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South Kalgoorlie (Au)

Location: Australia
Operator: Northern Star Resources Limited
Royalty: NSR: 1-1.75%

Northern Star Resources Limited (“Northern Star”) operates the South Kalgoorlie Operation (“SKO”) which has been producing gold since 1989. Northern Star acquired SKO from Westgold Resources Limited in April 2018. SKO is located 15 km south of Kalgoorlie in Western Australia. Franco-Nevada holds a 1.75% NSR royalty for gold and a 1% NSR royalty for other minerals which covers 470 km2 of the SKO tenements including the northern and central sections of the HBJ deposit and all of the Mt Marion, Pernatty and Mt Martin deposits. Mining was stopped by the previous owner in 2013 but processing continued from a combination of low grade stockpiles and third party ore at the 1.2 Mt per annum Jubilee mill. Open-pit mining resumed in January 2015 and underground mining resumed in June 2015. Previous owner Westgold reported attributable gold production from SKO of 10,086 ounces of gold during the quarter ending March 31, 2018. New owner Northern Star combined SKO with the nearby Kundana and Kanowna Belle gold mines, and reported total production of 257,911 ounces of gold at the combined Kalgoorlie Gold Operations for the nine months ending December 31, 2018. As Northern Star processes a significant portion of toll-treated ore at the Jubilee mill, Franco-Nevada estimates that the royalty production accounts for 10-15% of total combined Kalgoorlie Gold Operations production.