TORONTO--(BUSINESS WIRE)--Waterton Global Resource Management, Inc. (“Waterton” or the “Company”) announced receipt through Waterton’s portfolio company, Gemfield Resources, LLC, of the final Environmental Impact Statement (“EIS”) and all other major federal and state permits required to construct and operate its Gemfield Project (“Gemfield” or the “Gemfield Project”) near Las Vegas, Nevada. Gemfield is now one of a few conventional open-pit heap leach gold mines in the U.S. that is fully permitted and shovel-ready. Gemfield is expected to drive the creation of hundreds of direct and indirect jobs in the region.
The Gemfield Project is located near the town of Goldfield (one of the most prolific gold mining districts in Nevada with historical production exceeding 4.0Moz of gold) and is part of a highly prospective land package owned by Waterton consisting of ~15,000 acres and ~1,150 mining claims. Over the last five years, the Gemfield Project has been subject to project development and extensive optimization efforts including, but not limited to: multiple drill campaigns, substantial metallurgical test work, geotechnical engineering and hydrological studies. The Gemfield Project has pit-constrained1 Measured and Indicated mineral resources in excess of 1.5Moz of gold at an average grade greater than 1 gpt of gold. The Gemfield Project (comprised of the primary Gemfield deposit and the McMahon Ridge and Goldfield Main deposits) is expected to have:2
- An internal rate of return in excess of 35%;
- A payback period under 2 years;
- Lowest quartile all-in sustaining costs; and
- Projected average annual production in excess of 125koz of gold.
A feasibility study for the Gemfield Project will be completed by independent consultants in Q419 and is expected to be consistent with the foregoing metrics.
Gemfield’s fully permitted status has enabled the recent commencement by Waterton of key infrastructure developments required to facilitate the future construction of the Gemfield Project, including the relocation of ~2.5 miles of U.S. Highway 95, in partnership with the Nevada Department of Transportation, and the construction of certain water systems required to transport consumptive water to the Project in partnership with Esmeralda County. Key infrastructure developments are expected to be completed by Spring of 2020.
Isser Elishis, Chief Investment Officer of Waterton, stated, “The progress at Gemfield is a testament to the support of the local community and Esmerelda County. We want to thank the local elected officials, environmental departments and the countless residents who worked with us to meet the milestones that brought Gemfield to a point where construction of the project can be commenced. Finally, we want to thank the Administration and the Department of Interior’s recent efforts to increase permitting efficiency in the United States through Secretarial Order 3355. The Gemfield Project is just one of many assets in Waterton’s portfolio that we have been advancing and we look forward to continuing to work collaboratively with our stakeholders in the Western United States.”
Ira Hansen, Nevada State Senator representing Esmeralda County, stated, “As a State Senator representing the communities of Goldfield and Tonopah, I’m greatly encouraged by the completion of the permitting process for the Gemfield Project. The residents of Goldfield and Tonopah have persevered through tough economic times and this project will infuse the local economy with much needed revenue and job opportunities to improve local quality of life. The project will bring a combined total of 350 temporary and permanent jobs as well as much needed improvements to Goldfield’s municipal water system. Economic development opportunities such as this one, are few and far between in many regions of rural Nevada. I look forward to the continued progress of the Gemfield Project and its economic impact on the surrounding communities which are filled with hard-working Nevadans looking for the chance to pull themselves up by their bootstraps and succeed.”
DeLon Winsor, Chairman of the Board of Esmeralda County Commissioners, stated, “For over five years, Esmeralda County and the residents of the town of Goldfield, Nevada have worked with the Gemfield/Waterton team to advance the Gemfield Project. We are thrilled to see our collective efforts come to fruition with the project’s receipt of its final federal and state permits. The Gemfield Project represents a major economic benefit that will accrue to the local economy of the Goldfield area in the form of public revenues and indirect and direct jobs, including ~200 contract workers for varying periods during mine construction and ~150 employees during the project’s mine life. We look forward to continuing to work with the Gemfield/Waterton team in the development of this great project.”
For more information on the Gemfield Project, please visit www.GemfieldResources.com.
This news release contains “forward-looking statements” and “forward-looking information” (collectively, “forward-looking information”) within the meaning of applicable securities legislation. Forward-looking information is not, and cannot be, a guarantee of future results or events.
Forward-looking information is based on, among other matters, opinions, assumptions, estimates and analyses that, while considered reasonable at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, risks generally associated with the mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy prices and general cost escalation).
Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, undue reliance should not be placed on forward-looking information. Waterton Global Resource Management, Inc. (collectively with its associated and affiliated entities and representatives, including Gemfield Resources, LLC, “Waterton”) does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.
Unless otherwise stated, all references to $ or “dollars” in this news release refer to the lawful currency of the United States of America.
The information contained in this news release (the “Information”) is provided for informational purposes only and is not and may not be relied on in any manner as legal, technical or investment advice. The Information should not be considered an offer to purchase or sell securities nor be used in the furtherance of any trade of securities. Waterton expressly disclaims any and all liability for all representations and warranties, expressed or implied, contained in, or for omissions from, the Information (including forward-looking information) or any other written or oral communication transmitted to any interested party in connection with the Information so far as is permitted by law. In particular, but without limitation, no representation or warranty is given as to the achievement or reasonableness of, and absolutely no reliance should be placed on, any data, projections, estimates, forecasts, analyses or forward-looking information contained in the Information which involve by their nature a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied in the Information. Waterton shall not be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of their reliance on any statement in or omission from the Information, along with other data furnished in connection therewith, and any such liability is expressly disclaimed. Waterton reserves the right to amend or replace the Information at any time but undertakes no obligation to update any of the contents of the Information or to correct any inaccuracies that may become apparent following the date hereof. The unauthorized dissemination of the Information (in whole or in part) is prohibited. Nothing in the Information is to be taken as any form of commitment or promise on the part of Waterton to enter into any contract or otherwise create any other form of legally binding obligation or commitment.
Waterton is an investment firm that manages capital for global institutional investors, sovereign wealth funds and endowments. The firm has ~US$2 billion in assets under management and focuses solely on the metals and mining sector. Waterton has a culture of thoroughness and a disciplined approach to capital allocation, and utilizes its significant industry expertise to produce out-sized risk-adjusted returns.
1 At $1,300/oz gold (see www.GemfieldResources.com for additional details).
2 All economics are based on long-term consensus gold price as of August 31, 2019.