundary, as well as test the margins of the known mineralization. Scarlet remains a high priority target for additional delineation drilling.
Gold Royalty holds additional royalties on key exploration areas near the Isabella Pearl Mine and operated by Fortitude, which includes a 2.5% NSR on County Line, 2.0 - 3.0% NSR at Mina Gold and 2.0% NSR on certain claims at Camp Douglas, potentially extending Gold Royalty's cash flows from Isabella Pearl well into the future.
About Gold Royalty Corp.
Gold Royalty Corp. is a gold-focused royalty company offering creative financing solutions to the metals and mining industry. Its mission is to acquire royalties, streams and similar interests at varying stages of the mine life cycle to build a balances portfolio offering near, medium and longer-term attractive returns for its investors. Gold Royalty's diversified portfolio currently consists primarily of net smelter return royalties on gold properties located in the Americas.
About Abitibi Royalties Inc.
Abitibi Royalties Inc. owns various royalties at the Canadian Malartic Mine near Val-d'Or, Quebec. In addition, Abitibi Royalties is building a portfolio of royalties on early-stage properties near producing mines and generating mineral projects for option or sale.
About Golden Valley Mines and Royalties Ltd.
Golden Valley Mines and Royalties Ltd. is focused on project and royalty generation and continues to evaluate opportunities to enhance its mining exploration property portfolio. Golden Valley is able to grow its current assets by way of partner-funded option/joint ventures and through its shareholdings in related-entities.
Contact:
Ian Ball
Tel: 1-888-392-3857
Email: info@abitibiroyalties.com
Cautionary Statement on Forward-Looking Information
Certain of the information contained in this news release constitutes 'forward-looking information' and 'forward-looking statements' within the meaning of applicable Canadian and U.S. securities laws ('forward-looking statements') and involve known and unknown risks, uncertainties and other factors that may cause each of the Companies' actual results, performance and achievements to be materially different from the results, performance or achievements expressed or implied therein. Such forward-looking statements, including but not limited to statements relating to: the expected development of the properties underlying the Companies' respective royalty and other interests; the exploration and development plans of the operators thereof, and the proposed business combination transactions involving the Companies and the Companies' future growth plans and strategies, involve risks, uncertainties and other factors which may cause the actual results to be materially different from those expressed or implied by such forward-looking statements. Such factors include, among others, any inability of the operators of the properties underlying the parties' royalty and other interests to execute proposed plans for such properties, risks related to such operators or the exploration, development and mining operations of the properties underlying the parties' royalty and other interests; the Companies' ability to satisfy the conditions to their proposed business combinations, including obtaining required court, shareholder and regulatory approvals, impacts of macroeconomic developments as well as the impact of and the responses of relevant governments to the COVID-19 pandemic and the effectiveness of such responses; any inability of the Companies to carry out growth plans and other risk factors set forth in the disclosure documents filed by each of the Companies under their profiles at www.sedar.com. Although each of the Companies has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. None of the Companies undertakes to update any forward-looking statements, except in accordance with applicable securities laws.
GOLD ROYALTY CORP. 
