TSX:FNV 117.86 +1.10 +0.94%
Volume 739,207
July 19, 2019
NYSE:FNV 90.22 +0.64 +0.71%
Volume 728,243
July 19, 2019
Gold 1,425.47 -20.78 -1.44%
Volume
July 19, 2019
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Franco-Nevada

Brucejack (Au & Ag)

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 376,012 ounces of gold in 2018. As a result, the production threshold of approximately 500,000 ounces was met by the end of the year and Franco-Nevada booked revenue of $0.3 million from the royalty. Gold production for 2019 is expected in the range of 390,000-420,000 ounces with the planned production ramp-up from 2,700 tonnes per day to 3,800 tonnes per day over the course of 2019.

An updated Mineral Resource and Mineral Reserve estimate for the Valley of the Kings is expected in the second quarter of 2019 as well as an updated life of mine plan for the Brucejack mining operation. Pretium continues to explore the property with approximately 70,000 meters planned for 2019. 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:

  • Production royalty threshold met at the end of 2018
  • 2019 production expected to be between 390,000 - 420,000 ounces
  • Updated life of mine plan anticipated during the second quarter of 2019

2018 2017 2016
Revenue to Franco-Nevada ($ million) $ 0.3 $ – $ –
Brucejack