Hoyle-Matheson Royalties (HMR)
Matamec holds a 1% net smelter royalty (NSR) on the Hoyle-Matheson Royalties (HMR) property, which is contiguous to the operating Hoyle Pond Mine in the world-class Timmins Gold Camp, an area that has produced more than 70 million ounces of gold from large deposits that exceed 1,800m in depth. The Leased Mining Rights and Fee Simple Mining Rights property are wholly owned by Goldcorp Inc. (“Goldcorp”).
In November 2016, Matamec compiled data provided by Goldcorp under the Property Rights Exchange Arrangements Agreement (“PREAA”) regarding exploration work completed in 2012 to 2015 on the TVZ zone, whose eastern extension is located on the HMR property. Drilling completed by Goldcorp on the HMR property during this period has shown that the TVZ zone extends onto these two claims. The 1% NSR on the Leased Mining Rights property is effective only after the first 500,000 ounces are produced; all other royalties have a 1% NSR that is effective from the first ounce produced. Please click here to read the press release.
Map showing location of Matamec’s HMR interests in relation to the TVZ Zone
The TVZ zone comprises a subvertical mineralized corridor with variable thickness that strikes and plunges gently to the northeast. The currently known mineralization occurs between 1,200m and 2,000m vertical depth on the two claims in question. It is hosted entirely within sedimentary rocks, which is not typical of the ore produced from the Hoyle Pond Mine. The zone appears to be cutting up-stratigraphy and may intersect the contact with the mafic volcanic package to the northeast. The TVZ zone is open in this direction, towards the Colbert Claim (see Figure 1). Goldcorp is not currently mining the TVZ zone, and has indicated that they presently have no plans for additional work on the HMR property.
Matamec has not received any other drilling result on the TVZ zone, whose eastern extension is located on the HMR Property pursuant to the PREAA in 2016. Although Matamec does not have an equity interest in these properties (Leased Mining Rights and Fee Simple Mining Rights claims), it does own royalties on these claims, which are contiguous with the operating Hoyle Pond Mine. The receipt of any royalty payments by Matamec in respect of these claims is entirely dependent upon whether Goldcorp decides to extract minerals from these properties.