Summary:
The Hoyle Pond Extension Royalties are located on claims that are beneath the Kidd Creek metallurgical complex and immediately adjacent to the east and northeast of the Hoyle Pond mine complex. Up to December 2015, Goldcorp had drilled a total of 83,000m from surface and underground as well as developed over 170 meters of drifting on the extension properties. Goldcorp has also completed the Hoyle Pond Deep Project at the cost of $194 million to access and develop the lower levels on the extension with the #2 winze being only 600 meters west of the property boundary. The maiden resource calculations on the claims included 81,000 oz on the TVZ zone and 5,000 oz on the ZEP East zone.
Agreement:
Metalla acquired 2% NSR Royalty on Newmont's Hoyle Pond Extension properties that includes:
- The leased mining rights – located in Hoyle township (shown below on royalty claim map), north-east of the Hoyle Pond Gold Mine. The NSR royalty on the leased mining rights shall be payable after the initial 500,000 ounces gold equivalent threshold is met;
- The fee simple mining rights – located in Hoyle township, east of the Hoyle Pond Gold Mine; and the
- Colbert/Anglo Property – mining rights located in Matheson township, immediately east of the lease mining rights; (there is no minimum threshold on the fee simple or Colbert/Anglo properties)
Location: Timmins, Ontario, Canada
Project Status: Production (Since 1985)
Counterparty: Newmont Corporation (NEM:NYSE)
Production: 160,000 ounces Au annually
Royalty: 2% NSR (500,000 oz exemption)
Average grade: 14 gpt Au
