DENVER, Colo., April 11 /CNW/ -- ROYAL GOLD, INC.
(Nasdaq: RGLD; TSX: RGL), the leading precious metals royalty company, today
announced updated ore reserve and additional mineralization estimates and
production forecasts for its royalty properties in calendar year 2006. These
reserves, additional mineralization and production estimates are provided to
us by the operators of our royalty properties:
-- Pipeline Mining Complex - Barrick Gold Corporation;
-- Leeville project - Newmont Mining Corporation;
-- SJ Claims, Goldstrike mine - Barrick Gold Corporation;
-- Bald Mountain mine - Barrick Gold Corporation;
-- Troy mine - Revett Minerals Inc.;
-- Martha mine - Coeur d'Alene Mines Corporation;
-- Robinson mine - Quadra Mining Ltd.;
-- Mulatos mine - Alamos Gold, Inc.; and,
-- Taparko-Bouroum project - High River Gold Mines Ltd.
Stanley Dempsey, Chairman and Chief Executive Officer, commented, "We are
pleased to report an expanded reserve base for our royalty portfolio. This
increase reflects the effectiveness of our long-term growth strategy, the
strength of our portfolio of assets and the quality of the operators behind
these properties. Diversification of the Company's revenue stream will
position us well for sustained, long-term growth."
At the end of calendar 2005, total reserves subject to the Company's
royalty holdings include 29.1 million ounces of gold, 18.7 million ounces of
silver and 2.3 billion pounds of copper. This total reflects a net gain of
760,000 ounces of gold, 2.5 million ounces of silver, and 2.2 billion pounds
of copper, over the prior calendar year estimates. About 1.1 million ounces
of these reserves are subject to our GSR2 ("Super") royalty at the Pipeline
Mining Complex.
Following the property descriptions are Tables 1, 2, and 3 which display
royalty reserves, additional mineralization, and estimated calendar 2006
production related to Royal Gold's various royalty holdings as of December 31,
2005.
Royalty Profiles
Pipeline Mining Complex (Lander County, Nevada)
At the Pipeline Mining Complex, in Lander County, Nevada, the Company
holds two sliding-scale gross smelter return royalties ("GSR1" and "GSR2") and
a fixed-rate gross smelter return royalty ("GSR3"). A GSR royalty is a
defined percentage of the gross revenue from a resource extraction operation,
with no deduction for any costs paid by or charged to the operator. In
addition, the Company holds a net value royalty ("NVR1") at this complex.
This NVR is defined as a passive interest in a resource extraction operation
that is determined on the basis of deducting contract-defined processing-
related and associated capital costs, but not mining costs. The GSR1 royalty
covers the current mine footprint, and the GSR2 ("Super") royalty covers any
reserves that are developed on the claim block lying outside the current mine
footprint. The GSR2 royalty pays out at a rate that is 80% higher than that
of GSR1, at all gold prices. The GSR3 royalty rate is fixed at 0.71% for the
life of the mine. The 0.39% NVR1 royalty covers production from the GAS
Claims, an area of interest of approximately 4,000 acres that includes the
South Pipeline deposit and Crossroads area, but not including the Pipeline
deposit. Current production from the Pipeline Mining Complex is subject to
GSR1, GSR3 and NVR1 royalties.
The Pipeline Mining Complex is owned by the Cortez Joint Venture
("Cortez"), a joint venture between Barrick Gold Corporation (60%), the
world's largest gold producer, and Kennecott Explorations (Australia) Ltd.
(40%), a subsidiary of Rio Tinto.
Barrick Gold Corporation ("Barrick") has advised the Company that the
Pipeline Mining Complex is expected to produce approximately 385,000 ounces of
gold in calendar 2006 that are subject to the Company's royalties. Barrick
also informed the Company that it has updated its ore reserve estimates for
the Pipeline Mining Complex, as of December 31, 2005, based on a gold price of
$400 per ounce. The Crossroads deposit, which is subject to our GSR2 royalty,
is included in this updated reserve estimate. (See Tables 1, 2 and 3.)
Leeville Project (Eureka County, Nevada)
Royal Gold holds a 1.8% carried working interest, which calculates as a
net smelter return ("NSR") royalty covering a portion of the Leeville project
("Leeville"). An NSR royalty is a defined percentage of the gross revenue
from a resource extraction operation, less a proportionate share of incidental
transportation, insurance and smelting costs.
Newmont has advised the Company that it anticipates production of
approximately 32,000 ounces of gold at Leeville South and 209,000 ounces of
gold at Leeville North attributable to Royal Gold's royalties in calendar
2006. The operator has also informed the Company that it has updated its ore
reserve estimates for the Leeville project, as of December 31, 2005, based on
a gold price of $400 per ounce. (See Tables 1, 2 and 3.)
SJ Claims, Goldstrike Mine (Eureka County, Nevada)
The Company owns a 0.9% NSR royalty covering a portion of the Betze-Post
mine, known as the SJ Claims. The Betze-Post mine, which is a portion of the
larger Goldstrike operation, is operated by Barrick.
Barrick has advised the Company that it anticipates production of
approximately 903,000 ounces of gold in calendar 2006 from the SJ Claims that
are subject to the Company's royalty. The operator also reported that it has
updated its ore reserve estimate for the SJ Claims, as of December 31, 2005,
based on a $400 gold price per ounce. (See Tables 1 and 3.)
Troy Mine (Lincoln County, Montana)
Royal Gold holds a 7.0% GSR royalty that covers the Troy underground mine
operated by Revett Silver Company, a subsidiary of Revett Minerals Inc.
("Revett"). This 7.0% GSR royalty extends until either cumulative production
reaches approximately 9.9 million ounces of silver and 84.6 million pounds of
copper, or Royal Gold receives $10.5 million in cumulative payments, whichever
occurs first.
Royal Gold also holds a GSR royalty that begins at 6.1% on any production
in excess of 11.0 million ounces of silver and 94.1 million pounds of copper.
This 6.1% GSR royalty steps down to a perpetual 2.0% GSR royalty after
cumulative production has exceeded 12.7 million ounces of silver and
108.2 million pounds of copper.
Revett has advised the Company that it anticipates production of
approximately 1.8 million ounces of silver and 15.6 million pounds of copper
in calendar year 2006 that are subject to the Company's royalties, assuming
Troy meets its production target of 6,500 tons per day in a timely manner.
Revett has also informed the Company that its ore reserve estimates are based
on a $7.00 per ounce silver price and $1.60 per pound copper price. (See
Tables 1, 2 and 3.)
Bald Mountain Mine (White Pine County, Nevada)
Royal Gold holds a 1.75% to 3.5% NSR sliding-scale royalty on a portion of
the Bald Mountain mine, operated by Barrick. The sliding-scale moves up 0.25%
for each $25 per ounce of gold price increase, starting at $375 per ounce, in
1986 dollars.
Barrick has informed the Company that it is assessing current mine plans
at Bald Mountain and will have production guidance around mid-calendar 2006.
At such time, Royal Gold will update production guidance related to the
Company's royalty at Bald Mountain. Barrick has also advised the Company that
it has updated its ore reserve estimates for Bald Mountain, as of December 31,
2005, based on a gold price of $400 per ounce. (See Tables 1, 2 and 3.)
Martha Mine (Santa Cruz Province, Argentina)
The Company holds a 2.0% NSR royalty on the Martha silver mine operated by
Coeur d'Alene Mines Corporation ("Coeur").
Coeur has informed the Company that it anticipates the Martha mine will
produce approximately 2.5 million ounces of silver in calendar 2006
attributable to Royal Gold's interest. Coeur has also advised the Company
that it has updated its ore reserve estimates for the Martha mine, as of
December 31, 2005, based on a silver price of $6.50 per ounce.
(See Tables 1, 2 and 3.)
Mulatos Mine (Sonora, Mexico)
Royal Gold holds a sliding-scale NSR royalty at the Mulatos Project, an
open pit, heap leach gold mine, nearing completion of construction. The
sliding-scale ranges from 0.30% at an average quarterly gold price of $299.99
or below, up to a maximum of 1.5% when the price of gold averages $400 per
ounce or higher. The royalty is capped at two million ounces of gold. The
mine is owned and operated by Alamos Gold, Inc. ("Alamos").
Alamos has informed the Company that it anticipates production of
approximately 139,000 ounces of gold for calendar year 2006 that are subject
to the Company's royalty. Royal Gold began to receive its royalty on
production beginning April 1, 2006. Alamos has also advised the Company that
it has updated its ore reserve estimates for Mulatos, as of December 31, 2005,
based on a gold price of $350 per ounce. (See Tables 1, 2 and 3.)
Robinson Mine (White Pine County, Nevada)
Royal Gold holds a 3% NSR royalty on the Robinson mine, an open pit copper
mine with significant gold and molybdenum credits. The operator is Quadra
Mining Ltd. ("Quadra"). The Company will begin receiving revenue from this
3.0% NSR royalty when a $20.0 million reclamation trust account is fully
funded. Royal Gold expects to receive royalty revenue in the second half of
calendar 2006.
Quadra has informed the Company that in calendar year 2006 it anticipates
production of approximately 53,500 ounces of gold, 128-132 million pounds of
copper, and 0.5 to 1.0 million pounds of molybdenum attributable to Royal
Gold's royalty position. Quadra has also advised the Company that it has
updated its ore reserve estimates for the Robinson mine, as of December 31,
2005, based on a gold price of $425 per ounce and a copper price of $1.15 per
pound.
The operator has reported that no molybdenum values were used in the
update of the ore reserves nor will a molybdenum grade be reported because of
the level of understanding and support for estimating grade and tons (tonnes).
(See Tables 1 and 3.)
Taparko Mine (Burkina Faso, West Africa)
Royal Gold holds two initial concurrent production payments, both
equivalent to GSR royalties, and two subsequent GSR royalties at the Taparko-
Bouroum project, an open pit gold operation currently under construction. The
operator, High River Gold Mines Ltd., expects the majority of construction of
the Taparko-Bouroum project to be completed in the first quarter of calendar
2007, with production commencing shortly thereafter.
The first GSR-equivalent royalty is fixed at a rate of 15.0% ("TB-GSR1").
The second GSR-equivalent royalty pays out at a rate of 4.3% ("TB-GSR2") when
the average monthly gold price ranges between $385 and $430 per ounce, and
changes to a sliding-scale royalty when the average monthly gold price is
outside of this range. The calculated rate, expressed as a percentage, is
determined by dividing the average monthly gold price by 100 for gold prices
above $430 per ounce, or by dividing the average monthly gold price by 90 for
gold prices below $385 per ounce (e.g., a $450 per ounce gold price results in
a rate of 450/100 = 4.5%). 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 by Royal Gold, whichever comes first.
The two subsequent royalties consist of a 2.0% GSR tail royalty
("TB-GSR3"), applicable to gold production from defined portions of the
Taparko-Bouroum project area, and a 0.75% milling royalty ("TB-MR1"). The
TB-MR1 applies to ore that is mined outside of the defined area of the
Taparko-Bouroum project that is processed through the Taparko facilities 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, described earlier, have ceased.
High River has advised the Company that it has updated its ore reserve
estimates for the Taparko mine, as of December 31, 2005, based on a gold price
of $400 per ounce. (See Table 1.)
Corporate Profile
Royal Gold, Inc. is a precious metals royalty company engaging in the
acquisition and management of precious metals royalty interests. Royal Gold
is publicly traded on the Nasdaq Market System, under the symbol "RGLD," and
on the Toronto Stock Exchange under the symbol "RGL." The Company's web page
is located at www.royalgold.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 sustained long-term growth, production
estimates for calendar 2006 provided by third-party operators, reserves and
mineralization estimates provided by third party operators, and the sliding-
scale features of our royalty structure at the Pipeline Mining Complex, the
Bald Mountain mine and the Mulatos mine. Factors that could cause actual
results to differ materially include, among others, changes in precious metals
prices, decisions and activities of the operators of our royalty properties,
mine completion, funding of the reclamation trust fund, 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, results of current or planned exploration activities,
continued diversification of our royalty base, economic and market conditions,
and future financial needs or opportunities, and the impact of any future
acquisitions, as well as other factors described elsewhere in this press
release and in our Annual Report on Form 10-K, and other filings with the
Securities and Exchange Commission. Most of these factors relate to
activities of the mine operators and 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.
TABLE 1
Royal Gold's Royalty Portfolio
Proven and Probable Gold Reserves(1)
as of December 31, 2005
PROPERTY ROYALTY(2) OPERATOR CATEGORY(4)
Pipeline GSR1 0.40 - 5.0% GSR Barrick(3) Reserve
(sliding-scale)
Pipeline GSR2 0.72 - 9.0% GSR Barrick(3) Reserve
(sliding-scale)
Pipeline GSR3 0.71% GSR Barrick(3) Reserve
Pipeline NVR1 0.39% NVR Barrick(3) Reserve
Leeville North 1.8% NSR Newmont Reserve
Leeville South 1.8% NSR Newmont Reserve
SJ Claims - Goldstrike 0.9% NSR Barrick(3) Reserve
Bald Mountain 1.75 - 3.5% NSR Barrick(3) Reserve
(sliding-scale)
Mulatos 0.03 - 1.5% NSR Alamos(3) Reserve
(sliding-scale)
Robinson 3.0% NSR Quadra(3) Reserve
Taparko 15.0% GSR High River(3) Reserve
(sliding-scale)
Taparko 4.3% GSR High River(3) Reserve
(or a sliding-scale)
TABLE 1
Royal Gold's Royalty Portfolio
Proven and Probable Gold Reserves(1)
as of December 31, 2005
AVERAGE GOLD
TONS/TONNES GOLD GRADE CONTAINED
OF ORE (ounces per ton/ OUNCES(5)
PROPERTY (millions) grams per tonne) (millions)
Pipeline GSR1 102.2 / 92.7 0.030 / 1.02 3.040(6)
Pipeline GSR2 48.2 / 43.7 0.029 / 0.98 1.380(6)
Pipeline GSR3 150.3 / 136.3 0.029 / 1.01 4.420(6)
Pipeline NVR1 116.6 / 105.8 0.028 / 0.97 3.281(6)
Leeville North 5.1 / 4.6 0.465 / 15.94 2.381
Leeville South 0.086 / 0.078 0.371 / 12.72 0.032
SJ Claims - Goldstrike 64.9 / 58.9 0.137 / 4.70 8.898
Bald Mountain 45.4 / 41.3 0.039 / 1.34 1.778
Mulatos 40.6 / 36.8 0.047 / 1.61 1.892
Robinson 160.4 / 145.5 0.007 / 0.24 1.160
Taparko 9.4 / 8.5 0.087 / 2.98 0.827
Taparko 9.4 / 8.5 0.087 / 2.98 0.827
TABLE 1 (Continued)
Royal Gold's Royalty Portfolio
Proven and Probable Silver Reserves(1)
as of December 31, 2005
PROPERTY ROYALTY(2) OPERATOR CATEGORY(7)
Martha 2.0% NSR Coeur d'Alene Reserve
Troy Tiered GSR Revett(3) Reserve
AVERAGE SILVER
TONS/TONNES SILVER GRADE CONTAINED
OF ORE (ounces per ton/ OUNCES(5)
PROPERTY (millions) grams per tonne) (millions)
Martha 0.067 / 0.061 60.3 / 2,067.4 4.054
Troy 10.4 / 9.4 1.41 / 48.34 14.651
Proven and Probable Copper Reserves(1)
as of December 31, 2005
PROPERTY ROYALTY(2) OPERATOR CATEGORY(8)
Troy Tiered GSR Revett(3) Reserve
Robinson 3.0% NSR Quadra(3) Reserve
COPPER
TONS/TONNES AVERAGE CONTAINED
OF ORE COPPER GRADE POUNDS(5)
PROPERTY (millions) (% Cu) (millions)
Troy 10.4 / 9.4 0.60 124.854
Robinson 160.4 / 145.5 0.69 2,213
See footnotes to this table on page 10.
FOOTNOTES TO TABLE 1
(1) "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) See text of press release under heading "Royalty Profiles" for
definitions of various royalty classifications.
(3) Some of our royalty operators are Canadian issuers. Their 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.
(4) Gold reserves were calculated by the various operators at $400 per
ounce except for the Robinson mine where Quadra calculated reserves at
$425 per ounce, and the Mulatos mine where Alamos calculated reserves
at $350 per ounce.
(5) "Contained ounces" or "contained pounds" are before an allowance for
dilution of ore in the mining process. The amounts shown are 100% of
the reserves subject to our royalty interests and do not take into
account losses in processing the ore.
(6) GSR1, GSR2 and NVR1 reserves are a subset of the reserves covered
by GSR3.
(7) Silver reserves were calculated by the operators at $7.00 per ounce
for Troy and $6.50 per ounce for Martha.
(8) Copper reserves were calculated by the operators at $1.60 per pound
for Troy and $1.15 per pound for Robinson.
NOTE: Quadra, the operator of the Robinson mine, has reported that no
molybdenum values were used in the update of the ore reserves nor will a
molybdenum grade be reported because of the level of understanding and
support for estimating grade and tons (tonnes).
TABLE 2
Royal Gold's Royalty Portfolio
Gold Additional Mineralized Material(1)
as of December 31, 2005
MINERALIZED
PROPERTY ROYALTY(2) OPERATOR MATERIAL
Pipeline GSR1 0.40 - 5.0% GSR Barrick Measured(3,4)
(sliding-scale) Indicated(3,4)
Inferred(3,4)
Pipeline GSR2 0.72 - 9.0% GSR Barrick Measured(3,4)
(sliding-scale) Indicated(3,4)
Inferred(3,4)
Pipeline GSR3 0.71% GSR Barrick Measured(3,4)
Indicated(3,4)
Inferred(3,4)
Pipeline NVR1 0.39% NVR Barrick Measured(3,4)
Indicated(3,4)
Inferred(3,4)
Leeville North 1.8% NSR Newmont Measured
Indicated
Inferred
Leeville South 1.8% NSR Newmont Measured
Indicated
Inferred
Bald Mountain 1.75 - 3.5% NSR Barrick Measured & Indicated(3)
(sliding-scale) Inferred(3)
Mulatos 0.03 - 1.5% NSR Alamos Measured(3)
(sliding-scale) Indicated(3)
Inferred(3)
TABLE 2
Royal Gold's Royalty Portfolio
Gold Additional Mineralized Material(1)
as of December 31, 2005
TONS/TONNES AVERAGE GOLD GRADE
OF ORE (ounces per ton/
PROPERTY (millions) grams per tonne)
Pipeline GSR1 9.7 / 8.8 0.029 / 0.98
46.8 / 42.4 0.021 / 0.71
18.7 / 16.9 0.022 / 0.76
Pipeline GSR2 9.4 / 8.5 0.044 / 1.52
45.8 / 41.5 0.029 / 1.01
5.7 / 5.2 0.031 / 1.06
Pipeline GSR3 19.1 / 17.3 0.036 / 1.25
92.6 / 84.0 0.025 / 0.86
24.4 / 22.1 0.024 / 0.83
Pipeline NVR1 14.7 / 13.4 0.040 / 1.37
66.7 / 60.5 0.027 / 0.92
15.0 / 13.6 0.024 / 0.83
Leeville North -- --
-- --
1.4 / 1.2 0.435 / 14.91
Leeville South 0.021 / 0.019 0.300 / 10.3
-- --
-- --
Bald Mountain 12.5 / 11.4 0.025 / 0.857
8.0 / 7.3 0.030 / 1.029
Mulatos 16.3 / 14.8 0.035 / 1.21
136.9 / 124.2 0.025 / 0.84
-- --
TABLE 2 (Continued)
Royal Gold's Royalty Portfolio
Silver Additional Mineralized Material(1)
as of December 31, 2005
AVERAGE SILVER
GRADE
TONS/TONNES (ounces per
MINERALIZED OF ORE ton/grams
PROPERTY ROYALTY(2) OPERATOR MATERIAL (millions) per tonne)
Martha 2% NSR Coeur Measured 0.025 / 0.023 38.5 / 1,319
d'Alene Indicated 0.017 / 0.015 31.21 / 1,070
Inferred 0.093 / 0.084 49.8 / 1,707
Troy Tiered GSR Revett Measured(3) 40.2 / 36.5 1.51 / 51.8
Indicated(3) 6.1 / 5.5 1.72 / 59.0
Inferred(3) -- --
Copper Additional Mineralized Material(1)
as of December 31, 2005
AVERAGE
TONS/TONNES COPPER
MINERALIZED OF ORE GRADE
PROPERTY ROYALTY(2) OPERATOR MATERIAL (millions) (%)
Troy Tiered GSR Revett Measured(3) 40.2 / 36.5 0.76 / 0.76
Indicated(3) 6.1 / 5.5 0.66 / 0.66
Inferred(3) -- --
See footnotes to this table on page 13.
FOOTNOTES TO TABLE 2
(1) 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.
"Inferred mineral resources" have a great amount of uncertainty as to
their existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an inferred
mineral resource will ever be upgraded to a higher category.
Investors are cautioned not to assume that part or all of an inferred
mineral resource exists, or is economically or legally mineable.
(2) See text of press release under heading "Royalty Profiles" for
definitions of various royalty classifications.
(3) Some of our royalty operators are Canadian issuers. Their definitions
of "mineral resource," "measured mineral resource," "indicated mineral
resource" and "inferred mineral resource" conforms 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. Mineral
resources which are not mineral reserves do not have demonstrated
economic viability. Canadian issuers use the terms "mineral
resources" and its subcategories "measured," "indicated" and
"inferred" mineral resources. While such terms are recognized and
required by Canadian regulations, the U.S. Securities and Exchange
Commission does not recognize them. Investors are cautioned not to
assume that any part or all of the mineral deposits in these
categories will ever be converted into reserves.
"Inferred mineral resources" have a great amount of uncertainty as to
their existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an inferred
mineral resource will ever be upgraded to a higher category.
Investors are cautioned not to assume that part or all of an inferred
mineral resource exists, or is economically or legally mineable.
(4) GSR1, GSR2 and NVR1 mineralized material are a subset of the
mineralized material covered by GSR3.
NOTE: Mineralized material was not reported by the operators for the SJ
Claims-Goldstrike or the Robinson mines.
TABLE 3
Royal Gold's Royalty Portfolio
Calendar Year 2006 Production Estimates
ROYALTY OPERATOR METAL PRODUCTION(1)
Pipeline GSR1 Barrick Gold 385,000 oz
Pipeline GSR3 Barrick Gold 385,000 oz
Pipeline NVR1 Barrick Gold 213,000 oz
Leeville North Newmont Gold 209,000 oz
Leeville South Newmont Gold 32,000 oz
SJ Claims-Goldstrike Barrick Gold 903,000 oz
Bald Mountain Barrick Gold See footnote(2)
Mulatos(3) Alamos Gold Gold 139,000 oz
Robinson(4) Quadra Mining Gold 53,500 oz
Martha Coeur d'Alene Silver 2.5 million oz
Troy Revett Silver 1.8 million oz
Troy Revett Copper 15.6 million lbs.
Robinson(4) Quadra Mining Copper 128 - 132 million lbs.
Robinson(4) Quadra Mining Molybdenum 0.5 - 1.0 million lbs.
(1) Production estimates were provided by the various operators and are in
ounces for gold and silver and pounds for copper and molybdenum.
(2) Barrick has informed the Company that it is assessing current mine
plans at Bald Mountain and will have production guidance around
mid-calendar 2006. At such time, Royal Gold will update production
guidance related to the Company's royalty at Bald Mountain.
(3) Production estimates are for the full year. Receipt of royalty
revenue commenced April 1, 2006.
(4) Production estimates are for the full year. Receipt of royalty
revenue is estimated to commence July 1, 2006.
