Red Lake (Bateman) (Au)

Location: Ontario, Canada
Operator: Battle North Gold Corporation
Royalty: NSR: 2%

Franco-Nevada has a 2% NSR (subject to a buy-back of 0.5%) on the water claims, which cover the majority of Mineral Reserves, of the Bateman gold project in Red Lake, Ontario. In July 2020, Rubicon Minerals Corp. (“Rubicon”) completed its corporate name change to Battle North Gold Corporation (“Battle North”), while also changing the name of the Phoenix gold project to the Bateman gold project. In March 2021, Battle North and Evolution Mining Limited (“Evolution Mining”) announced they had entered into a definitive agreement in which Evolution will acquire Battle North.

The Bateman project is located 10 km north of Evolution Mining’s Red Lake mine. In November 2015, Rubicon announced a temporary shutdown of underground activities to enhance its geologic model and develop an implementation plan as the gold mineralization was more geologically complex than anticipated. This included a material reduction to the contained gold ounces estimated. Battle North has since reorganized its debts and has put in place a new management team.

In October 2020, Battle North announced feasibility study results for the Bateman gold project. The base case study outlines life of mine payable gold production of 602,987 ounces, averaging 73,835 ounces per year for 8.2 years from initial production. Of the 8.2 years, 7 years are classified as commercial production, which the company defines as an average of 70% of the 1,250 tpd permitted capacity, over 90 consecutive days. The project contemplates a 1,800 tpd mill with excess capacity for potential incremental tonnes from F2, McFinley and Pen Zones (contemplating 2,500 tpd for the expanded mill). The 1,800 tpd mill was constructed in 2015 prior to shut down and is currently permitted to 1,250 tpd.

In February 2021, Battle North announced that it is proceeding with the construction of the Bateman gold project. Based on the current construction schedule, processing of ore is targeted at the end of 2021 and commercial production at the end of 2022.

Battle North continues to test near-mine targets with infill and step-out drilling of the F2 deposit, with target areas below the 1,098 m level, as well as the McFinley and Pen Zones which could potentially provide future incremental mill feed.