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Franco-Nevada

Valentine Lake (Au)

LOCATION: Newfoundland, Canada
OPERATOR: Marathon Gold Corporation
ROYALTY: NSR: 2%

Franco-Nevada purchased a 2% NSR on the Valentine Lake Gold Camp in central Newfoundland in February 2019. The project is being advanced by Marathon Gold Corporation (“Marathon Gold”). The royalty is subject to a 0.5% buyback provision for $7 million until December 31, 2022.

In January 2020, Marathon Gold announced an updated Mineral Resource estimate for the Valentine Gold Project following the 2019 in-fill drill program at the Leprechaun and Marathon deposits. The new Resource contains M&I Mineral Resources of 3.09 million ounces of gold (54.85 million tonnes grading 1.75 g/t) and Inferred Mineral Resources totaling 0.96 million ounces of gold (16.77 million tonnes grading 1.78 g/t). Marathon Gold completed a preliminary economic assessment in October 2018, using the 2018 Mineral Resource estimate, which envisioned both a 9,000 tpd mill and heap leach with an average annual gold production of approximately 225,000 ounces over a 13 year mine life. A total of 2.7 million ounces of gold would be recovered over the life of the mine as per the study.

A prefeasibility study is on schedule for completion in Q2 2020, focusing on a simpler mine plan with only conventional milling and no heap leach. Marathon Gold is targeting construction of the Valentine Lake project by the second half of 2021 with operations commencing in the second half of 2023. In 2020, Marathon Gold plans to spend C$8.9 million on 44,000 meters of drilling, prioritizing the 6 km long “Sprite Corridor” between the Leprechaun and Marathon deposits and will include a systematic drill program in footwall sediments for the first time.

ASSET HIGHLIGHTS

  • Purchased royalty in February 2019
  • Prefeasibility on schedule for completion in Q2 2020
  • Marathon targeting construction by the second half of 2021
  • Continued exploration with focus on resource conversion and potential new discoveries along trend

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

Valentine Lake
Valentine Lake