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
Contact Share

Marigold

Location: NEVADA
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 Inc. (“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. Each full section covers one square mile.

The mine produced 202,240 ounces in 2017 which was largely unchanged from 2016. For 2018, SSR Mining expects production between 190,000-210,000. In September 2016, Silver Standard provided a five-year outlook for the Marigold operation which forecasts average production of nearly 220,000 ounces (200,000-240,000 ounces) from 2017 through 2022.

SSR Mining is currently evaluating an equipment replacement trade-off which is expected to be finalized by mid-2018. Under one scenario, production could increase to over 300,000 ounces per year if additional shovels and trucks are added. Marigold exploration will target infill drilling of higher grade zones within the Mackay pit and commence a more focused program on the Red Dot deposit (located at the south-west of the Target Pit). SSR Mining is expected to spend $9.0 million dollars.

ASSET HIGHLIGHTS:

  • Steady year-over-year production
  • Production expected to average 220,000 ounces through 2022
  • Evaluating equipment replacement trade-off with potential to increase annual production

2017 2016 2015
Revenue to Franco-Nevada ($ million) $ 10.3 $ 10.1 $ 6.0

Marigold