TSX:FNV 82.53 -0.90 -1.08%
Volume 967,041
September 21, 2018
NYSE:FNV 63.95 -0.66 -1.02%
Volume 1,891,366
September 21, 2018
Gold 1,200.30 -8.03 -0.66%
Volume
September 21, 2018
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Cerro-Moro

Location: Argentina
Operator: Yamana Gold Inc.
Royalty: NSR: 2%

Franco-Nevada has a 2% NSR on the Cerro Moro project being developed by Yamana Gold Inc. (“Yamana”) in Santa Cruz province of Argentina. The royalty is estimated to cover 160 km2 of the property and all current Mineral Resources which are contained in high grade epithermal gold and silver veins.

Cerro Moro construction is progressing which is expected to be completed by the end of the first quarter of 2018 with ramp up of operations expected in the second quarter. Cerro Moro will be a combination of open-pit and underground mining with a mill capacity of 1,000 tpd. Production in 2018 is expected to be 85,000 ounces of gold and 3.75 million ounces of silver.

Yamana has undertaken studies to optimize mine sequencing and the mix of gold and silver production. With the planned changes and new sequencing, Yamana estimates a higher proportion of gold dominant stopes over the next 3 years while silver production is expected to be lower than previous guidance. Yamana forecasts production to ramp up to 125,000 ounces of gold and 6 million ounces of silver in 2019 followed by 130,000 ounces of gold and 8.3 million ounces of silver in 2020.

The Cerro Moro feasibility study is based on an initial 6.5 year mine life but the exploration program continues to be focused on discovering new high-grade structures and expanding the current Indicated Mineral Resource. Yamana expects to spend $9 million in 2018 on infill and exploration drilling.

ASSET HIGHLIGHTS:

  • Project now approaching start-up
  • 85,000 ounces of gold and 3.75 million ounces of silver expected in 2018
  • High grade gold/silver deposit with exploration potential

2017 2016 2015
Revenue to Franco-Nevada ($ million) $ - $ - $ –

Cerro_Moro