MOX-V halted
Morien Resources, Aug 5, '14 is pleased to announce it has received an initial royalty payment from Banks Island Gold (BOZ-V) arising from the Company’s 1.5% net smelter return (“NSR”) royalty on production from its Yellow Giant Gold project.Banks Island is a TSX-V listed mining company focused on the development of the Yellow Giant Gold property located on Banks Island along the North Coast of British Columbia. Initial production is from the Bob Prospect, one of four prospects that have established high grade gold resources.1 The resources developed to date only extend to 150 metres depth with all zones open at depth and along strike. Banks Island has identified 12 additional gold showings along a 10 kilometre trend of gold mineralization.2 The table below displays gold production from the Bob Prospect for the period of February 01 through June 10 of this year.3 Table - Gold Production from the Bob Prospect 2Period (2014)Contained in ConcentratePayable from Smelter | Gold (oz) | Silver (oz) | Gold eq* (oz) | | February 1-28 | 628 | 2,152 | 589 | | March 1-31 | 2,005 | 5,604 | 1,866 | | April 1-30 | 2,294 | 5,618 | 2,123 | | May 1-31 | 1,681 | 4,704 | 1,507 | | June 1-10 | 537 | 480 | 494 | | Total Sales - Bob Zone | 7,145 | 18,559 | 6,579 |
*Gold equivalent is calculated by converting payable silver at a ratio of 1/65th to payable gold ounces
Note: Morien’s royalty is based on net smelter return, not on production Banks Island is targeting production for 2014 at 28,000 ounces gold equivalent.2 Based on that projection, the NSR calculation to date, and assuming a US$1,200 per ounce gold price, Morien estimates the royalty that will be generated from the 2014 production to exceed $300,000. Banks Island has a right to reduce Morien’s 1.5% royalty to 1.0% for a cash payment of $300,000.
Morien is a non-operating royalty and minority interest investment Company focussed on the mining industry. The Company is focussed on unique mineral industry opportunities in Canada with current interests in:
Donkin Coal Project: Morien holds a 25% minority interest, with a $9 million carried interest, in one of the largest undeveloped coal deposits in North America, located within 30 kilometres of a deep water port in Sydney, Nova Scotia; approximately $43 million has been invested since 2006, including $15 million by Morien. The 75% owner and project manager, Glencore plc, is currently in discussions with third parties regarding the sale of its interest, which if brought to a successful conclusion, is expected to lead to development of the Project.
Black Point Aggregate Project: Vulcan Materials Company, the United State’s largest producer of construction aggregates, purchased Morien’s rights to the Black Point Aggregate Project in Q2 2014 and is currently permitting the Project for expected production within the 2018 to 2020 period. Morien received $1 million in payments from Vulcan on the sale and will receive an additional payment of $800,000 on the receipt of all environmental permitting necessary for the mining of aggregate and shipping of aggregate via ocean-going vessels from the property, anticipated in Q3 2015. Morien and Vulcan are working jointly towards the successful completion of the Environmental Assessment process. Morien has an industry competitive royalty for the life of mine which is expected to continue for over 50 years.
Banks Island Gold Project: Morien holds a 1.5% NSR royalty over the marketable metal, ores, minerals and concentrates produced and shipped from a 1,987 hectare area within the Yellow Giant Gold property located 105 kilometres south of Prince Rupert, British Columbia.
U.S.A. Industrial Mineral Interests: Morien holds various direct and indirect interests in industrial mineral properties in the United States.About Morien
Morien Resources Corp. is a Canadian company focused on creating value through the identification, acquisition and advancement of non-operating royalty and minority interests in strategically located projects that host commodities with strong market fundamentals. Its principal asset is a 25% interest in the Donkin Coal Project in Nova Scotia. Morien has 49,256,240 issued and outstanding common shares and a fully diluted position of 52,886,240. Further information is available at www.morienres.com www.morienres.com. |
