Hemlo Gold Camp - Ontario
| Royalty: | 3% NSR 50% NPI |
|---|---|
| 2009 Revenue: | $44,386 |
| Operator: | Barrick Gold Corporation |
The Hemlo gold camp is located just off the Trans-Canada highway near Marathon, Ontario. Williams Operating Corporation (“WOC”) currently operates both the Williams and David Bell mines at Hemlo and has been owned 100% by Barrick since January 1, 2009. Franco-Nevada holds a 3% NSR and a 50% NPI on the portion of the Hemlo camp that underlies the Interlake claims to the north-west of the Williams mine and which are under option to WOC. Mineralization continues from the WOC operations onto Franco-Nevada’s royalty property and WOC has been developing the royalty property including resource and reserve delineation, underground development and some initial mining in 2009. In 2009, Franco-Nevada received $44,386 in NSR royalty revenue and is reasonably confident of increasing NSR receipts in 2010 and in future years. The current reserve and resource life of mine plan projects the production of 200,000 feed ounces from the royalty property from 2010 to 2015. While NSR royalties are received with production, WOC is entitled to recover its initial capital spent for development on the Interlake claims before Franco-Nevada will recognize NPI royalties. Exploration drilling is ongoing and has been encouraging.
