In February 2008, Hecla acquired the right to earn into a 70% joint venture interest in a roughly 25-square-mile consolidated land package in one of Colorado’s most prolific silver-producing districts. Located in the famous Creede Mining District, the San Juan Silver Mining Joint Venture has an identified resource of approximately 48 million ounces of silver, with potential for considerably more through a targeted exploration program.
Historically, the district has produced about 84 million ounces of silver from underground mining – the type of narrow-vein mining in which Hecla has particular expertise. A major piece of this land package includes the historic Bulldog mine, which produced 25 million ounces of silver for Homestake Mining before closing in 1985 as a result of depressed metals prices. While initial exploration will focus on expanding the historic resources of both the Bulldog and the North Amethyst-Equity mines, the consolidated land package encompasses more than 30 miles of prospective veins and vein splays. Large portions of the Bulldog, Amethyst, Equity, Alpha Corsair, and OH veins will provide exploration opportunities for many years.
Much like Hecla’s land position in Idaho’s Silver Valley, this area was part of a major silver-producing district that had never been consolidated into one venture. In addition to the 48-million-ounce resource outlined by Hecla from historic records and targets established on patented mining claims, potential exists to find in excess of 100 million ounces in the next few years. Development and production will follow as soon as possible thereafter.
This venture is a long-term play, but Hecla believes it will deliver significant value in terms of resource growth and high-quality, long-lived production, and is consistent with the company’s strategies for its Idaho, Alaska, Mexico, and Venezuela properties.