Hecla exceeded its goal of replacing ounces mined in 2011 by defining additional reserves and resources. The company has made tremendous progress in its exploration efforts at its four large silver districts, three of which are in the U.S.; Greens Creek, Lucky Friday/Silver Valley, San Juan Silver, and San Sebastian in Durango, Mexico.
Last year’s exploration program achieved the following milestones:
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Silver reserves and resources increased by 4% and 13% to 148 million ounces and 281 million ounces, respectively; gold resources increased by 33% to 597,600 ounces; and lead and zinc resources increased 21% and 26%, respectively.
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More than a 16% increase in the contained metal (silver, lead, zinc) in Lucky Friday’s proven and probable reserve with the addition of high-grade tons.
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Drilling at the Greens Creek mine has defined two high-grade areas within the Gallagher zone with good exploration potential for extensions to the south.
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Resources at the Star in the Silver Valley significantly increased and underground rehabilitation was completed to provide new exploration platforms for drilling and evaluation of multiple mineralized veins.
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Drilling of the Noonday project in the Silver Valley has significantly expanded the resource into a more silver-rich area. Drilling and remodeling of the Star Complex has defined resources and new exploration targets above and below the current underground water level.
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A new gold-silver resource has been outlined along the 1.7 km long the Andrea Vein at the San Sebastian property in Mexico.
- Underground drilling in the Equity Vein system at the San Juan Silver property in Colorado has outlined multiple zones of high-grade, gold/silver-bearing veins. Construction of the portal to access the Bulldog resource is being initiated.
In Mexico, at the San Sebastian property, new intersections of precious-metal bearing veins on the Andrea structure are in close proximity to previous mining on the Don Sergio vein but represent a new vein trend with high-grade areas or shoots.
Discoveries on Hecla’s district-sized, high-quality land packages in the United States and Mexico are anticipated to generate resources which we hope to convert into reserves and then production – all leading to valuable organic growth for the company.
Hecla’s exploration strategy in 2012 is largely focused on drill-testing targets on its district-sized land positions surrounding existing operations or re-emerging historic mining districts. With up to 12 drills operating and 250 thousand feet of underground and surface drilling, Hecla is continuing systematic exploration. In 2012, the exploration budget is expected to be approximately $28.0 million.
