Franco-Nevada Announces Receipt of Pandora Royalty Payment from Anglo Platinum
TORONTO, June 6 /CNW/ - Franco-Nevada Mining Corporation Limited (TSE:FN)
announced today that a cheque had been received from Anglo Platinum for the
minimum royalty payment, relating to the Pandora platinum deposit in the
Bushveld Complex of South Africa, payable for the period from April 1, 2001 to
March 31, 2002, thus acknowledging the validity of the royalty.
Franco-Nevada has a 5% net profits interest in the 17,193 acre Pandora
property in the western Bushveld area of South Africa. On March 29, 2001 Anglo
American Platinum Corporation (Angloplats) and Lonmin Platinum announced they
would form a Joint Venture to develop Pandora. The project is to be fast
tracked by using Lonmin's neighbouring Eastern Platinum infrastructure.
Angloplats/Lonmin estimate that at full production, Pandora will produce
annually 230,000 ounces of platinum, 110,000 ounces of palladium and 100,000
ounces of other precious metals. (440,000 ounces of PGM's and gold per annum.)
Cash costs are estimated at US$215 per ounce of PGM for an operating margin of
53%. Capital cost is estimated at US$175 million. Angloplats/Lonmin estimate
total probable reserves and indicated resources at 136 million tonnes grading
4.51 grams per tonne PGM's for 19.7 million contained ounces. At a planned
operating rate of 3.8 million tonnes per annum, mine life is expected to
exceed 30 years. Some immaterial production is expected in 2002 with a steady
build up to full production in 2007.
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For further information: M. Craig Haase, Executive Vice President and
Chief Legal Officer, Tel: (775) 829-9105; Sharon E. Dowdall, Vice-President,
General Counsel & Secretary, Tel: (416) 480-6491
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