Fire Creek Nevada

The Fire Creek mine, which Hecla acquired in July 2018, is located primarily in Lander County, Nevada, approximately 63 miles west of Elko, Nevada, overlooking Crescent Valley. The Project comprises private fee lands (both leased and owned) and unpatented lode mining claims. The land position includes approximately 15,420 acres of unpatented federal lode mining claims, 1,110 acres of private fee land and 230 acres of mineral leases. Overall, the Fire Creek land package is approximately 17,000 acres. Fire Creek is expected to be placed on care and maintenance in the second quarter of 2021.

Map - Fire Creek
Overview & History

Known activity at Fire Creek dates to 1967. Historic production included limited open pit mining and heap leaching in 1981, marginal mining of oxidized siliceous cap material from a pit and the construction of a small test heap leach operation from 1988 to 1990.  Except for current operations, there has been no other production at the Fire Creek since 1990.  Discovery and exploration of the epithermal veins did not occur until 2004. Klondex Mines Ltd. commenced underground mine development in 2011 and mined under a bulk sample permit starting in 2013; permits for full mine production were received in 2016.  The remaining mineral reserves will be depleted, and the mine will be placed on care and maintenance in Q2 2021.

Geology & Mining

Gold mineralization at Fire Creek occurs in steeply dipping epithermal veins within Tertiary basalt flows and intrusive rocks. The mineralized basaltic rocks are a suite of mafic, extrusive rocks associated with the regional north-northwest-trending NNR structural zone. The NNR system has been documented in multiple geophysical and geological studies and is distinguished as a linear magnetic anomaly approximately 30 miles wide that extends 190 miles south-southeast from the Oregon-Nevada border to central Nevada. The NNR originates from the McDermitt Caldera in northwest Nevada and is likely related to impingement of the Yellowstone hot-spot on continental crust.

The mineral deposit is a low-sulfidation epithermal deposit vertically zoned within high-angle northwest striking structures, hosted in a mid-Miocene basalt package. Gold mineralization occurs as shallow structurally controlled fault hosted gold mineralization in variably altered Tertiary basalts and as native gold in steeply dipping quartz-calcite veins or structures. A package of middle Miocene basalt and basaltic andesite flows has been cut by high-angle normal faults related to both the Northern Nevada Rift and Basin and Range extension that form grabens and half-grabens which are the underlying structural controls in the district.

High-grade gold mineralization has been delineated between approximately 4,900 feet and 5,700 feet AMSL and is open both up and down dip as well as along strike. Lower-grade gold mineralization occurs from the surface and mineralization is open at depth. Vein textures, gangue minerals, and alteration seen at Fire Creek are typical of low-sulfidation epithermal systems. Widespread propylitic alteration grades to argillic alteration proximal to veins and/or other structural fluid conduits. Low-grade gold mineralization is often spatially associated with the argillic alteration zone surrounding the high-grade gold. Mineralization that often occurs along discrete horizons within vein structures. An opaline silica cap is discontinuously preserved at surface above the main mineralization at Fire Creek. Mineralized faults near this opaline silica were targeted by early prospecting and later shallow drilling by previous operators in the 1980’s.

Fire Creek is defined by two major north-northwest striking vein arrays, each comprised of several en-echelon veins. Several new target areas outside of the known vein arrays have been defined by both gradient-array and dipole-dipole induced polarization surveys as well as VTEM geophysical surveys.

Production – Nevada Operations
(years ended December 31)
  2019 2020
Silver (ounces)   181,741 37,443
Gold (ounces)   66,166 31,756
2016 2017 2018  
Silver (ounces) 80,593 72,283 172,301
Gold (ounces) 101,286 107,143 32,887
Reserves & Resources

Information with respect to proven and probable ore reserves; and measured, indicated, and inferred resources is set forth below.

Mineral Reserves & Resources
(As of December 31, 2021 unless otherwise noted)
Tons Silver Gold Lead Zinc Silver Gold Lead Zinc
(000) (oz/ton) (oz/ton) (%) (%) (000 oz) (000 oz) (Tons) (Tons)
Proven Reserves (1,2) 22 1.2 1.51 - - 28 33 - -
Probable Reserves (1,2) 37 0.6 0.56 - - 23 21 - -
Proven and Probable Reserves (1,2) 59 0.9 0.92 - - 51 54 - -
Measured Resources (3,4) 20 0.7 0.50 - - 14 10 - -
Indicated Resources (3,4) 113 1.0 0.45 - - 114 51 - -
M&I Resources (3,4) 134 1.0 0.46 - - 128 61 - -
Inferred Resources (3,4) 765 0.5 0.51 - - 394 392 - -

Note: All estimates are in-situ. Resources are exclusive of reserves. Totals may not represent the sum of parts due to rounding.

(1) Mineral reserves are based on $1,300 gold, $14.50 silver, $0.90 lead, $1.15 zinc, unless otherwise stated.

(2) Fire Creek mineral reserves are based on a cut-off grade of 0.433  gold equivalent oz/ton and incremental cut-off grade of 0.135 gold equivalent oz/ton. Unplanned dilution of 10% to 17% included depending on mining method.

(3) Mineral resources for Fire Creek, Hollister and Midas are reported using $1500/oz gold and $21/oz silver prices, unless otherwise noted. A minimum mining width is defined as four feet or the vein true thickness plus two feet, whichever is greater.

(4) Fire Creek mineral resources are reported at a gold equivalent cut-off grade of 0.283 oz/ton. Metallurgical recoveries: 90% gold, 70% silver.

Reporting requirements in the United States for disclosure of mineral properties are governed by the SEC and included in the SEC’s Securities Act Industry Guide 7, entitled “Description of Property by Issuers Engaged or to be Engaged in Significant Mining Operations” (Guide 7). However, the Company is also a “reporting issuer” under Canadian securities laws, which require estimates of mineral resources and reserves to be prepared in accordance with Canadian National Instrument 43-101 (NI 43-101). NI 43-101 requires all disclosure of estimates of potential mineral resources and reserves to be disclosed in accordance with its requirements. Such Canadian information is being included here to satisfy the Company’s “public disclosure” obligations under Regulation FD of the SEC and to provide U.S. holders with ready access to information publicly available in Canada.

Reporting requirements in the United States for disclosure of mineral properties under Guide 7 and the requirements in Canada under NI 43-101 standards are substantially different. This website contains a summary of certain estimates of the Company, not only of proven and probable reserves within the meaning of Guide 7, which requires the preparation of a “final” or “bankable” feasibility study demonstrating the economic feasibility of mining and processing the mineralization using the three-year historical average price for any reserve or cash flow analysis to designate reserves and that the primary environmental analysis or report be filed with the appropriate governmental authority, but also of mineral resource and mineral reserve estimates estimated in accordance with the definitional standards of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in NI 43-101. The terms “measured resources”, “indicated resources,” and “inferred resources” are Canadian mining terms as defined in accordance with NI 43-101. These terms are not defined under Guide 7 and are not normally permitted to be used in reports and registration statements filed with the SEC in the United States, except where required to be disclosed by foreign law. The term “resource” does not equate to the term “reserve”. Under Guide 7, the material described herein as “indicated resources” and “measured resources” would be characterized as “mineralized material” and is permitted to be disclosed in tonnage and grade only, not ounces. The category of “inferred resources” is not recognized by Guide 7. Investors are cautioned not to assume that any part or all of the mineral deposits in such categories will ever be converted into proven or probable reserves. “Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of such a “resource” will ever be upgraded to a higher category or will ever be economically extracted. Investors are cautioned not to assume that all or any part of a “resource” exists or is economically or legally mineable. Investors are also especially cautioned that the mere fact that such resources may be referred to in ounces of silver and/or gold, rather than in tons of mineralization and grades of silver and/or gold estimated per ton, is not an indication that such material will ever result in mined ore which is processed into commercial silver or gold.

Open Pit Inferred Resources
(As of December 31, 2021 unless otherwise noted)
Tons Silver Gold Lead Zinc Silver Gold Lead Zinc
(000) (oz/ton) (oz/ton) (%) (%) (000 oz) (000 oz) (Tons) (Tons)
Inferred Resources (1) 74,584 0.1 0.03 - - 5,232 2,178 - -

Note: All estimates are in-situ. Resources are exclusive of reserves. Totals may not represent the sum of parts due to rounding.

(1) Inferred open-pit resources for Fire Creek calculated November 30, 2017 using gold and silver recoveries of 65% and 30% for oxide material and 60% and 25% for mixed oxide-sulfide material. Indicated Resources reclassified as Inferred for 2019.

Open pit resources are calculated at $1,400 gold and $19.83 silver and cut-off grade of 0.01 Au Equivalent oz/ton and is inclusive of 10% mining dilution and 5% ore loss.  Open pit mineral resources exclusive of underground mineral resources.

NI43-101 Technical Report for the Fire Creek Project, Lander County, Nevada; Effective Date March 31, 2018; prepared by Practical Mining LLC, Mark Odell, P.E. for Hecla Mining Company, June 28, 2018.

2021 Reserves & Resources PDF


Fire Creek exploration is focused on defining and prioritizing exploration targets that have potential to expand mineralization within and near the current resources and reserves in addition to advancing district exploration targets through detailed mapping and sampling.