Overview

In 2015, Hecla’s Greens Creek mine produced 8.5 million ounces of silver at an average cash cost per ounce of $3.91 (1). Hecla currently produces silver from three silver mines, Greens Creek and Lucky Friday, and its newest mine, San Sebastian. In 2015, the first doré was poured at San Sebastian on December 22, 2015, and the mine produced 81,677 ounces of silver and 870 ounces of gold by year end. The Lucky Friday mine produced 3.0 million ounces of silver in 2015. The Casa Berardi gold mine, acquired from Aurizon Mines Ltd. on June 1, 2013, produced 127,891 ounces of gold in 2015 at an average cash cost per ounce of $772 (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

North America Property Map

Western Region  |  Eastern Region

Reserves & Resources
(As of December 31, 2015 unless otherwise noted)
Tons Silver Gold Lead Zinc Silver Gold Lead Zinc Copper
Proven Reserves (000) (oz/ton) (oz/ton) (%) (%) (000 oz) (000 oz) (Tons) (Tons) (Tons)
Greens Creek (a) 10 20.8 0.12 3.7 9.0 210 1 370 910
Lucky Friday (a) 3,510 16.5 9.8 3.2 57,961 344,610 111,120
Casa Berardi (1) 2,119 0.11 234
San Sebastian (a) 5 14.5 0.21 72 1
Total 5,644 58,243 237 344,980 112,120
 
Probable Reserves
Greens Creek (a) 7,204 12.3 0.09 3.0 8.1 88,523 676 218,030 581,730
Lucky Friday (a) 1,557 13.3 8.0 2.9 20,721 124,950 45,080
Casa Berardi (1) 8,104 0.14 1,098
San Sebastian (a) 284 28.0 0.22 7,943 63
Total 17,149 117,186 1,836 342,980 626,810
 
Proven & Probable Reserves
Greens Creek (a) 7,214 12.3 0.09 3.0 8.1 88,733 677 218,400 582,640
Lucky Friday (a) 5,067 15.5 9.3 3.1 78,681 469,560 156,290
Casa Berardi (1) 10,222 0.13 1,332
San Sebastian (a) 289 27.7 0.22 8,015 65
Total 22,793 175,429 2,073 687,960 738,930
 
Measured Resources
Greens Creek (b)
Lucky Friday (2) (b) 13,762 6.1 4.1 2.3 83,711 569,190 319,810
Casa Berardi (3) 1,769 0.18 326
San Sebastian (4)(b) - - -
Heva (5) 5,480 0.06 304
Hosco (5) 33,070 0.04 1,296
San Juan Silver (6) (b)
Star (7) (a)
Total 54,080 83,711 1,926 569,190 319,810
 
Indicated Resources
Greens Creek (b) 1,227 10.6 0.10 3.0 7.5 13,015 128 36,710 92,260
Lucky Friday (2) (b) 7,067 6.3 4.4 2.1 44,436 308,260 149,830
Casa Berardi (3) 9,225 0.11 985
San Sebastian (4) (b) 1,561 5.9 0.07 9,257 116 14,570 18,980 8,400
Heva (5) 5,570 0.07 369
Hosco (5) 31,620 0.04 1,151
San Juan Silver (6) 516 14.8 2.1 1.1 7,620 10,760 5,820
Star (7) (b) 1,074 3.0 6.4 7.6 3,221 68,700 81,200
Total 57,859 77,550 2,749 439,000 348,090 8,400
 
Measured & Indicated Resources
Greens Creek (b) 1,227 10.6 0.10 3.0 7.5 13,015 128 36,710 92,260
Lucky Friday (2) (b) 20,829 6.2 4.2 2.3 128,147 877,450 469,640
Casa Berardi (3) 10,393 0.12 1,312
San Sebastian (4) (b) 1,561 5.9 0.07 9,257 116 14,570 18,980 8,400
Heva (5) 11,050 0.06 672
Hosco (5) 64,690 0.04 2,447
San Juan Silver (6) 516 14.8 2.1 1.1 7,620 10,760 5,820
Star (7) (b) 1,074 3  – 6.4 7.6 3,221 68,700 81,200
Total 111,940 161,261 4,674 1,008,190 667,900 8,400
 
Inferred Resources
Greens Creek (b) 3,255 12.8 0.09 2.8 6.7 41,730 300 89,630 219,540
Lucky Friday (8) (b) 4,451 7.7 5.7 1.9 34,302 2544,080 85,850
Casa Berardi (3) 2,854 0.18 510
San Sebastian (9) (b) 2,677 5.5 0.03 14,846 93 22,550 32,070 18,860
Heva (5) 4,210 0.08 350
Hosco (5) 7,650 0.04 314
San Juan Silver (10) 3,078 10.7 0.01 1.3 1.1 33,097 36 40,990 34,980
Star (11) (b) 2,957 3.1 5.9 5.6 9,128 173,500 166,100
Monte Cristo (12) 913 0.3 0.14 271 131
Rock Creek (13) 136,601 1.7 228,616 1,010,770
Total 168,647 361,990 1,734 580,750 538,540 1,029,630
 

(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 $1,100 gold, $14.50 silver, $0.90 lead, and $0.90 zinc, unless otherwise stated.
(b) Mineral resources are based on $1,300 gold, $20 silver, $0.95 lead, $0.90 zinc and $3.00 copper, unless otherwise stated.

(1) Mineral reserves are based on $1,100 gold and a US$/CAN$ exchange rate of 1:1.37. 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 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 1:1.37. 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 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) 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 8,400 tons of copper at 1.7% Cu within 492,700 tons of indicated resource.
(5) 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.
(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 1.5 meters for Andrea Vein, Middle Vein, and North Vein. East Francine resources reported at actual vein width.
San Sebastian Hugh Zone also contains 18,860 tons of copper at 1.5% within 1,255,000 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 16.0 feet; resources based on $7 Ag and $1 Cu. Rock Creek also contains 1,010,700 tons of copper at 0.7% within stated inferred resource tonnage.

* 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