Operator: Kinross Gold Corporation
Location: Alaska, United States
Royalty: 3% NSR (all metals) plus an incremental 28% NSR (silver only)
Term of Royalty: Life of Mine
The Manh Choh Project (formerly Peak Gold Project and, prior to that, Tetlin Gold Project) is located near Tok, Alaska, and is accessible by road from the Alaska Highway. The project is situated within the 2,732 square kilometer mineral lease with the Village of Tetlin. The Manh Choh Project is owned by a joint venture between Kinross Gold Corporation (“Kinross”) (70% operating interest) and Contango ORE, Inc. (30% interest).
In July 2022, Kinross announced that it was proceeding with development of the Manh Choh Project with the completion of a project Feasibility Study (FS). Kinross plans to truck the ore 400 kilometers to its Fort Knox facility and batch process through the existing mill and infrastructure. Manh Choh ore is expected to be 8 g/t, or approximately 10 times the current average mill grade at Fort Knox.
As of February 2024, Kinross reported that construction of the Manh Choh Project is essentially complete and first production is on schedule for the second half of 2024.
Royal Gold currently holds a 3.0% net smelter return (NSR) royalty on all metals produced from Manh Choh and an incremental 28% NSR on silver produced from Manh Choh.
Royal Gold received the incremental 28% NSR on silver as part of consideration for its divestiture of its 40% interest in Manh Choh in September 2020. Peak Gold, LLC retains the right to acquire 50% of the incremental 28% net smelter return royalty on silver for $4 million.