Royal Gold Extends Mount Milligan Mine Life to 2045

By Bobby Samwell • Friday, September 12 10:30 • Permanent Link

Royal Gold, Inc. has announced the results of a pre-feasibility study for the Mount Milligan mine in British Columbia, indicating a significant extension to the mine life by approximately 10 years, now reaching 2045. This extension is supported by the confirmation of the continuation of mineralization to the west of the current open pit and the construction of a second tailings storage facility in the first half of the 2030s.

The study also reveals an expected increase in process plant throughput by 10% in 2029, from 60,000 tonnes per day to approximately 66,300 tonnes per day, achieved through the upgrading of ball mill motors. This upgrade is also anticipated to bring about a modest improvement in gold and copper recoveries of about 1%.

Moreover, the average annual production from 2026 to 2042 is projected to be approximately 150,000 ounces of gold and 69 million pounds of copper, followed by the processing of low-grade stockpiles from 2043 to 2045. The study also shows a notable increase in gold and copper reserves, with a 56% increase in gold reserves and a 52% increase in copper reserves compared to figures reported at the end of 2024.

Additionally, the company has streamlined the path for permitting, with a decision by regulators expected in the first half of 2026 for the extension of operations through 2035, including the process plant throughput expansion. Permitting activities for a second tailings storage facility and other required authorizations are anticipated to begin in 2027.

Royal Gold's interests in Mount Milligan include the right to purchase 35% of the payable gold and 18.75% of the payable copper produced. In addition to the existing stream agreement, the company has an additional cost support agreement with Centerra Gold Inc., which defines triggers for cost support payments based on gold and copper deliveries.

Furthermore, Royal Gold holds a life of mine free cash flow interest of 5% of the cumulative free cash flow generated from Mount Milligan, with the potential to increase to 10% based on specific delivery thresholds. This interest is payable annually and is subject to certain conditions, including a negative free cash flow.

Today the company's shares have moved 1.62% to a price of $189.19. For the full picture, make sure to review ROYAL GOLD INC's 8-K report.

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