Trident Royalties PLC (AIM:TRR) said that the first gold has been poured at the Santa Luz Mine in Brazil, one of its portfolio offtake assets.
Santa Luz is a brownfield gold asset with an expected mine life of 9.5 years, in addition to the potential for further underground production
The pour makes 13 assets in its portfolio that are now generating cash, said the royalty specialist.
Santa Luz is a mine restart gold project consisting of an open-pit and resin-in-leach plant with a total reserve of 1.07 million ounces (Moz) at 1.34 grammes per tonne (g/t).
Gold production is expected to average 110,500oz per year for the first five years and to average 95,000oz per year over the initial 9.5-year mine life
Trident's gold offtake entitles it to purchase 35% of all refined gold produced from three mines at the site: Santa Luz, Fazenda, and RDM.
A cap on the offtake has been set at 658,333oz refined gold, of which 465,437oz remained when Trident acquired the offtake from mining finance group Orion in January.
Trident earns a margin equal to the difference between the sale price of the gold received under the offtake and the lowest reference price during the quotation period, which is a specified timeframe ahead of the sale.
Equinox Gold (TSX:EQX) is the operator and said: "When operating at capacity, Santa Luz is expected to produce approximately 100,000 ounces of gold annually.
“During 2022, with a partial year of production, Santa Luz is expected to produce 70,000 to 90,000 ounces of gold."
Adam Davidson, Trident’s chief executive, said the business was maintaining “excellent momentum” in 2022.
“This year we have already announced first gold production from the Lincoln Gold Mine - over which Trident holds a royalty - and recently, the receipt of first delivery under the gold offtake with i-80 Gold."