TSX:FNV 99.05 -0.49 -0.49%
Volume 606,413
May 23, 2019
NYSE:FNV 73.50 -0.65 -0.88%
Volume 535,410
May 23, 2019
Gold 1,284.91 +0.41 +0.03%
Volume
May 23, 2019
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Franco-Nevada

Detour Lake (Au)

LOCATION: Ontario / Quebec, Canada
Operator: Detour Gold Corporation
ROYALTY: NSR: 2%

Franco-Nevada has a 2% NSR royalty that covers an area of 140 km2 of the Abitibi greenstone belt located 185 km northeast of Cochrane, Ontario including the Detour Lake mine. Placer Dome Inc. operated a mine on the property from 1983 through 1999 during which time approximately 1.8 million ounces of gold are estimated to have been produced.

Detour Gold Corporation (“Detour”) constructed the current mine from 2010 to 2013 and is the current operator. Detour achieved record production of 621,128 ounces of gold in 2018 versus 571,463 ounces in 2017. This production compared to the guidance range of 550,000-600,000 ounces of gold for 2018.

A new life of mine plan was released for the Detour mine in June 2018. The new mine plan assumes average annual production of 659,000 ounces of gold during a 22.6 year mine plan which equates to total recovered gold of 14.9 million ounces. For 2019 and 2020, production is expected to dip to between 570,000-605,000 ounces in 2019 and 587,000 ounces in 2020 before increasing to 620,000 ounces in 2021.

Detour stated that the updated mine plan adds permitting flexibility by providing additional time to progress the permits required for the West Detour project. The permitting time for the West Detour pit remains the same as the previous plan at 2025. Detour has obtained support from three of its four Aboriginal communities for the further development of the Detour Lake pit as well as the West Detour project but continues to face challenges with one of the communities. Detour has stated that it will continue its efforts to engage with the community.

ASSET HIGHLIGHTS:

  • Record production of 621,128 gold ounces in 2018
  • Expected gold production of 570-605,000 ounces in 2019 and 587,000 in 2020
  • New mine plan assumes increased LOM gold production versus previous plan
  • West Detour pit permitting ongoing

2018 2017 2016
Revenue to Franco-Nevada ($ million) $ 15.8 $ 14.3 $ 13.3
Detour Lake