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
Contact Share

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 five operating mines and eight 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 Mineral Resources. In November 2017 Regis reported production of 324,353 ounces of gold for the fiscal year ending June 30, 2017, and provided production guidance of 335,000-365,000 ounces of gold for the fiscal year ending June 30, 2018.

Duketon Southern Operations (“DSO”): Regis reported DSO production of 238,207 ounces of gold for calendar 2017, all from royalty grounds. DSO has three operating mines at Garden Well, Rosemont and Erlistoun. 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 first ore hauled 8 km north to Garden Well late in Q4 2016. Regis has estimated that 100% of Erlistoun Mineral Reserves and 89% of Erlistoun Mineral Resources are covered by Franco-Nevada’s royalty.

Duketon Northern Operations (“DNO”): Regis reported DNO production of 115,478 ounces of gold for calendar 2017. DNO has two operating mines at Moolart Well and Gloster. Moolart Well has been in production since August 2010 and has a 2.8 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 3 years of mill feed to the Moolart Well processing plant partially displacing Moolart Well ore.

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. Regis announced a maiden Mineral Reserve at Tooheys Well in 2017. Mining at Tooheys Well is expected to commence during Q1 2018, with first production in Q4 2018. Tooheys Well is expected to increase total production as it is expected to be higher grade feed than the displaced ore from Garden Well.

ASSET HIGHLIGHTS:

  • Steady total mining/milling rate in 2017
  • Increased gold production in 2017 with full year contribution from higher grade ore at Gloster and Erlistoun
  • Development of Tooheys Well, with first production in late 2018

2017 2016 2015
Revenue to Franco-Nevada ($ million) $ 6.7 $ 7.2 $ 6.7