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Franco-Nevada

Hollister (Au)

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. 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. Hecla does not report the Fire Creek/Midas and Hollister operations separately and instead groups the reporting into its Nevada Operations.

In June 2019, Hecla announced that the Hollister mine would be placed on care and maintenance. 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.

ASSET HIGHLIGHTS

  • Exploration work on the Hatter Graben area to continue

2019 2018 2017
Revenue to Franco-Nevada ($ million) $ 0.5 $ 1.2 $ 0.3