TSX:FNV 86.37 -0.27 -0.31%
Volume 303,633
March 24, 2017
NYSE:FNV 64.58 -0.37 -0.57%
Volume 524,925
March 24, 2017
Gold 1,246.90 -2.40 -0.19%
Volume 3
March 23, 2017
Contact Share

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.

Gold production at Mesquite increased over 25% in 2015 to 134,900 ounces from 106,670 ounces in 2014. Production benefitted from increased ore tonnes placed on the leach pad as well as accelerated recoveries from the leach pad expansion. These improvements resulted in annual production which exceeded its original guidance range of 110,000-120,000 ounces of gold. For 2016, New Gold expects production at Mesquite to remain in line with 2015 production with anticipated production of 130,000-140,000 ounces. 2017 production is expected to increase to over 150,000 ounces as the grade mined is expected to increase.

2015 2014 2013
Total Revenue to FNV ($ million) $ 2.1 $ 21.9 $ 2.3