Australian Mines Limited
GR: Gold - 1.75%; Other Metals - 1.00%
|Last Updated:||May 9, 2012|
Franco-Nevada owns an area of freehold land called East Location 45, along with an adjacent mining lease, located 40 km southeast of Kalgoorlie in Western Australia. This total land area of 8,558 hectares has been leased to Australian Mines Limited (“AML”) in return for a 1.75% gross royalty on gold, and a 1.00% gross royalty on other metals. The lease to AML expires January 25, 2021, and is renewable for further 10 year terms in perpetuity, provided that commercial production has occurred in each lease term. The historic Mt Martin gold mine is located on East Location 45, and has produced gold from intermittent mining dating back to 1923. In recent years Mt Martin ore has been mined and processed at Alacer Gold Corp.’s South Kalgoorlie mill under a sub-lease arrangement. This sub-lease arrangement expired in January 2010, and AML is investigating various options to return Mt Martin to production. This area also contains the undeveloped Goodyear nickel and Swift gold deposits.
Updated: May 9, 2012