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.
The mine produced 205,116 ounces in 2016 which was largely unchanged from the record production achieved in 2015 of 207,006 ounces. 2016 production exceeded the original production guidance range of 190,000-200,000 ounces. For 2017, the Marigold mine is forecast to produce between 205,000-215,000 ounces. In September 2016, Silver Standard provided a five-year outlook for the Marigold operation which forecasts average production of nearly 220,000 ounces (200,000-240,000 ounces) from 2017 through 2022 which is nearly a 20% increase compared to the 2014 Technical Report.
Exploration activities for 2016 focused on conversion of Mineral Resources to Mineral Reserves around the 8 South, Terry Zone North, HideOut, Mud and Valmy pits and Mineral Resources discovery at the Crossfire, East Basalt and Battle Cry targets. Successful exploration activities in 2016 increased gold Mineral Reserves at Marigold by 31%.
|Total Revenue to FNV ($ million)