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. Production has increased from a partial year in 2013 which yielded 232,287 ounces to 537,765 ounces in 2016 which was slightly below initial guidance. For 2017, Detour expects to produce between 550,000-600,000 ounces of gold.
In January 2017, Detour announced that given the uncertainties associated with the permitting process for the West Detour project, that it would prepare an alternative life of mine plan prior to the end of March 2017. Detour was notified by one of its Aboriginal partners that it had made a request for a federal environmental assessment process versus the provincial process. The federal process typically takes two to three years versus approximately one year for the provincial process. The West Detour project (formerly Block A which was consolidated with the purchase of Trade Winds Ventures Inc.) was part of the mine plan released in January 2016. The previous mine plan assumed a mine life of 23 years with average yearly production of 655,000 ounces of gold.
|Total Revenue to FNV ($ million)