Elemental Royalty Notes 32% Increase in Reserves at Karlawinda with Expansion Commissioning on Track for Q3 2026
Rhea-AI Summary
Elemental Royalty (NASDAQ/TSX: ELE) reports that Capricorn Metals has announced a 32% increase in Probable Mineral Reserves at the Karlawinda Gold Project to 76.4 Mt at 0.6 g/t gold, containing 1.57 Moz of gold. Elemental holds an uncapped 2% NSR royalty over Karlawinda, which generated US$8.9 million in zero-cost revenue in 2025.
Capricorn also reports a 30% increase in Indicated Mineral Resources to 124.9 Mt at 0.6 g/t gold (2.38 Moz), supporting an estimated ~10-year mine life at ~6.5 Mtpa processing and ~150,000 oz per year of gold production after expansion. Commissioning and transition to full operations of the expanded plant are expected in Q3 2026. According to Elemental, this mine-life extension and additional resources increase its long-term royalty exposure without additional capital contributions, although the company notes it has not independently verified Capricorn’s estimates and relies on JORC-compliant disclosures.
Positive
- 32% increase in Probable Mineral Reserves at Karlawinda to 1.57 Moz of gold
- 30% increase in Indicated Mineral Resources to 2.38 Moz of gold
- Approximate 10-year mine life at ~150,000 oz annual production supports long-term royalty stream
- US$8.9 million in zero-cost royalty revenue from Karlawinda in 2025
- Karlawinda plant expansion targeting 6.5 Mtpa capacity with commissioning expected in Q3 2026
- Increased Karlawinda reserves and mine life without additional capital required from Elemental
Negative
- Elemental has not independently verified Capricorn’s Mineral Reserve and Resource estimates
- Portion of Mineral Resources (608 koz Inferred) are not Mineral Reserves and lack demonstrated economic viability
News Explained
Capricorn’s updated
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 15 | Investment package | Positive | -7.7% | Royalty expansion and equity investment package for the Chapi copper project |
| Jun 18 | Dividend declaration | Positive | +0.5% | Quarterly dividend declaration with an alternative in-kind payment option |
| Jun 18 | Asset handbook | Neutral | -4.5% | Publication of the 2026 royalty asset handbook and corporate website launch |
| Jun 17 | Index inclusion | Positive | -0.5% | Expected addition to Russell and S&P/TSX Global Gold indexes |
| Jun 11 | Share repurchase | Positive | +3.4% | Normal course issuer bid authorizing cancellation of repurchased shares |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
ELE's recent news reactions diverged from announcement direction in 3 of 5 events, including negative reactions to several positive corporate updates.
Key Terms
net smelter return financial
probable mineral reserve technical
JORC Code regulatory
NI 43-101 regulatory
qualified person regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Denver, Colorado--(Newsfile Corp. - July 29, 2026) - Elemental Royalty Corporation (NASDAQ: ELE) (TSX: ELE) ("Elemental" or the "Company") notes the announcement by Capricorn Metals Ltd (ASX: CMM) ("Capricorn") of a
Karlawinda is a cornerstone asset for Elemental, contributing US
Highlights
- Significant increase in Mineral Reserves and Mineral Resources: recent drilling at Karlawinda contributed to a
32% increase in the Probable Mineral Reserve estimate to 76.4 million tonnes at 0.6 g/t gold, containing 1.57 million ounces of gold - Additionally, the Karlawinda Indicated Mineral Resource estimate increased by
30% to 124.9 million tonnes at 0.6 g/t gold, containing 2.38 million ounces of gold. Mineral Resources are inclusive of Mineral Reserves - Ongoing expansion: Capricorn's expansion of the Karlawinda processing plant is nearing completion, with commissioning and transition to full operations expected during the third quarter of 2026
- Extended mine life: Capricorn reports that the increased Mineral Reserve supports an approximately 10-year mine life, based on expanded processing capacity of approximately 6.5 million tonnes per annum and anticipated annual gold production of approximately 150,000 ounces
- Conservative gold-price assumptions: Capricorn used variable gold prices of A
$2,200 t o A$2,600 per ounce for the Mineral Reserve estimate and a gold price of A$2,800 per ounce for the Mineral Resource estimate - Increased value for Elemental: the reported mine-life extension and additional Mineral Resources increase Elemental's exposure to Karlawinda without additional capital contributions from the Company
Elemental Chief Executive Officer, David M. Cole, commented: "We are pleased to note the substantial increase in Mineral Reserves reported by Capricorn, which further strengthens the long-term value of our
Capricorn's management team has an excellent track record, and we look forward to following its progress towards commissioning."
About Karlawinda
Karlawinda is a producing, open-pit gold mine located approximately 65 kilometres south-east of Newman in the Pilbara region of Western Australia and operated by Capricorn. Production commenced in June 2021, and Capricorn reports that the mine has produced approximately 564,000 ounces of gold since commissioning. Capricorn is currently completing an expansion designed to increase processing capacity to approximately 6.5 million tonnes per annum and annual gold production to approximately 150,000 ounces.
Recent drilling at Karlawinda, as reported by Capricorn in its announcement titled "Capricorn Gold Reserves Increase to 5.2 Million Ounces" dated July 27, 2026, contributed to an increase in the Probable Mineral Reserve estimate from 1.19 million ounces to 1.57 million ounces of gold, representing an increase of
The updated Probable Mineral Reserve estimate incorporates depletion of approximately 103,000 ounces of gold from mining during the nine months ended March 31, 2026. After accounting for this depletion, the Probable Mineral Reserve increased from 1.19 million ounces to 1.57 million ounces of gold.
Technical Disclosure and Qualified Person
The Mineral Resource and Mineral Reserve estimates disclosed in this news release were prepared and reported by Capricorn in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the "JORC Code"). Elemental has not independently verified the underlying data supporting those estimates and is relying on Capricorn's public disclosure in its announcement titled "Capricorn Gold Reserves Increase to 5.2 Million Ounces" dated July 27, 2026, available on Capricorn's website and through the ASX announcement platform. For purposes of disclosure under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), Elemental considers the JORC Code classifications of Indicated Mineral Resources, Inferred Mineral Resources and Probable Ore Reserves to be substantively equivalent to the corresponding categories under the CIM Definition Standards for Mineral Resources and Mineral Reserves adopted by the CIM Council, as amended. Mineral Resources are inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
The scientific and technical information contained in this news release has been reviewed and approved by Michael Sheehan, an employee of the Company and a "Qualified Person" as defined in NI 43-101.
For further information, contact:
| David M. Cole | info@elementalroyalty.com |
| CEO | |
| Tara Vivian-Neal | investor@elementalroyalty.com |
| Investor Relations |
www.elementalroyalty.com
Phone: +1 (604) 688-6390
NASDAQ: ELE | TSX: ELE | ISIN: CA28620K1066 | CUSIP: 28620K106
About Elemental Royalty Corporation
Elemental is a new mid-tier, gold-focused streaming and royalty company with a globally diversified portfolio of 18 producing assets and more than 200 royalties, anchored by cornerstone assets and operated by world-class mining partners. Formed through the merger of Elemental Altus and EMX, the Company combines Elemental Altus's track record of accretive royalty acquisitions with EMX's strengths in royalty generation and disciplined growth. This complementary strategy delivers both immediate cash flow and long-term value creation, supported by a best-in-class asset base, diversified production, and sector-leading management expertise.
Elemental trades on Nasdaq and on the Toronto Stock Exchange under the ticker Symbol "ELE".
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable United States and Canadian securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as "may", "will", "should", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology (including negative and grammatical variations thereof).
Forward-looking statements and information include, but are not limited to, statements regarding future royalties and future consideration payments or issuances of shares, or other statements that are not statements of fact. Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies.
Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Elemental to control or predict, that may cause Elemental's actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to: the impact of general business and economic conditions, the absence of control over the mining operations from which Elemental will receive royalties, risks related to international operations, government relations and environmental regulation, the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with Elemental's expectations; accidents, equipment breakdowns, title matters, labour disputes or other unanticipated difficulties or interruptions in operations; fluctuating metal prices; unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; currency fluctuations; regulatory restrictions, including environmental regulatory restrictions; liability, competition, loss of key employees and other related risks and uncertainties. For a discussion of important factors which could cause actual results to differ from forward-looking statements, refer to the annual information form of Elemental for the year ended December 31, 2025. Elemental undertakes no obligation to update forward-looking statements and information except as required by applicable law. Such forward-looking statements and information represent management's best judgment based on information currently available. No forward-looking statement or information can be guaranteed, and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
Neither The Nasdaq Stock Market LLC nor the Toronto Stock Exchange, nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange), accepts responsibility for the adequacy or accuracy of this news release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/307166