- Gold reserves 1
increase 22% to 78.6 million ounces
- Silver reserves 1 increase
12% to 1.3 billion ounces
Royal Gold,
Inc.(NASDAQ: RGLD) (TSX: RGL), a leading precious metals royalty company,
today announced updated estimates for ore reserves, additional
mineralization, and calendar 2010 production for its royalty portfolio, as
of December 31, 2009. These are the most recent figures provided to the
Company by the operators of its royalty properties or have been obtained by
Royal Gold through publicly available information.
At the end of calendar
year 2009, total precious metals reserves subject to the Company's royalty
interests include 78.6 million ounces of gold and 1.3 billion ounces of
silver. This reflects a net gain of 14.4 million ounces of gold and 139
million ounces of silver, representing a 22% increase in gold reserves and
a 12% increase in silver reserves over the prior calendar year-end.
Tony Jensen, President
and Chief Executive Officer, commented, "Royal Gold is pleased to
report significant increases in our precious metal reserves. The Company's
reserve growth, as of December 31, 2009, is largely a result of the
royalties we acquired in the Andacollo and International Royalty
Corporation transactions and the effective work of our royalty operators in
converting additional mineralized material into reserves. These expanded
reserves also highlight the success of our business strategy in identifying
royalty interests on high-quality properties with upside potential.'
RESERVE AND
PRODUCTION INFORMATION
The attached tables
contain information regarding our royalty interests, including the
reserves, additional mineralization, and production subject to the
Company's royalty interests on producing and development properties. For
further information about our royalty interests, please see our Annual
Report on Form 10-K, as well as our other public reports.
1 Reserves subject to Royal
Gold's royalty interests.
CORPORATE PROFILE
Royal Gold is a
precious metals royalty company engaged in the acquisition and management
of precious metal royalty interests. The Company owns royalties on 189
properties on sixcontinents, including royalties on 32 producing mines and
24 development stage projects. Royal Gold is publicly traded on the NASDAQ
Global Select Market under the symbol "RGLD" and on the Toronto
Stock Exchange under the symbol "RGL." The Company's website is
located at www.royaltygold.com.
Cautionary "Safe
Harbor" Statement Under the Private Securities Litigation Reform Act
of 1995: With the exception of historical matters, the matters discussed in
this press release are forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from
projections or estimates contained herein. Such forward-looking statements
include statements regarding the on-going effectiveness of Royal Gold's
royalty operators in converting additional mineralized material into
reserves; the Company's business strategy of identifying and acquiring
royalty properties with significant upside potential; production estimates
for calendar 2010 provided by third-party operators; reserves and
additional mineralization estimates provided by or derived from information
provided by third party operators; the sliding-scale features of our
royalty structure at certain of our properties; commencement of production
or construction from the operators of certain properties; and the
expectation of the royalty payment caps at the Taparko and Siguiri mines to
be met. Like any royalty on a non-producing or not yet in development
project, our royalties on development projects are subject to certain
risks, such as the ability of the operators to bring the projects into
production and operate in accordance with their feasibility studies and the
ability of Royal Gold to make accurate assumptions regarding valuation and
timing and amount of royalty payments. In addition, many of our royalty
interests are subject to risks associated with conducting business in a
foreign country, including application of foreign laws to contract and
other disputes, foreign environmental laws and enforcement and uncertain
political and economic environments. Factors that could cause actual
results to differ materially include, among others, changes in precious
metals prices, performance of and production at our royalty properties,
decisions and activities of the operators of our royalty properties, mine
completion, unanticipated grade, geological, metallurgical, processing or
other problems the operators of the mining properties may encounter,
changes in project parameters as plans continue to be refined, economic and
market conditions, and future financial needs of our operators, as well as
other factors described the Securities and Exchange Commission. These
factors are beyond the Company's ability to predict or control. The Company
disclaims any obligation to update any forward-looking statement made
herein. Readers are cautioned not to put undue reliance on forward-looking
statements.
SEE FOOTNOTES AT END OF
DOCUMENT
|
TABLE 1
Royal Gold's Royalty Portfolio
Proven and Probable Gold Reserves 1,2,3
As of December 31, 2009 4
|
|
|
Mines are in production unless noted as development ('DEV')
|
|
|
GOLD 5
|
|
|
|
|
|
|
|
|
PROVEN
RESERVES
|
|
PROBABLE
RESERVES
|
|
PROVEN + PROBABLE
RESERVES
|
|
PROPERTY
|
|
ROYALTY
6
|
|
OPERATOR
|
|
LOCATION
|
|
Tons
of Ore
(M)
|
|
Avg. Gold Grade (oz/ton)
|
|
Gold Contained Ozs 7
(M)
|
|
Tons
of Ore
(M)
|
|
Avg. Gold Grade (oz/ton)
|
|
Gold Contained
Ozs 7
(M)
|
|
Tons of
Ore
(M)
|
|
Avg.
Gold
Grade
(oz/ton)
|
|
Gold
Contained
Ozs 7
(M)
|
|
Bald
Mountain 8
|
|
1.75 -
3.5% NSR 9
|
|
Barrick
|
|
USA,
Nevada
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
65.04
|
|
0.025
|
|
1.614
|
|
Cortez (Pipeline)
GSR1
|
|
0.40 -
5.0% GSR 10
|
|
Barrick
|
|
USA,
Nevada
|
|
5.18
|
|
0.090
|
|
0.469
|
|
22.96
|
|
0.046
|
|
1.058
|
|
28.14
|
|
0.054
|
|
1.527 11
|
|
Cortez (Pipeline)
GSR2
|
|
0.40 -
5.0% GSR 10
|
|
Barrick
|
|
USA,
Nevada
|
|
10.56
|
|
0.040
|
|
0.423
|
|
95.53
|
|
0.034
|
|
3.294
|
|
106.08
|
|
0.035
|
|
3.717 11
|
|
Cortez (Pipeline)
GSR3
|
|
0.71%
GSR
|
|
Barrick
|
|
USA, Nevada
|
|
7.87
|
|
0.068
|
|
0.532
|
|
50.32
|
|
0.032
|
|
1.610
|
|
58.19
|
|
0.037
|
|
2.142 11
|
|
Cortez (Pipeline)
NVR1
|
|
0.39%
NVR
|
|
Barrick
|
|
USA, Nevada
|
|
5.99
|
|
0.049
|
|
0.293
|
|
50.03
|
|
0.032
|
|
1.579
|
|
56.02
|
|
0.033
|
|
1.872 11
|
|
Gold Hill
(DEV)
|
|
1.0 - 2.0% NSR 12
0.9% NSR12
|
|
Kinross/Barrick
|
|
USA,
Nevada
|
|
0.28
-
|
|
0.013
-
|
|
0.004
-
|
|
31.08
-
|
|
0.015
-
|
|
0.459
-
|
|
31.37
-
|
|
0.015
-
|
|
0.463
-
|
|
Goldstrike 8
(SJ Claims)
|
|
0.9%
NSR
|
|
Barrick
|
|
USA,
Nevada
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
47.20
|
|
0.113
|
|
5.354
|
|
Leeville
|
|
1.8%
NSR
|
|
Newmont
|
|
USA,
Nevada
|
|
3.00
|
|
0.360
|
|
1.078
|
|
2.31
|
|
0.309
|
|
0.712
|
|
5.30
|
|
0.338
|
|
1.790
|
|
Marigold 8,13
(DEV)
|
|
2.0%
NSR
|
|
Goldcorp/Barrick
|
|
USA,
Nevada
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
45.57
|
|
0.015
|
|
0.681
|
|
Robinson
|
|
3.0%
NSR
|
|
Quadra
FNX
|
|
USA,
Nevada
|
|
108.66
|
|
0.006
|
|
0.678
|
|
4.94
|
|
0.005
|
|
0.026
|
|
113.60
|
|
0.006
|
|
0.704
|
|
Soledad Mountain
(DEV)
|
|
3.0%
NSR
|
|
Golden
Queen
|
|
USA,
California
|
|
30.48
|
|
0.024
|
|
0.729
|
|
20.75
|
|
0.016
|
|
0.324
|
|
51.22
|
|
0.021
|
|
1.052
|
|
Twin
Creeks
|
|
2.0%
GPR
|
|
Newmont
|
|
USA,
Nevada
|
|
0.47
|
|
0.107
|
|
0.051
|
|
0.16
|
|
0.102
|
|
0.016
|
|
0.63
|
|
0.106
|
|
0.067
|
|
Wharf
|
|
0.0 -
2.0% NSR14
|
|
Goldcorp
|
|
USA,
South Dakota
|
|
8.70
|
|
0.020
|
|
0.170
|
|
0.97
|
|
0.021
|
|
0.020
|
|
9.68
|
|
0.020
|
|
0.190
|
|
Canadian Malartic 8
(DEV)
|
|
2.0 -
3.0% NSR15
|
|
Osisko
|
|
Canada,
Quebec
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
150.56
|
|
0.031
|
|
4.727
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 1 (cont.)
Royal Gold's Royalty Portfolio
Proven and Probable Gold Reserves 1,2,3
As of December 31, 2009 4
|
|
|
Mines are in production unless noted as
development ('DEV')
|
|
|
GOLD
5
|
|
|
|
|
|
|
|
|
PROVEN
RESERVES
|
|
PROBABLE
RESERVES
|
|
PROVEN + PROBABLE
RESERVES
|
|
PROPERTY
|
|
ROYALTY 6
|
|
OPERATOR
|
|
LOCATION
|
|
Tons
of Ore
(M)
|
|
Avg.
Gold Grade (oz/ton)
|
|
Gold Contained Ozs 7
(M)
|
|
Tons
of Ore
(M)
|
|
Avg. Gold Grade (oz/ton)
|
|
Gold Contained Ozs 7
(M)
|
|
Tons of
Ore
(M)
|
|
Avg. Gold Grade (oz/ton)
|
|
Gold Contained
Ozs 7
(M)
|
|
Holt 16
(DEV)
|
|
0.00013
x Gold Price
|
|
St
Andrew Goldfields
|
|
Canada,
Ontario
|
|
0.11
|
|
0.187
|
|
0.021
|
|
2.84
|
|
0.164
|
|
0.466
|
|
2.95
|
|
0.165
|
|
0.486
|
|
Pine
Cove
(DEV)
|
|
7.5%
NPI
|
|
New Island Resources/
Anaconda Mining
|
|
Canada,
Newfoundland
|
|
0.00
|
|
0.000
|
|
0.000
|
|
2.57
|
|
0.081
|
|
0.207
|
|
2.57
|
|
0.081
|
|
0.207
|
|
Schaft
Creek
(DEV)
|
|
3.5%
NPI
|
|
Copper
Fox
|
|
Canada,
British Columbia
|
|
453.16
|
|
0.007
|
|
3.119
|
|
451.83
|
|
0.005
|
|
2.451
|
|
904.99
|
|
0.006
|
|
5.570
|
|
Williams
|
|
0.97%
NSR
|
|
Barrick
|
|
Canada,
Ontario
|
|
9.06
|
|
0.068
|
|
0.614
|
|
2.93
|
|
0.084
|
|
0.247
|
|
11.99
|
|
0.072
|
|
0.861
|
|
Wolverine
(DEV)
|
|
0.0 -
9.445% NSR 17
|
|
Yukon
Zinc
|
|
Canada,
Yukon
|
|
0.64
|
|
0.036
|
|
0.023
|
|
4.63
|
|
0.039
|
|
0.182
|
|
5.27
|
|
0.039
|
|
0.205
|
|
Dolores
8
|
|
3.25%
NSR
|
|
Minefinders
|
|
Mexico,
Chihuahua
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
109.46
|
|
0.022
|
|
2.444
|
|
El
Chanate
|
|
2.0 -
4.0% NSR18
|
|
Capital
Gold
|
|
Mexico,
Sonora
|
|
24.69
|
|
0.020
|
|
0.503
|
|
53.08
|
|
0.019
|
|
1.001
|
|
77.77
|
|
0.019
|
|
1.504
|
|
Mulatos
|
|
1.0 -
5.0% NSR19
|
|
Alamos
|
|
Mexico,
Sonora
|
|
11.38
|
|
0.047
|
|
0.540
|
|
56.47
|
|
0.033
|
|
1.847
|
|
67.86
|
|
0.035
|
|
2.387
|
|
Peñasquito 20
(Oxide)
|
|
2.0%
NSR
|
|
Goldcorp
|
|
Mexico,
Zacatecas
|
|
79.92
|
|
0.005
|
|
0.400
|
|
0.00
|
|
0.000
|
|
0.000
|
|
79.92
|
|
0.005
|
|
0.400
|
|
Peñasquito 20
(Sulfide)
|
|
2.0%
NSR
|
|
Goldcorp
|
|
Mexico,
Zacatecas
|
|
639.97
|
|
0.018
|
|
11.490
|
|
621.91
|
|
0.010
|
|
5.930
|
|
1261.87
|
|
0.014
|
|
17.420
|
|
Andacollo
(DEV)
|
|
75% NSR
21
|
|
Teck
|
|
Chile,
Region IV
|
|
173.28
|
|
0.004
|
|
0.708
|
|
263.89
|
|
0.003
|
|
0.924
|
|
437.17
|
|
0.004
|
|
1.631
|
|
El
Limon 8
|
|
3.0%
NSR
|
|
B2Gold
|
|
Nicaragua,
El Limon
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1.12
|
|
0.134
|
|
0.150
|
|
El
Toqui
|
|
1.0 -
3.0% NSR 22
|
|
Breakwater
|
|
Chile,
Region XI
|
|
0.89
|
|
0.128
|
|
0.114
|
|
2.77
|
|
0.067
|
|
0.186
|
|
3.66
|
|
0.082
|
|
0.300
|
|
Martha
|
|
2.0%
NSR
|
|
Coeur
d'Alene
|
|
Argentina,
Santa Cruz
|
|
0.00
|
|
0.000
|
|
0.000
|
|
0.04
|
|
0.037
|
|
0.001
|
|
0.04
|
|
0.037
|
|
0.001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 1 (cont.)
Royal Gold's Royalty Portfolio
Proven and Probable Gold Reserves 1,2,3
As of December 31, 2009 4
|
|
|
|
|
Mines are in production unless noted as
development ('DEV')
|
|
|
|
|
GOLD 5
|
|
|
|
|
|
|
|
|
|
PROVEN
RESERVES
|
|
PROBABLE
RESERVES
|
|
PROVEN + PROBABLE
RESERVES
|
|
|
PROPERTY
|
|
ROYALTY
6
|
|
OPERATOR
|
|
LOCATION
|
|
Tons
of Ore
(M)
|
|
Avg. Gold Grade (oz/ton)
|
|
Gold Contained Ozs 7
(M)
|
|
Tons
of Ore
(M)
|
|
Avg. Gold Grade (oz/ton)
|
|
Gold Contained Ozs 7
(M)
|
|
Tons of
Ore
(M)
|
|
Avg. Gold Grade (oz/ton)
|
|
Gold Contained
Ozs 7
(M)
|
|
|
Pascua-Lama 23
(DEV)
|
|
0.63 - 4.48% NSR 24
|
|
Barrick
|
|
Chile,
Region III
|
|
36.10
|
|
0.053
|
|
1.917
|
|
288.60
|
|
0.044
|
|
12.698
|
|
324.70
|
|
0.045
|
|
14.615 25
|
|
|
Balcooma
26
|
|
1.5%
NSR
|
|
Kagara
|
|
Australia,
Queensland
|
|
0.10
|
|
0.020
|
|
0.002
|
|
1.06
|
|
0.006
|
|
0.006
|
|
1.16
|
|
0.007
|
|
0.008
|
|
|
Gwalia
Deeps
|
|
1.5%
NSR
|
|
St
Barbara
|
|
Australia,
Western Australia
|
|
0.00
|
|
0.000
|
|
0.000
|
|
8.71
|
|
0.227
|
|
1.980
|
|
8.71
|
|
0.227
|
|
1.980
|
|
|
Meekatharra
(Paddy's Flat)
(DEV)
|
|
1.5% NSR
A$10.00 per gold
ounce produced 27
|
|
Mercator
Gold
|
|
Australia,
Western Australia
|
|
0.00
|
|
0.000
|
|
0.000
|
|
2.19
|
|
0.140
|
|
0.308
|
|
2.19
|
|
0.140
|
|
0.308
|
|
|
Meekatharra
(Yaloginda)
(DEV)
|
|
0.45% NSR
|
|
Mercator Gold
|
|
Australia,
Western Australia
|
|
0.00
|
|
0.000
|
|
0.000
|
|
2.79
|
|
0.070
|
|
0.196
|
|
2.79
|
|
0.070
|
|
0.196
|
|
|
South
Laverton
|
|
1.5%
NSR
|
|
Saracen
|
|
Australia,
Western Australia
|
|
0.00
|
|
0.000
|
|
0.000
|
|
16.74
|
|
0.048
|
|
0.800
|
|
16.74
|
|
0.048
|
|
0.800
|
|
|
Southern
Cross
|
|
1.5%
NSR
|
|
St
Barbara
|
|
Australia,
Western Australia
|
|
0.87
|
|
0.094
|
|
0.082
|
|
5.77
|
|
0.088
|
|
0.509
|
|
6.64
|
|
0.089
|
|
0.591
|
|
|
Inata
|
|
3.0%
NSR
|
|
Avocet
|
|
Burkina Faso,
Soum
|
|
4.93
|
|
0.067
|
|
0.329
|
|
12.07
|
|
0.051
|
|
0.615
|
|
17.00
|
|
0.056
|
|
0.944
|
|
|
Siguiri
|
|
0.0 -
1.875% NSR 28
|
|
Anglogold
Ashanti
|
|
Guinea,
Kankan
|
|
33.98
|
|
0.019
|
|
0.630
|
|
96.84
|
|
0.025
|
|
2.440
|
|
130.82
|
|
0.023
|
|
3.070
|
|
|
Taparko 29,30
TB-GSR1 and
TB-GSR2
|
|
15% GSR
0.0 - 10.0% GSR
|
|
High
River
|
|
Burkina Faso,
Namantenga
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1.56
|
|
0.085
|
|
0.132 31,32
|
|
|
Taparko 29,30
TB-GSR3
|
|
2.0%
GSR
|
|
High
River
|
|
Burkina Faso,
Namantenga
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6.40
|
|
0.085
|
|
0.551 31,32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 1 (cont.)
Royal Gold's Royalty Portfolio
Proven and Probable Silver Reserves 1,2,3
As of December 31, 2009 4
|
|
|
Mines are in production unless noted as
development ('DEV')
|
|
|
SILVER
33
|
|
PROPERTY
|
|
ROYALTY 6
|
|
OPERATOR
|
|
LOCATION
|
|
PROVEN
RESERVES
|
|
PROBABLE RESERVES
|
|
PROVEN
+ PROBABLE
RESERVES
|
|
|
|
|
Tons
of Ore
(M)
|
|
Avg.
Silver Grade (oz/ton)
|
|
Silver Contained Ozs7
(M)
|
|
Tons
of Ore
(M)
|
|
Avg. Silver Grade (oz/ton)
|
|
Silver Contained Ozs7
(M)
|
|
Tons of
Ore
(M)
|
|
Avg.
Silver Grade (oz/ton)
|
|
Silver Contained Ozs 7
(M)
|
|
Soledad
Mountain (DEV)
|
|
3.0%
NSR
|
|
Golden
Queen
|
|
USA,
California
|
|
30.48
|
|
0.40
|
|
12.283
|
|
20.75
|
|
0.34
|
|
7.076
|
|
51.22
|
|
0.38
|
|
19.359
|
|
Troy
(DEV)
|
|
3.0%
GSR
|
|
Revett
|
|
USA,
Montana
|
|
3.08
|
|
1.41
|
|
4.337
|
|
6.01
|
|
1.13
|
|
6.805
|
|
9.10
|
|
1.22
|
|
11.142
|
|
Schaft Creek
(DEV)
|
|
3.5%
NPI
|
|
Copper
Fox
|
|
Canada,
British Columbia
|
|
453.16
|
|
0.05
|
|
22.760
|
|
451.83
|
|
0.05
|
|
23.695
|
|
904.99
|
|
0.05
|
|
46.454
|
|
Wolverine
(DEV)
|
|
0.0 -
9.445% NSR 17
|
|
Yukon
Zinc
|
|
Canada,
Yukon
|
|
0.64
|
|
7.06
|
|
4.534
|
|
4.63
|
|
8.28
|
|
38.286
|
|
5.27
|
|
8.13
|
|
42.820
|
|
Dolores 8
|
|
2.0%
NSR
|
|
Minefinders
|
|
Mexico,
Chihuahua
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
109.46
|
|
1.16
|
|
126.645
|
|
Peñasquito 20
(Oxide)
|
|
2.0%
NSR
|
|
Goldcorp
|
|
Mexico,
Zacatecas
|
|
79.92
|
|
0.43
|
|
34.500
|
|
0.00
|
|
0.00
|
|
0.000
|
|
79.92
|
|
0.43
|
|
34.500
|
|
Peñasquito 20
(Sulfide)
|
|
2.0%
NSR
|
|
Goldcorp
|
|
Mexico,
Zacatecas
|
|
639.97
|
|
0.97
|
|
618.020
|
|
621.91
|
|
0.67
|
|
417.580
|
|
1261.87
|
|
0.82
|
|
1035.600
|
|
El
Toqui
|
|
1.0 -
3.0% NSR 22
|
|
Breakwater
|
|
Chile,
Region XI
|
|
0.89
|
|
0.23
|
|
0.208
|
|
2.77
|
|
0.26
|
|
0.728
|
|
3.66
|
|
0.26
|
|
0.936
|
|
Martha
|
|
2.0%
NSR
|
|
Coeur
d'Alene
|
|
Argentina,
Santa Cruz
|
|
0.00
|
|
0.00
|
|
0.000
|
|
0.04
|
|
33.14
|
|
1.249
|
|
0.04
|
|
32.87
|
|
1.249
|
|
Balcooma 26
|
|
1.5%
NSR
|
|
Kagara
|
|
Australia,
Queensland
|
|
0.10
|
|
2.22
|
|
0.225
|
|
1.06
|
|
0.35
|
|
0.373
|
|
1.16
|
|
0.51
|
|
0.598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 1 (cont.)
Royal Gold's Royalty Portfolio
Proven and Probable Base Metal Reserves
1,2,3
As of December 31, 2009 4
|
|
|
Mines are in production unless noted as
development ('DEV')
|
|
|
COPPER34
|
|
|
|
|
|
|
|
|
PROVEN
RESERVES
|
|
PROBABLE
RESERVES
|
|
PROVEN + PROBABLE
RESERVES
|
|
PROPERTY
|
|
ROYALTY
6
|
|
OPERATOR
|
|
LOCATION
|
|
Tons
of Ore
(M)
|
|
Avg.
Copper
Grade
(% Cu)
|
|
Copper
Contained
Lbs 7
(M)
|
|
Tons
of Ore
(M)
|
|
Avg.
Copper
Grade
(% Cu)
|
|
Copper
Contained
Lbs7
(M)
|
|
Tons of
Ore
(M)
|
|
Avg.
Copper
Grade
(% Cu)
|
|
Copper
Contained
Lbs7
(M)
|
|
Johnson
Camp
|
|
3.0%
NSR
|
|
Nord
Resources
|
|
USA,
Arizona
|
|
54.98
|
|
0.34
|
|
372
|
|
18.41
|
|
0.33
|
|
120
|
|
73.39
|
|
0.34
|
|
492
|
|
Robinson
|
|
3.0%
NSR
|
|
Quadra
FNX
|
|
USA,
Nevada
|
|
108.66
|
|
0.53
|
|
1,161
|
|
4.94
|
|
0.42
|
|
41
|
|
113.60
|
|
0.53
|
|
1,203
|
|
Troy
(DEV)
|
|
3.0%
GSR
|
|
Revett
|
|
USA,
Montana
|
|
3.08
|
|
0.72
|
|
45
|
|
6.01
|
|
0.49
|
|
59
|
|
9.10
|
|
0.57
|
|
104
|
|
Caber
(DEV)
|
|
1.0%
NSR
|
|
Breakwater
|
|
Canada, Quebec
|
|
0.00
|
|
0.00
|
|
0
|
|
0.65
|
|
0.84
|
|
11
|
|
0.65
|
|
0.84
|
|
11
|
|
Schaft Creek
(DEV)
|
|
3.5%
NPI
|
|
Copper
Fox
|
|
Canada,
British Columbia
|
|
453.16
|
|
0.32
|
|
2,864
|
|
451.83
|
|
0.28
|
|
2,557
|
|
904.99
|
|
0.30
|
|
5,421
|
|
Voisey's
Bay
|
|
2.7%
NSR
|
|
Vale
|
|
Canada,
Labrador
|
|
24.03
|
|
1.76
|
|
846
|
|
3.53
|
|
0.38
|
|
27
|
|
27.56
|
|
1.58
|
|
873
|
|
Balcooma
26
|
|
1.5%
NSR
|
|
Kagara
|
|
Australia,
Queensland
|
|
0.10
|
|
1.10
|
|
2
|
|
1.06
|
|
3.60
|
|
76
|
|
1.16
|
|
3.38
|
|
79
|
|
Las
Cruces
|
|
1.5%
NSR
|
|
Inmet
|
|
Spain,
Andalucia
|
|
8.96
|
|
7.40
|
|
1,325
|
|
9.26
|
|
5.30
|
|
979
|
|
18.22
|
|
6.30
|
|
2,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 1 (cont.)
Royal Gold's Royalty Portfolio
Proven and Probable Base Metal Reserves
1,2,3
As of December 31, 2009 4
|
|
|
Mines are in production unless noted as
development ('DEV')
|
|
|
LEAD35
|
|
|
|
|
|
|
|
|
PROVEN
RESERVES
|
|
PROBABLE
RESERVES
|
|
PROVEN + PROBABLE
RESERVES
|
|
PROPERTY
|
|
ROYALTY
6
|
|
OPERATOR
|
|
LOCATION
|
|
Tons
of Ore
(M)
|
|
Avg.
Lead
Grade
(% Pb)
|
|
Lead
Contained
Lbs 7
(M)
|
|
Tons
of Ore
(M)
|
|
Avg.
Lead
Grade
(% Pb)
|
|
Lead
Contained
Lbs 7
(M)
|
|
Tons of
Ore
(M)
|
|
Avg.
Lead
Grade
(% Pb)
|
|
Lead
Contained
Lbs 7
(M)
|
|
Peñasquito 20
(Sulfide)
|
|
2.0%
NSR
|
|
Goldcorp
|
|
Mexico,
Zacatecas
|
|
639.97
|
|
0.35
|
|
4,450
|
|
621.91
|
|
0.22
|
|
2,761
|
|
1261.87
|
|
0.29
|
|
7,211
|
|
El
Toqui
|
|
1.0 -
3.0% NSR 22
|
|
Breakwater
|
|
Chile,
Region XI
|
|
0.89
|
|
0.30
|
|
5
|
|
2.77
|
|
0.30
|
|
17
|
|
3.66
|
|
0.30
|
|
22
|
|
Balcooma
26
|
|
1.5%
NSR
|
|
Kagara
|
|
Australia,
Queensland
|
|
0.10
|
|
3.90
|
|
8
|
|
1.06
|
|
0.01
|
|
0
|
|
1.16
|
|
0.35
|
|
8
|
|
ZINC36
|
|
|
|
|
|
|
|
|
PROVEN
RESERVES
|
|
PROBABLE
RESERVES
|
|
PROVEN + PROBABLE
RESERVES
|
|
PROPERTY
|
|
ROYALTY
6
|
|
OPERATOR
|
|
LOCATION
|
|
Tons
of Ore
(M)
|
|
Avg.
Zinc
Grade
(% Zn)
|
|
Zinc
Contained
Lbs7
(M)
|
|
Tons
of Ore
(M)
|
|
Avg.
Zinc
Grade
(% Zn)
|
|
Zinc
Contained
Lbs7
(M)
|
|
Tons of
Ore
(M)
|
|
Avg.
Zinc
Grade
(% Zn)
|
|
Zinc
Contained
Lbs7
(Zn)
|
|
Caber
(DEV)
|
|
1.0%
NSR
|
|
Breakwater
|
|
Canada,
Quebec
|
|
0.00
|
|
0.00
|
|
0
|
|
0.65
|
|
8.58
|
|
111
|
|
0.65
|
|
8.58
|
|
111
|
|
Peñasquito 20
(Sulfide)
|
|
2.0%
NSR
|
|
Goldcorp
|
|
Mexico, Zacatecas
|
|
639.97
|
|
0.75
|
|
9,649
|
|
621.91
|
|
0.50
|
|
6,281
|
|
1261.87
|
|
0.63
|
|
15,930
|
|
El
Toqui
|
|
1.0% -
3.0% NSR 22
|
|
Breakwater
|
|
Chile,
Region XI
|
|
0.89
|
|
6.50
|
|
116
|
|
2.77
|
|
7.20
|
|
400
|
|
3.66
|
|
7.03
|
|
515
|
|
Balcooma
26
|
|
1.5%
NSR
|
|
Kagara
|
|
Australia,
Queensland
|
|
0.10
|
|
9.60
|
|
19
|
|
1.06
|
|
0.02
|
|
0
|
|
1.16
|
|
0.86
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 1 (cont.)
Royal Gold's Royalty Portfolio
Proven and Probable Base Metal Reserves
1,2,3
As of December 31, 2009 4
|
|
|
Mines are in production unless noted as
development ('DEV')
|
|
|
NICKEL37
|
|
|
|
|
|
|
|
|
PROVEN RESERVES
|
|
PROBABLE
RESERVES
|
|
PROVEN
+ PROBABLE
RESERVES
|
|
PROPERTY
|
|
ROYALTY
6
|
|
OPERATOR
|
|
LOCATION
|
|
Tons
of Ore
(M)
|
|
Avg.
Nickel
Grade
(% Ni)
|
|
Nickel
Contained
Lbs7
(M)
|
|
Tons
of Ore
(M)
|
|
Avg.
Nickel
Grade
(% Ni)
|
|
Nickel
Contained
Lbs7
(M)
|
|
Tons of
Ore
(M)
|
|
Avg.
Nickel
Grade
(% Ni)
|
|
Nickel
Contained
Lbs 7
(M)
|
|
Voisey's
Bay
|
|
2.7%
NSR
|
|
Vale
|
|
Canada, Labrador
|
|
24.03
|
|
3.01
|
|
1,447
|
|
3.53
|
|
0.66
|
|
47
|
|
27.56
|
|
2.71
|
|
1,493
|
|
Avebury 8
(DEV)
|
|
2.0%
NSR
|
|
Metals and Mines
Group
|
|
Australia,
Tasmania
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6.50
|
|
0.96
|
|
123
|
|
Mt.
Goode 8,38
|
|
1.5%
NSR
|
|
Xstrata
|
|
Australia,
Western Australia
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2.20
|
|
3.46
|
|
152
|
|
COBALT39
|
|
|
|
|
|
|
|
|
PROVEN
RESERVES
|
|
PROBABLE
RESERVES
|
|
PROVEN + PROBABLE
RESERVES
|
|
PROPERTY
|
|
ROYALTY6
|
|
OPERATOR
|
|
LOCATION
|
|
Tons
of Ore
(M)
|
|
Avg.
Cobalt
Grade
(% Co)
|
|
Cobalt
Contained
Lbs7
(M)
|
|
Tons
of Ore
(M)
|
|
Avg.
Cobalt
Grade
(% Co)
|
|
Cobalt
Contained
Lbs 7
(M)
|
|
Tons of
Ore
(M)
|
|
Avg.
Cobalt
Grade
(% Co)
|
|
Cobalt
Contained
Lbs7
(M)
|
|
Voisey's
Bay
|
|
2.7%
NSR
|
|
Vale
|
|
Canada,
Labrador
|
|
24.03
|
|
0.15
|
|
72
|
|
3.53
|
|
0.03
|
|
2
|
|
27.56
|
|
0.13
|
|
74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 2
Royal Gold's Royalty Portfolio
Gold Additional Mineralized Material 40, 41, 42
As of December 31, 2009
|
|
|
Mines are in production unless noted as
development ('DEV')
|
|
|
GOLD
|
|
PROPERTY
|
|
ROYALTY
6
|
|
OPERATOR
|
|
LOCATION
|
|
ADDITIONAL
MINERALIZED
MATERIAL
|
|
TONS
OF
MATERIAL
(millions)
|
|
AVERAGE
GOLD GRADE
(oz/ton)
|
|
Bald
Mountain
|
|
1.75 -
3.5% NSR 9
|
|
Barrick
|
|
USA,
Nevada
|
|
Measured
and Indicated
|
|
25.28
|
|
0.014
|
|
|
|
|
|
|
|
|
Inferred
|
|
-
|
|
-
|
|
Cortez
(Pipeline)
|
|
0.40 -
5.0% GSR 10
|
|
Barrick
|
|
USA,
Nevada
|
|
Measured
|
|
2.73
|
|
0.026
11
|
|
GSR1
|
|
|
|
|
|
|
|
Indicated
|
|
25.47
|
|
0.020
11
|
|
|
|
|
|
|
|
|
Inferred
|
|
1.31
|
|
0.014
11
|
|
Cortez
(Pipeline)
|
|
0.40 -
5.0% GSR 10
|
|
Barrick
|
|
USA,
Nevada
|
|
Measured
|
|
0.00
|
|
0.000
11
|
|
GSR2
|
|
|
|
|
|
|
|
Indicated
|
|
0.03
|
|
0.000
11
|
|
|
|
|
|
|
|
|
Inferred
|
|
2.82
|
|
0.016
11
|
|
Cortez
(Pipeline)
|
|
0.71%
GSR
|
|
Barrick
|
|
USA,
Nevada
|
|
Measured
|
|
2.73
|
|
0.026
11
|
|
GSR3
|
|
|
|
|
|
|
|
Indicated
|
|
25.50
|
|
0.020
11
|
|
|
|
|
|
|
|
|
Inferred
|
|
2.10
|
|
0.015
11
|
|
Cortez
(Pipeline)
|
|
0.39%
NVR
|
|
Barrick
|
|
USA,
Nevada
|
|
Measured
|
|
0.37
|
|
0.041
11
|
|
NVR1
|
|
|
|
|
|
|
|
Indicated
|
|
3.15
|
|
0.031
11
|
|
|
|
|
|
|
|
|
Inferred
|
|
1.34
|
|
0.016
11
|
|
Goldstrike
|
|
0.9%
NSR
|
|
Barrick
|
|
USA,
Nevada
|
|
Measured
|
|
0.26
|
|
0.047
|
|
(SJ
Claims)
|
|
|
|
|
|
|
|
Indicated
|
|
1.83
|
|
0.047
|
|
|
|
|
|
|
|
|
Inferred
|
|
0.03
|
|
0.203
|
|
Relief
Canyon
|
|
4.0%
NSR
|
|
Firstgold
|
|
USA,
Nevada
|
|
Measured
|
|
0.00
|
|
0.000
|
|
(DEV)
|
|
|
|
|
|
|
|
Indicated
|
|
0.00
|
|
0.000
|
|
|
|
|
|
|
|
|
Inferred
|
|
30.48
|
|
0.022
|
|
Robinson
43
|
|
3.0%
NSR
|
|
Quadra
FNX
|
|
USA,
Nevada
|
|
Measured
|
|
617.60
|
|
0.005
|
|
(includes
reserves)
|
|
|
|
|
|
|
|
Indicated
|
|
145.90
|
|
0.004
|
|
|
|
|
|
|
|
|
Inferred
|
|
42.10
|
|
0.003
|
|
Soledad
Mountain
|
|
3.0%
NSR
|
|
Golden
Queen
|
|
USA,
California
|
|
Measured
|
|
43.69
|
|
0.027
|
|
(DEV)
|
|
|
|
|
|
|
|
Indicated
|
|
44.85
|
|
0.018
|
|
|
|
|
|
|
|
|
Inferred
|
|
35.28
|
|
0.015
|
|
Twin
Creeks
|
|
2.0%
GPR
|
|
Newmont
|
|
USA,
Nevada
|
|
Non
Reserve Material
|
|
0.84
|
|
0.087
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wharf
|
|
0.0 -
2.0% NSR 14
|
|
Goldcorp
|
|
USA,
South Dakota
|
|
Measured
|
|
7.40
|
|
0.026
|
|
|
|
|
|
|
|
|
Indicated
|
|
3.43
|
|
0.026
|
|
|
|
|
|
|
|
|
Inferred
|
|
|
|
|
|
|
TABLE 2 (cont.)
Royal Gold's Royalty Portfolio
Gold Additional Mineralized Material 40,
41, 42
As of December 31, 2009
|
|
|
Mines are in production unless noted as
development ('DEV')
|
|
|
GOLD
|
|
PROPERTY
|
|
ROYALTY
6
|
|
OPERATOR
|
|
LOCATION
|
|
ADDITIONAL
MINERALIZED
MATERIAL
|
|
TONS
OF
MATERIAL
(millions)
|
|
AVERAGE
GOLD GRADE
(ounces per ton)
|
|
Holt 16
|
|
0.00013
x Au price
|
|
St
Andrew
|
|
Canada,
Ontario
|
|
Measured
|
|
1.46
|
|
0.194
|
|
(DEV)
|
|
|
|
Goldfields
|
|
|
|
Indicated
|
|
2.11
|
|
0.200
|
|
|
|
|
|
|
|
|
Inferred
|
|
1.18
|
|
0.226
|
|
Pine
Cove
|
|
7.5%
NPI
|
|
New
Island Resources/
|
|
Canada,
|
|
Measured
and Indicated
|
|
0.33
|
|
0.123
|
|
(DEV)
|
|
|
|
Anaconda
Mining
|
|
Newfoundland
|
|
Inferred
|
|
0.28
|
|
0.062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schaft
Creek
|
|
3.5%
NPI
|
|
Copper
Fox
|
|
Canada,
|
|
Measured
and Indicated
|
|
630.83
|
|
0.004
|
|
(DEV)
|
|
|
|
|
|
British
Columbia
|
|
Inferred
|
|
205.91
|
|
0.003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Williams
|
|
0.97%
NSR
|
|
Barrick
|
|
Canada,
Ontario
|
|
Measured
|
|
1.12
|
|
0.055
|
|
|
|
|
|
|
|
|
Indicated
|
|
0.46
|
|
0.092
|
|
|
|
|
|
|
|
|
Inferred
|
|
0.90
|
|
0.150
|
|
Wolverine
|
|
0.0 -
9.445% NSR 17
|
|
Yukon
Zinc
|
|
Canada,
Yukon
|
|
Measured
|
|
0.54
|
|
0.044
|
|
(DEV)
|
|
|
|
|
|
|
|
Indicated
|
|
4.37
|
|
0.050
|
|
|
|
|
|
|
|
|
Inferred
|
|
1.87
|
|
0.050
|
|
Dolores
44
|
|
3.25%
NSR
|
|
Minefinders
|
|
Mexico,
Chihuahua
|
|
Measured
and Indicated
|
|
7.70
|
|
0.090
|
|
|
|
|
|
|
|
|
Inferred
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
El
Chanate
|
|
2.0 -
4.0% NSR 18
|
|
Capital
Gold
|
|
Mexico,
Sonora
|
|
Measured
|
|
0.68
|
|
0.007
|
|
|
|
|
|
|
|
|
Indicated
|
|
4.40
|
|
0.015
|
|
|
|
|
|
|
|
|
Inferred
|
|
5.98
|
|
0.024
|
|
Mulatos
|
|
1.0 -
5.0% NSR 19
|
|
Alamos
|
|
Mexico,
Sonora
|
|
Measured
|
|
6.21
|
|
0.033
|
|
|
|
|
|
|
|
|
Indicated
|
|
59.98
|
|
0.028
|
|
|
|
|
|
|
|
|
Inferred
|
|
28.45
|
|
0.033
|
|
Peñasquito
20
|
|
2.0%
NSR
|
|
Goldcorp
|
|
Mexico,
Zacatecas
|
|
Measured
|
|
0.00
|
|
0.000
|
|
(Oxide)
|
|
|
|
|
|
|
|
Indicated
|
|
8.54
|
|
0.004
|
|
|
|
|
|
|
|
|
Inferred
|
|
0.00
|
|
0.000
|
|
Peñasquito
20
|
|
2.0%
NSR
|
|
Goldcorp
|
|
Mexico,
Zacatecas
|
|
Measured
|
|
0.00
|
|
0.000
|
|
(Sulfide)
|
|
|
|
|
|
|
|
Indicated
|
|
519.76
|
|
0.009
|
|
|
|
|
|
|
|
|
Inferred
|
|
162.02
|
|
0.007
|
|
Andacollo
|
|
75% NSR
21
|
|
Teck
|
|
Chile,
Region IV
|
|
Measured
|
|
14.66
|
|
0.003
|
|
(DEV)
|
|
|
|
|
|
|
|
Indicated
|
|
114.20
|
|
0.003
|
|
|
|
|
|
|
|
|
Inferred
|
|
24.03
|
|
0.003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 2 (cont.)
Royal Gold's Royalty Portfolio
Gold Additional Mineralized Material 40,
41, 42
As of December 31, 2009
|
|
|
Mines are in production unless noted as
development ('DEV')
|
|
|
GOLD
|
|
PROPERTY
|
|
ROYALTY
6
|
|
OPERATOR
|
|
LOCATION
|
|
ADDITIONAL
MINERALIZED
MATERIAL
|
|
TONS
OF
MATERIAL
(millions)
|
|
AVERAGE
GOLD GRADE
(ounces per ton)
|
|
Don
Mario
|
|
3.0%
NSR
|
|
Orvana
|
|
Bolivia,
|
|
Measured
|
|
1.86
|
|
0.039
|
|
|
|
|
|
|
Chiquitos
Province
|
|
Indicated
|
|
4.98
|
|
0.040
|
|
|
|
|
|
|
|
|
Inferred
|
|
0.35
|
|
0.037
|
|
El
Limon
|
|
3.0%
NSR
|
|
Central
Sun
|
|
Nicaragua,
|
|
Measured
and Indicated
|
|
0.67
|
|
0.123
|
|
|
|
|
|
|
El
Limon
|
|
Inferred
|
|
3.31
|
|
0.128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
El
Toqui
|
|
1.0 -
3.0% NSR 22
|
|
Breakwater
|
|
Chile,
Region XI
|
|
Measured
and Indicated
|
|
1.46
|
|
0.031
|
|
|
|
|
|
|
|
|
Inferred
|
|
3.91
|
|
0.029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Martha
|
|
2.0%
NSR
|
|
Coeur
d'Alene
|
|
Argentina,
|
|
Measured
|
|
0.01
|
|
0.110
|
|
|
|
|
|
|
Santa
Cruz
|
|
Indicated
|
|
0.02
|
|
0.040
|
|
|
|
|
|
|
|
|
Inferred
|
|
0.02
|
|
0.004
|
|
Pascua-Lama
23
|
|
0.63 - 4.48% NSR 24
|
|
Barrick
|
|
Chile,
Region III
|
|
Measured
|
|
8.71
|
|
0.040
|
|
(DEV)
|
|
|
|
|
|
|
|
Indicated
|
|
70.23
|
|
0.037
|
|
|
|
|
|
|
|
|
Inferred
|
|
6.98
|
|
0.036
|
|
Balcooma
26
|
|
1.5%
NSR
|
|
Kagara
|
|
Australia,
|
|
Measured
|
|
0.00
|
|
0.000
|
|
|
|
|
|
|
Queensland
|
|
Indicated
|
|
1.45
|
|
0.012
|
|
|
|
|
|
|
|
|
Inferred
|
|
0.63
|
|
0.018
|
|
Bundarra
|
|
1.5%
NSR
|
|
Terrain
|
|
Australia,
|
|
Measured
|
|
1.21
|
|
0.059
|
|
(DEV)
|
|
|
|
|
|
Queensland
|
|
Indicated
|
|
1.49
|
|
0.069
|
|
|
|
|
|
|
|
|
Inferred
|
|
2.77
|
|
0.054
|
|
Gwalia
Deeps
|
|
1.5%
NSR
|
|
St
Barbara
|
|
Australia,
|
|
Measured
and Indicated
|
|
75.58
|
|
0.050
|
|
|
|
|
|
|
Western
Australia
|
|
Inferred
|
|
6.75
|
|
0.188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meekatharra
|
|
1.5%
NSR
|
|
Mercator
Gold
|
|
Australia,
|
|
Measured
and Indicated
|
|
17.51
|
|
0.039
|
|
(Paddy's
Flat)
|
|
A$10.00
per gold
|
|
|
|
Western
Australia
|
|
Inferred
|
|
8.74
|
|
0.040
|
|
(DEV)
|
|
ounce produced 27
|
|
|
|
|
|
|
|
|
|
|
|
Meekatharra
|
|
0.45%
NSR
|
|
Mercator
Gold
|
|
Australia,
|
|
Measured
and Indicated
|
|
7.62
|
|
0.041
|
|
(Yaloginda)
|
|
|
|
|
|
Western
Australia
|
|
Inferred
|
|
4.18
|
|
0.054
|
|
(DEV)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reedys
Burnakura
|
|
1.5 -
2.5% NSR 45
|
|
ATW
Gold
|
|
Australia,
|
|
Measured
|
|
0.08
|
|
0.288
|
|
(DEV)
|
|
|
|
|
|
Western
Australia
|
|
Indicated
|
|
0.21
|
|
0.204
|
|
|
|
|
|
|
|
|
Inferred
|
|
3.23
|
|
0.074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 2 (cont.)
Royal Gold's Royalty Portfolio
Gold Additional Mineralized Material 40,
41, 42
As of December 31, 2009
|
|
|
Mines are in production unless noted as
development ('DEV')
|
|
|
GOLD
|
|
PROPERTY
|
|
ROYALTY
6
|
|
OPERATOR
|
|
LOCATION
|
|
ADDITIONAL
MINERALIZED
MATERIAL
|
|
TONS
OF
MATERIAL
(millions)
|
|
AVERAGE
GOLD GRADE
(ounces per ton)
|
|
South
Laverton
|
|
1.5%
NSR
|
|
Saracen
|
|
Australia,
|
|
Measured
and Indicated
|
|
24.47
|
|
0.053
|
|
|
|
|
|
|
Western
Australia
|
|
Inferred
|
|
13.63
|
|
0.053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southern
Cross
|
|
1.5%
NSR
|
|
St
Barbara
|
|
Australia,
|
|
Measured
and Indicated
|
|
7.59
|
|
0.124
|
|
|
|
|
|
|
Western
Australia
|
|
Inferred
|
|
7.90
|
|
0.109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inata
|
|
3.0%
NSR
|
|
Avocet
|
|
Burkina
Faso, Soum
|
|
Measured
|
|
5.75
|
|
0.066
|
|
|
|
|
|
|
|
|
Indicated
|
|
21.87
|
|
0.047
|
|
|
|
|
|
|
|
|
Inferred
|
|
7.82
|
|
0.038
|
|
Siguiri
|
|
0.0 -
1.875% NSR 28
|
|
AngloGold
Ashanti
|
|
Guinea,
Kankan
|
|
Measured
|
|
4.13
|
|
0.022
|
|
|
|
|
|
|
|
|
Indicated
|
|
50.22
|
|
0.025
|
|
|
|
|
|
|
|
|
Inferred
|
|
86.22
|
|
0.026
|
|
Taparko
29
|
|
2.0%
GSR
|
|
High
River
|
|
Burkina
Faso,
|
|
Measured
|
|
-
|
|
-
|
|
|
|
|
|
|
Namantenga
|
|
Indicated
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
Inferred
|
|
0.27
|
|
0.073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 2 (cont.)
Royal Gold's Royalty Portfolio
Silver Additional Mineralized Material 40,41,42
As of December 31, 2009
|
|
|
|
|
Mines are in production unless noted as
development ('DEV')
|
|
|
|
|
SILVER
|
|
|
PROPERTY
|
|
ROYALTY
6
|
|
OPERATOR
|
|
LOCATION
|
|
ADDITIONAL
MINERALIZED
MATERIAL
|
|
TONS
OF
MATERIAL
(millions)
|
|
AVERAGE
SILVER GRADE
(ounces per ton)
|
|
|
Troy
|
|
3.0%
GSR
|
|
Revett
|
|
USA,
Montana
|
|
Measured
|
|
38.26
|
|
1.43
|
|
|
(DEV)
|
|
|
|
|
|
|
|
Indicated
|
|
10.93
|
|
0.91
|
|
|
|
|
|
|
|
|
|
Inferred
|
|
0.00
|
|
0.00
|
|
|
Dolores
44
|
|
2.0%
NSR
|
|
Minefinders
|
|
Mexico,
Chihuahua
|
|
Measured
and Indicated
|
|
7.70
|
|
2.87
|
|
|
|
|
|
|
|
|
|
Inferred
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito
20
|
|
2.0%
NSR
|
|
Goldcorp
|
|
Mexico,
Zacatecas
|
|
Measured
|
|
0.00
|
|
0.00
|
|
|
(Oxide)
|
|
|
|
|
|
|
|
Indicated
|
|
8.54
|
|
0.25
|
|
|
|
|
|
|
|
|
|
Inferred
|
|
0.00
|
|
0.00
|
|
|
Peñasquito
20
|
|
2.0%
NSR
|
|
Goldcorp
|
|
Mexico,
Zacatecas
|
|
Measured
|
|
0.00
|
|
0.00
|
|
|
(Sulfide)
|
|
|
|
|
|
|
|
Indicated
|
|
519.76
|
|
0.75
|
|
|
|
|
|
|
|
|
|
Inferred
|
|
162.02
|
|
0.50
|
|
|
Don
Mario
|
|
3.0%
NSR
|
|
Orvana
|
|
Bolivia,
|
|
Measured
|
|
1.86
|
|
1.25
|
|
|
|
|
|
|
|
Chiquitos
Province
|
|
Indicated
|
|
4.98
|
|
1.30
|
|
|
|
|
|
|
|
|
|
Inferred
|
|
0.35
|
|
1.19
|
|
|
El
Toqui
|
|
1.0 -
3.0% NSR 22
|
|
Breakwater
|
|
Chile,
Region XI
|
|
Measured
and Indicated
|
|
1.46
|
|
0.40
|
|
|
|
|
|
|
|
|
|
Inferred
|
|
3.91
|
|
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Martha
|
|
2.0%
NSR
|
|
Coeur
d'Alene
|
|
Argentina,
|
|
Measured
|
|
0.01
|
|
90.70
|
|
|
|
|
|
|
|
Santa
Cruz
|
|
Indicated
|
|
0.02
|
|
51.00
|
|
|
|
|
|
|
|
|
|
Inferred
|
|
0.02
|
|
6.76
|
|
|
Balcooma
26
|
|
1.5%
NSR
|
|
Kagara
|
|
Australia,
|
|
Measured
|
|
0.00
|
|
0.00
|
|
|
|
|
|
|
|
Queensland
|
|
Indicated
|
|
1.45
|
|
0.95
|
|
|
|
|
|
|
|
|
|
Inferred
|
|
0.63
|
|
1.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 2 (cont.)
Royal Gold's Royalty Portfolio
Base Metals Additional Mineralized
Material 40, 41, 42
as of December 31, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COPPER
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY
|
|
ROYALTY 6
|
|
OPERATOR
|
|
LOCATION
|
|
ADDITIONAL
MINERALIZED
MATERIAL
|
|
TONS
OF
MATERIAL
(millions)
|
|
AVERAGE
GRADE
(% Cu)
|
|
Robinson
43
|
|
3.0%
NSR
|
|
Quadra
FNX
|
|
USA,
Nevada
|
|
Measured
|
|
617.60
|
|
0.44
|
|
(includes
reserves)
|
|
|
|
|
|
|
|
Indicated
|
|
145.90
|
|
0.30
|
|
|
|
|
|
|
|
|
Inferred
|
|
42.10
|
|
0.26
|
|
Troy
|
|
2.0%
GSR
|
|
Revett
|
|
USA,
Montana
|
|
Measured
|
|
38.26
|
|
0.71
|
|
(DEV)
|
|
|
|
|
|
|
|
Indicated
|
|
10.93
|
|
0.41
|
|
|
|
|
|
|
|
|
Inferred
|
|
-
|
|
-
|
|
Caber
|
|
1.0%
NSR
|
|
Breakwater
|
|
Canada,
Quebec
|
|
Measured
|
|
-
|
|
-
|
|
(DEV)
|
|
|
|
|
|
|
|
Indicated
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
Inferred
|
|
3.07
|
|
1.57
|
|
Don
Mario
|
|
3.0%
NSR
|
|
Orvana
|
|
Bolivia,
|
|
Measured
|
|
1.86
|
|
1.26
|
|
|
|
|
|
|
Chiquitos
Province
|
|
Indicated
|
|
4.98
|
|
1.49
|
|
|
|
|
|
|
|
|
Inferred
|
|
0.35
|
|
1.63
|
|
Balcooma
26
|
|
1.5%
NSR
|
|
Kagara
|
|
Australia,
|
|
Measured
|
|
0.00
|
|
0.00
|
|
|
|
|
|
|
Queensland
|
|
Indicated
|
|
1.45
|
|
1.65
|
|
|
|
|
|
|
|
|
Inferred
|
|
0.63
|
|
0.90
|
|
LEAD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL
|
|
TONS
OF
|
|
AVERAGE
|
|
|
|
|
|
|
|
|
MINERALIZED
|
|
MATERIAL
|
|
GRADE
|
|
PROPERTY
|
|
ROYALTY
6
|
|
OPERATOR
|
|
LOCATION
|
|
MATERIAL
|
|
(millions)
|
|
(%
Pb)
|
|
Peñasquito
20
|
|
2.0%
NSR
|
|
Goldcorp
|
|
Mexico,
Zacatecas
|
|
Measured
|
|
519.76
|
|
0.26
|
|
(Sulfide)
|
|
|
|
|
|
|
|
Indicated
|
|
0.00
|
|
0.00
|
|
|
|
|
|
|
|
|
Inferred
|
|
162.02
|
|
0.24
|
|
El
Toqui
|
|
1.0 -
3.0% NSR
|
|
Breakwater
|
|
Chile,
Region XI
|
|
Measured
and Indicated
|
|
1.46
|
|
0.50
|
|
|
|
|
|
|
|
|
Inferred
|
|
3.91
|
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balcooma
26
|
|
1.5%
NSR
|
|
Kagara
|
|
Australia,
|
|
Measured
|
|
0.00
|
|
0.00
|
|
|
|
|
|
|
Queensland
|
|
Indicated
|
|
1.45
|
|
2.16
|
|
|
|
|
|
|
|
|
Inferred
|
|
0.63
|
|
2.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 2 (cont.)
Royal Gold's Royalty Portfolio
Base Metals Additional Mineralized
Material 40,41,42
As of December 31, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mines are in production unless noted as
development ('DEV')
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ZINC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL
|
|
TONS
OF
|
|
AVERAGE
|
|
|
|
|
|
|
|
|
MINERALIZED
|
|
MATERIAL
|
|
GRADE
|
|
PROPERTY
|
|
ROYALTY
6
|
|
OPERATOR
|
|
LOCATION
|
|
MATERIAL
|
|
(millions)
|
|
(%
Zn)
|
|
Caber
|
|
1.0%
NSR
|
|
Breakwater
|
|
Canada,
Quebec
|
|
Measured
|
|
-
|
|
-
|
|
(DEV)
|
|
|
|
|
|
|
|
Indicated
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
Inferred
|
|
3.07
|
|
4.52
|
|
Peñasquito
20
|
|
2.0%
NSR
|
|
Goldcorp
|
|
Mexico,
Zacatecas
|
|
Measured
|
|
519.76
|
|
0.87
|
|
(Sulfide)
|
|
|
|
|
|
|
|
Indicated
|
|
0.00
|
|
0.00
|
|
|
|
|
|
|
|
|
Inferred
|
|
162.02
|
|
0.50
|
|
El
Toqui
|
|
1.0 -
3.0% NSR 22
|
|
Breakwater
|
|
Chile,
Region XI
|
|
Measured
and Indicated
|
|
1.46
|
|
10.41
|
|
|
|
|
|
|
|
|
Inferred
|
|
3.91
|
|
7.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balcooma
26
|
|
1.5%
NSR
|
|
Kagara
|
|
Australia,
|
|
Measured
|
|
0.00
|
|
0.00
|
|
|
|
|
|
|
Queensland
|
|
Indicated
|
|
1.45
|
|
4.59
|
|
|
|
|
|
|
|
|
Inferred
|
|
0.63
|
|
6.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NICKEL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY
|
|
ROYALTY 6
|
|
OPERATOR
|
|
LOCATION
|
|
ADDITIONAL
MINERALIZED
MATERIAL
|
|
TONS
OF
MATERIAL
(millions)
|
|
AVERAGE
GRADE
(% Ni)
|
|
Avebury
|
|
2.0%
NSR
|
|
Metals
and Mines Group
|
|
Australia,
Tasmania
|
|
Inferred
|
|
13.56
|
|
0.93
|
|
(DEV)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 3
Royal Gold's Royalty Portfolio
Calendar Year 2010 Production Estimates
46
|
|
|
ROYALTY
|
|
OPERATOR
|
|
METAL
|
|
PRODUCTION
|
|
UNITED
STATES
|
|
Cortez
- GSR1 and GSR2
|
|
Barrick
|
|
Gold
|
|
241,268
oz
|
|
Cortez
- GSR3
|
|
Barrick
|
|
Gold
|
|
241,268
oz
|
|
Cortez
- NVR1
|
|
Barrick
|
|
Gold
|
|
187,656
oz
|
|
Goldstrike
(SJ Claims)
|
|
Barrick
|
|
Gold
|
|
464,684
oz
|
|
Leeville
|
|
Newmont
|
|
Gold
|
|
428,592
oz
|
|
Robinson
47
|
|
Quadra
FNX
|
|
Gold
|
|
80,000
oz
|
|
Robinson
47
|
|
Quadra
FNX
|
|
Copper
|
|
135
million lbs
|
|
Troy 48
|
|
Revett
|
|
Silver
|
|
645,250
oz 49
|
|
Troy 48
|
|
Revett
|
|
Copper
|
|
5.4
million lbs 49
|
|
Twin
Creeks
|
|
Newmont
|
|
Gold
|
|
18,300
oz
|
|
Wharf
|
|
Goldcorp
|
|
Gold
|
|
65,000
oz
|
|
CANADA
|
|
Williams
|
|
Barrick
|
|
Gold
|
|
74,650
oz
|
|
MEXICO
|
|
Dolores
|
|
Minefinders
|
|
Gold
|
|
91,000
– 100,500 oz
|
|
Dolores
|
|
Minefinders
|
|
Silver
|
|
2.3
– 2.6 million oz
|
|
El
Chanate
|
|
Capital
Gold
|
|
Gold
|
|
60,000
oz
|
|
Mulatos
|
|
Alamos
|
|
Gold
|
|
160,000
– 175,000 oz
|
|
Peñasquito
|
|
Goldcorp
|
|
Gold
|
|
180,000
oz
|
|
Peñasquito
|
|
Goldcorp
|
|
Silver
|
|
13.4
million oz
|
|
Peñasquito
48
|
|
Goldcorp
|
|
Lead
|
|
107
million lbs
|
|
Peñasquito
48
|
|
Goldcorp
|
|
Zinc
|
|
135
million lbs
|
|
|
|
|
|
|
|
|
TABLE 3 (cont.)
Royal Gold's Royalty Portfolio
Calendar Year 2010 Production Estimates
46
|
|
|
|
|
|
|
|
|
ROYALTY
|
|
OPERATOR
|
|
METAL
|
|
PRODUCTION
|
|
CENTRAL
AND SOUTH AMERICA
|
|
Andacollo
50
|
|
Teck
|
|
Gold
|
|
30,900
oz
|
|
Don
Mario
|
|
Orvana
|
|
Gold
|
|
27,000
oz
|
|
El
Limon
|
|
B2Gold
|
|
Gold
|
|
40,000
oz
|
|
El
Toqui 48
|
|
Breakwater
|
|
Gold
|
|
35,000
oz
|
|
El
Toqui 48
|
|
Breakwater
|
|
Silver
|
|
83,000
oz
|
|
El
Toqui 48
|
|
Breakwater
|
|
Lead
|
|
1.3
million lbs
|
|
El
Toqui 48
|
|
Breakwater
|
|
Zinc
|
|
50.7
million lbs
|
|
AUSTRALIA
|
|
Gwalia
Deeps
|
|
St
Barbara
|
|
Gold
|
|
102,500
oz
|
|
South Laverton
|
|
Saracen
|
|
Gold
|
|
100,000 - 120,000 oz
|
|
Southern
Cross
|
|
St
Barbara
|
|
Gold
|
|
120,000
oz
|
|
AFRICA
|
|
Inata
|
|
Avocet
|
|
Gold
|
|
100,000
oz
|
|
Siguiri
|
|
Anglogold
Ashanti
|
|
Gold
|
|
301,500
oz
|
|
Taparko
|
|
High
River
|
|
Gold
|
|
137,000 oz
|
|
EUROPE
|
|
Las
Cruces
|
|
Inmet
|
|
Copper
|
|
161
million lbs
|
FOOTNOTES TO TABLES
|
1
|
|
Set forth below are the definitions of proven and
probable reserves used by the U.S. Securities and Exchange Commission.
|
|
|
|
|
|
'Reserve' is that part of a mineral deposit which
could be economically and legally extracted or produced at the time of
the reserve determination.
|
|
|
|
|
|
'Proven (Measured) Reserves' are reserves for which
(a) quantity is computed from dimensions revealed in outcrops, trenches,
workings or drill holes, and the grade is computed from the results of
detailed sampling, and (b) the sites for inspection, sampling and
measurement are spaced so closely and the geologic character is so well
defined that the size, shape, depth and mineral content of the reserves
are well established.
|
|
|
|
|
|
'Probable (Indicated) Reserves' are reserves for
which the quantity and grade are computed from information similar to
that used for proven (measured) reserves, but the sites for inspection,
sampling and measurement are farther apart or are otherwise less
adequately spaced. The degree of assurance of probable (indicated)
reserves, although lower than that for proven (measured) reserves, is
high enough to assume geological continuity between points of
observation.
|
|
|
|
|
2
|
|
Royal Gold has disclosed a number of reserve
estimates that are provided by royalty operators that are foreign issuers
and are not based on the U.S. Securities and Exchange Commission's
definitions for proven and probable reserves. For Canadian issuers,
definitions of "mineral reserve," "proven mineral
reserve," and "probable mineral reserve" conform to the
Canadian Institute of Mining, Metallurgy and Petroleum definitions of
these terms as of the effective date of estimation as required by
National Instrument 43-101 of the Canadian Securities Administrators. For
Australian issuers, definitions of "mineral reserve,"
"proven mineral reserve," and "probable mineral reserve"
conform with the Australasian Code for Reporting of Mineral Resources and
Ore Reserves prepared by the Joint Ore Reserves Committee of the
Australasian Institute of Mining and Metallurgy, Australian Institute of
Geoscientists and Minerals Council of Australia, as amended ("JORC
Code").
|
|
|
|
|
3
|
|
The reserves reported are either estimates received
by the various operators or are based on royalty documentation material
provided to Royal Gold or which is derived from recent publicly-available
information from the operators of the various properties or various
recent National Instrument 43-101 or JORC Code reports filed by
operators. Accordingly, Royal Gold is not able to reconcile the reserve
estimates prepared in reliance on National Instrument 43-101 or JORC Code
with definitions of the U.S. Securities and Exchange Commission.
|
|
|
|
|
4
|
|
Reserves have been reported by the operators as of
December 31, 2009, with the exception of the following properties: El
Chanate – October 2009; Balcooma, Gwalia, South Laverton, and
Southern Cross – June 2009; Inata – March 2009; Canadian
Malartic, Dolores, Gold Hill, Holt and Pascua-Lama – December 2008;
Schaft Creek – September 2008; Soledad Mountain – December
2007; Wolverine – October 2007; and Pine Cove – March 2005.
|
|
|
|
|
5
|
|
Gold reserves were calculated by the operators at
the following per ounce prices: $950 – Martha; $825 – Bald
Mountain, Cortez, Goldstrike, Marigold, Peñasquito and Wharf; $800
– El Chanate, Leeville, Mulatos, Robinson, Twin Creeks, Siquiri and
Taparko; $775 – Canadian Malartic and Holt; $750 –
Pascua-Lama and Williams; $725 – Gold Hill; $700 – El Toqui;
$600 – Dolores, Soledad Mountain and Wolverine; $550 – El
Limon and Inata; $500 – Andacollo; and $425 – Pine Cove. For
Gwalia Deeps and Southern Cross, a price of A$1,075 was used for St.
Barbara's 2010 fiscal year and A$850 per ounce thereafter; $A1,250
– South Laverton. Schaft Creek is at a $5.05 net smelter return cut-off
grade (metal price assumptions used by the operator were $658 per ounce
gold; $10.00 per ounce silver; and $1.93 per pound copper). No gold price
was reported for Balcooma, Meekatharra (Paddy's Flat) or Meekatharra
(Yaloginda).
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6
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See royalty definitions on page 24.
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7
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'Contained ounces' or 'contained pounds' do not
take into account recovery losses in processing the ore.
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8
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The operators at Avebury, Bald Mountain, Canadian
Malartic, Dolores, El Limon, Goldstrike, Marigold and Mt. Goode did not
provide a breakdown of proven and probable reserves.
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9
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The sliding-scale moves up 0.25% for each $25 per
ounce of gold price increase, starting at a per-ounce price of $375,
inflated by the Producer Price Index commencing in 1986.
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10
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NRS sliding-scale schedule (price of gold per ounce
– royalty rate): Below $210 – 0.40%; $210 to $229.99 –
0.50%; $230 to $249.99 – 0.75%; $250 to $269.99 – 1.30%; $270
to $309.99 – 2.25%; $310 to $329.99 – 2.60%; $330 to $349.00 –
3.00%; $350 to $369.99 – 3.75%; $390 to $409.99 – 4.0%; $410
to $429.99 – 4.25%; $430 to $449.99 – 4.50%; $450 to $469.99
– 4.75%; $470 and higher – 5.00%.
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11
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NVR1 and GSR3 reserves and additional mineralized
material are subsets of the reserves and additional mineralized material
covered by GSR1 and GSR2.
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12
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The sliding-scale NSR royalty will pay 2.0% when
the price of gold is above $350 per ounce and 1.0% when the price of gold
falls to $350 per ounce or below. The 0.9% NSR applies to the MACE
claims. The operator did not report reserves subject to the 0.9% NSR.
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13
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The 2.0% NSR royalty interest covers the majority
of six sections of land, containing a number of open pits, but does not
cover the current mining in the Basalt/Antler area.
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14
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NSR sliding-scale schedule (price of gold per ounce
– royalty rate): $0.00 to under $350 – 0.0%; $350 to under
$400 – 0.5%; $400 to under $500 – 1.0%; $500 or higher
– 2.0%.
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15
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Royalty is subject to a buy down right of $1.0 to
$1.5 million depending on the price of gold, exercisable at any time, for
one-half of the royalty. NSR sliding-scale schedule (price of gold per
ounce – royalty rate): $0.00 to $350 – 2.0%; above $350
– 3.0%.
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16
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In November 2008, the operator made application to
a court in Ontario, Canada for a declaration that it is not obligated to
pay the entire royalty defined under the royalty agreement and to dispute
the royalty rate. The operator claims that its predecessor in interest is
responsible for payment of some or all of the royalty. On July 23, 2009,
the Court held that Royal Gold is entitled to payment from the
predecessor of the full amount of the NSR sliding-scale royalty and that
the operator's obligation is to reimburse the predecessor for payment of
the royalty up to a flat rate of 0.013% NSR. On August 21, 2009, the
predecessor appealed the portion of the judgment holding them responsible
for paying the royalty.
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17
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Gold royalty rate is based on the price of silver
per ounce. NSR sliding-scale schedule (price of silver per ounce –
royalty rate): Below $5.00 – 0.0%; $5.00 to $7.50 – 3.778%;
>$7.50 – 9.445%.
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18
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The NSR sliding-scale royalty is capped once
payments of approximately $17 million have been received. As of March 31,
2010, payments of $3.9 million for the sliding-scale NSR royalty have
been recognized.
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19
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The Company's royalty is subject to a 2.0 million
ounce cap on gold production. There have been approximately 548,000
ounces of cumulative production, as of March 31, 2010. NSR sliding-scale
schedule (price of gold per ounce – royalty rate): $0.00 to $299.99
– 1.0%; $300 to $324.99 – 1.50%; $325 to $349.99 –
2.0%; $350 to $374.99 – 3.0%; $375 to $399.99 – 4.0%; $400 or
higher – 5.0%.
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20
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Operator reports reserves by material type. The
sulfide material will be processed by milling. The oxide material will be
processed by heap leaching.
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21
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The royalty rate is 75% until 910,000 payable
ounces of gold have been produced – 50% thereafter. Gold is
produced as a by-product of copper.
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22
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NSR sliding-scale schedule (price of zinc per ounce
– royalty rate): Below $0.50 – 0.0%; $0.50 to below $0.55
– 1.0%; $0.55 to below $0.60 – 2.0%; $0.60 or higher –
3.0%. Gold is produced as a by-product of zinc.
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23
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Royalty applies to all gold production from an area
of interest in Chile. Only that portion of the reserves pertaining to our
royalty interest in Chile is reflected here.
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24
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Royalty rate increased due to acquisition of a
0.25% NSR royalty from a private individual.
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25
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Approximately 74% of the royalty is limited to the
first 14.0M ounces of gold produced from the project. Also, 30% of the
royalty can be extended beyond 14.0M ounces for $6.4 million. In
addition, a one-time payment totaling $4.0M will be made if gold prices
exceed $550 per ounces for any six-month period within the first 36
months after commercial production and an additional payment totaling
$6.4M if gold prices exceed $600 per ounces for any six-month period
within the first 36 months after commercial production.
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26
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Figures reflect reserves associated with the entire
property. The operator did not provide a detailed breakdown of the
reserves and additional mineralized material subject to Royal Gold's
royalty interest. Therefore, a portion of the reserves is not subject to
Royal Gold's royalty interest.
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27
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TheA$10 per ounce royalty applies on production
above 50,000 ounces.
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28
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The royalty is capped on a dollar basis once
payments of approximately $12.0M have been received. As of March 31,
2010, approximately $3.4 million remains under the cap. NSR sliding-scale
schedule (price of gold per ounce – royalty rate as of 3/31/10):
$0.00 to $495.71 – 0.0%; $495.72 to $566.54 – 0.625%; $566.55
to $601.94 – 0.875%; $601.95 to $637.35 – 1.125%; $637.36 to
$672.76 – 1.50%; $672.77 and above – 1.875%. The
sliding-scale schedule is adjusted based on the average of the United
States, Australian and Canadian Consumer Price Indices on annual basis.
The most current rate available is reflected herein.
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29
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Royalty percentages: TB-GSR1 - 15.0%; TB-GSR2 -
4.3% when the average monthly gold price ranges between $385 and $430 per
ounce. Outside of this range, the royalty rate is calculated by dividing
the average monthly gold price by 100 for gold prices above $430 per
ounce (with a 10% cap), or by dividing the average monthly gold price by
90 for gold prices below $385 per ounce (e.g., a $900 per ounce gold
price results in a rate of 900/100 = 9.0%). Two subsequent royalties
consist of a 2.0% GSR perpetual royalty ('TB-GSR3'), applicable to gold
production from defined portions of the Taparko-Bouroum project area, and
a 0.75% GSR milling royalty ('TB-MR1'). The TB-MR1 royalty applies to ore
that is mined outside of the defined area of the Taparko-Bouroum project
that is processed through the Taparko facilities up to a maximum of 1.1
million tons per year. Both the TB-GSR3 and TB-MR1 royalties commence
once TB-GSR1 and TB-GSR2 have ceased. Both TB-GSR1 and TB-GSR2 continue
until either production reaches 804,420 ounces of gold, or payments
totaling $35 million under TB-GSR1 are received, whichever comes first.
As of March 31, 2010, Royal Gold has cumulatively recognized
approximately $24.9 million in royalty revenue under TB-GSR1 that is
attributable to cumulative production of approximately 171,000 ounces of
gold.
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30
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Due to the royalty structure at the Taparko mine,
reserves are not broken down into proven and probable.
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31
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TB-GSR1 and TB-GSR2 royalties are subject to the
same reserve.
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32
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The reserves at Taparko have been adjusted by Royal
Gold based on actual 2009 depletion and on the operator's reserve gold
price assumption of $800 per ounce, to reflect the $35 million cap on the
TB-GSR1 royalty. Upon meeting this cap, both the TB-GSR1 and TB-GSR2 royalties
cease and the TB-GSR3 royalty becomes effective. The TB-GSR3 reserves
represent the remaining reserves after subtracting the reserves
associated with TB-GSR1 and TB-GSR2.
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33
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Silver reserves were calculated by the operators at
the following prices per ounce: $16.00 – Martha; $13.00 –
Peñasquito; $12.55 – El Toqui; $12.33 – Troy; $12.00
– Soledad Mountain; and $10.00 – Dolores and Wolverine. Shaft
Creek is at a $5.05 net smelter return cut-off grade (metal price
assumptions used by the operator were $658 per ounce gold; $10.00 per
ounce silver; and $1.93 per pound copper). No silver price is available
for Balcooma. Don Mario additional mineralized material was calculated at
a silver price of $11.00 per ounce.
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34
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Copper reserves were calculated by the operators at
the following prices per pound: $2.91 or lower – Voisey's Bay;
$2.67 – Troy; $2.00 – Robinson and Las Cruces; $1.50 – Johnson
Camp. Shaft Creek is at a $5.05 net smelter return cut-off grade (metal
price assumptions used by the operator were $658 per ounce gold; $10.00
per ounce silver; and $1.93 per pound copper). No copper price is
available for Balcooma or Caber. Don Mario additional mineralized
material was calculated at a copper price of $2.25 per pound.
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35
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Lead reserves were calculated by the operators at
the following price per pound: $0.83 – El Toqui and $0.60 –
Peñasquito. No lead price is available for Balcooma.
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36
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Zinc reserves were calculated by the operators at
the following price per pound: $1.00 – El Toqui; and $0.80 –
Peñasquito. No zinc price is available for Balcooma or Caber.
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37
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Nickel reserve price was calculated by the operator
at Voisey's Bay mine at $11.01 or lower per pound. No nickel reserve
price is available for Avebury or Mt. Goode.
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38
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The operator does not report reserves by property
in Australia. Therefore, a portion of the reserves is not subject to
Royal Gold's royalty interest.
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39
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Cobalt reserve price was calculated by the operator
at $22.70 or lower per pound.
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40
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Mineralized material is that part of a mineral
system that has potential economic significance but cannot be included in
the proven and probable ore reserve estimates until further drilling and
metallurgical work is completed, and until other economic and technical feasibility
factors based upon such work have been resolved. The U.S. Securities and
Exchange Commission does not recognize this term. Investors are cautioned
not to assume that any part or all of the mineral deposits in these
categories will ever be converted into reserves.
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41
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Some of the royalty operators are Canadian and
Australian issuers. Canadian and Australian issuers use the terms
"mineral resources" and its subcategories "measured,"
"indicated" and "inferred" mineral resources. For Canadian
issuers, the definitions of "mineral resource," "measured
mineral resource," "indicated mineral resource" and
"inferred mineral resource" conform to the Canadian Institute
of Mining, Metallurgy and Petroleum definitions of those terms as of the
effective date of estimation, as required by National Instrument 43-101
of the Canadian Securities Administrators. For Australian issuers, the
definitions of "mineral resource," "measured mineral
resource," "indicated mineral resource" and "inferred
mineral resource" conform with the JORC Code. While such terms are
recognized and required by Canadian and Australian regulations, the U.S.
Securities and Exchange Commission does not recognize them. In each case,
the mineralized material reported hereunder are estimates previously
disclosed by the relevant operator, without reference to the underlying
data used to calculate the estimates. Accordingly, Royal Gold is not able
to reconcile the estimates prepared in reliance on National Instrument
43-101 or JORC Code with terms recognized by the U.S. Securities and
Exchange Commission. Investors are cautioned not to assume that any part
or all of the mineral deposits in these categories will ever be converted
into reserves.
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42
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The additional mineralized material reported are
either estimates received by the various operators or are based on
royalty documentation material provided to Royal Gold or which is derived
from recent publicly-available information from the operators of the
various properties or various recent National Instrument 43-101 or JORC
Code reports filed by operators. Accordingly, Royal Gold is not able to
reconcile the resource estimates prepared in reliance on National
Instrument 43-101 or JORC Code with definitions of the U.S. Securities
and Exchange Commission.
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43
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Additional mineralized material estimates include
reserves at the request of the operator.
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44
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The additional mineralized material numbers have
not been updated since the last reserve report in December 2008.
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45
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Reedys Burnakura sliding-scale royalty applies to
cumulative production above 300,000 ounces. Once 300,000 ounces have been
produced, the royalty rate is a 1.5% NSR for the first 75,000 ounces per
year and a 2.5% NSR above 75,000 ounces per year.
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46
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The estimates and production reports are prepared
by the operators of the mining properties. Royal Gold does not
participate in the preparation or verification of the operators'
estimates or production reports and has not independently assessed or
verified the accuracy of such information. Please refer to our cautionary
statement regarding forward-looking statements and to the risk factors
identified in our Annual Report on Form 10-K and our other filings with
the Securities and Exchange Commission for information regarding factors
that could affect actual results.
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47
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Recovered metal is contained in concentrate and is
subject to third party treatment charges and recovery losses.
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48
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Recovered metal is contained in concentrate and is
subject to third party recovery losses.
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49
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Royalty will take effect on July 1, 2010;
production estimate is for July 1, 2010 through December 31, 2010 period.
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50
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2010 Teck mine production forecast adjusted to
account for an estimated 61% concentrate recovery and a 90.6% smelter
recovery.
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NOTES:
Lluvia de Oro –The various parties claiming
interest in the mining concessions subject to this royalty have disputed
any royalty obligation.
The operators at Bundarra, Don Mario, Reedys
Burnakura and Relief Canyon do not report reserve information, only additional
mineralized material.
Additional mineralized material was not reported by
the operators for the following properties: Canadian Malartic, Gold Hill,
Las Cruces, Leeville, Marigold, Mt. Goode or Voisey's Bay.
No reserves, additional mineralized material or
production are reported for the following properties: Allan, Koolanooka,
Lagerquist, Legacy, Lluvia de Oro, Pederson, Rambler North, Skyline,
Tambor, Tarmoola and Wheeler.
The operators for Balcooma, Bald Mountain, Johnson
Camp, Martha, Mt. Goode and Voisey's Bay did not provide annual production
information.
ROYALTY DEFINITIONS
The Company's royalty portfolio contains several different types of
royalties which are defined as follows:
Royalty - the right to receive a
percentage or other denomination of mineral production from a resource
extraction operation.
Gross Smelter Return ('GSR') Royalty-
a defined percentage of the gross revenue from a resource extraction
operation, less, if applicable, certain contract-defined costs paid by or
charged to the operator.
Net Smelter Return ('NSR') Royalty-
a defined percentage of the gross revenue from a resource extraction
operation, less a proportionate share of incidental transportation,
insurance, refining and smelting costs.
Net Value Royalty ('NVR') - a
defined percentage of the gross revenue from a resource extraction
operation, less certain contract-defined transportation costs, milling
costs and taxes.
Net Profits Interest Royalty ('NPI')
- a defined percentage of the gross revenue from a resource extraction
operation, after recovery of certain contract-defined pre-production costs,
and after deduction of certain contract-defined mining, milling,
processing, transportation, administrative, marketing and other costs.
Gross Proceeds Royalty ('GPR') - a
royalty in which payments are made on contained ounces rather than
recovered ounces.
Royal Gold, Inc.
Karen Gross, 303-575-6504
Vice President and Corporate Secretary
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