Operator: Newmont Corporation
Location: British Columbia, Canada
Royalty: 1.0% NSR (all metals)
Term of Royalty: Life of Mine
The Red Chris Mine is an operating open pit mine producing gold, copper and silver, and is located on the northern edge of the Skeena Mountains, approximately 1,700 kilometres north of Vancouver and 18 kilometres southeast of the town of Iskut in British Columbia, Canada. The mine is owned and operated by a joint venture (the “Red Chris JV”), which is owned 70% by Newmont Corporation (“Newmont”) and 30% by Imperial Metals Corporation, in which Newcrest is the operator. Newmont acquired its interest through the acquisition of Newcrest Mining Limited ("Newcrest") in November 2023, and Newcrest acquired its interest in the Red Chris mine in August 2019.
The Red Chris Mine is currently an open pit operation. Mining is conducted using conventional methods and a conventional truck and shovel fleet. The current plant consists of a SAG mill-ball mill-pebble crushing (SABC) comminution circuit housed in a single process building. The recovery circuit at the Red Chris process plant currently consists of a sequential flotation circuit to produce a saleable gold-bearing copper concentrate.
In 2021, Newcrest issued results of a Pre-Feasibility Study (PFS) for the transition from an open-pit to a large-scale block cave operation. The proposed mine plan uses technology conventional to block cave operations, including mine design and equipment. The PFS includes upgrades to the existing processing plant to treat underground ore at a throughput rate of 13.6 million tonnes per annum and, also considers the potential upside case with a throughput rate of 15 million tonnes per annum.
Royal Gold owns a 1.0% net smelter return (NSR) royalty on all metals produced from an area covering approximately 5,100 hectares which includes the currently known mineralization and prospective exploration areas of the Red Chris Mine. Royal Gold acquired the royalty on August 11, 2021 from Glencore Canada Corporation, a wholly owned subsidiary of Glencore International AG, for $165 million in cash.
Royalty payments are made annually within 90 days of the end of the calendar year, and Royal Gold is entitled to the full royalty payment for calendar 2021.