TSX:FNV 87.37 -0.11 -0.13%
Volume 221,756
August 21, 2018
NYSE:FNV 67.06 +0.00 +0%
Volume 191,156
August 21, 2018
Gold 1,193.93 +1.30 +0.11%
Volume
August 21, 2018
Contact Share

LOCATION: BRITISH COLUMBIA
ROYALTY: NSR: 1.2%
OPERATOR: PRETIUM RESOURCES INC.

In May 2013, Franco-Nevada purchased an existing 1.2% NSR royalty covering Pretium Resources Inc.’s (“Pretium”) Brucejack gold project in northwestern British Columbia. The project includes two principal deposits, the Valley of the Kings and the West Zone. The NSR becomes payable after approximately 500,000 ounces of gold have been produced.

Pretium poured first gold from the Brucejack project in June 2017 and achieved commercial production in July 2017. Total production for 2017 was 152,484 ounces of gold during the first six months of production ramp-up. During the ramp-up period, grade reconciliation to the reserve model for the period August 1, 2017 to December 31, 2017 was approximately 75% to 80% with limited mining levels available. Pretium is currently working towards adding flexibility to mine sequencing and provide access to eight mining levels by mid-year 2018.

As the ramp-up of mining into areas of higher definition drilling continues, steady state gold production is expected by mid-to-late 2018. Gold production at Brucejack for the first half of 2018 is expected in the range of 150,000-200,000 ounces. The June 2014 feasibility study envisions a mine producing approximately 400,000 ounces of gold annually over an 18 year mine life.

ASSET HIGHLIGHTS:

  • Poured first gold and achieved commercial production in 2017
  • Royalty becomes payable after approximately 500,000 ounces of gold produced
  • Operator envisions average annual LOM production of 400,000 ounces over 18 years

2017 2016 2015
Revenue to Franco-Nevada ($ million) $ – $ – $ –