TSX:FNV 99.05 -0.49 -0.49%
Volume 606,413
May 23, 2019
NYSE:FNV 73.50 -0.65 -0.88%
Volume 535,410
May 23, 2019
Gold 1,284.91 +0.41 +0.03%
Volume
May 23, 2019
Contact Share

Franco-Nevada

Marigold (Au)

Marigold

Location: Nevada, United States
Operator: SSR Mining Inc.
Royalty: NSR: 1.75-5% / GR: 0.5-4%

The Marigold mine is located approximately 64 km southeast of Winnemucca, Nevada on the Battle Mountain-Eureka Trend and is operated by SSR Mining Inc. (“SSR Mining”). SSR Mining purchased the mine from joint venture partners Goldcorp (66.7%) and Barrick (33.3%) in 2014. The mine has been in continuous production since 1988 and is a large run-of-mine heap leach operation with several open-pits. Franco-Nevada has various royalties on the operation (1.75-5% NSR and 0.5-4% GR), as shown in the schematic, together covering almost all of the current Mineral Reserve base. Franco-Nevada’s original royalties were acquired in connection with its IPO and, in December 2009, additional royalties covering alternate sections were added.

The mine produced 205,160 ounces in 2018 versus 202,240 ounces in 2017. For 2019, SSR Mining expects production to be between 200,000-220,000 ounces. Based on the updated life of mine plan released in June 2018, SSR Mining anticipates average annual production of 236,000 ounces over the next 6 years, with peak production of more than 265,000 ounces of gold in 2021 and 2022. The life of mine plan predicts active mining through 2028 with residual leaching producing gold through 2032.

SSR Mining is expected to spend $7.5 million on exploration with a focus on adding to Mineral Reserves and defining additional Mineral Resources within the Mackay, Valmy and Basalt areas. SSR Mining completed the Red Dot exploration program in 2018 and intends to complete geotechnical drilling and engineering with the objective of evaluating the potential for Red Dot Mineral Reserves by mid-2019.

ASSET HIGHLIGHTS:

  • Steady year-over-year production
  • Production expected to average over 235,000 ounces over next 6 years
  • Peak production expected in 2021 and 2022 of over 265,000 ounces

2018 2017 2016
Revenue to Franco-Nevada ($ million) $ 10.2 $ 10.3 $ 10.1

Marigold