HAYDEN, ID, June 4, 2013 /PRNewswire/ - 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 43‐101.
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.