Operator: Yamana Gold Inc.
Royalty: NSR: 2%
Franco-Nevada has a 2% NSR on the Cerro Moro project being developed by Yamana Gold in Santa Cruz province of Argentina. The royalty is estimated to cover 160 km2of the property and all current Mineral Resources which are contained in high grade epithermal gold and silver veins.
The formal decision to proceed with construction was made in late 2015 with first production expected in early 2018 with a combination of open-pit and underground mining through a mill with 1000 tpd capacity. The expenditure for 2016 was approximately $55 million with the balance of $233 million expected to be spent in 2017 and 2018. The updated mine plan shows partial production in 2018 of gold and silver at feed grades of 11 g/t, and 650 g/t respectively, and reflects the impact of the 3-month ramp-up during Q2 2018. The 2019 gold production is estimated to be approximately 130,000 ounces and the silver production to be approximately 9,900,000 ounces. The Cerro Moro feasibility study is based on an initial 6.5 year mine life but the exploration program continues to be focused on discovering new high-grade structures and expanding the current Indicated Mineral Resource.
|Total Revenue to FNV ($ million)