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
Contact Share

Franco-Nevada

Hardrock (Au)

LOCATION: Ontario, Canada
OPERATOR: Premier Gold Mines Limited / Centerra Gold Inc.
ROYALTY: NSR: 3%

Franco-Nevada acquired a 3% NSR on Hardrock as part of its acquisition of a portfolio of approximately 20 royalties from Barrick in November 2013. The Hardrock property is being advanced by Greenstone Gold Mines L.P. (“Greenstone”), a 50/50 partnership between Premier and Centerra Gold Inc. As part of the Greenstone partnership, Centerra paid C$96 million and is responsible for funding the initial C$185 million of capital contributions. The Hardrock property is part of the larger Trans-Canada project with Hardrock representing the core project. The district has historic production of 4 million ounces of gold and is host to multiple gold deposits.

Greenstone released a feasibility study in November 2016. The study envisions an open-pit mine producing 4.2 million ounces of gold over a 14.5 year mine life. Production is expected to average approximately 300,000 ounces per year during full production and excludes processing of low-grade stockpiles. The economic study only includes the Hardrock open-pit Mineral Resource and does not include any potential from the large underground Mineral Resource on the property.

Greenstone announced in December 2018 that the Environmental Assessment has been approved. Greenstone continues to work on de-risking the project as it advances toward a construction decision. A Definitive Agreement with Long Lake #58 First Nation was signed in 2018 and Greenstone continues to negotiate agreements with the other local Indigenous communities. Greenstone has also engaged financial advisors to begin the process of identifying the various financing options that may be available for the Hardrock Project.

ASSET HIGHLIGHTS:

  • Advanced project in favourable mining jurisdiction
  • Environmental Assessment approved by the Federal Government in 2018
  • Feasibility outlines potential 14.5 year mine life producing ~300,000 ounces per year

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