Operator: LAKE SHORE GOLD CORP.
ROYALTY: NSR: 2.25%
Franco-Nevada acquired a 2.25% NSR royalty on Lake Shore Gold Corp.’s (“Lake Shore”) Timmins West property in February 2012. The royalty covers a large land package of approximately 130 km2 to the west of the City of Timmins, Ontario which hosts the Timmins and Thunder Creek deposits as well as the 144 exploration zones and the Gold River Trend. In early February 2016, Tahoe Resources Inc. (“Tahoe”) announced plans to acquire Lake Shore forming a leading Americas based precious metals producer. Tahoe has additional operations in Guatemala and Peru.
Lake Shore produced 139,000 ounces in 2015, a slight decrease from the record 142,200 ounces produced in 2014. For 2016, Lake Shore expects to produce between 170,000-180,000 ounces which includes non-commercial production from the 144 Gap Zone (discussed below). Lake Shore does not provide a breakout of its guidance between the Bell Creek mine and the Timmins West mine.
Exploration efforts during 2015 focused on advancing the 144 Gap Zone which is located close to the Thunder Creek infrastructure.
Lake Shore released its initial Mineral Resource for the 144 Gap Zone in February 2016 which included 301,700 ounces in the Indicated category (1,734,000 tonnes @ 5.41 g/t) and 319,200 ounces in the Inferred category (1,914,000 tonnes @ 5.19 g/t). In addition to the 144 Gap Zone, the property also hosts the Gold River deposit which has a small Indicated Resource and an Inferred Resource of over 1.0 million ounces (5.3 Mt @ 6.06 g/t).
|Total Revenue to FNV ($ million)