CentroGold (Gurupi) (Au)

Location: Brazil, South America
Operator: Oz Minerals Limited
Royalty: NSR: 0-1%

Franco-Nevada holds a sliding scale NSR royalty (1% at greater than $400 per ounce gold) on the CentroGold (Gurupi) project located in the State of Maranhão in northern Brazil. Oz Minerals Limited (“Oz Minerals”) acquired the previous operator, Avanco Resources Limited (“Avanco”), in 2018. Avanco completed a 100% earn-in agreement on the project with Jaguar Mining Inc. in October 2017. In July 2019, Oz Minerals released an updated prefeasibility study on the project which envisioned a 10-year mine life with average annual gold production of 100,000-120,000 ounces of gold per year with 190,000-210,000 ounces of gold per year in the first 2 years of production. There is currently a mining license injunction for the property but Oz Minerals is continuing with a community engagement program and is focused on permitting and relocation activities. Oz Minerals has stated that a resource and reserve update, feasibility study and regional exploration will commence following the removal of the injunction.