OPERATOR: BARRICK GOLD CORPORATION/PREMIER GOLD MINES LIMITED
ROYALTY: GR: 4-9% with AMR
The South Arturo project consists of a series of sediment hosted Carlin-style gold deposits adjacent to and including the former Dee gold mine, 60 km northwest of Elko, Nevada. The project is being advanced by a joint venture between Barrick (60%) and Premier Gold Mines Limited (“Premier”) (40%). Premier purchased its interest in the property in 2015 from Goldcorp. Franco-Nevada holds a sliding scale gross royalty (4-9%) on production from the Dee claims. The royalty agreement includes an annual minimum royalty which currently totals $200,000 per year which will be credited against any future production royalty payments. To date Franco-Nevada has received close to $3.0 million dollars in annual royalty payments which will be credited against any future production.
Barrick commenced construction of an open pit at the South Arturo project in 2015. Premier estimates that Phase 2 of the project will yield approximately 225,000 ounces of gold in 2016 on a 100% basis. Barrick is also assessing potential development options for the Phase 1 & 3 deposits that are host to historic Mineral Resource estimates. The bulk of the ore will be processed through Barrick’s Goldstrike refractory facilities.
|Total Revenue to FNV ($ million)