OPERATOR: VICTORIA GOLD CORP.
ROYALTY: NSR: 1.5-2%
In January 2015, Franco-Nevada purchased an existing 2% NSR on the Eagle deposit which is being advanced by Victoria Gold Corp. (“Victoria”). The royalty is subject to an annual minimum royalty payment of $20,000. Once in production, the NSR reduces to a 1% NSR once $1,000,000 is paid towards the royalty and does not include credit for the minimum payments received. The Eagle deposit is part of the larger Dublin Gulch claim block and is located in central Yukon. In addition, Franco-Nevada purchased a 1.5% royalty on the Lynx properties (part of the Dublin Gulch claim) which is subject to a $15,000 annual advance royalty payment and is capped at $1,500,000. Victoria released a feasibility study for the Eagle deposit in April 2012 which included a 2.3 million ounce Mineral Reserve
(91.6 Mt @ 0.78 g/t). The feasibility envisions a conventional heap leach open-pit mine with yearly average gold production of 212,000 ounces over a 10 year mine life. In December 2015, Victoria received the final Water Use License and has now been granted all major permits required to construct, operate and close the project.