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Amapa Iron Ore Mine
The Group owns a 1.0% GRR covering iron ore within the Amapá Iron Ore System, operated by Anglo American PLC, in the Amapá region of northern Brazil. The Amapá Iron Ore System is majority owned by Anglo American PLC (70%), with Cliff Natural Resources Inc. owning the remaining 30%. Based on Anglo American PLC's disclosures the Amapá Iron Ore System commenced initial production in 2008 and started commercial production on January 1, 2010. Anglo American PLC expects to produce 4.0Mt of sinter feed and pellet feed in 2010 from the Amapá Iron Ore System and could increase production to 6.5Mt per annum with further capital investment. The Group also owns a 1.0% GRR on iron ore on Beadell Resources Limited's adjacent mining concessions and exploration tenements which cover approximately 2,500 square kilometers and considered prospective by the Group for iron ore.
Jogjakarta Iron Sands Project
The Company owns a 2% NSR interest (in the form of an interest-bearing convertible debenture) in the developmental Jogjakarta Iron Sands project, located in Indonesia and operated by Indo Mines Limited ("Indo"). The NSR reduces to 1% after repayment of the principal amount of the debenture if at the time liquid iron prices are below US$700 per tonne. The mine is located approximately 30km from the major city of Jogjakarta, Indonesia. The project centres on a 22km long by 1.8km wide stretch of beach between the Kulon Progo and Serang Rivers. In November 2008, Indo signed a Contract of Work with the Indonesian Government to develop the mine which provides for certain rights over the property and agreed guidelines for the development and operation of the project. On March 23, 2009 Indo announced the results of a scoping study conducted by ProMet Engineers Pty Ltd and announced that a feasibility study is currently being conducted.
Isua Iron Ore Project
The Group owns a 1% GRR over on London Mining PLC's ("London Mining") Isua iron ore project in Greenland. The royalty agreement contains a number of trigger events, the occurrence of which will allow the Group to convert the royalty back into the US$30 million consideration, the satisfaction of which can be in cash or London Mining shares at London Mining's election. Trigger events include a failure to fulfil certain milestones, including the completion of a bankable feasibility study by 31 December 2012 and obtaining an exploitation licence by 31 December 2013. London Mining has commenced work on a feasibility study for the Isua project based on a 15Mtpa open pit and processing operation with a 15-year initial mine life. Production is targeted for 2015.
Railway Deposit
In 2010 the Group also acquired a 1.5% GRR covering three exploration licences in the central Pilbara region of Western Australia. The tenements, covering 263 square kilometres, are owned by a wholly owned subsidiary of BHP Billiton Limited and host a number of known iron occurrences, the most significant being the Railway deposit. The tenements are supported by extensive rail infrastructure including the rail lines from Rio Tinto's West Angelas and Yandicoogina mines and BHP Billiton's rail line serving its current operations at Mining Area C, which lies immediately to the east of the Railway deposit. United Minerals Corporation NL explored the tenements during the period between 2007 to 2010 and subsequent to the announcement of a resource was acquired by BHP Billiton Limited.
Four Mile Uranium Project
The Company owns a 1% NSR interest in the developing Four Mile uranium mine located 550km north of Adelaide in South Australia and operated by a joint venture of Quasar (75% owner) and Alliance Resources Limited ("Alliance", 25% owner). The Four Mile uranium deposit, discovered in 2005, is a sandstone-hosted occurrence defined by two mineralised zones within Tertiary age sediments: Four Mile West and Four Mile East, which occur within laterally extensive, reduced sands and silty sands below the water table at 140 to 210m depth. Approval for the mine was granted by the Australian government in July 2009. On January 27, 2010 Alliance released an updated resource statement for the project.
Salamanca Uranium Project
The Company owns a 1% NSR interest in the developmental Salamanca uranium project located in Spain and operated by Berkeley Resources Limited ("Berkeley"). The project is located in Salamanca Province, Spain, approximately 250km west of Madrid, near the Portuguese border. The project comprises a number of State Reserve licences and a uranium processing plant, presently owned by ENUSA, a Spanish state uranium company, as well as Berkeley's tenement holdings in the area. Berkeley has agreed to acquire a 90% interest in the ENUSA assets after completion of a feasibility study on the project. Following shareholder approval in January 2009, Berkeley entered a Co-operation Agreement with ENUSA pursuant to which Berkeley will undertake a feasibility study. On March 30, 2010, Berkeley released an updated resource statement and has announced that a feasibility study is currently being conducted.
Advance Royalty Corporation Royalties
The Company holds the royalty rights to a number of mineral exploration tenures in the Athabasca Basin, Canada. The Athabasca Basin is considered by management of the Company to be highly prospective for uranium exploration and production and currently hosts large, high grade uranium mines and deposits. The properties covered by the royalty interests are operated by Magnum Uranium Corp. and Bayswater Ventures Corp.
El Valle and Carles Project
The Company owns a 2.5% NSR interest (in the form of a convertible debenture), escalating to 3% for gold prices in excess of US$1,100 per ounce, in the developing El Valle and Carles gold and copper mines located in Spain and operated by Orvana Minerals Corp ("Orvana"). The mines are located in the Rio Narcea Gold Belt in Northern Spain, near the port city of Avilés. Orvana acquired the mines in September 2009 through the purchase of Kinbauri Gold Corp. The project has a plant and a mill with 750,000 tonnes per year capacity as well as extensive infrastructure. Orvana published an update on the development progress of the El Valle and Carles project on February 17, 2010 and an updated resource statement for the project on March 5, 2010. Commissioning of the plant commenced in June 2011.
Engenho Gold Mine
The Company owns a 2.5% NSR interest (in the form of an interest-bearing convertible debenture) in the producing Engenho gold mine located in Brazil, operated by Mundo Minerals Limited ("Mundo"). The mine is located approximately 70km north east of Belo Horizonte, Brazil's third largest city. The current producing Engenho resource is located on an area of 11ha, with a broader tenement owned by Mundo covering a total area of approximately 713ha (the "Engenho Project Area"). The main underground ore body is accessed through a modern decline development from the bottom of the existing open pit. Gold ore is processed and refined under contract at an external refinery. Initial gold bullion production began in June 2008 and the mine commenced full operations in November 2008. The Company's royalty interest applies to all production processed through the Enghenho mill facilities or produced from the Engenho Project Area. The first royalty payment relating to gold sales in the December 2008 quarter was received in January 2009.
Midway-McKenzie Break Projects
The Company owns a 2.5% NSR interest (in the form of an interest bearing convertible debenture), escalating to 2.75% for gold prices in excess of US$1,250 per ounce and reducing to 1.5% when production has exceeded 2 million ounces of gold if at that time the price of gold is below US$1,250 per ounce, in the developmental Midway-McKenzie Break projects. The projects are located in Quebec, Canada.
Duggan Option
The Group also owns an option to acquire a 2% royalty on Creso Exploration Inc's Duggan gold property in Ontario, Canada. Exploration work at this property is ongoing.
"Ring of Fire" Chromite Projects
The Group owns a 1% net smelter royalty interest in the Black Thor, Black Label and Big Daddy chromite deposits, owned and operated by Cliffs Natural Resources ("Cliffs"), in the Ring of Fire region of Northern Ontario, Canada. Cliffs is currently undertaking an environmental assessment for Black Thor as part of its project development plans, and once constructed anticipates the production of ore for both direct sale and integrated ferrochrome production. Cliffs has also announced a commitment to engage with First Nations communities affected by the development to ensure the creation of opportunities for enhanced social wellbeing and economic prospects for those communities.
Bulqiza-Batra Project
During the year the Group acquired a 3% GRR over the output from Empire Mining Corp's Bulqiza chromite project. Empire Mining Corp's Bulqiza Licence surrounds and extends from the past producing Bulqiza and Batra Mines and includes the eastern and western extensions of the Bulqiza-Batra chromite deposit.
Araguaia Option
During 2010 the Group also purchased an option to acquire a 1.5% NSR on the Araguaia nickel project which is located in the Carajas Mineral District of northern Brazil and owned by Horizonte Minerals PLC. The Araguaia Nickel Project comprises 11 licence applications across 73,000 hectares with eight significant mineralised zones.
Highbank and Eastbank Options
The Group also owns an option to acquire a 1% NSR on the Highbank Lake and Eastbank properties in Ontario, owned by Northern Shield Resources Inc.
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