Elemental acquired a 5% NPI or A$10/oz royalty on the Mount Pleasant operations in Dec 2017. In 2019, Mount Pleasant provided US$0.05m in gross royalty revenue to Elemental.
The Mount Pleasant operations are located 40km northwest of Kalgoorlie in Western Australia, and 10km from the Paddington Mill operated by Zijin Mining Group (HKSE: 2899). Mount Pleasant was acquired by Zijin 2012 through the acquisition of Gold Fields Limited, one of Australia’s largest domestic gold producers. Mount Pleasant is a typical Eastern Goldfields Archaean greenstone-hosted lode gold mine with historic production estimated at 4MOz Au. The royalty dates back to 1993 and encompasses 28 individual mining licences, 15 of which have defined Resources, many with earlier production.
Mount Pleasant is currently providing small parcels of higher grade underground or soft oxide ore swing production. As a small part of a large, multi-source operation for a private company with limited public information available it is difficult to forecast royalty revenue until the next major new project is started. The projects under active consideration by the operator, Tuart Underground (476kOz @ 6.0g/t) and Racetrack (814kOz @ 2.3g/t), are expected to each produce 25-30kOzpa or more.
We believe that the historical production, current endowment including higher grade Resources, and the extent of structural disruption of archetypal host rocks of the region will continue to generate attractive targets and ongoing production.
Unless otherwise noted, the disclosure contained on this website of a scientific or technical nature for the Mount Pleasant mine is based on a historical resource estimate based on the Norton Gold Fields Limited announcement dated February 3, 2015, titled “January 2015 Mineral Resource & Ore Reserve update”, which was prepared in accordance with the JORC Code, and is available on the ASX website at https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01596085. Elemental believes that the resources disclosed are reliable but should not be relied on as a current resource estimate, and no qualified person of Elemental has done sufficient work to classify the above estimate as current mineral resources. Elemental is not treating the historical estimate as current mineral resources or mineral reserves
Mineral Resources are estimated at a cut-off grade of 0.7g/t for oxide and 0.74g/t for transitional at a A$1,400/oz gold price
Information contained on this website with respect to each of the royalties has been prepared in accordance with the exemption set forth in section 9.2 of NI 43-101. Richard Evans, FAusIMM, is Senior Vice President, Technical for the Company and a qualified person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical disclosure.
Certain Resource and Reserve estimates covering properties related to certain mining assets in this website have been prepared in reliance upon the JORC Code. Estimates based on JORC Code are recognized under NI 43-101 in certain circumstances. In each case, the Mineral Resources and Mineral Reserves included in this website are based on estimates previously disclosed by the relevant property owner or operator, without reference to the underlying data used to calculate the estimates. Accordingly, the Company is not able to reconcile the Resource and Reserve estimates prepared in reliance on JORC Code with that of CIM definitions. The Company previously sought confirmation from its Qualified Person who is experienced in the preparation of Resource and Reserve estimates using CIM and JORC Code, of the extent to which an estimate prepared under JORC Code would differ from that prepared under CIM definitions. The Company was advised that, while the CIM definitions are not identical to those of JORC Code, the Resource and Reserve definitions and categories are substantively the same as the CIM definitions mandated in NI 43-101 and will typically result in reporting of substantially similar Reserve and Resource estimates.