Cerro San Pedro
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1.95% GR 26,700 oz Au / 406,592 oz Ag 1,517,000 oz (Au) 62,076,000 oz (Ag) 2,033,000 oz M&I¹ / 45,000 oz Inf. (Au)² 75,660,000 oz M&I¹ / 2,215,000 oz Inf. (Au)² New Gold Inc. |
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Franco-Nevada owns a 1.95% GR royalty on all precious metals recovered on the Cerro San Pedro project. The Cerro San Pedro project is located in central Mexico near San Luis Potosi. Production from the mine started in 2007. The mine is owned and operated by New Gold Inc. Cerro San Pedro is an open pit mine with run-of-mine heap leaching. As of April 2007, Metallica Resources, the previous operator expected Cerro San Pedro to produce 90,000 ounces of gold per year and 2.1 million ounces of silver per year over a 10-year mine life.
Cerro San Pedro started production in the second half of 2007. The mine is expected to produce between 75,000 and 85,000 ounces of gold and 1.1 million ounces of silver during 2008. Metallica, the previous operator, had also been evaluating the benefit of adding a crushing circuit to the operation.
¹ Measured and indicated resources are inclusive of reserves.
² Measured and indicated figures were reported separately but have been combined to provide an aggregate measured and indicated amount.