Overview

In 2016, Hecla’s Greens Creek mine produced 9.3 million ounces of silver at an average cash cost per ounce of $3.84 (1). Hecla currently produces silver from three silver mines, Greens Creek and Lucky Friday, and its newest mine, San Sebastian. In 2016, San Sebastian produced 4.3 million ounces of silver and 34,042 ounces of gold. The Lucky Friday mine produced 3.6 million ounces of silver in 2016. The Casa Berardi gold mine produced 145,975 ounces of gold in 2016 at an average cash cost per ounce of $764 (1).

(1) Cash cost, after of by-product credits, per silver or gold ounce represents a non-GAAP measurement, a reconciliation of which 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.

Greens Creek

Lucky Friday

Casa Berardi

San Sebastian

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Reserves & Resources
(As of December 31, 2016 unless otherwise noted)
Tons Silver Gold Lead Zinc Copper Silver Gold Lead Zinc Copper
Proven Reserves (000) (oz/ton) (oz/ton) (%) (%) (%) (000 oz) (000 oz) (Tons) (Tons) (Tons)
Greens Creek (a) 9 15.5 0.09 2.5 6.6 140 1 230 600
Lucky Friday (a) 3,308 17.5 10.4 3.3 57,925 345,360 110,400
Casa Berardi (1) 2,575 0.11 272
San Sebastian (a) 43 23.4 0.19 1,008 8
Total 5,935 59,073 281 345,590 111,000
 
Probable Reserves
Greens Creek (a) 7,585 11.7 0.09 2.9 7.6 88,729 672 217,050 575,530
Lucky Friday (a) 1,542 12.9 7.9 2.8 19,912 121,640 43,410
Casa Berardi (1) 7,752 0.13 1,037
San Sebastian (a) 283 16.2 0.10 4,593 29
Total 17,162 113,233 1,738 338,690 618,940
 
Proven & Probable Reserves
Greens Creek (a) 7,594 11.7 0.09 2.9 7.6 88,869 673 217,280 576,130
Lucky Friday (a) 4,850 16.1 9.6 3.2 77,837 467,000 153,810
Casa Berardi (1) 10,327 0.13 1,309
San Sebastian (a) 326 17.2 0.11 5,600 37
Total 23,096 172,306 2,019 684,280 729,940
 
Measured Resources
Greens Creek (b)
Lucky Friday (2) (b) 14,698 6.3 4.2 2.3 92,178 610,550 344,890
Casa Berardi (3) 2,108 0.16 340
San Sebastian (4)(b) - - -
Heva (5) 5,480 0.06 304
Hosco (5) 33,070 0.04 1,296
Rio Grande Silver (6) (b)
Star (7) (a)
Total 55,355 92,178 1,940 610,550 344,890
 
Indicated Resources
Greens Creek (b) 1,785 10.8 0.09 3.1 7.8 19,320 154 55,980 139,660
Lucky Friday (2) (b) 6,801 6.0 4.2 2.2 40,853 282,790 146,550
Casa Berardi (3) 11,220 0.10 1,128
San Sebastian (4) (b) 1,530 5.4 0.07 8,285 114 14,620 19,050 8,420
Heva (5) 5,570 0.07 369
Hosco (5) 31,620 0.04 1,151
Rio Grande Silver (6) 516 14.8 2.1 1.1 7,620 10,760 5,820
Star (7) (b) 1,126 2.9 6.2 7.4 3,301 69,900 83,410
Total 60,167 79,379 2,917 434,050 394,490 8,420
 
Measured & Indicated Resources
Greens Creek (b) 1,785 10.8 0.09 3.1 7.8 19,320 154 55,980 139,660
Lucky Friday (2) (b) 21,499 6.2 4.2 2.3 133,031 893,340 491,440
Casa Berardi (3) 13,327 0.11 1,468
San Sebastian (4) (b) 1,530 5.4 0.07 8,285 114 14,620 19,050 8,420
Heva (5) 11,050 0.06 672
Hosco (5) 64,690 0.04 2,447
Rio Grande Silver (6) 516 14.8 2.1 1.1 7,620 10,760 5,820
Star (7) (b) 1,126 2.9  – 6.2 7.4 3,301 69,900 83,410
Total 115,522 171,557 4,856 1,044,600 739,380 8,420
 
Inferred Resources
Greens Creek (b) 3,397 11.9 0.08 2.9 7.2 40,253 285 98,380 243,220
Lucky Friday (8) (b) 4,427 7.7 5.6 2.0 34,032 247,260 87,240
Casa Berardi (3) 4,635 0.14 628
San Sebastian (9) (b) 2,817 5.5 0.03 15,413 89 22,960 32,670 19,220
Heva (5) 4,210 0.08 350
Hosco (5) 7,650 0.04 314
Rio Grande Silver (10) 3,078 10.7 0.01 1.3 1.1 33,097 36 40,990 34,980
Star (11) (b) 3,157 2.9 5.6 5.5 9,432 178,670 174,450
Monte Cristo (12) 913 0.3 0.14 271 131
Rock Creek (13) 97,573 1.5 0.7 148,094 655,070
Montanore (14) 112,185 1.6 0.7 183,346 759,420
Total 244,041 463,938 1,833 588,260 572,560 1,433,710
 

(footnotes)
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.

(a) Mineral reserves are based on $1,200 gold, $14.50 silver, $0.90 lead, and $1.05 zinc, unless otherwise stated.
(b) Mineral resources are based on $1,350 gold, $21 silver, $0.95 lead, $1.10 zinc and $3.00 copper, unless otherwise stated.

(1) Mineral reserves are based on $1,200 gold and a US$/CAN$ exchange rate of 1:1.4. Reserve diluted to an average of 34.7% to minimum width of 9.8 feet (3 m).
Open pit mineral reserves of the East Mine were estimated in May 2015 based on $1,225 gold and a US$/CAN$ exchange rate of 1:1.10. Reserve block diluted.
Open pit mineral reserves of the Principal Mine were estimated in February 2011 by BBA Inc. based on $950 gold and a US$/CAN$ exchange rate of 1:1. Reserve diluted to 10%.
Technical Report on the Pre-Feasibility Study for the Casa Berardi Principal Zone Open-Pit Project, La Sarre, Quebec, February 2011
Prepared by:  Patrice Live, Eng. – BBA Inc.; Amanda Fitch, Jr. Eng. – BBA Inc.; Andre Allaire, Eng., M. Eng., Ph.D. – BBA
(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 $1,350 gold and a US$/CAN$ exchange rate of 1:1.4. Underground resources are reported at a minimum mining width of 6.6 feet to 9.8 feet (2 m to 3 m).
Open pit mineral resources of the Principal Mine were estimated in February 2011 by BBA Inc. based on $950 gold and a US$/CAN$ exchange rate of 1:1.
Technical Report on the Pre-Feasibility Study for the Casa Berardi Principal Zone Open-Pit Project, La Sarre, Quebec, February 2011
Prepared by:  Patrice Live, Eng. – BBA Inc.; Amanda Fitch, Jr. Eng. – BBA Inc.; Andre Allaire, Eng., M. Eng., Ph.D. – BBA
Open pit mineral resources of the 160 Zone were estimated by InnovExplo Inc., effective date 24 August 2011, based on $1,250 gold and a US$/CAN$ exchange rate of 1:1, Resources diluted to 12%.
Preliminary Economic Assessment on the Casa Berardi Mine – Zone 160, May 4, 2012
Prepared by: Nathalie Gauthier, Eng., P.Eng., – InnovExplo; Gilles Carrier, Eng., Aurizon Mines Ltd.
(4) Indicated resources reported at a minimum mining width of 6.6 feet (2 m) for Hugh Zone and 4.9 feet (1.5 m) for Andrea Vein, Middle Vein, and North Vein. East Francine resources reported at actual vein width.
San Sebastian Hugh Zone also contains 8,420 tons of copper at 1.7% Cu within 499,200 tons of indicated resource.
(5) Measured, indicated and inferred resources were estimated by Goldminds Geoservices Inc. with effective date 12-July-2013, and 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.
NI43-101 Technical Report, Mineral Resource Update, Heva-Hosco Gold Projects, Rouyn-Noranda, Quebec, Hecla Quebec, December 2013
Prepared by: Claude Duplessis, Eng. Project Manager – GoldMinds Geoservices Inc.; Maxime Dupéré, P. Geo – SGS Canada Inc. (Geostat)
(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 reported at a minimum mining width of 6.6 feet (2 m) for Hugh Zone and 4.9 feet (1.5 m) for Andrea Vein, Middle Vein, and North Vein. East Francine resources reported at actual vein width.
San Sebastian Hugh Zone also contains 19,220 tons of copper at 1.5% within 1,311,000 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.
(13) Inferred resource reported at a minimum thickness of 15.0 feet; Rock Creek also contains 655,070 tons of copper at 0.7% within stated inferred resource tonnage.
Inferred resources at Rock Creek adjusted given mining restrictions as defined by U.S. Forest Service, Kootenai National Forest, in the June 2003 ‘Record of Decision, Rock Creek Project’.
(14) Inferred resource reported at a minimum thickness of 15 feet; Montanore also contains 759,420 tons of copper at 0.7% within stated inferred resource tonnage.
Inferred resources at Montanore adjusted given mining restrictions as defined by U.S. Forest Service, Kootenai National Forest, Montana DEQ in the December 2015 ‘Joint Final EIS, Montanore Project’ and the February 2016 U.S. Forest Service – Kootenai National Forest ‘Record of Decision, Montanore Project’.

* Totals may not represent the sum of parts due to rounding.

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 website 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.

2016 Reserves & Resources PDF