LOCATION: ONTARIO / QUEBEC
Operator: DETOUR GOLD CORPORATION
ROYALTY: NSR: 2%
Franco-Nevada has a 2% NSR royalty that covers an area of 140 km2 of the Abitibi greenstone belt located 185 km northeast of Cochrane, Ontario including the Detour Lake mine. Placer Dome Inc. operated a mine on the property from 1983 through 1999 during which time approximately 1.8 million ounces of gold are estimated to have been produced.
Detour Gold Corporation (“Detour”) constructed the current mine from 2010 to 2013 and is the current operator. The Detour Lake mine produced 232,287 ounces of gold in 2013 (partial year), 456,634 ounces of gold in 2014 and 505,558 ounces of gold in 2015. Detour expects to produce between 540,000-590,000 ounces in 2016.
In January 2016, Detour provided a new life of mine plan for the Detour Lake mine. The revised plan assumes a longer mine life of 23 years versus 20 years previously (net of depletion for 2014 and 2015) while average yearly production is relatively unchanged at 655,000 ounces of gold versus 665,000 ounces of gold previously. The updated mine plan includes the addition of West Detour (formerly Block A which was consolidated with the purchase of Trade Winds Ventures Inc.) which provides a second feed source to smooth production. The West Detour pit has an ~10 year mine life, will have shared equipment between Detour Lake and West Detour pits and the West Detour pit will provide long-term storage for tailings and waste. The updated mine plan included an updated Mineral Reserve estimate which increased from 14.957 million ounces of gold as at the end of 2014 to 16.395 million ounces of gold as at the end of 2015. The updated Mineral Reserve estimate included the first Mineral Reserve for the West Detour project of 1.529 million ounces of gold.
|Total Revenue to FNV ($ million)