Overview

In 2018, Hecla’s Greens Creek mine produced 8.0 million ounces of silver at an average cash cost per ounce of $(1.13) (1). Hecla currently produces silver from three silver mines, Greens Creek,  Lucky Friday, and San Sebastian. In 2018, San Sebastian produced 2.0 million ounces of silver and 14,979 ounces of gold; the Lucky Friday mine produced 169,041 ounces of silver (Lucky Friday union members have been on strike since March 13, 2017). The Casa Berardi gold mine produced 162,744 ounces of gold in 2018 at an average cash cost per ounce of $800 (1). The newly acquired Nevada operations produced 32,887 ounces of gold in 2018 at an average cash cost per gold ounce of $1,221(1) and 172,301 ounces of silver.

(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

Fire Creek

Hollister

Midas

Casa Berardi

San Sebastian

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Reserves & Resources
(As of December 31, 2018 unless otherwise noted)
Tons Silver Gold Lead Zinc Copper Silver Gold Lead Zinc Copper
Proven Reserves(1) (000) (oz/ton) (oz/ton) (%) (%) (%) (000 oz) (000 oz) (Tons) (Tons) (Tons)
Greens Creek (2) 6 13.8 0.10 2.8 7.0 86 1 180 440
Lucky Friday (2) 4,230 15.4 9.6 4.1 65,234 406,080 174,630
Casa Berardi (3) 6,790 0.08 563
San Sebastian (2) 22 3.9 0.08 85 2
Fire Creek (2,4) 24 1.1 1.21 - - - 27 29 - - -
Hollister (2,5) 2 7.0 0.73 - - - 17 2 - - -
Total 11,074 65,448 596 406,260 175,070
Probable Reserves
Greens Creek (2) 9,270 11.5 0.09 2.8 7.6 106,972 840 262,760 706,040
Lucky Friday (2) 1,387 11.4 7.6 3.7 15,815 104,720 50,640
Casa Berardi (3) 16,954 0.08 1,343
San Sebastian (2) 206 13.1 0.10 2,705 21
Fire Creek (2,4) 91 0.3 0.44 - - - 30 40 - - -
Hollister (2,5) 9 7.2 0.65 - - - 66 6 - - -
Total 27,917 125,588 2,250 367,480 756,680
Proven & Probable Reserves
Greens Creek (2) 9,277 11.5 0.09 2.8 7.6 107,058 840 262,940 706,470
Lucky Friday (2) 5,617 14.4 9.1 4.0 81,049 510,800 225,260
Casa Berardi (3) 23,743 0.08 1,907
San Sebastian (2) 228 12.3 0.10 2,790 23
Fire Creek (2,4) 115 0.5 0.60 - - - 57 69 - - -
Hollister (2,5) 11 7.2 0.67 - - - 82 8 - - -
Total 38,991 191,036 2,846 773,740 931,730
Measured Resources
Greens Creek (6) 339 9.5 0.11 2.6 9.4 3,233 36 8,800 31,700
Lucky Friday (6,7) 7,587 7.6 4.9 2.7 57,314 370,240 204,490
Casa Berardi (8) 1,952 0.15 299
San Sebastian (6,9) - - -
Fire Creek (6,10) 64 0.7 0.92 - - - 47 58 - - -
Hollister (6,11) 104 4.0 0.92 - - - 420 96 - - -
Midas (6, 12) 183 6.7 0.45 - - - 1,235 82 - - -
Heva (14) 5,480 0.06 304
Hosco (14) 33,070 0.04 1,296
Rio Grande Silver (15)
Star (16)
Total 48,471 59,032 1,948 369,680 228,700
Indicated Resources
Greens Creek (6) 2,464 11.4 0.09 2.9 7.6 28,211 229 72,120 187,060
Lucky Friday (6,7) 2,344 8.2 5.3 2.5 19,202 123,120 58,160
Casa Berardi (8) 11,037 0.10 1,055
San Sebastian (6,9) 1,506 5.8 0.07 2.9 3.8 1.7 8,796 103 15,520 20,350 9,020
Fire Creek (6,10) 307 0.5 0.54 - - - 158 164 - - -
Fire Creek - Open Pit (13) 42,877 0.1 0.03 - - - 2,350 1,093 - - -
Hollister (6,11) 135 2.6 0.64 - - - 350 86 - - -
Midas (6,12) 722 4.5 0.37 - - - 3,228 267 - - -
Heva (14) 5,570 0.07 369
Hosco (14) 31,620 0.04 1,151
Rio Grande Silver (15) 516 14.8 2.1 1.1 7,620 10,760 5,820
Star (16) 1,126 2.9 6.2 7.4 3,301 69,900 83,410
Total 105,538 145,944 4,841 458,850 771,070 19,780
Measured & Indicated Resources
Greens Creek (6) 7,467 13.0 0.10 3.1 8.2 97,430 726 227,740 609,350
Lucky Friday (6,7) 10,084 7.7 4.9 2.6 77,363 499,070 265,970
Casa Berardi (8) 12,749 0.09 1,205
San Sebastian (6,9) 2,243 6.5 0.05 2.5 3.5 1.6 14,690 115 30,410 42,710 19,780
Fire Creek (6,10) 371 0.6 0.60 - - - 205 222 - - -
Fire Creek - Open Pit (13) 42,877 0.1 0.03 - - - 2,350 1,093 - - -
Hollister (6,11) 239 3.2 0.76 - - - 770 182 - - -
Midas (6,12) 905 4.9 0.39 - - - 4,463 349 - - -
Heva (14 11,050 0.06 672
Hosco (14 64,690 0.04 2,447
Rio Grande Silver (15 516 14.8 2.1 1.1 7,620 10,760 5,820
Star (16 1,126 2.9  – 6.2 7.4 3,301 69,900 83,410
Total 154,316 208,193 7,012 837,880 1,007,260 19,780
Inferred Resources
Greens Creek (6) 2,470 14.6 0.09 3.0 7.3 35,982 219 74,410 181,400
Lucky Friday (6,7 2,861 8.7 6.3 2.6 24,809 181,180 74,430
Casa Berardi (8) 6,222 0.10 652
San Sebastian (6,17) 3,487 6.6 0.04 1.7 2.5 1.3 22,948 143 12,110 17,440 8,890
Fire Creek (6,10) 565 0.5 0.53 - - - 288 299 - - -
Fire Creek - Open Pit (13) 31,707 0.1 0.03 - - - 2,882 1,085 - - -
Hollister (6,11,18) 550 3.1 0.40 - - - 1,716 223 - - -
Midas (6,12) 573 3.0 0.35 - - - - 350 - - -
Heva (14) 4,210 0.08 350
Hosco (14) 7,650 0.04 314
Rio Grande Silver (19) 3,078 10.7 0.01 1.3 1.1 33,097 36 40,990 34,980
Star (16 3,157 2.9 5.6 5.5 9,432 178,670 174,450
Monte Cristo (20) 913 0.3 0.14 271 131
Rock Creek (21) 100,086 1.5 0.7 148,736 658,680
Montanore (22) 112,185 1.6 0.7 183,346 759,420
Total 279,714 465,229 3,648 487,360 482,700 1,426,990
 

(footnotes)
Note: All estimates are in-situ except for the proven reserve at Greens Creek and San Sebastian which are in surface stockpiles. Resources are exclusive of reserves.

(1) The term “reserve” means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination. The term “economically,” as used in the definition of reserve, means that profitable extraction or production has been established or analytically demonstrated to be viable and justifiable under reasonable investment and market assumptions. The term “legally,” as used in the definition of reserve, does not imply that all permits needed for mining and processing have been obtained or that other legal issues have been completely resolved. However, for a reserve to exist, Hecla must have a justifiable expectation, based on applicable laws and regulations, that issuance of permits or resolution of legal issues necessary for mining and processing at a particular deposit will be accomplished in the ordinary course and in a timeframe consistent with Hecla’s current mine plans.
(2) Mineral reserves are based on $1,200 gold, $14.50 silver, $0.90 lead, and $1.15 zinc, unless otherwise stated.
(3) Mineral reserves are based on $1,200 gold, and a US$/CAN$ exchange rate of 1:1.33. Reserve diluted to an average of 34.7% to minimum width of 9.8 feet (3 m).
Reserves at Casa Berardi were determined by Jonathan Archambault-Giroux, P. Geo., Que., Real Parent, P.Geo. Que., and Alain Quenneville, P. Eng., Que. unless otherwise stated.
Open pit mineral reserves of the Principal Mine were estimated in September 2018 by Hecla Quebec and Mine Development Associates based on $1,250 gold and a US$/CAN$ exchange rate of 1:3.
        Hecla Mining Company, Principal Deposit Open Pit Mining Study – 2018
        September 1, 2018, by Mine Development Associates, Thomas L. Dyer, P.E.
Open pit mineral reserves of the 160 and 134 Zones were estimated in January 2018 by Hecla Quebec and Mine Development Associates based on $1,225 gold and a US$/CAN$ exchange rate of 1.3.
        Hecla Mining, Casa Berardi 160 and 134 Zones, Open Pit Mining Study – 2017
        January 12, 2018, by Mine Development Associates, Thomas L. Dyer, P.E.
Open pit mineral reserves of the West Mine Crown Pillar were estimated in January 2019 by Hecla Quebec and Mine Development Associates based on $1225 gold and a US$/CAN$ exchange rate of 1.3.
       Hecla Mining Company, West Mine Crown Pillar Deposit, Open Pit Mining Study – 2018
January 10, 2019, by Mine Development Associates, Thomas L. Dyer, P.E.
Open pit mineral reserves of the East Mine Crown Pillar Expansion were estimated in August 2018 by Hecla Quebec and Mine Development Associates based on $1225 gold and a US$/CAN$ exchange rate of 1.3.
      Hecla Mining Company, East Mine Crown Pillar Expansion, Open Pit Mining Study – 2018
August 22, 2018, by Mine Development Associates, Thomas L. Dyer, P.E.
(4) Recoveries at Fire Creek for gold and silver are 94% and 92%. Cutoff grade of 0.339 Au Equivalent oz/ton and incremental cutoff grade of 0.11 Au Equivalent oz/ton. Unplanned dilution of 10% to 17% included depending on mining method.
(5) Recoveries at Hollister for gold and silver are 87% and 80%.  Cutoff grade of 0.396 Au Equivalent oz/ton and incremental cutoff grade of 0.07 Au Equivalent oz/ton. Unplanned dilution of 10% to 17% and 5% mining loss included.
(6) Mineral resources are based on $1,350 gold, $21 silver, $1.10 lead, $1.20 zinc and $3.00 copper, unless otherwise stated.
(7) Measured and indicated resources from Gold Hunter and Lucky Friday vein systems are diluted and factored for expected mining recovery.
(8) Measured, indicated and inferred resources are based on $1,350 gold and a US$/CAN$ exchange rate of 1:1.33.  Underground resources are reported at a minimum mining width of 6.6 to 9.8 feet (2 m to 3 m).
Resources at Casa Berardi were determined by Jonathan Archambault-Giroux, P. Geo., Que., Real Parent, P.Geo. Que., and Alain Quenneville, P. Eng., Que. unless otherwise stated.
(9) Indicated resources reported at a minimum mining width of 5.9 feet (1.8 m) for Hugh Zone, Middle Vein, North Vein, and East Francine Vein and 4.9 feet (1.5 m) for Andrea Vein.
San Sebastian lead, zinc and copper grades are for 1,224,900  tons of indicated resource within the Middle Vein and the Hugh Zone of the Francine Vein.
(10) Recoveries at Fire Creek for gold and silver are 94% and 92%. Au equivalent cutoff grade of 0.297 oz/ton. The minimum mining width is defined as four feet or the vein true thickness plus two feet, whichever is greater.
(11) Recoveries at Hollister for gold and silver are 87% and 80%. Au equivalent cutoff grade of 0.352 oz/ton. The minimum mining width is defined as four feet or the vein true thickness plus two feet, whichever is greater.
(12) Recoveries at Midas for gold and silver are 93% and 88%  Au equivalent cutoff grade of 0.217 oz/ton. The minimum mining width is defined as four feet or the vein true thickness plus two feet, whichever is greater.
(13) Indicated and inferred open-pit resources for Fire Creek were calculated November 30, 2017 using recoveries for gold and silver of 65% and 30% for oxide material and 60% and 25% for mixed oxide-sulfide material.
Open pit resources are calculated at $1400 gold and $19.83 silver and cut-off grade of 0.01 Au Equivalent oz/ton and is inclusive of 10% mining dilution and 5% ore loss.  Open pit mineral resources exclusive of underground mineral resources.
       NI43-101 Technical Report for the Fire Creek Project, Lander County, Nevada; Effective Date March 31, 2018; prepared by Practical Mining LLC, Mark Odell, P.E. for Hecla Mining Company, June 28, 2018.
(14) 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)
(15) 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.
(16) Indicated and Inferred resources reported using $21 silver, $0.95 lead, $1.10 zinc minimum mining width of 4.3 feet.
(17) Inferred resources reported at a minimum mining width of 5.9 feet (1.8 m) for Hugh Zone, Middle Vein, North Vein, and East Francine Vein and 4.9 feet (1.5 m) for Andrea Vein.
San Sebastian lead, zinc and copper grades are for 702,600 tons of inferred resource within the Middle Vein and the Hugh Zone of the Francine Vein.
(18) Inferred resources for the Hatter Project at the Hollister Mine calculated using recoveries for gold and silver of 82.7% and 71.8% and an Au equivalent cutoff grade of 0.27 oz/ton.
(19) 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.
(20) Inferred resources reported at a minimum mining width of 5.0 feet; resources based on $1,400 Au, $26.5 Ag.
(21) Inferred resources at Rock Creek reported at a minimum thickness of 15 feet and adjusted given mining restrictions as defined by U.S. Forest Service, Kootenai National Forest, in the June 2003 ‘Record of Decision, Rock Creek Project’.
(22) Inferred resource at Montanore reported at a minimum thickness of 15 feet and adjusted given mining restrictions defined by U.S. Forest Service, Kootenai National Forest, Montana DEQ in 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.

2018 Reserves & Resources PDF