NI 43‐101 Technical Report on Mineral Resource and Mineral Reserve Estimates‐ Pre‐Feasibility Study, June 30, 2021 filed by First Majestic Silver Corp. on November 24, 2021.
Ramp up to commercial production in 2022; initial royalty payment of US$480,000 received
P&P Reserves: 337,000 ounces gold and 4.9 million ounces silver.
M&I Resources: 406,000 ounces gold and 5.8 million ounces silver (M&I Resources are reported inclusive of Mineral Reserves).
Inferred Resources: 440,000 ounces gold and 10.6million ounces silver.
Expected royalty total revenue to Orogen: US$12.25 million from 2021 to 2027 excluding upside on conversion of Inferred Resources into Measured and Indicated Resources and ultimately into Proven and Probably Reserves.
Mineralization remains open to the least along strike of the Ermitaño deposit.
Latest Project Updates
Royalty revenue of $480,000 from the sale of 13,479 ounces of gold and 66,338 ounces silver for the period ending December 31, 2021, representing at least a 60% increase over First Majestic’s November 2021 43-101 Prefeasibility Study (“PFS”) estimate
A total of 103,742 metric tonnes produced with average head grades of 5.28 grams per tonne (”g/t”) gold and 49 g/t silver which are 52.1% and 22.5% higher than expected in First Majestic’s PFS, respectively
Royalty revenue excludes the remaining 5% of gold doré produced and in-process inventory which are expected in be settled in Q1-2022
Expected royalty revenue for fiscal 2022 at Ermitaño based on First Majestic’s PFS is US$1.85 million
Drilling at Luna indicates potential for a second Ermitaño-type deposit from drilling reported by First Majestic: EW-21-237 grading 10.1 g/t gold and 108 g/t silver over 2.0 metres, EW-21-193 grading 8.3 g/t gold and 63 g/t silver over 1.8 metres, and EW-21-192 grading 0.3 g/t gold and 2,455 g/t silver over 3.0 metres (all holes are true width)
First Majestic Silver Corp. (“First Majestic”) completed its earn‐in in and paid US$1.5 million to acquire 100% interest in both the Ermitaño and Cumobabi projects in September 2018. Orogen retains a 2.0% net smelter return (“NSR”) royalty for Ermitaño and 1.5% NSR royalty on Cumobabi. To complete its earn‐in, First Majestic paid US$75,000 on agreement date and US$50,000 each anniversary thereafter in addition to completing over US$500,000 in exploration expenditures in the first year.
The Ermitaño Property consists of 165 square kilometres of contiguous mineral tenure located approximately 145 kilometres from Hermosillo and only 3.5 kilometres southeast of First Majestic’s Santa Elena gold‐silver mine in Sonora, Mexico.
Royalty Generation Timeline
Ermitaño was acquired by Orogen in 2011
Partnered to Inmet/FQM 2011‐2014
Partnered to Silvercrest Mines Inc. (“Silvercrest”) in 2014
First Majestic acquired Silvercrest in 2015
Orogen invested a total estimate of $100,000 into Ermitaño from acquisition to completion of earn‐in with First Majestic
Silvercrest and First Majestic together have spent an estimated $80M on the project
NI 43‐101 Pre‐Feasibility Study Technical Report, June 30, 2021 was filed by First Majestic on November 24, 2021
Initial production commenced in November 2021 and commercial production ramp up in Q1 2022