Operator: Blackham Resources Limited
Royalty: NSR: 3.6%
Franco-Nevada holds a 3.6% NSR royalty on all gold production from the Matilda/Wiluna Gold Project located in Western Australia. In December 2016, Franco-Nevada and Blackham Resources Limited (“Blackham”) agreed to restructure the royalty agreements. Prior to this date Franco-Nevada had a 3-5% variable rate NSR royalty that excluded portions of the Matilda/Wiluna Gold Project Mineral Resource. Wiluna was discovered in 1896 and has produced in excess of 4.0 million ounces of gold to date, with nearly continuous production from 1987 to 2013. Blackham acquired the Wiluna Gold Operation in March 2014. Blackham had previously acquired a large tenement position surrounding Wiluna, called the Matilda Gold Project, with over 1,150 km2 subject to an identical royalty arrangement with Franco-Nevada. Blackham resumed mining operations at Matilda/Wiluna in July 2016 with first gold pour in October 2016. Total production for 2016 was 9,240 ounces of gold, with 4,900 ounces of gold production in December 2016. Matilda/Wiluna has a 1.3 Mt per annum treatment plant and will process ore from several open pit and underground deposits. According to a feasibility study released by Blackham in February 2016, operations will have an initial mine life of 7 years, with average annual production of 101,000 ounces of gold per annum during the first five years.