HAYDEN, ID, June 4, 2013 /CNW/ - Americas Bullion Royalty Corp. (TSX: AMB) (the "Company") is pleased to report that Midway Gold Corp.
("Midway") announced the receipt of a Class 1 Air Quality Operating
Permit to Construct (AQPCQ) required for production at its Pan Gold
Project in Nevada. According to Midway's news release of May 30, 2013
the public comment period for the Pan draft environmental impact
statement is closed and the response was overwhelmingly positive. The
permitting schedule at Pan continues to remain on track for a fall 2013
record of decision by the U.S. Bureau of Land Management. 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 the release, Midway received the Class 1 Air Quality
Control Permit upon a determination by the Bureau of Air Pollution
Control that no adverse air quality impacts are expected from the
proposed operations. The air quality permit was issued following a
30-day public comment period for the AQOPC.
Pan Gold Project, Nevada
According to Midway, 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 $344 million 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
million (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. focuses on acquiring precious metal
royalties and streaming assets which provide revenue as well as lower
risk exposure to shareholders through project diversity in stable,
mining-friendly jurisdictions. The Company's existing portfolio is
highlighted by Gross in-kind Royalties on Midway Gold's Pan and Gold
Rock deposits, as well as 2 separate royalties encompassing more than
34 square miles at Barrick Gold's Bald Mountain project in Nevada.
The Company holds additional royalties including Net Smelter Return
Royalties on the Taylor Silver project and a portion of the Tonkin
Springs project also in Nevada. The Company's royalty holdings comprise
more than 100,000 acres located primarily in Nevada, with 7 of the
projects located in Wyoming, Oregon, California and Mexico. Current
royalty revenue is expected to accelerate as early as 2014 as several
of these projects commence production. Americas Bullion Royalty Corp.'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 title
with no buyback or buyout provisions. The Company continues to advance
or monetize other assets including its significant Yukon property
holdings, security holdings and the Taylor Mill in Nevada.
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.