Rainy River is an open-pit mine operated by New Gold Inc. The mine is centered in Richardson Township, in northwestern Ontario, Canada.
Rainy River commenced processing ore in September 2017, and commercial production followed in October 2017. Development of the underground mine began in the second half of 2018.
The open-pit mine is a conventional truck-and-shovel mining operation, while the underground is designed as a mechanized-ramp access mine that will use longitudinal longhole open stoping techniques to exploit the underground reserves.
The Rainy River process plant includes crushing, grinding, gravity separation, cyanide leaching, carbon-in-pulp (CIP), carbon stripping and regeneration, electrowinning, and doré production. Tailings are deposited in the tailings management area (TMA), and TMA water is reclaimed and returned to the process plant.
In 2015, Royal Gold’s wholly-owned subsidiary, RGLD Gold AG, entered into a $175 million agreement with New Gold Inc. for a percentage of the gold and silver production from the Rainy River project.
Specifically, RGLD Gold AG owns the right to purchase 6.5% of the gold produced and contained in doré from the Rainy River project until 230,000 gold ounces have been delivered, and 3.25% thereafter. The purchase price for gold ounces delivered is 25% of the spot price per ounce of gold at the time of delivery. Royal Gold also owns the right to purchase 60% of the silver produced and contained in doré from the Rainy River project until 3.1 million silver ounces have been delivered, and 30% thereafter. The cash purchase price for the silver ounces is 25% of the spot price per ounce of silver at the time of delivery.
*Detailed information on our interest can be found on the Portfolio Asset Summary table