Ely Gold - 2012 Annual General Meeting and Corporate Update
VANCOUVER, British Columbia, Aug. 7, 2012 /PRNewswire/ -- Ely Gold & Minerals Inc. (TSX: ELY) ("Ely Gold") is pleased to announce the results of its 2012 Annual General Meeting, held on June 28, 2012. Messrs. John Brownlie, C.F. (Trey) Wasser, Stephen Kenwood and Ron Husband were re-elected to the Board of Directors, and Marco Antonio Galindo was elected as a new director. Smythe, Ratcliffe LLP was re-appointed as the Company's auditor.
At the post-AGM directors' meeting, Mr. Brownlie was re-appointed Executive Chairman of the Board, Mr. Wasser was re-appointed as President and Chief Executive Officer, and Scott Kelly was re-appointed as Chief Financial Officer and Secretary.
Mr. Galindo is a welcome addition to the Board. He is a Chemical Engineer graduated from the University of Sonora, Mexico with over 15 years experience in metallurgy process design, development, mining operations and management. His career with Mexican precious and base metals producers has included positions such as General Manager of Capital Gold's Mexican operations and Senior Process Engineer / Assistant General Manager of Alamos Gold Corporation. His work history also includes senior positions with companies such as Grupo Mexico (Cananea Mine), Phelps Dodge Corporation (Santa Gertrudis Mine) and Eldorado Gold Corp. (La Colorada Mine); and active participation during the construction and start up of other mine operations such as Magistral Mine, Minera Fernanda S.A. de C.V. and Grupo Minero FG S.A. de C.V. Mr. Galindo is currently the V.P. of Operations for Oro Mining Ltd., a TSX Venture Exchange company. He is fluent in both Spanish and English.
Corporate Update
1. Mt. Hamilton
Several milestones have been achieved in the past 12 months at our Mt. Hamilton property. The Bankable Feasibility Study, released in February 2012, shows robust economics and no environmental hurdles to permitting. The study contemplates a heap leach mine producing 54,000 GOE annually. The Net Present Value at $1500 gold (5% discount) is estimated at $198.5 million. Ely Gold's carried interest is 20%, which equates to $39.7 million of the estimated NPV. Permitting with the state and federal agencies is currently being submitted. Our Joint venture partner, Solitario Exploration & Royalty Corp. ("Solitario;" NYSE MKT: XPL; TSX: SLR) is the manager of Mt. Hamilton LLC and holds an 80% interest.
Mt. Hamilton LLC has initiated an aggressive 2012 drilling program with the intention of converting inferred resources to reserves at the Centennial pit as well as upgrading mineralization around the nearby historic NE Seligman pit area. The Seligman deposit, situated approximately 2,000 feet north of the planned Centennial pit, was partially mined by Rea Gold Corp. from 1995-1997. The goal of the 2012 drill program is to add reserves in these two resource areas that could extend the current estimated mine life by 3-4 years.
In June 2012, Sandstorm Gold purchased a 2.4% net smelter returns royalty on the Mt. Hamilton gold project from Mt. Hamilton LLC for US$10.0 million. As part of the agreement, Mt. Hamilton LLC will have the option, for a period of 30 months, to repurchase up to 100% of the NSR for US$12 million, provided that Mt. Hamilton LLC enters into a gold stream agreement with Sandstorm that has an upfront deposit of no less than US$30 million. The proceeds from Sandstorm will be used to fully fund the 2012 drill program, other project development, and permitting for mine construction. The Sandstorm agreement is a credible first step towards full project financing for Mt. Hamilton.
On July 5, 2011, Ely Gold announced that it had entered into two separate amending agreements providing for completion of its initial acquisition of outstanding Senior Secured Notes ("Notes") issued by Northern Star Mining Corp. ("NSM") to occur ten business days following the date on which title to the NSM assets is vested in the Note holders by Court Order. The purpose of the amendments was to ensure that Ely Gold would receive an interest in the NSM assets in the first instance rather than an interest in the Notes.
The bankruptcy proceedings are taking much longer than anticipated, and market conditions have changed in the interim. Accordingly, Ely Gold has notified the Note holders that while it remains interested in acquiring an interest in the NSM assets, it will be necessary to discuss new terms at such time as the bankruptcy proceedings are concluded and the Note holders are in a position to deal with the NSM assets. Ely Gold cannot state with certainty when such proceedings will be concluded or whether the Note holders will agree to new terms which are more favorable to Ely Gold than the previously negotiated terms.
3. Corporate Development
Management continues to evaluate projects in North America with a focus on near term production. The difficult market environment is generating interesting opportunities for corporate finance and property acquisition. Ely Gold is well positioned to take advantage of these opportunities with significant mining expertise, a strong cash position and important relationships at major financial institutions.
On Behalf of the Board of Directors
Signed "Trey Wasser"
Trey Wasser, President & CEO
For further information, please contact Ely Gold & Minerals Inc. at 604-488-1104.
E-mail: trey@elygoldandminerals.com; Website: www.elygoldandminerals.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
SOURCE Ely Gold & Minerals Inc.
