Production and Costs
| Silver ounce production (in thousand ounces): |
2007 |
2006 |
Actual 2005 |
|
| San Sebastian Unit(1) | - - | - - | 717 | |
| Greens Creek Unit(2) | 2,571 | 2,636 | 2,874 | |
| Lucky Friday Unit | 3,072 | 2,874 | 2,423 | |
| Total silver ounces | 5,643 | 5,510 | 6,014 | |
| Gold ounce production (in thousand ounces): |
2007 |
2006 |
Actual 2005 |
|
| La Camorra Unit | 87 | 160 | 101 | |
| San Sebastian Unit(1) | - - | - - | 17 | |
| Greens Creek Unit(2) | 20 | 19 | 22 | |
| Total gold ounces | 107 | 179 | 140 |
(1) Silver and gold production during 2005 was impacted by a strike initiated in October 2004, by hourly employees at the Velardeña mill, as well as by the curtailment of mining activity. The strike ended in June 2005, with a satisfactory labor agreement that we believe will not inhibit our ability to work in the area in the future. Mining at San Sebastian ceased in the fourth quarter of 2005. The mine has been placed on care and maintenance as exploration continues on the property.
(2) Reflects our 29.73% portion.
| Average costs per ounce of silver produced: |
2007 |
2006 |
2005 |
|
| Total cash costs per ounce ($/oz.) (1) | (2.81) | 0.24 | 2.96 | |
| Total production costs per ounce ($/oz.) | (0.60) | 2.41 | 4.85 | |
| Average costs per ounce of gold produced: |
2007 |
2006 |
2005 |
|
| Total cash costs per ounce ($/oz.) (1) | 537 | 345 | 337 | |
| Total production costs per ounce ($/oz.) | 706 | 520 | 437 | |
| Average metal prices: | 2007 | 2006 | 2006 | |
| Silver - London Final ($/oz.) | 13.39 | 11.57 | 7.31 | |
| Gold - London Final ($/oz.) | 697 | 604 | 445 | |
| Lead - LME Cash ($/pound) | 1.17 | 0.58 | 0.44 | |
| Zinc - LME Cash ($/pound) | 1.47 | 1.49 | 0.63 |
(1) "Total Cash Costs" includes all direct and indirect operating costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs, royalties and mine production taxes, net of by-product revenues earned from all metals other than the primary metal produced at each unit.
Estimated Ore Reserves and Resources
Proven and Probable
Proven Reserves (as of December 31, 2007)
| Tons | Silver (oz/ton) |
Gold (oz/ton) |
Lead (%) |
Zinc (%) |
||
| Lucky Friday Unit, USA | 780,700 | 12.3 | -- | 7.2 | 2.5 | |
| La Camorra Unit, Venezuela | 77,500 | -- | 1.08 | -- | -- |
| Silver (ounces) |
Gold (ounces) |
Lead (tons) |
Zinc (tons) |
||
| Lucky Friday Unit, USA | 9,324,800 | -- | 54,500 | 18,900 | |
| La Camorra Unit, Venezuela | -- | 84,000 | -- | -- | |
| Total Proven Reserves | 9,324,800 | 84,000 | 54,500 | 18,900 |
Probable Reserves (as of December 31, 2007)
| Tons | Silver (oz/ton) |
Gold (oz/ton) |
Lead (%) |
Zinc (%) |
||
| Lucky Friday Unit, USA | 680,000 | 11.9 | -- | 7.5 | 2.5 | |
| Greens Creek*, USA | 2,513,700 | 13.7 | 0.11 | 3.8 | 10.2 | |
| La Camorra Unit, Venezuela | 120,300 | -- | 0.84 | -- | -- |
| Silver (ounces) |
Gold (ounces) |
Lead (tons) |
Zinc (tons) |
||
| Lucky Friday Unit, USA | 8,065,200 | -- | 50,900 | 16,700 | |
| Greens Creek*, USA | 34,497,800 | 270,000 | 95,300 | 255,900 | |
| La Camorra Unit, Venezuela | -- | 101,000 | -- | -- | |
| Total Probable Reserves | 42,563,000 | 371,000 | 146,200 | 272,600 |
Mineralized Material
(as of December 31, 2007)
| Tons | Silver (oz/ton) |
Gold (oz/ton) |
Lead (%) |
Zinc (%) |
||
| La Camorra Unit, Venezuela, (1) | 1,003,600 | -- | 0.41 | -- | -- | |
| Greens Creek*, USA(2) | 103,400 | 5.6 | 0.13 | 3.4 | 7.9 | |
| Lucky Friday Unit, USA(3) | 8,465,200 | 7.2 | -- | 4.5 | 2.4 |
| Silver (ounces) |
Gold (ounces) |
Lead (tons) |
Zinc (tons) |
||
| La Camorra Unit, Venezuela, (1) | -- | 410,000 | -- | -- | |
| Greens Creek*, USA(2) | 583,200 | 13,700 | 3,500 | 8,200 | |
| Lucky Friday Unit, USA(3) | 60,746,300 | -- | 381,100 | 205,600 | |
| Total Mineralized Material | 61,329,500 | 423,700 | 384,600 | 213,800 |
Other Resources
(as of December 31, 2007)
| Tons | Silver (oz/ton) |
Gold (oz/ton) |
Lead (%) |
Zinc (%) |
||
| San Sebastian, Mexico(4) | 1,142,500 | 8.0 | 0.01 | 2.9 | 4.4 | |
| Lucky Friday Unit, USA(5) | 5,968,800 | 8.8 | -- | 6.1 | 2.5 | |
| Greens Creek*, USA(2) | 673,700 | 14.5 | 0.13 | 4.0 | 10.5 | |
| La Camorra Unit, Venezuela(6) | 202,100 | -- | 0.45 | -- | -- |
| Silver (ounces) |
Gold (ounces) |
Lead (tons) |
Zinc (tons) |
||
| San Sebastian, Mexico(4) | 9,186,200 | 14,300 | 33,000 | 49,900 | |
| Lucky Friday Unit, USA(5) | 52,240,600 | -- | 361,500 | 149,700 | |
| Greens Creek*, USA(2) | 9,790,300 | 86,700 | 26,900 | 70,400 | |
| La Camorra Unit, Venezuela(6) | -- | 90,300 | -- | -- | |
| Total Other Resources | 71,217,100 | 191,300 | 421,400 | 270,000 | |
| Total Reserves and Resources | 184,434,400 | 1,070,100 | 1,006,700 | 775,300 |
* Numbers reflect Hecla's 29.73% interest in Greens Creek.
1) In situ resources, Canaima Lower and Middle veins, diluted and factored for mining recovery (90%) and Isidora Indicated material at an 8.0 gpt cutoff, factored and diluted for mining.
2) Indicated and Inferred resources, East, West, SW, NWW, '9A' and 200S orebodies, factored for dilution and mining recovery.
(3) In Situ Measured and Indicated resources from Gold Hunter and Lucky Friday vein systems, diluted and factored for expected mining recovery.
(4) Inferred resources, Hugh zone (Deep Francine), also includes 2.1% copper (23,500 tons).
(5) Inferred resources, diluted to assumed mining width and adjusted for mining recovery.
(6) Inferred resources, diluted and factored for mining recovery.
Cautionary Note Regarding Estimates of Measured, Indicated and Inferred Resources
The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms, such as “measured,” “indicated,” and “inferred resources,” that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. investors are cautioned not to assume that any or all of measured, indicated or inferred resources are economically or legally mineable or that these resources will ever be converted into reserves. U.S. investors are urged to consider closely the disclosure in our Form 10-K and Form 10-Q. You can review and obtain copies of these filings from the SEC Filings page of Hecla's website or the SEC's website at http://www.sec.gov/edgar.shtml.