TSX:FNV 102.22 +0.81 +0.8%
Volume 367,024
May 17, 2019
NYSE:FNV 75.92 +0.61 +0.81%
Volume 447,074
May 17, 2019
Gold 1,278.30 -9.10 -0.71%
Volume
May 17, 2019
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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.

The Valentine Lake Gold Camp currently hosts four near-surface, mainly pit-shell constrained, deposits with M&I Mineral Resources of 2,691,400 ounces of gold (45.1 Mt @ 1.85 g/t) and Inferred Mineral Resources totaling 1,531,600 ounces of gold (26.9 Mt @ 1.77 g/t). Marathon Gold completed a preliminary economic assessment in October 2018. The study envisioned average annual gold production of approximately 225,000 ounces per year over 12 years. A total of 2.7 million ounces of gold would be recovered over the life of the mine as per the study.

Marathon Gold is targeting completion of a prefeasibility study by the end of 2019 and plans an infill drilling program focused on upgrading Inferred Mineral Resources in the Leprechaun and Marathon pits as part of this effort. With the continued support of the provincial government, Marathon Gold is targeting construction of the Valentine Lake project by the first quarter of 2021.

ASSET HIGHLIGHTS:

  • Purchased royalty in February 2019
  • Working on completing prefeasibility study by end of 2019
  • Marathon targeting construction by the first quarter of 2021

2018 2017 2016
Revenue to Franco-Nevada ($ million) $ – $ – $ –

Valentine Lake
Valentine Lake