Detour Lake - Ontario
| Royalty: | 2% NSR |
|---|---|
| 2009 Revenue: | Prefeasibility Project |
| Operator: | Detour Gold Corporation |
Franco-Nevada has a 2% NSR that applies to all known resources of the Detour gold camp in north-eastern Ontario and Quebec. The property includes the former Placer Dome Detour Lake mine which produced 1.8 million ounces of gold from 1983 to 1999. Detour Gold Corporation (“Detour Gold”) is the operator and has conducted an active exploration program in the vicinity of the former mining operations. Franco-Nevada’s royalty applies to Blocks A, B, C, D, E and Mine Option Property as shown in the schematic. Detour Gold has reported Proven and Probable reserves of 8.8 million ounces (239 million tonnes grading 1.15 g/t gold) which are contained within a Measured and Indicated resource of 17.3 million ounces. Including an Inferred resource of 5.2 million ounces, total resources on the property are in excess of 22 million ounces, representing one of the largest undeveloped gold resources in Canada.
Detour released the results of a pre-feasibility study in September 2009 which outlines a large scale open pit mine with the capacity to produce approximately 560,000 ounces of gold annually at an operating cost of $404/oz. The study contemplates a 14.5 year mine life and pre-production capital costs of approximately US$844 million. Detour is working on permitting the project and completing a full feasibility study, which is scheduled for completion in the second quarter of 2010. The company raised C$275 million in November, 2009 to advance the project and management is targeting construction beginning in 2011 and production beginning in late 2012.
