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Franco-Nevada

Duketon (Au)

Duketon

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 eight operating mines and six other deposits at various stages of development. The royalty covers all known Mineral Reserves and Mineral Resources, except for the Gloster and Anchor deposits and portions of the Erlistoun and Dogbolter deposits. In July 2019, Regis reported production of 363,418 ounces of gold for the fiscal year ending June 30, 2019, and provided production guidance of 340,000-370,000 ounces of gold for the fiscal year ending June 30, 2020. For the 2019 calendar year, Regis produced 360,535 ounces of gold. During 2019, approximately 75% of total Duketon production was subject to Franco-Nevada’s royalty and a similar portion is expected in 2020.

Duketon Southern Operations (“DSO”): Regis reported DSO production of 273,917 ounces of gold for calendar year 2019. Approximately 95% of DSO production was subject to Franco-Nevada’s royalty in 2019. DSO has four operating mines at Garden Well, Rosemont, Erlistoun and Tooheys Well. Franco-Nevada’s royalty covers all DSO Mineral Reserves and Mineral Resources, except for a small portion of 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 ore hauled 8 km north to Garden Well. Tooheys Well was developed in 2018, with first ore processed at Garden Well in December 2018.

Development of the Rosemont Underground continued in 2019, with first stoping ore to Rosemont Mill expected in the March 2020 quarter. Regis also expects completion of the Garden Well Underground prefeasibility study in the March 2020 quarter.

Duketon Northern Operations (“DNO”): Regis reported DNO production of 86,617 ounces of gold for calendar year 2019. DNO has four operating mines at Moolart Well, Gloster, Dogbolter and Anchor. Moolart Well has been in production since 2010 and has a 2.4 Mt per annum plant. Moolart Well is covered by Franco-Nevada’s royalty, but provides only a small portion of ore to the Moolart Well mill since 2016. Gloster has provided the majority of ore to the Moolart Well plant since 2016, and Gloster is not covered by Franco-Nevada’s royalty. Dogbolter and Anchor satellite pits commenced production during 2019. Anchor is not covered by Franco-Nevada’s royalty. Dogbolter is partially covered by Franco-Nevada’s royalty. Approximately 10% of DNO production was subject to Franco-Nevada’s royalty in 2019.

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 2019, Regis announced a maiden Mineral Reserve at the Rosemont Underground and a maiden Mineral Resource at the Beamish open-pit, both of which are covered by royalty ground. Regis is also exploring underground at Garden Well, with an initial Mineral Resource estimate expected in 2020 along with the prefeasibility study. Exploration activities continue to test underground potential at a number of existing open-pit deposits, including Banyego and Gloster.

ASSET HIGHLIGHTS

  • Dogbolter and Anchor developed during 2019
  • Rosemont Underground development continues in 2020
  • Prefeasibility study expected in 2020 for the Garden Well Underground
  • Beamish maiden Mineral Resource during 2019

2019 2018 2017
Revenue to Franco-Nevada ($ million) $ 7.7 $ 6.0 $ 6.7
Duketon map