GoldUSD 1,809.90
SilverUSD 23.29

COSE Royalty


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The COSE Property is a gold and silver project that is 100% owned by Minera Triton Argentina S.A., a wholly-owned subsidiary of Pan American Silver Corp.  (NASDAQ: PAAS; TSX: PAAS)

The COSE Property is a fully-permitted mine that has been developed at a total cost of $23.9 million, since Pan American Silver acquired the property from Patagonia Gold for $15 million in May 2017. Pan American Silver recently reported that COSE project remains on time and within budget for first ore production scheduled for the beginning of 2019. The COSE Property is another high-grade satellite deposit within trucking distance to Pan American Silver’s Manantial Espejo mine, offering synergies similar to their Joaquin.

Interest: 1.5% NSR Royalty

Location: Santa Cruz Province, Argentina

Project Status: Production

Counterparty: Pan American Silver (PASS:TSE; NASDAQ:PAAS)

According to Pan American Silver(see Note 1), the first year of production at COSE is expected to produce 1,344,000 ounces of silver and 27,600 ounces of gold.

In 2014, a mineral resource estimate on the COSE Property (See Note 2) was prepared as summarized below:

Category Tonnes (T) Grade (g/t) Metal (Ozs)
Au Estimate
Indicated 49,000 27.8 44,000
Inferred 20,000 12.5 8,000
TOTAL 69,000 23.4 52,000
Ag Estimate
Indicated 49,000 1,466 2,325,000
Inferred 20,000 721 464,000
TOTAL 69,000 1,251 2,790,000
Au Equ Estimate
Indicated 49,000 52.2 83,000
Inferred 20,000 24.5 16,000
TOTAL 69,000 44.2 99,000

Note 1 – The disclosure herein and relating to the COSE Property is based on information prepared and disclosed by Pan American Silver and can be found in a news release filed on SEDAR by Pan American Silver on August 9, 2017. The information and data is available in the public domain as at the date hereof, and none of this information has been independently verified by the Company or is supported by a technical report prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects.  While the Company will request additional information from Pan American Silver once the Royalty Transaction is completed, it has not received access to the necessary data from Pan American Silver and is not able to obtain the necessary information from the public domain to prepare a technical report and Pan American Silver has not indicated the mineral resource and/or mineral reserve category, if any, on which the information above is based. Mineral resources are not mineral reserves and by definition do not demonstrate economic viability. The project silver production contained herein may be based on mineral resource estimates that include inferred mineral resources, which are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves.  There is also no certainty that inferred mineral resources, if used by Pan American Silver in preparing the mine plan, will be converted to the measured and indicated resource categories, or into mineral reserves, once economic considerations are applied. Readers are cautioned that inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined economically.  As a result, the Company cautions readers that there is no certainty that the projected silver production will be realized. Specifically, as a royalty holder, the Company has limited, if any, access to the COSE Property. The Company is dependent on, (i) Pan American Silver and their qualified persons to provide information to the Company, or (ii) on publicly available information to prepare disclosure pertaining to the COSE Property and generally has limited or no ability to independently verify such information. Although the Company does not have any knowledge that such information may not be accurate, there can be no assurance that such third party information is complete or accurate. The disclosure in this press release relating to the COSE Property is based on information publicly disclosed by the owner or operator of this property and information/data available in the public domain as at the date hereof, and none of this information has been independently verified by Metalla. Specifically, as a royalty holder, Metalla has and will have limited, if any, access to the property subject to the Royalty. Although Metalla does not have any knowledge that such information may not be accurate, there can be no assurance that such third-party information is complete or accurate. Some information publicly reported by the operator may relate to a larger property than the area covered by Metalla’s royalty interest. Metalla’s royalty interests often cover less than 100% and sometimes only a portion of the publicly reported mineral reserves, mineral resources and production of a property.

 Note 2 – See technical report titled “COSE Gold-Silver Project” dated October 29, 2014 and prepared by Brian Fitzpatrick, BSc and MAusIMM.  Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The mineral resources in this estimate were calculated in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.