Production and Costs
| Silver ounce production (in thousand ounces): |
2008 |
2007 |
Actual 2006 |
|
| Greens Creek Unit(1) | 5,829 | 2,571 | 2,636 | |
| Lucky Friday Unit | 2,880 | 3,072 | 2,874 | |
| Total silver ounces | 8,709 | 5,643 | 5,510 | |
| Gold ounce production (in thousand ounces): |
2008 |
2007 |
Actual 2006 |
|
| Greens Creek Unit(1) | 55 | 20 | 19 | |
| Total gold ounces | 55 | 20 | 19 |
(1) Reflects our 29.73% ownership interest until April 16, 2008, and our 100% ownership thereafter.
| Average costs per ounce of silver produced: |
2008 |
2007 |
2006 |
|
| Total cash costs per ounce ($/oz.) (1) | 4.20 | (2.81) | 0.24 | |
| Total production costs per ounce ($/oz.) | 8.30 | (0.60) | 2.41 | |
| Average metal prices: | 2008 | 2007 | 2006 | |
| Silver - London PM Fix ($/oz.) | 15.02 | 13.39 | 11.57 | |
| Gold - London PM Fix ($/oz.) | 872 | 697 | 604 | |
| Lead - LME Cash ($/pound) | 0.95 | 1.17 | 0.58 | |
| Zinc - LME Cash ($/pound) | 0.85 | 1.47 | 1.49 |
(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
(As of December 31, 2008)
Proven and Probable
Proven Ore Reserves (as of December 31, 2008)
| Tons | Silver (oz/ton) |
Gold (oz/ton) |
Lead (%) |
Zinc (%) |
||
| Lucky Friday Unit, USA | 1,270,000 | 12.4 | -- | 7.8 | 2.5 |
| Silver (ounces) |
Gold (ounces) |
Lead (tons) |
Zinc (tons) |
||
| Lucky Friday Unit, USA | 15,800,700 | -- | 98,700 | 31,600 | |
| Total Proven Reserves | 15,800,700 | -- | 98,700 | 31,600 |
Probable Reserves (as of December 31, 2008)
| Tons | Silver (oz/ton) |
Gold (oz/ton) |
Lead (%) |
Zinc (%) |
||
| Lucky Friday Unit, USA | 523,400 | 11.6 | -- | 6.5 | 2.7 | |
| Greens Creek Unit, USA | 8,064,700 | 13.7 | 0.11 | 3.8 | 10.5 |
| Silver (ounces) |
Gold (ounces) |
Lead (tons) |
Zinc (tons) |
||
| Lucky Friday Unit, USA | 6,046,800 | -- | 33,900 | 14,300 | |
| Greens Creek Unit, USA | 110,583,200 | 870,100 | 308,700 | 850,700 | |
| 116,630,000 | 870,100 | 342,600 | 865,000 | ||
| Total Proven and Probable Reserves | 132,430,700 | 870,100 | 441,300 | 896,600 |
Mineralized Material
(as of December 31, 2008)
| Tons | Silver (oz/ton) |
Gold (oz/ton) |
Lead (%) |
Zinc (%) |
||
| Lucky Friday Unit, USA(1) | 12,078,000 | 7.8 | -- | 5.0 | 2.5 | |
| Greens Creek Unit, USA(2) | 789,800 | 4.1 | 0.06 | 2.0 | 4.6 |
| Silver (ounces) |
Gold (ounces) |
Lead (tons) |
Zinc (tons) |
||
| Lucky Friday Unit, USA(1) | 93,795,100 | -- | 601,800 | 307,400 | |
| Greens Creek Unit, USA(2) | 3,262,300 | 49,400 | 16,000 | 36,300 | |
| Total Mineralized Material | 97,057,400 | 49,400 | 617,800 | 343,700 |
Other Resources
(as of December 31, 2008)
| Tons | Silver (oz/ton) |
Gold (oz/ton) |
Lead (%) |
Zinc (%) |
||
| Lucky Friday Unit, USA(3) | 4,477,100 | 10.1 | -- | 7.1 | 3.2 | |
| Greens Creek Unit, USA(4) | 2,412,000 | 11.5 | 0.09 | 2.7 | 6.8 | |
| San Sebastian Hugh, Mexico(5) | 1,142,500 | 8.0 | 0.01 | 2.9 | 4.4 | |
| San Juan JV, USA (70%)(6) | 962,600 | 13.7 | -- | 1.9 | 1.3 |
| Silver (ounces) |
Gold (ounces) |
Lead (tons) |
Zinc (tons) |
||
| Lucky Friday Unit, USA(3) | 45,071,800 | -- | 316,800 | 143,700 | |
| Greens Creek Unit, USA(4) | 27,854,500 | 221,300 | 65,400 | 163,500 | |
| San Sebastian Hugh, Mexico(5) | 9,186,200 | 14,300 | 33,000 | 49,900 | |
| San Juan JV, USA (70%)(6) | 13,232,000 | -- | 18,200 | 12,200 | |
| Total Other Resources | 95,344,500 | 235,600 | 433,400 | 369,300 | |
| Total Reserves and Resources | 324,832,600 | 1,155,100 | 1,492,500 | 1,609,600 |
(1) Measured and Indicated resources from Gold Hunter and Lucky Friday vein systems, diluted and factored for expected mining recovery.
(2) Indicated resources, Gallagher orebody, factored for dilution and mining recovery.
(3) Indicated resources from Gold Hunter and Lucky Friday vein systems, diluted and factored for expected mining recovery.
(4) Inferred resources, East, West, SW, Gallagher, NWW, '9A' and 200S orebodies, factored for dilution and mining recovery.
(5) Inferred resources, Hugh zone (Deep Francine) - diluted and factored to minimum mining width, also includes 2.1% copper (23,500 tons).
(6)
Inferred resources, diluted and factored to minimum mining width. San Juan JV (Creede, CO) reportable @ 70% to Hecla (A-Vein only).
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.