Franco-Nevada

Valentine Lake (Au)

Valentine Lake

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.

The Valentine Gold project comprises a series of mineralized deposits along a 20 km trend. On March 29, 2021, Marathon Gold announced the results of a feasibility study outlining a mine plan based on the same two-pit and centralized mill strategy first presented in an April 2020 prefeasibility study. The feasibility study presented an updated Mineral Reserve and Mineral Resource estimate, refined mine and mill designs supported by additional geotechnical and metallurgical data, and updated capital and operating cost estimates. The feasibility study outlines a 13-year mine life, 22-month construction and commissioning schedule, with an average gold production profile of 173,000 ounces of gold per year between 2024 and 2033 from the processing of high-grade mill feed, and 56,000 ounces of gold per year between 2034 and 2036 from the processing of low-grade stockpiles.

The project has estimated Proven and Probable Mineral Reserves of 2.05 million ounces of gold (47.06 million tonnes grading 1.36 g/t) and total Measured and Indicated Mineral Resources (inclusive of the Mineral Reserves) of 3.14 million ounces of gold (56.66 million tonnes grading 1.72 g/t). Additional Inferred Mineral Resources are 1.00 Moz (18.25 Mt at 1.70 g/t Au). In September 2020, Marathon Gold filed its Environmental Impact Statement (“EIS”) to the relevant provincial and federal agencies.

Marathon Gold currently contemplates completion of the project’s environmental assessment process in the second half of 2021, targeting construction in 2022, and a production start in late 2023. In 2021, Marathon Gold continues to focus on drill testing the Berry Zone, with encouraging results to date and a first Mineral Resource anticipated in 2021.

ASSET HIGHLIGHTS

  • Feasibility completed in March 2021
  • Marathon Gold targeting construction in 2022
  • Continued exploration with focus on the Berry Zone, resource conversion and potential new discoveries along trend

2020 2019 2018
Revenue to Franco-Nevada ($ million) $ – $ – $ –

Valentine Lake