Kiziltepe (Au & Ag)

Location: Turkey, Rest of World
Operator: Zenit Madencilik
Royalty: NSR: 2.5%

Franco-Nevada has a 2.5% NSR on the Kiziltepe gold-silver mine located in Turkey which started production in April 2017. Kiziltepe is operated by Zenit Madencilik, a JV owned by Özaltin Holding A.S. (53%), Ariana Resources PLC (“Ariana Resources”) (23.5%) and Proccea Construction Co. (23.5%). Kiziltepe produced 18,645 ounces of gold in 2020 compared with 27,985 ounces of gold in 2019. At the end of 2020 Kiziltepe had produced a total of 84,200 ounces of gold and 915,233 ounces of silver, since operations commenced in 2017. Gold production guidance for 2021 is expected to be approximately 19,000 ounces of gold. Ariana Resources has previously estimated average production of 20,000 ounces of gold equivalent per year over an 8-year mine life with potential to increase to at least 10 years including satellite deposits. A plant expansion to an operating capacity of up to 500,000 tonnes of ore per annum is underway and is scheduled for completion in early Q3 2021. A new mill has recently been installed and a drilling campaign to test vein extensions at Kiziltepe is ongoing.