Franco-Nevada

Red Mountain (Au)

LOCATION: British Columbia, Canada
OPERATOR: Ascot Resources Ltd.
ROYALTY: NSR: 1% / Production Payment

Franco-Nevada has a 1% NSR as well as a $10/oz production payment on gold produced in excess of 1.85 million ounces from the Red Mountain project near Stewart, B.C. Franco-Nevada acquired the royalty as part of the Barrick royalty portfolio in November 2013. In March 2019, Ascot Resources Ltd. (“Ascot’) completed its acquisition of IDM Mining and its 100%-owned Red Mountain Project. In October 2019, Ascot announced an updated Mineral Resource and as a result, Measured and Indicated Mineral Resources increased by almost 200,000 ounces of gold compared to a 2017 feasibility study prepared by IDM Mining. Based on the updated Mineral Resource a revised feasibility study was released in April 2020 which envisioned the feed from four deposits (Big Missouri, Silver Coin, Premier and Red Mountain) being processed at the Premier mill. The Premier mill would require refurbishment and expansion as it has been on care & maintenance for over 20 years. The updated feasibility study contemplates Red Mountain ore being processed in the second year of operation for approximately 7 years and contributing roughly half the ore feed for the mill, or approximately 70,000 ounces per annum in year 3 to 7. The Red Mountain Gold Project received federal Environmental Assessment approval in January 2019 and in April 2019 signed a Benefits Agreement with the Nisga’a Nation. Ascot is currently in the regulatory phase during which Fisheries and Oceans Canada and Natural Resources Canada are considering their respective permitting and regulatory decisions, with on-going consultation with the Nisga’a Nation.