TSX:FNV 117.86 +1.10 +0.94%
Volume 739,207
July 19, 2019
NYSE:FNV 90.22 +0.64 +0.71%
Volume 724,583
July 19, 2019
Gold 1,425.99 -20.23 -1.4%
Volume
July 19, 2019
Contact Share

Franco-Nevada

Duketon (Au)

Location: Australia
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 six operating mines and seven other deposits at various stages of development. The royalty covers all known Mineral Reserves and Mineral Resources, except for the Gloster deposit and a portion of the Erlistoun deposit. In August 2018 Regis reported production of 361,373 ounces of gold for the fiscal year ending June 30, 2018, and provided production guidance of 340,000-370,000 ounces of gold for the fiscal year ending June 30, 2019.

Duketon Southern Operations (“DSO”): Regis reported DSO production of 261,583 ounces of gold for calendar 2018, all from royalty grounds, except for a small portion of production from Erlistoun. DSO has four operating mines at Garden Well, Rosemont, Erlistoun and Tooheys Well. Garden Well has been in production since September 2012 and has a 5 Mt per annum plant. Rosemont has been in production since October 2013 and has a 2 Mt per annum plant. Milled ore from Rosemont is piped 10 km in a slurry form for leaching at Garden Well. Erlistoun was developed during 2016, with ore hauled 8 km north to Garden Well. Regis has estimated that 89% of Erlistoun Mineral Resources are covered by Franco-Nevada’s royalty. Tooheys Well was developed in 2018, with first ore processed at Garden Well in December 2018.

Development of the Rosemont Underground has been approved, with portal development commencing March 2019, and first ore to Rosemont Mill expected in December 2019. Regis also commenced pre-production stripping of the Dogbolter and Anchor satellite deposits in 2018.

Duketon Northern Operations (“DNO”): Regis reported DNO production of 97,127 ounces of gold for calendar 2018. DNO has two operating mines at Moolart Well and Gloster. Moolart Well has been in production since August 2010 and has a 2.4 Mt per annum plant. Gloster was developed during 2016, with first ore processed during Q4 2016. Gloster is not covered by Franco-Nevada’s royalty. Gloster is expected to provide 4 years of mill feed to the Moolart Well. Gloster had provided the majority of ore to the Moolart Well plant since its development.

Exploration: With an extensive land position, and an active exploration program, Regis continues to add to the overall Mineral Reserve and Mineral Resource base at Duketon. The exploration focus has shifted to underground targets. Regis announced a maiden Mineral Resource at the Rosemont Underground in 2018. Regis is also exploring underground at Garden Well, with an initial Mineral Resource estimate expected in 2019. Underground drilling at Tooheys Well and Banyego is expected to follow.

ASSET HIGHLIGHTS:

  • Tooheys Well developed during 2018 - first ore delivered to Garden Well mill December 2018
  • Rosemont Underground portal development to start March 2019 and first ore expected in December 2019
  • Garden Well Underground exploration - initial Mineral Resource Estimate expected in 2019
  • Pre-production stripping at Dogbolter and Anchor satellite deposits in 2018

2018 2017 2016
Revenue to Franco-Nevada ($ million) $ 6.0 $ 6.7 $ 7.2
Duketon