Royalty Overview

The Tonopah West royalty was acquired in August 2021, through the acquisition of Ely Gold.

Project Overview

The Tonopah West silver-gold project is located in the Walker Lane trend of western Nevada and is wholly owned and operated by Blackrock Silver Corp. (“Blackrock”).

Blackrock is a significant landholding within the historic Tonopah silver district, which has historically produced 174 million ounces of silver and 1.8 million ounces of gold. Blackrock’s consolidated land position yielded 2.1 million tonnes of the total Tonopah gold and silver production making the combined area the second largest producer by tonnes in Nevada.

With over 150,000 meters of exploration drilling since June 2020, Tonopah West is the most active silver exploration project in North America. A 7,000 meter, 16-hole RC drilling program commenced in June 2020 to test these target areas, with significant results being achieved at the Victor and DPB targets.

Blackrock commenced a fully funded 10,000-meter drill program in 2022 with 2,500 meters allocated for step-out and resource expansion drilling and a further 7,500 meters focused on drilling out high-grade structures internal to the resource area. In May 2022, Blackrock reported its maiden Resource Estimate at Tonopah West details 3 million tonnes grading 2.50 g/t Au and 208.0 g/t Ag. The 2022 program more than doubled the footprint of mineralization beyond the maiden resource boundary, which is fully encompassed by the Gold Royalty NSR.

The maiden Resource Estimate showcases the de-risking of the deposit while bolstering the credibility of Tonopah West in being one of the highest-grade undeveloped silver deposits with significant exploration upside potential.

In October 2022, Blackrock released drill results of the current drill program intersecting 0.91 meters of 37.86 g/t Au and 2,740 g/t Ag within 1.52 meters grading 22.88 g/t Au and 1,654.10 g/t Ag in the New Discovery zone along the southern edge of the DPB resource area. The results demonstrate continued expansion of known mineralization zones of Tonopah West and the Denver vein systems. Assays have encountered a significant new mineralized zone to the south, including the highest grade and shallowest incept at the project to date.