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Franco-Nevada

Brucejack (Au & Ag)

Brucejack

LOCATION: British Columbia, Canada
OPERATOR: Pretium Resources Inc
ROYALTY: NSR: 1.2%

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.

Pretium poured first gold from the Brucejack project in June 2017 and achieved commercial production in July 2017. Brucejack produced 354,405 ounces of gold in 2019 versus 376,012 ounces of gold in 2018. Gold production for 2020 is expected in the range of 325,000-365,000 ounces with the average annual gold grade ranging from between 7.6 grams per tonne to 8.5 grams per tonne at a targeted gold recovery of 97%.

Pretium released an updated Mineral Resource and Reserve estimate and the accompanying life of mine plan at the end of March 2020. Pretium’s guidance states a life of mine average annual gold production of approximately 311,000 ounces of gold with a 13 year mine life. This guidance indicates lower production than previous estimates primarily as a result of a reduction in estimated gold grade. Mineral Reserves and Mineral Resources and the related Royalty Ounces in the adjacent table are based on publicly disclosed information as of March 6, 2020 and do not reflect Pretium’s updated estimate.

Pretium continues to explore the property. In 2020, drilling is expected to focus on expanding the current Mineral Resource and Mineral Reserve at the Valley of the Kings targeting zones at depth, to the east, west and north-east. Areas at depth below, to the east and to the north-east of the currently defined Mineral Resource are considered highly prospective for additional Mineral Resource expansion.

ASSET HIGHLIGHTS

  • 2020 production expected to be between 325,000-365,000 ounces
  • Updated life of mine plan provided at the end of March 2020

2019 2018 2017
Revenue to Franco-Nevada ($ million) $ 5.6 $ 0.3 $ –
Brucejack map