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Franco-Nevada

Timmins West (Au)

Location: Ontario, Canada
Operator: Pan American Silver Corp.
ROYALTY: NSR: 2.25%

Franco-Nevada acquired a 2.25% NSR royalty covering a large land package of approximately 130 km2 to the west of the City of Timmins, Ontario in 2012 from Lake Shore Gold Corp. The Timmins West property hosts the Timmins and Thunder Creek deposits as well as the 144 exploration zones and the Gold River Trend. Lake Shore Gold Corp. was acquired by Tahoe Resources Inc., which were subsequently acquired by Pan American Silver in February 2019.

Given the timing of the acquisition by Pan American Silver, public reporting figures for the Timmins properties (including Bell Creek on which Franco-Nevada does not have a royalty) are not available for 2018. The operations produced 167,000 gold ounces in 2017 and were forecast to produce between 160,000-175,000 ounces in 2018.

Mineral Reserves at Timmins West increased substantially in 2017 which was mainly attributable to the initial Mineral Reserve for the 144 Gap deposit. Mineral Reserves increased from 233,000 ounces (2.0 Mt @ 3.69 g/t) to 738,000 ounces (7.1 Mt @ 3.21 g/t) which may help extend the mine life of the operation. Exploration continues on the property including targeting zones below the Thunder Creek deposit and drilling/test work at the Gold River Trend.

ASSET HIGHLIGHTS:

  • Pan American acquired the previous operator, Tahoe Resources, in February 2019

2018 2017 2016
Revenue to Franco-Nevada ($ million) $ 2.6 $ 3.4 $ 3.2