Operator: KINROSS GOLD CORPORATION
Royalty: NSR/GR: 0.875-5%
The Bald Mountain mine lies within the Southern Ruby Mountains of northeastern Nevada, approximately 110 km southeast of Elko. Ore is sourced from multiple open pits over an estimated 600 km2 property with processing at multiple conventional heap leaching facilities. Bald Mountain is the largest mine site by area in the U.S. It stretches 40 km north to south and 15 km east to west and is divided in three zones: North Zone, South Zone and JV Zone. At the end of 2015, Kinross Gold Corporation (“Kinross”) purchased from Barrick 100% of the North and South Zones while forming a 50/50 exploration joint venture partnership with Barrick on the JV Zone in-between the North and South Zones.
Franco-Nevada’s Bald Mountain royalties cover a significant portion of the Bald Mountain property. Franco-Nevada holds various revenue royalties on the property depending on the claim groups, ranging from 0.875%-5% NSR/GR. A detailed map of our royalties is shown in the schematic. Bald Mountain produced 130,144 ounces in 2016 versus 191,000 ounces of gold in 2015. Production was negatively impacted by short-term integration issues following the acquisition by Kinross, including higher than anticipated level of stripping, harsh winter conditions and inventory issues. Kinross stated that it expects to almost double production in 2017 and 2018 compared with 2016 but does not provide asset specific production guidance.
Following the 2016 exploration campaign, Kinross successfully doubled the Bald Mountain Mineral Reserve to 2.1 million ounces. This increase could significantly extend the mine life of the operation. Of the ounces added, 0.68 million ounces were added to the North Zone, where the existing operations are located and 0.57 million ounces were added to the South Zone. The South Zone included pre-feasibility work at the Vantage Complex which contemplates construction of a new heap leach pad with associated processing facilities and infrastructure.
|Total Revenue to FNV ($ million)