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Franco-Nevada

Hardrock (Au)

Hardrock

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.

In October 2019, Premier announced an updated Mineral Resource estimate on Hardrock encompassing a total Measured and Indicated Resources of 7,105,000 ounces of gold, an 11% increase versus the 2016 estimate. This included Measured and Indicated Resources restricted to open-pit potential of 5,868,000 ounces of gold. The updated 2019 mineral resource estimate represents a 21% increase in grade, 26% increase in ounces and 4% increase in tonnes versus Measured and Indicated open-pit resources reported in the 2016 feasibility study.

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. In November 2019, Greenstone announced that it had signed a Long-term Relationship Agreement with Aroland First Nation, Animbiigoo Zaagi’igan Anishinaabek, and Ginoogaming First Nation, with respect to the development and operation of the Hardrock Project. The provincial Environmental Assessment for Greenstone Gold Mines was approved in March 2019 by the Minister of Environment, Conservation & Parks of Ontario and the federal Environmental Assessment was approved in December 2018 by the Minister of Environment and Climate Change of Canada.

ASSET HIGHLIGHTS

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

2019 2018 2017
Revenue to Franco-Nevada ($ million) $ – $ – $ –
Hardrock map