Source: Peter Epstein for Streetwise Reports 11/27/2018
Sector expert Peter Epstein interviews this company’s CEO, who explains why its newest acquisition adds to its competitive edge and provides an update on other projects in its portfolio.
This interview with Brett Heath, CEO of Metalla Royalty & Streaming Ltd. (MTA:TSX.V; EXCFF:OTCQB), took place by phone and email over the past 10 days. Brett and his expert team have achieved quite a lot over the past year. In this interview I asked Brett for an update as I am especially interested in Metalla’s latest transaction, (a 2% NSR) on the Santa Gertrudis Royalty. Please take a few minutes to review Metalla’s new corporate presentation at the bottom of the interview.
Peter Epstein: Please describe the importance of your most recent acquisition, the Santa Gertrudis Royalty (a 2% NSR).
Brett Heath: The Santa Gertrudis royalty has the potential to be a company-maker for Metalla. The expansive 42,000-hectare property in Sonora Mexico hosts Carlin-type deposits, similar in nature to what has created some of the largest hydrothermal gold deposits in the world. This, combined with a world-class major gold producer in Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) as the operator, which has invested upward of $100 million ($100M) into the asset, shows the confidence and potential of further upside surprises like the new high-grade discovery of the Centauro Zone. With an overall strike length of 18 km on the Santa Gertrudis property, which has already been identified, Metalla is positioned to benefit from additional exploration success from the balance of Agnico’s 2018 drilling campaign and beyond.
PE: Can we get an update on your two or three most important assets?
BH: The Endeavor mine, operated by CBH Resources (a subsidiary of Toho Zinc Co. Ltd. [TYO: 5707]), where we have a silver stream that contributes the most significant portion of Metalla’s cash flow, continues to show signs of further exploration success of the Deep Zinc Lode discovery that was made earlier this year. We hope to have an update in 2019 that outlines a mine plan extension past December 2020.
Also, we are expecting a resource update in January 2019 from Osisko Mining Inc. (OSK:TSX) on the Garrison gold property, where Metalla has a 2% NSR royalty. Osisko has drilled an additional 90,000 meters since the latest PEA (the PEA has just under 2 million ounces of gold resources). We are expecting a significant improvement in total ounces, but also an improvement in the categories of Measured and Indicated.
Finally, the Joaquin project, which is being developed by Pan American Silver Corp. (PAAS:TSX; PAAS:NASDAQ), where Metalla owns a 2% NSR, continues to show progress. Pan American has stated it now expects production in Q1/2020.
PE: The Santa Gertrudis deal puts your market cap above CA$80M. At what stage might a mid-tier precious metals royalty and streaming company like Sandstorm Gold (SSL:TSX; SAND:NYSE.MKT; ~CA$1 …read more
Source:: The Gold Report