Royal Gold, Inc. announced the acquisition of a 3.0% net smelter return royalty on the Ruby Hill gold mine, from International Minerals Corporation for $38 million.
The Ruby Hill mine is located in Nevada and operated by Barrick Gold Corporation.
Tony Jensen, Royal Gold's President and Chief Executive Officer, commented, "We are pleased to enhance our portfolio with the addition of another gold royalty located in an attractive region of Nevada and managed by an experienced world-class operator. We expect to receive revenue from this royalty on current quarter production."
Ruby Hill is a surface gold mine located in eastern Nevada on the Battle Mountain/Eureka Trend. Barrick reported that, as of December 31, 2011, proven and probable reserves include 16.8 million tons of ore, at an average grade of 0.058 ounces per ton, containing approximately 978,000 ounces of gold. In addition to reserves, Barrick estimates additional mineralization of 107.6 million tons, at a grade of 0.021 ounces per ton. Calendar year 2011 production was 127,000 ounces of gold.