Trident Royalties PLC (AIM:TRR) said it has been told that commissioning and pre-production activities at the Lincoln Gold Mine, over which it agreed a royalty deal in August, are proceeding as planned with first gold remaining on schedule for the end of 2021.
Trident acquired a net smelter return (NSR) royalty over production from California-based Lincoln, with a royalty rate of 1.50%, decreasing to 0.75% once US$3mln has been paid.
Operator Seduli Sutter Operations Corporations is currently finalising the restart of Stage 1 production at the Lincoln underground gold mine targeting 220 tonnes-per-day, with the aim of producing approximately 20,000-plus ounces of gold per year, it added.
The project has permits for stage-two production of up to 1,000 tonnes per day (approximately 80,000oz gold per year).
Adam Davidson, Trident's chief executive, said: "We are pleased to see the positive progress being undertaken at Lincoln Gold Mine. The Project is situated in one of the most historically prolific gold regions globally with Seduli uniquely positioned as the owner of the only constructed and permitted processing facility on the Californian Mother Lode."
He added: "Seduli has a host of other attractive exploration prospects within its existing tenement package and is well positioned to consolidate other exploration targets on the lode. Trident's royalty retains full upside to both avenues of growth via the 5-mile area of interest provision in the royalty.
"Trident looks forward to further positive progress at Lincoln over the coming weeks, including first gold pour ahead of inaugural royalty revenues in 2022."