Maverix Metals (TSX: MMX; NYSE-AM: MMX) says it’s on track to meet its revised 2022 guidance of 28,000 to 31,000 attributable gold-equivalent ounces and unveiled a new royalty deal on the Sleeping Giant mine in Quebec’s Abitibi region.
The company acquired a 2% net smelter return royalty (NSR) on all metallic and non-metallic minerals recovered from the Geant Dormant and Dormex claims of the Sleeping Giant mine from Abcourt Mines (TSXV: ABI) for US$2 million in cash.
Sleeping Giant is a past-producing and fully permitted underground mine with an operating 750 tonne per day mill on the property.
The mine produced over one million oz. gold between 1987 and 2014, Maverix says, and Abcourt is “currently working to complete the financial package” for a start-up next year.
“Abcourt is preparing the restart of Sleeping Giant with the technical teams who are currently establishing the mining plans from the reserves defined in the 2019 feasibility study,” Maverix stated in a news release. “The plan is to rehabilitate the old drifts and raises for a rapid restart at low capital cost. The surface infrastructure, the mill and the tailing storage facility are being maintained and prepared for start-up in 2023.”
The Sleeping Giant vein following a bulk sampling campaign at Golden Predator Mining’s 3 Aces gold project 140 km north of Watson Lake in the Yukon.
The company also reported third quarter results. During the three months ended Sept. 30, Maverix sold about 7,900 attributable gold-equivalent ounces (GEOs).
Commenting on the quarterly results, Maverix President Ryan McIntyre said management was “thrilled to see several of our royalty counterparties announce positive operational updates contributing to our impressive GEO sales this quarter, highlighted by the continued operating success at Camino Rojo as well as further encouraging drilling results at Beta Hunt and Eskay Creek.”
At presstime in Toronto Maverix was trading at $4.45 per share within a 52-week range of $4.12 and $6.88 per share.
The company has about 147.4 million common shares outstanding for a market cap of about $656 million.
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