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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 which includes the Fire Creek, Midas and Hollister mines (discussed on pg 42) in 2018.

The Fire Creek property is located in north central Nevada, at the cross-section of the Northern Nevada Rift and the Battle Mountain Trend and 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.

Moving forward, Hecla is expected to focus on the Fire Creek and Hollister operations and has placed the Midas mine on care and maintenance. With the addition of personnel from the Midas operation, Hecla expects to ramp up throughput at Fire Creek from 350 tons per day to 520 tons per day by mid-2019.


  • 2.5% NSR royalty on two properties following completion of fixed deliveries
  • Fire Creek throughput expected to increase from 350 tons/day to 520 tons/day by mid-2019
  • Midas mine placed on care and maintenance at the end of 2018

2018 2017 2016
Revenue to Franco-Nevada ($ million) $ 10.1 $ 11.0 $ 9.2