Franco-Nevada

Duketon (Au)

Duketon

Location: Australia, Rest of World
Operator: Regis Resources Ltd.
Royalty: NSR: 2%

Franco-Nevada has a 2% NSR royalty that covers 2,678 km2 of the Duketon gold project in Western Australia. The project is operated by Regis Resources Ltd. (“Regis”) and includes ten operating mines and five other deposits at various stages of development. The royalty covers all known Mineral Reserves and Mineral Resources, except for the Gloster, Ben Hur and Anchor satellite deposits and portions of the Erlistoun and Dogbolter satellite deposits. Regis reported production of 346,538 ounces of gold for 2020, and provided production guidance of 355,000 to 380,000 ounces of gold for the fiscal year ending June 30, 2021. During 2020, approximately 84% of total Duketon production was subject to Franco-Nevada’s royalty and a similar portion is expected in 2021.

Duketon Southern Operations (“DSO”): Regis reported DSO production of 258,573 ounces of gold for calendar year 2020. Approximately 98% of DSO production was subject to Franco-Nevada’s royalty in 2020. DSO has five operating mines at Garden Well, Rosemont, Erlistoun, Tooheys Well and Banyego. Franco-Nevada’s royalty covers all of DSO’s Mineral Reserves and Mineral Resources, except for a small portion of Erlistoun. DSO production began in 2012 at Garden Well which has a 5 Mt per annum plant. Rosemont has a 2.5 Mt per annum plant and milled ore from Rosemont is piped 10 km in a slurry form for leaching at Garden Well. Ore from satellite deposits at Erlistoun, Tooheys Well and Banyego is hauled to Garden Well for processing.

Rosemont Underground achieved commercial production in the second quarter of 2020. Garden Well Underground development was approved in the fourth quarter of 2020.

Duketon Northern Operations (“DNO”): Regis reported DNO production of 87,965 ounces of gold for calendar year 2020. DNO has five operating mines at Moolart Well, Gloster, Dogbolter, Anchor and Petra. Moolart Well has been in production since 2010 and has a 2.5 Mt per annum plant. Moolart Well is covered by Franco-Nevada’s royalty, but has provided only a small portion of ore to the Moolart Well mill since 2016. The majority of ore processed through the Moolart Well plant since 2016 comes from four satellite deposits. Gloster and Anchor satellite deposits are not covered by Franco-Nevada’s royalty. Dogbolter and Petra satellite deposits are partially covered by Franco-Nevada’s royalty. Approximately 43% of DNO production was subject to Franco-Nevada’s royalty in 2020.

Exploration: With an extensive land position and an active exploration program, Regis continues to add to the overall Mineral Reserves and Mineral Resources at Duketon. During 2020, Regis announced a maiden Mineral Reserve at the Garden Well Underground. Exploration activities continue to test underground potential at a number of existing open-pit deposits, including Banyego and Gloster.

ASSET HIGHLIGHTS

  • Banyego and Petra open-pits developed during 2020
  • Rosemont Underground production ramp up during 2020
  • Garden Well Underground development approved in 2020

2020 2019 2018
Revenue to Franco-Nevada ($ million) $ 9.6 $ 7.7 $ 6.0
Duketon map