TSX:FNV 96.56 -0.86 -0.88%
Volume 318,657
June 27, 2017
NYSE:FNV 73.28 -0.26 -0.35%
Volume 262,654
June 27, 2017
Gold 1,246.30 -9.90 -0.79%
Volume 269
June 26, 2017
Contact Share

Location: Australia
Operator: Westgold Resources Limited
Royalty: NSR: 1-1.75%

Westgold Resources Limited (“Westgold”) operates the South Kalgoorlie Operation (“SKO”) which has been in production since 1989. Westgold was created in December 2016 when Metals X Limited (“Metals X”) demerged its gold assets to create a separate ASX listed gold company. SKO is located 15 km south of Kalgoorlie in Western Australia. Franco-Nevada holds a 1.75% NSR royalty for gold and a 1% NSR royalty for other minerals which covers 470 km2 of the SKO tenements including the northern and central sections of the HBJ deposit and all of the Mt Marion, Pernatty and Mt Martin deposits. Mining was stopped by the previous owner in 2013 but production continued from a combination of low grade stockpiles and third party ore at the 1.2 Mt per annum Jubilee mill. Open pit mining resumed in January 2015, and underground mining resumed in June 2015. Metals X and Westgold reported attributable 2016 gold production from SKO of 43,246 ounces. In February 2017, Westgold announced a toll-milling and option agreement with RNC Minerals, granting RNC access to 50% of SKO plant capacity for one year and also granting RNC a six month option to outright purchase SKO for A$80 million.