Projects & Royalties

Mount Monger Operation

Project: Mount Monger Operation
Commodity: Gold
Royalty: Production Royalty of A$1/oz
Subsidiary: Altus Royalties Holdings Ltd
Location: Australia
Deposit Style: Metamorphosed and deformed Banded Iron Formation (BIF)
Key Attributes: Production with established infrastructure
Asset Stage: Producing mines
Results: March 2022 quarter of 23,241 ounces at an AISC of A$2,270/oz
Next Phase of Work: Development of Santa open pit
Deal Partner: Silver Lake Resources (SLR.ASX)
Deal Terms: Acquired from Newcrest Mining

Project Overview

The Mount Monger goldfield is located within the Kalgoorlie terrane of the Eastern Goldfields Province and is marked by a series of historic workings extending northward under recent shallow alluvial cover towards a significant drainage channel. Only sub-cropping mineralisation appears to have been exploited by historic miners in the early 1900s, with workings typically extending to depths of no greater than 80 metres below the surface.

Silver Lake's Mount Monger Operation has produced gold from the Daisy Complex and Cock-eyed Bob underground mines as well as the Maxwells, Christmas Flat, Costello, Lucky Bay, Wombola Dam, Wombola Pit and Santa Area (including Rumbles and Fly Camp) open pits. Mining at Imperial/Majestic open pit and Maxwells underground operation commenced in 2017. Ore is processed at the company's 1.2Mtpa Randalls Processing Facility.

Silver Lake plans to commence development of the Santa open pit in 2023 after receiving oustanding permits in Q1 2022. The Santa open pit has an Ore Reserve of 4.8Mt at 1.5g/t for 226,000 ounces. The Ore Reserve is based on a two-stage open pit which will allow Silver Lake to consider the optimal open pit / underground transition should the prevailing gold price or operating environment materially change. The Stage 1 open pit is expected to be mined over approximately 2 years, with a higher strip ratio in year 1 before declining in the second year for an average strip ratio of 9:1. The Stage 2 Santa pit would be mined over an additional 2.5 years. Pre-production capex is a modest $8 million reflecting the ability to leverage the extensive Mount Monger surface infrastructure.

Silver Lake reported gold production from Mount Monger for the March 2022 quarter of 23,241 ounces at an AISC of A$2,270/oz (including A$254/oz of non-cash inventory movements associated with the treatment of stockpiles) for year to date production of 89,326 ounces and sales of 90,346 ounces at an AISC of A$1,995/oz. As at 30 June 2021, Mount Monger reported Total Mineral Resources of 15.1Mta at 3.1g/t for 1.5Moz of contained gold across Maxwells (425koz), Cock-eyed Bob (257koz), Santa (728koz), Rumbles (87koz) and Anomaly A (16koz). 

Royalty Overview

Altus owns 80.1% of an uncapped production royalty of A$1/oz. 

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