Fire Creek/Midas (Au & Ag)


Location: Nevada, United States
Operator: Hecla Mining Company
Royalty: NSR: 2.5%

In February 2014, Franco-Nevada assisted Klondex Mines Ltd. (“Klondex”) in the acquisition of the Midas mine and milling facility, located in Nevada, from Newmont. Klondex purchased the Midas mill to provide it with processing capacity for its Fire Creek ores, which are located 180 km south (via road) of Midas, while providing the option to potentially extend the mine life at Midas. Hecla Mining Company (“Hecla”) acquired Klondex and its three Nevada properties, the Fire Creek, Midas and Hollister mines (discussed on page 50) in 2018.

The Fire Creek property, located in north central Nevada, at the cross-section of the Northern Nevada Rift and the Battle Mountain Trend, is a high-grade epithermal gold deposit. The property consists of a combination of private fee land and U.S. Bureau of Land Management (“BLM”) land for a total area of approximately 45 km2 plus an area of interest in adjacent townships along strike with mineralization. Midas was discovered and constructed by Franco-Nevada’s predecessor company prior to its combination with Newmont. The property position extends over private fee land and BLM land for a total area of 137 km2 with an area of interest surrounding the property.

Franco-Nevada paid $35 million for a prepaid gold purchase arrangement totaling 38,250 ounces of gold to be delivered by December 31, 2018 and a 2.5% NSR royalty on the Fire Creek and Midas properties commencing in 2019. The prepaid gold purchase agreement was satisfied in 2018.

Hecla has seen mining, grade control, cost and metallurgical challenges at all of the former Klondex operations. In 2018, production at Midas was wound down. Minimal production of previously developed ore continued throughout 2019, with mining ending at year-end. Exploration work continues on the Midas property to develop new targets, such as the Green Racer Sinter, away from the main mine. The mining of developed ore is expected to continue at Fire Creek until about mid-year 2021, at which time the mine is planned to be placed on care and maintenance. To lower cut-off grades, Hecla is studying mining methods, processing of refractory ore and hydrology. Production is not anticipated to begin again until these studies are successfully completed and permitted.


  • 2.5% NSR royalty on two properties following the completion of fixed deliveries in 2018

2020 2019 2018
Revenue to Franco-Nevada ($ million) $ 1.5 $ 2.3 $ 10.1