Spring Valley Royalties

Operator: Waterton Global Resource Management
Metal(s): Gold

0.5-3% NSRs on multi-million ounce Spring Valley gold project

Key Facts

Location: Pershing Country, Nevada, USA
Status: Feasibility stage project
Mine Type: Open pit

Project Highlights

• Large, heap leach gold project with Mineral Reserves of 3.8 Moz gold in the Tier-1 mining jurisdiction of Nevada (calculated using a gold price of US$1,800/oz).
• 10-year plus life of mine averaging over 300 koz gold per year, with 348 koz gold per year over the first five years.
• Life-of-mine (LOM) all-in sustaining costs (AISC) of ~$1,103/oz gold.
• After-tax NPV5% of US$1.5B with an after-tax IRR of 36% with economics based on consensus gold price of US$2,400/oz in 2028E and US$2,200/oz LT from 2029E.
• Single, large open-pit mine design with a straightforward layout.
• Ore treated through one of two processing streams that includes higher-grade crushed and lower-grade-as-blasted run-of-mine (ROM) ore.
• Conventional heap leaching and an Adsorption Desorption Recovery (ADR) circuit and refinery that will produce doré onsite.
• Mineral Resources of 4.4 Moz gold of Indicated resources (inclusive of Reserves) and 0.6 Moz gold of Inferred resources calculated using a gold price of US$1,700/oz and cut-off grade 0.004 oz/ton.
• Strong potential for defining additional Mineral Resources outside the current resource pit, including extensions to the Spring Valley gold project, multiple exploration targets nearby, and targets along a 7-mile strike length across the Black Ridge fault zone. The Spring Valley gold project is located in the Humboldt Range that has a gold endowment of ~60 Moz within a ~50-mile radius.

Please refer to Solidus Resources, LLC Announces Positive Feasibility Study for further information.

Royalties

• 3% NSR on a majority of the current resources of Spring Valley (red claims)
• 1.5% NSR on a portion of Spring Valley on the north side of the resource (green claims)
• 0.5% NSR within a one-half mile of the red claims and outlined in blue (not including the area in green)

Humboldt Range – Precious Metals Trend Historic and Current Gold / Silver Production

• The Southern Humboldt Range is roughly 200 km (125 miles) from Reno Nevada and 45 km (28 miles) northeast of Lovelock, Nevada
• Historic and current production in Pershing County, Nevada includes:
  • Argonaut – Florida Canyon (gold)
  • Waterton Global Resource Management – Spring Valley (gold)
  • Coeur Mining, Inc. – Rochester (gold/silver)
  • Coeur Mining Inc.– Lincoln Hill (gold)
  • Americas Gold and Silver Corp. – Relief Canyon (gold)

Please refer to the the corporate presentation posted on this website for details of the 0.5-3% NSRs owned by Sailfish on the Spring Valley gold project.