Overview
Elemental Royalty’s portfolio (previously EMX Royalty) in Serbia initially resulted from prospect generation and organic royalty growth via the 2006 sale of its properties, including Brestovac West, for uncapped NSR royalties of 2% for gold and silver and 1% for all other metals. Subsequently, the Company acquired 0.3625% NSR royalty interests covering the Brestovac and Jasikovo East-Durlan Potok properties, which along with Brestovac West, are included in the Timok Project controlled by Zijin Mining.
Brestovac (Cukaru Peki) Royalty
The Timok Project’s Cukaru Peki deposit consists of a high-grade, epithermal-style copper-gold mineralization referred to as the Upper Zone project, and a deeper body of porphyry-style copper-gold mineralization known as the Lower Zone project.
The Company filed an Amended and Restated Technical Report titled “NI 43-101 Technical Report – Timok Copper-Gold Project Royalty, Serbia,” with an effective date of December 31, 2020, and an amended date of March 25, 2022, by Mineral Resource Management LLC. The Technical Report restates the Mineral Resource and Mineral Reserve estimates reported by Zijin per the requirements of NI 43-101. The Timok Technical Report was prepared in accordance with the exemption set forth in section 9.2 of NI 43-101.
Since the Company’s 2020 Technical Report, Zijin disclosed updates the Cukaru Peki resources and reserves annually. Zijin’s resource and reserve statements do not meet NI 43-101 disclosure requirements.
Zijin has steadily advanced the Timok Project since production of the Upper Zone commenced in Q4 2021. In addition, work on the Lower Zone is ongoing to define the deposit.
The Brestovac royalty also covers a portion of the recently discovered high-grade copper-gold Malka Golaja deposit (“MG Zone”).
Other Timok Royalty Properties
Elemental has royalty interests covering adjacent projects and other properties in the region, including:
Brestovac West, which is covered by NSR royalties of 2% for gold and silver and 1% for all other metals. The Brestovac West royalty was organically generated by the Company and contains the Corridor Zone gold prospect. It is situated directly west of Brestovac and the Cukaru Peki deposit.
Durlan Potok, which is covered by a 0.3625% NSR royalty defined under the same royalty agreement as Brestovac and is located in the Timok Magmatic Belt approximately 20km north of Brestovac and Cukaru Peki.
These royalties complement the Brestovac (Cukaru Peki) royalty and provide additional Timok Project exploration upside.
