Greens Creek | Admiralty Island, Alaska
Hecla’s 100%-owned and operated Greens Creek mine in southeast Alaska is one of the largest and lowest-cost primary silver mines in the world, last year producing 6.4 million ounces of silver at a Total Cash Cost, Net of By-Product Credits, per Silver Ounce of $2.70 (a non GAAP measure)(1). Production in 2013 is expected to again exceed 6 million ounces.
Greens Creek last year had record capital expenditure since the opening of the mine, a total of $62.2 million in 2012, which was focused on underground mine development, definition drilling, mining fleet replacement, tailings dam expansion, and the construction of expanded and upgraded camp facilities, all of which set us up for improved operations with a longer life.
For the coming year, the capital expendutures budget is projected to be about $72 million, with a focus on mine rehabilitation around the historic East Ore Zone, continued mine development, as well as the purchase of new equipment.
The mine holds current proven and probable silver reserves of 94.5 million ounces, 718,400 ounces of proven and probable gold reserves, as well as 767,410 tons of lead and 702,300 tons of zinc in proven and probable reserves.
There are an additional 2.6 million ounces of silver indicated resource and 43.0 million ounces of silver inferred resources. Indicated gold resources measure 53,500 million ounces and inferred gold resources measure 379,200 ounces.
Drilling efforts over the past ten years have replaced production and added new reserves and resources. Exploration efforts are ongoing along the trend of numerous orebodies underground and aggressively exploring the highly prospective 27-square-mile land package on surface. Underground drilling efforts this year are looking to convert resources to reserves and define extensions to the 200 South, Southwest Bench and NNW. Surface drilling at Killer Creek may define a new mineralizing center at Greens Creek.
(1) Total Cash Cost, Net of By-Product Credits, per Silver Ounce is a non-GAAP measurement. A reconciliation of total cash cost to cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) can be found in the legal page of this website.