GoldUSD 1,916.40
SilverUSD 25.00

Wharf

Summary:

Metalla Royalty owns a 1% NSR on the Wharf mine. Wharf is an open pit, heap leach operation located in the Northern Black Hills of South Dakota acquired by Coeur in February 2015 from Goldcorp Inc. for cash consideration of approximately $99.5 million. The mine has been a consistent free cash flow generating asset for Coeur and consists of several areas of adjoining gold mineralization, which have been mined as a series of open pits. The mine produced 84,172 ounces of gold in 2019(1).

Wharf has been in production since 1983. Coeur acquired the asset in 2015 from Goldcorp Inc. (now Newmont Corporation) and subsequently increased plant efficiency and replaced reserves through exploration. During Coeur’s ownership, it has generated cumulative free cash flow from Wharf of approximately $175.0 million. Additionally, Wharf has a mine life of approximately seven years.

ROYALTY MAP

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WHARF RESERVES AND RESOURCES (1)(2)(3)(4)(5)(6)

Reserves & Resources
 Short TonsGold
 (000’s)(Oz/t)(Koz)
Proven Reserves23,4360.024571
Probable Reserves  7,5300.026197
Proven & Probable Reserves30,9650.025768
    
Measured Resources6,6310.027178
Indicated Resources4,9260.032156
Measured & Indicated Resources11,5570.029334
    
Inferred Resources2,4830.03381

Notes:

(1)  For details on the estimation of mineral resources and reserves, including the key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves, Canadian investors should refer to the NI 43-101 Technical Reports for Wharf and on file at www.sedar.com and the Annual Report of Coeur filed on February 19, 2020.

(2)  See Coeur news release filed on February 19, 2020 and Coeur news release filed on April 22, 2020.  

(3)  Numbers may not add due to rounding.

(4)   Mineral resources which are not mineral reserves do not have demonstrated economic viability.

(5)   Mineral resource are exclusive of mineral reserves.

(6)   See technical report titled The Technical Report for the Wharf Operation” dated February 7, 2018.

(7)   See Metalla’s condensed consolidated interim financial statements ending August 31, 2017.