Franco-Nevada

Hollister (Au)

Hollister

LOCATION: Nevada, United States
OPERATOR: Hecla Mining Company
ROYALTY: NSR: 3-5%

Hollister is a historic underground mine with past production of approximately 425,000 ounces. The mine is located at the northern end of the Carlin Trend in the Ivanhoe Mining District, Elko County, Nevada, approximately 121 km east-northeast of Winnemucca, Nevada. Franco-Nevada holds a 3-5% NSR royalty on approximately 28 km2 of the Hollister project, as well as a sliding scale NSR, which is subject to gold price and production thresholds and is capped at $3.5 million.

Hecla acquired the previous operator, Klondex, in 2018 which included the Hollister mine, as well as the Fire Creek/Midas assets highlighted on page 49. Klondex originally purchased the Hollister project due to the potential synergies with the Midas Mill, offering lower milling costs and reduced general and administrative costs.

In June 2019, Hecla announced that the Hollister mine would be placed on care and maintenance. During 2020, Hollister reprocessed historic tailings. Third party ore processing arrangements are being pursued with the goal of reducing transportation and milling costs. Hecla remains committed to the exploration and definition of the Hatter Graben area, which is one of the key reasons it acquired Klondex. Exploration of the Hatter Graben area is expected to continue by development of the existing decline to test a portion of the known resource and explore additional veins further to the south.

ASSET HIGHLIGHTS

  • Exploration work on the Hatter Graben area to continue

2020 2019 2018
Revenue to Franco-Nevada ($ million) $ - $ 0.5 $ 1.2