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Red Lake (Phoenix) (Au)

Location: Ontario, Canada
Operator: Rubicon Minerals 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 Resources) of the Phoenix gold project in Red Lake, Ontario operated by Rubicon Minerals Corporation (“Rubicon”). The Phoenix project is located 10 km north of Evolution Mining Limited’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. Rubicon has since reorganized its debts and has put in place a new management team.

In 2020, Rubicon announced an updated Mineral Resource estimate based on a 3.0 g/t gold cut-off grade. Measured and Indicated Mineral Resources increased 38% to 811,000 ounces of gold compared to the 2019 estimate of 589,000 ounces of gold. This reflected an increase in the estimated average gold grade to 6.45 g/t compared to 6.26 g/t in the 2019 estimate. Based on this updated Mineral Resource, Rubicon has initiated a feasibility study on the project, with completion anticipated in H2 2020.

For 2020, Rubicon plans to conduct infill drilling between the lower 976 and 1,098 m levels to convert Inferred Resources to the Measured and Indicated Mineral Resource categories. An additional 5,000 meters of underground oriented drilling will also be conducted to determine the potential of the historic McFinley Zone (approximately 500 m northwest of the F2 Gold Zone) and Pen Zone (approximately 500 m northwest of the F2 Gold Zone). Rubicon intends to deliver Mineral Resource estimates for both the McFinley and Pen Zone in 2020 and 2021, respectively.