TSX:FNV 82.53 -0.90 -1.08%
Volume 967,041
September 21, 2018
NYSE:FNV 63.95 -0.66 -1.02%
Volume 1,891,366
September 21, 2018
Gold 1,200.30 -8.03 -0.66%
Volume
September 21, 2018
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LOCATION: CALIFORNIA
OPERATOR: NEW GOLD INC.
ROYALTY: NSR: 0.5-2%

Mesquite is a gold operation located in south-east California, approximately 70 km northwest of Yuma, Arizona and 230 km east of San Diego, California. The mine is an open-pit, run-of-mine, heap leach operation. It was originally started in 1986 and then re-started in January 2008 by Western Goldfields Inc., a predecessor company of New Gold. Franco-Nevada holds royalties on the entire Mesquite mine property that range from a 0.5% to a 2% NSR, depending on the claim block, as shown on the schematic.

Mesquite production improved to 168,889 ounces in 2017, a 52% increase relative to the prior year due to increased ore tonnes mined and accelerated inventory drawdown. Mesquite’s full-year production significantly exceeded the 2017 guidance range of 140,000-150,000 ounces. New Gold anticipates gold production of 140,000-150,000 ounces in 2018.

ASSET HIGHLIGHTS:

  • 2017 production significantly higher than forecasted guidance
  • Production forecast for 2018 of 140,000-150,000 ounces

2017 2016 2015
Revenue to Franco-Nevada ($ million) $ 2.4 $ 2.4 $ 2.1