pre-development
The company has initiated re-opening studies of mines that operated within the last 25 years in price environments that were significantly lower than current prices. There are currently a number of identified resources with good exploration potential – the Star Complex in North Idaho’s Silver Valley, the Bulldog and the Equity-North Amethyst mines in Colorado’s Creede Mining District, and Hugh Zone/Andrea Vein at San Sebastian in Durango, Mexico. These re-opening studies will quantify existing resources, expand those resources with exploration and develop plans for rehabilitating accesses that could support both exploration and operations. Exploration drilling from the surface is in progress at all of these sites and underground drilling has started at the Star complex or Star/Noonday and Equity-North Amethyst mines, as well as activities under way that will provide access for underground drilling at the Bulldog mine and eventual mine planning and production.
Pre-development activities in 2012 will focus on completing scoping work and preliminary economic evaluations to potentially re-open the Star, San Juan Silver, and San Sebastian properties which would contribute to Hecla’s goal of 50% silver production growth over the next five years. Based upon the current plan in 2012, the pre-development budget is expected to be approximately $11.0 million. Hecla may allocate additional funds during 2012 depending on the outcome of the work that is currently planned.
