Production and Reserves

Production and Costs

Silver ounce
production (in thousand ounces):

2009

2008
Actual
2007
 
Greens Creek Unit(1) 7,459 5,829 2,571  
 Lucky Friday Unit 3,530 2,880 3,072  
Total silver ounces 10,989 8,709 5,643  
Gold ounce
production (in thousand ounces):

2009

2008
Actual
2007
 
Greens Creek Unit(1) 67 55 20  
Total gold ounces 67 55 20  

(1) Reflects our 29.73% ownership interest until April 16, 2008, and our 100% ownership thereafter.


Average costs per ounce
of silver produced:

2009

2008

2007
 
Total cash costs per ounce ($/oz.) (1) 1.91 4.20 (2.81)  
Total production costs per ounce ($/oz.) 7.77 8.30 (0.60)  
Average metal prices: 2009 2008 2007  
Silver - London PM Fix ($/oz.) 14.65 15.02 13.39  
Gold - London PM Fix ($/oz.) 973 872 697  
Lead - LME Cash ($/pound) 0.78 0.95 1.17  
Zinc - LME Cash ($/pound) 0.75 0.85 1.47  

(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, 2009)

Proven and Probable
Proven Ore Reserves (as of December 31, 2009)

  Tons  Silver
(oz/ton)
Gold
(oz/ton)
Lead
  (%)
Zinc
(%)
 
Lucky Friday Unit, USA 1,358,200 12.3 -- 8.0 2.6  

 

  Silver
(ounces)
Gold
(ounces)
Lead
(tons)
Zinc
(tons)
 
Lucky Friday Unit, USA 16,640,300 -- 109,100 35,100  
Total Proven Reserves 16,640,300 -- 109,100 35,100  

 

Probable Reserves (as of December 31, 2009)
  Tons  Silver
(oz/ton)
Gold
(oz/ton)
Lead
(%)
Zinc
(%)
 
Lucky Friday Unit, USA 1,577,000 13.9 -- 8.9 2.9  
Greens Creek Unit, USA 8,314,700 12.1 0.10 3.6 10.3  

 

  Silver
(ounces)
Gold
(ounces)
Lead
(tons)
Zinc
(tons)
 
Lucky Friday Unit, USA 21,947,600 -- 140,300 46,100  
Greens Creek Unit, USA 100,973,300 847,400 303,300 852,900  
  122,920,900 847,400 443,600 899,000  
Total Proven and Probable Reserves 139,561,200 847,400 552,700 934,100  

 


Mineralized Material (as of December 31, 2009)

  Tons Silver
(oz/ton)
Gold
(oz/ton)
Lead
(%)
Zinc
(%)
 
Lucky Friday Unit, USA(1) 12,600,500 7.2 -- 4.5 2.3  
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) 90,186,700 -- 568,200 290,800  
Greens Creek Unit, USA(2) 3,262,300 49,400 16,000 36,300  
Total Mineralized Material 93,449,000 49,400 584,200 327,100  


Other Resources (as of December 31, 2009)
  Tons Silver
(oz/ton)
Gold
(oz/ton)
Lead
(%)
Zinc
(%)
 
Lucky Friday Unit, USA(3) 4,629,800 10.8 -- 7.4 3.1  
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) 2,165,000 12.0 -- 1.7 1.3  

  Silver
(ounces)
Gold
(ounces)
Lead
(tons)
Zinc
(tons)
 
Lucky Friday Unit, USA(3) 50,107,100 -- 343,500 143,000  
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 Silver JV, USA (70%)(6) 25,946,000 -- 36,200 28,600  
Total Other Resources 113,093,800 235,600 478,100 385,000  
           
Total Reserves and Resources 346,104,000 1,132,400 1,615,000 1,646,200  

(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.

(6) Inferred resources, diluted and factored to minimum mining width. San Juan Silver 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.