Operator: SILVER STANDARD RESOURCES INC.
Royalty: NSR: 1.75-5% / GR: 0.5-4%
The Marigold mine, operated by Silver Standard Resources Inc. (“Silver Standard”) is located approximately 64 km southeast of Winnemucca, Nevada on the Battle Mountain-Eureka Trend. Silver Standard purchased the mine from joint venture partners Goldcorp Inc. (“Goldcorp”) (66.7%) and Barrick (33.3%) in 2014. The mine has been in continuous production since 1988 and is a large run-of-mine heap leach operation with several open-pits. Franco-Nevada has various royalties on the operation (1.75-5% NSR and 0.5-4% GR), as shown in the schematic, together covering almost all of the current Mineral Reserve base. Franco-Nevada’s original royalties were acquired in connection with its IPO and, in December 2009, additional royalties covering alternate sections were added. Each full section covers one square mile.
In 2015, Marigold produced 207,006 ounces, a record for the Marigold mine since it began operating in 1988, exceeding the original guidance provided for the year of 160,000-175,000 ounces. On October 6, 2015, Marigold passed a major milestone with the production of its three millionth ounce. For 2016, Silver Standard anticipates another strong year from Marigold and expects to
produce between 190,000-200,000 ounces.
Silver Standard continues to explore the Marigold property. Recent exploration drilling at Marigold identified a new mineralized center outside the current Mineral Resource envelope called the HideOut area, with intercepted grades higher than the Mineral Reserves cut-off grades. In addition, Silver Standard acquired the Valmy property from Newmont in 2015 which surrounds portions of the Marigold mine to the east, south and west.
|Total Revenue to FNV ($ million)