OPERATOR: NEW GOLD INC.
ROYALTY: NSR: 0.5-2%
Mesquite is a gold operation located in south-east California, approximately 70 km northwest of Yuma, Arizona and 230 km east of San Diego, California. The mine is an open-pit, run-of-mine, heap leach operation. It was originally started in 1986 and then re-started in January 2008 by Western Goldfields Inc., a predecessor company of New Gold Inc. (“New Gold”). Franco-Nevada holds royalties on the entire Mesquite mine property that range from a 0.5% to a 2% NSR, depending on the claim block, as shown on the schematic.
Production decreased to 111,123 ounces of gold in 2016 from 134,900 ounces in 2015. Year-over-year production decreased primarily due to lower recoveries associated with transition material mined in 2016. Production for 2016 was below the originally anticipated guidance of 130,000-140,000 ounces. New Gold anticipates gold production of 140,000-150,000 ounces in 2017.
|Total Revenue to FNV ($ million)