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Elemental says commissioning of Karlawinda gold mine begins

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(Kitco News) - Elemental Royalties (TSX-V: ELE, OTCQX: ELEMF) announced today that commissioning has started at the Capricorn Metals' Karlawinda gold project in Western Australia where Elemental holds a 2% NSaR royalty.

According to the company's statement, commissioning phase at Karlawinda commenced following installation of the ball mill, construction of the tailings storage facility, 18MW gas fired power station and process water borefield.

The company said that the current plan is to commence crushing and milling activities (full wet commissioning) in the middle of June 2021 with a long-term production range of 110,000 – 125,000 ounces per annum for an initial ten-year mine life.

Over 250,000 tonnes of ore on the ROM pad in readiness for processing and over 4 million tonnes of grade control drilling has been completed. Full operational workforce recruited, with most already mobilised to site, the company noted.

CEO Frederick Bell commented, "Karlawinda is the company's largest royalty and the announcement of commissioning on time and budget underscores the quality of Capricorn's management team. Karlawinda is forecast to almost double Elemental's royalty revenue and with an initial ten-year mine life will be a cornerstone, high-quality asset moving forwards."

Elemental added that the company currently has the strongest organic growth profile in its history with the Mercedes mine due to commence royalty payments in July 2022 and with major exploration announced across Elemental's portfolio of operating assets.

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