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investors | estimated ore reserves & resources
Year-end 2014 proven and probable silver reserve levels reached the highest level in Company history, increasing for the 9th consecutive year, up 1.9% over December 31, 2013, to 173 million ounces.  In addition, measured and indicated resources increased by 10.3% over December 31, 2013, to 165 million ounces of silver while inferred resources increased by 2.5% to 146 million ounces of silver. 

Proven and probable gold reserves decreased by 1.5% to 2.1 million ounces. Measured and indicated resources were unchanged at 4.7 million ounces of gold and inferred resources increased 7.2% to 1.9 million ounces of gold.

 

Definition and exploration drilling programs were very successful in upgrading resources to reserves and in identifying new resources outside of the mine plans to replace those upgraded ounces.


(As of December 31, 2014 unless otherwise noted)
 
Proven Reserves

(000 Tons)
Silver
(oz/ton)
Gold
(oz/ton)
Lead
(%)
Zinc
(%)
Silver
(000 oz)
Gold
(000 oz)
Lead
(Tons)
Zinc
(Tons)
 
 

    Greens Creek, United States (a)
    Lucky Friday, United States (a)
    Casa Berardi, Canada (1)
         Total Proven Reserves

4.7
3,840
1,106

5,450

15.7
13.7
-

 

0.10
-
0.15


3.7
8.3
-


9.2
2.6
-

 

74
52,556
-

52,630

0.5
-
237
238

180
318,610
-
318,790

440
98,230
-
98,670

 
 
Probable Reserves

(000 Tons)
Silver
(oz/ton)
Gold
(oz/ton)
Lead
(%)
Zinc
(%)
Silver
(000 oz)
Gold
(000 oz)
Lead
(Tons)
Zinc
(Tons)
 
      Greens Creek, United States (a)
    Lucky Friday, United States (a)
    Casa Berardi, Canada (1)
         Total Probable Resources

7,691
2,043

7,806

17,540

12.2
12.9

-


0.10
-

0.14


3.1
7.4

-

 

8.3
2.2

-

 

93,947
26,346
-
120,293

738
-
1,100
1,838

240,670
151,590
-
392,260

639,490
44,910
-
684,400

 
 
Proven and Probable Reserves

(000 Tons)
Silver
(oz/ton)
Gold
(oz/ton)
Lead
(%)
Zinc
(%)
Silver
(000 oz)
Gold
(000 oz)
Lead
(Tons)
Zinc
(Tons)
 
       Greens Creek, United States
     Lucky Friday, United States
     Casa Berardi, Canada
         Total Proven and Probable Reserves

7,696
5,883
9,412
22,990

12.2
13.4
-

0.10
-
0.14

3.1
8.0
-

8.3
2.4
-

94,021
78,902
-
172,923

739
-
1,337
2,076

240,850
470,200
-
711,050

639,930
143,140
-
783,070

 
 
Measured Resources

(000 Tons)
Silver
(oz/ton)
Gold
(oz/ton)
Lead
(%)
Zinc
(%)
Silver
(000 oz)
Gold
(000 oz)
Lead
(Tons)
Zinc
(Tons)
 
       Greens Creek, United States (b)
     Lucky Friday, United States (2)(b)
     Casa Berardi, Canada (3)
     Heva, Canada (4)

     Hosco, Canada (4)
     San Sebastian, Mexico (5)(b)
     San Juan Silver, United States (6)
     Star, United States (7)(b)
         Total Measured Resources

-
14,433
1,838
5,480
33,070

-
-

-
54,821

-

5.7
-
-
-
-

-
-

-

-
0.18
0.06
0.04
-

-
-

-

3.9
-
-
-
-

-
-

-

2.2
-
-
-
-

-
-

-

81,716
-
-
-

-
-

-
81,716

-
-
330
304
1,296
-
-
-
1,930

-
555,960
-
-
-
-
-
-
555,960

-
316,560
-
-
-
-
-
-
316,560

 
 
Indicated Resources

(000 Tons)
Silver
(oz/ton)
Gold
(oz/ton)
Lead
(%)
Zinc
(%)
Silver
(000 oz)
Gold
(000 oz)
Lead
(Tons)
Zinc
(Tons)
 
       Greens Creek, United States (b)
     Lucky Friday, United States (2)(b)
     Casa Berardi, Canada (3)
     Heva, Canada (4)
     Hosco, Canada (4)
     San Sebastian, Mexico (5)(b)
     San Juan Silver, United States (6)
     Star, United States (7)(b)
         Total Indicated Resources

823
7,674
9,552
5,570
31,620
2,417

516
1,074
59,246

11.0
5.6
-
-
-
8.2

14.8
3.0

0.12
-
0.11
0.07
0.04
0.07

-
-

3.5
3.9
-
-
-
-

2.1
6.4

8.0
2.1
-
-

-
-

1.1
7.6

9,062
43,307
-
-

-
19,838

7,620
3,221
83,048

102
-
1,016
369
1,151
171
-
-
2,808

28,720
299,560
-
-
-
14,570
10,760
68,700
422,310

66,170
163,250
-
-
-
18,980
5,820
81,200
335,420

 
 
Measured & Indicated Resources

(000 Tons)
Silver
(oz/ton)
Gold
(oz/ton)
Lead
(%)
Zinc
(%)
Silver
(000 oz)
Gold
(000 oz)
Lead
(Tons)
Zinc
(Tons)
 
       Greens Creek, United States (b)
     Lucky Friday, United States (2)(b)
     Casa Berardi, Canada (3)
     Heva, Canada (4)

     Hosco, Canada (4)
     San Sebastian, Mexico (5)(b)
     San Juan Silver, United States (6)
     Star, United States (7)(b)
         Total Measured & Indicated Resources

823
22,107
11,391
11,050
64,690
2,417

516
1,074
114,067

11.0
5.7
-
-
-
8.2

14.8
3.0

0.12
-
0.12
0.06
0.04
0.07

-
-

3.3
3.5
-
-
-
0.8

2.1
6.6

8.0
2.2
-
-
-
-

1.1
7.6

9,062
125,023
-
-

-
19,838

7,620
3,221
164,764

102
-
1,346
672
2,447
171
-
-
4,738

28,720
855,520
-
-
-
14,570
10,760
68,700
978,270

66,170
479,810
-
-
-
18,980
5,820
81,200
651,980

 
 
Inferred Resources

(000 Tons)
Silver
(oz/ton)
Gold
(oz/ton)
Lead
(%)
Zinc
(%)
Silver
(000 oz)
Gold
(000 oz)
Lead
(Tons)
Zinc
(Tons)
 
       Greens Creek, United States (b)
     Lucky Friday, United States (8)(b)
     Casa Berardi, Canada (3)
     Heva, Canada (4)

     Hosco, Canada (4)
     San Sebastian, Mexico (9)(b)
     San Juan Silver, United States (10)
     Star, United States (11)(b)
     Monte Cristo, United States (12)
         Total Inferred Resources

3,452
5,359
3,710
4,210
7,650

3,721
3,078
2,957

913
35,051

13.6
7.7
-
-
-
4.2

10.7
3.1
0.3

0.09
-
0.16
0.08
0.04
0.03
0.01
-
0.14

2.8
5.4
-
-
-
-

1.3
5.9
-

6.6
1.8
-
-
-
-

1.1
5.6
-

46,881
41,152
-
-
-
15,744

33,097
9,128
271
146,273

315
-
604
350
314
129
36
-
131
1,879

97,180
289,420
-
-
-
22,550
40,990
173,500
-
623,640

229,240
98,890
-
-
-
32,070
34,980
166,100
-
561,280

 

 

Note: All estimates are in-situ except for the proven reserve at Greens Creek which is in a surface stockpile. Resources are exclusive of reserves. Totals may not represent the sum of parts due to rounding.

(a) Mineral reserves are based on $1,225 gold, $17.25 silver, $0.95 lead, $0.90 zinc, unless otherwise noted.
(b) Mineral resources are based on $1,300 gold, $20.00 silver, $0.95 lead, $0.90 zinc and $3.00 copper, unless otherwise stated.
(1) Mmineral reserves are based on $1,225 gold and a US$/CAN$ exchange rate of 1:1.1. Reserve diluted to an average of 23.7% to minimum width of 3 meters.
Open pit mineral reserves of the East Mine were estimated in August 2013 based on $1,300 gold and a US$/CAN$ exchange rate of 1:1. Reserve diluted to 20%.
Open pit mineral reserves of the Principal Mine were estimated in February 2011 based on $950 gold and a US$/CAN$ exchange rate of 1:1. Reserve diluted to 10%.
(2) Measured and indicated resources from Gold Hunter and Lucky Friday vein systems are diluted and factored for expected mining recovery.
(3) Measured, indicated and inferred resources are based on $1,300 gold and a US$/CAN$ exchange rate of 1:1.1. Underground resources are reported at a minimum mining width of 2 to 3 meters.
Open pit mineral resources of the Principal Mine were estimated based on $950 gold and a US$/CAN$ exchange rate of 1:1.
Open pit mineral resources of the 160 Zone were based on $1,250 gold and a US$/CAN$ exchange rate of 1:1. Resources diluted to 12%.
(4) Measured, indicated and inferred resources are based on $1,300 gold and a US$/CAN$ exchange rate of 1:1. The resources are in-situ without dilution and material loss. Resource model completed in 2011.
(5) Indicated resources reported at a minimum mining width of 2.0 meters for Hugh Zone and 1.5 meters for Andrea Vein, Middle Vein, and North Vein. East Fracine resources reported at actual vein width.
San Sebastian Hugh Zone also contains 8,400 tons of copper at 1.7% Cu within 492,700 tons of indicated resource.

(6) Indicated resources reported at a minimum mining width of 6.0 feet for Bulldog, resources based on $26.5 Ag, $0.85 Pb, and $0.85 Zn.
(7) Indicated resources reported at a minimum mining width of 4.3 feet.
(8) Inferred resources from Gold Hunter and Lucky Friday vein systems are diluted and factored for expected mining recovery.
(9) Inferred resources are reported at a minimum mining width of 2.0 meters for Hugh Zone and 1.5 meters for Andrea Vein, Middle Vein, and Noth Vein. East Francine resources reported at actual vein width.
San Sebastian Hugh Zone also contains 18,860 tons of copper at 1.5% within 1,255,100 tons of inferred resource.
(10) Inferred resources reported at a minimum mining width of 6.0 feet for Bulldog, 5.0 feet for Equity & North Amethyst veins; resources based on $1,400 Au, $26.5 Ag, $0.85 Pb, and $0.85 Zn.
(11) Inferred resources reported at a minimum mining width of 4.3 feet.
(12) Inferred resource reported at a minimum mining width of 5.0 feet; resources based on $1,400 Au, $26.5 Ag.

 

 

Qualified Person (QP) Pursuant to Canadian National Instrument 43-101

Dean McDonald, PhD. P.Geo., Senior Vice President - Exploration of Hecla Mining Company, who serves as a Qualified Person under National Instrument 43-101 (“NI 43-101”), supervised the preparation of the scientific and technical information concerning Hecla’s mineral projects on this website. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of analytical or testing procedures for the Greens Creek Mine are contained in a technical report prepared for Hecla and Aurizon Mines Ltd. (“Aurizon”) titled “Technical Report for the Greens Creek Mine” effective date March 28, 2013, for the Lucky Friday Mine are contained in a technical report prepared for Hecla and Aurizon titled “Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA” effective date April 2, 2014 and for the Casa Berardi Mine are contained in a technical report prepared for Aurizon titled "Technical Report on the mineral resource and mineral reserve estimate for Casa Berardi Mine, Northwestern Quebec, Canada" effective date March 31, 2014 (the “Casa Berardi Technical Report”).  Also included in these three technical reports is a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors. Copies of these technical reports are available under Hecla's and Aurizon's profiles on SEDAR at www.sedar.com.

 

The current Casa Berardi drill program was performed on core sawed in half and included the insertion of blanks and standards of variable grade in every 24 core samples. Standards were generally provided by Analytical Solutions Ltd. and prepared in 30 gram bags. Samples were sent to the Swastika Laboratories in Swastika, Ontario, a registered accredited laboratory, where they were dried, crushed, and split for gold analyses. Analysis for gold was completed by fire assay with AA finish. Gold over-limits were analyzed by fire assay with gravimetric finish. Data received from the lab were subject to validation using in-built program triggers to identify outside limit blank or standard assays that require re-analysis. Over 5% of the original pulps and rejects are sent for re-assay to ALS Chemex in Val d’Or, Quebec, for quality control.

 

Dr. McDonald reviewed and verified information regarding drill sampling, data verification of all digitally collected data, drill surveys and specific gravity determinations relating to the Casa Berardi mine. The review encompassed quality assurance programs and quality control measures including analytical or testing practice, chain-of-custody procedures, sample storage procedures and included independent sample collection and analysis. This review found the information and procedures meet industry standards and are adequate for Mineral Resource and Mineral Reserve estimation and mine planning purposes.


Cautionary Statements to Investors on Reserves and Resources

Reporting requirements in the United States for disclosure of mineral properties are governed by the SEC and included in the SEC's Securities Act Industry Guide 7, entitled “Description of Property by Issuers Engaged or to be Engaged in Significant Mining Operations” (Guide 7). However, the Company is also a “reporting issuer” under Canadian securities laws, which require estimates of mineral resources and reserves to be prepared in accordance with Canadian National Instrument 43-101 (NI 43-101). NI 43-101 requires all disclosure of estimates of potential mineral resources and reserves to be disclosed in accordance with its requirements. Such Canadian information is being included here to satisfy the Company's “public disclosure” obligations under Regulation FD of the SEC and to provide U.S. holders with ready access to information publicly available in Canada.

 

Reporting requirements in the United States for disclosure of mineral properties under Guide 7 and the requirements in Canada under NI 43-101 standards are substantially different. This document contains a summary of certain estimates of the Company, not only of proven and probable reserves within the meaning of Guide 7, which requires the preparation of a “final” or “bankable” feasibility study demonstrating the economic feasibility of mining and processing the mineralization using the three-year historical average price for any reserve or cash flow analysis to designate reserves and that the primary environmental analysis or report be filed with the appropriate governmental authority, but also of mineral resource and mineral reserve estimates estimated in accordance with the definitional standards of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in NI 43-101. The terms “measured resources”, “indicated resources,” and “inferred resources” are Canadian mining terms as defined in accordance with NI 43-101. These terms are not defined under Guide 7 and are not normally permitted to be used in reports and registration statements filed with the SEC in the United States, except where required to be disclosed by foreign law. The term “resource” does not equate to the term “reserve”. Under Guide 7, the material described herein as “indicated resources” and “measured resources” would be characterized as “mineralized material” and is permitted to be disclosed in tonnage and grade only, not ounces.  The category of “inferred resources” is not recognized by Guide 7.   Investors are cautioned not to assume that any part or all of the mineral deposits in such categories will ever be converted into proven or probable reserves. “Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of such a “resource” will ever be upgraded to a higher category or will ever be economically extracted. Investors are cautioned not to assume that all or any part of a “resource” exists or is economically or legally mineable. Investors are also especially cautioned that the mere fact that such resources may be referred to in ounces of silver and/or gold, rather than in tons of mineralization and grades of silver and/or gold estimated per ton, is not an indication that such material will ever result in mined ore which is processed into commercial silver or gold.