Franco-Nevada holds a sliding scale gross royalty on production from the Dee claims, located at the northern end of the Carlin trend in north-central Nevada. This sliding scale gross royalty rate ranges from 4% to 9% depending upon the production rate, a CPI indexed dollar value per ton and certain metallurgical characteristics of the ore. The royalty agreement includes an AMR payment provision during non-producing periods, which has been paid since prior open pit operations were discontinued in 2001 and currently totals $200,000 per year. Once any royalty burdened production begins, the past AMR payments are credited against the production royalty payments.

Currently, the property is operated by a joint venture between Barrick (60%) and Goldcorp (40%). Over the last several years, exploration on and adjacent to the property has led to the discovery of the Storm and South Arturo deposits. The underground Storm deposit, which lies mostly to the north of the royalty property, has been developed and went into production in late 2006 using the Dee pit for decline access into the underground mine. A production royalty from the Storm operation would be payable to Franco-Nevada only if or when production occurs on the Dee claims. The South Arturo deposit, which lies almost entirely on the Dee royalty claims and would be subject to Franco-Nevada’s sliding scale royalty, is being actively drilled by Barrick and evaluated as a potential new open pit mine. In 2010, approximately 65,000 metres of mostly infill drilling were completed to improve resource confidence, while scoping level environmental, engineering and metallurgical studies have been initiated to provide guidance in the further development of the project.

On February 17, 2011, Barrick released updated reserves and resources for its 60% portion of the South Arturo deposit. These pro rata Barrick ounces have been converted to a 100% equity basis and are shown below.