TSX:FNV 87.37 -0.11 -0.13%
Volume 221,756
August 21, 2018
NYSE:FNV 67.06 +0.00 +0%
Volume 191,156
August 21, 2018
Gold 1,193.93 +1.30 +0.11%
Volume
August 21, 2018
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Bald-Mountain

Location: NEVADA
Royalty: NSR/GR: 0.875-5%
Operator: KINROSS GOLD CORPORATION

The Bald Mountain mine lies within the Southern Ruby Mountains of northeastern Nevada, approximately 110 km southeast of Elko. Ore is sourced from multiple open-pits over an estimated 600 km2 property with processing at multiple conventional heap leaching facilities. Bald Mountain is the largest mine site by area in the U.S. It stretches 40 km north to south and 15 km east to west and is divided in three zones: North Zone, South Zone and JV Zone. At the end of 2015, Kinross Gold Corporation (“Kinross”) purchased from Barrick 100% of the North and South Zones while forming a 50/50 exploration joint venture partnership with Barrick on the JV Zone in between the North and South Zones.

Franco-Nevada’s Bald Mountain royalties cover a significant portion of the Bald Mountain property. Franco-Nevada holds various revenue royalties on the property depending on the claim groups, ranging from 0.875%-5% NSR/GR. A detailed map of our royalties is shown in the schematic.

Bald Mountain production more than doubled to 282,715 ounces in 2017 versus 130,144 ounces in 2016 as higher grades and increased tonnage positively impacted results. Kinross does not provide asset specific guidance but had previously indicated that production for both 2017 and 2018 would be almost double that of 2016.

Construction of a new heap leach facility and related infrastructure to develop the Vantage Complex in the South Zone of Bald Mountain has commenced with engineering more than 80% complete. Permitting is proceeding as planned with commissioning of the heap leach pad and processing facilities expected in Q1 2019.

Following a successful exploration campaign in 2016, which doubled the Bald Mountain Mineral Reserve, Kinross expects to spend $10 million at Bald Mountain in 2018 for infill drill programs with the goal of upgrading estimated Mineral Resources to Mineral Reserves at Redbird, Winrock and Yankee. In addition, exploration will also focus on other target areas for Mineral Resource growth.

ASSET HIGHLIGHTS:

  • New focused operator in Kinross
  • 2017 production more than doubled compared with 2016
  • Construction of the Vantage Complex in South Zone commenced
  • Ongoing exploration on large property package

2017 2016 2015
Revenue to Franco-Nevada ($ million) $ 6.4 $ 3.9 $ 8.2

Bald Mountain