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Franco-Nevada

Musselwhite (Au)

Musselwhite

LOCATION: Ontario, Canada
OPERATOR: Newmont Corporation
ROYALTY: NPI: 5%; NSR: 2%

Franco-Nevada has a 5% NPI royalty that covers all of the original leased lands at the Musselwhite operation. The area is estimated to cover 120 km2 in northwestern Ontario, 480 km north of Thunder Bay. The royalty also covers an area of interest surrounding the property as shown in the schematic. Franco-Nevada’s Musselwhite interest is a profit royalty which did not become payable until historical capital and operational costs had been recovered by the operator which occurred in 2011.

The mine is a fly-in/fly-out underground operation which began operating in April 1997 and has produced over 3.0 million ounces of gold. In April 2019, production was stopped at the operation due to a fire underground.

Newmont continues to advance the Materials Handling Project which is expected to increase production from 3,600 tonnes per day to 4,300 tonnes per day. The project will enable hoisting of ore through an underground winze which will result in reduced reliance on high-cost truck haulage leading to improved energy efficiency, reduced ventilation requirements, reduced mining costs and an enhanced production profile.

In September 2019, Franco-Nevada acquired from Premier Gold Mines Limited (“Premier”) a 2% NSR on property owned by Newmont, adjoining Musselwhite, and covering approximately 6.3 km2 of the projected northwest extension of Newmont’s Musselwhite mine, as shown in the schematic.

ASSET HIGHLIGHTS

  • Materials Handling Project to positively impact production and operating costs
  • Large land package with active exploration program
  • New royalty covering the projected northwest extension of Musselwhite

2019 2018 2017
Revenue to Franco-Nevada ($ million)1 $ – $ 0.6 $ 1.4

1 Revenue to Franco-Nevada represents the actual NPI revenue paid and earned for each year

Musselwhite map