Overview

In 2017, Hecla’s Greens Creek mine produced 8.4 million ounces of silver at an average cash cost per ounce of $0.71 (1). Hecla currently produces silver from three silver mines, Greens Creek and Lucky Friday, and its newest mine, San Sebastian. In 2017, San Sebastian produced 3.3 million ounces of silver and 25,177 ounces of gold. The Lucky Friday mine produced 838,658 ounces of silver in 2017 (Lucky Friday union members have been on strike since March 13, 2017). The Casa Berardi gold mine produced 156,653 ounces of gold in 2017 at an average cash cost per ounce of $820 (1).

With the recent acquisition of Klondex Mines Ltd. (July 2018), the company has acquired three operating gold mines in Nevada – Midas, Fire Creek, and Hollister – which bring significant production from one of the most prolific gold mining jurisdictions in the world.

(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

WP-Icon Hecla Tech News Volume 1, Issue 1 (Newsletter)
WP-Icon Hecla Tech News Volume 1, Issue 2 (Newsletter)

North America Property Map

Western Region  |  Eastern Region

 

Reserves & Resources
(As of December 31, 2017 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) 7 12.2 0.09 2.4 6.1 89 1 170 440
Lucky Friday (2) 4,246 15.4 9.6 4.1 65,448 407,520 175,400
Casa Berardi (3) 2,458 0.13 312
San Sebastian (2) 31 23.3 0.19 712 6
Total 6,742 66,249 319 407,690 175,840
Probable Reserves
Greens Creek (2) 7,543 11.9 0.10 3.0 8.1 90,130 725 224,880 614,390
Lucky Friday (2) 1,387 11.4 7.6 3.7 15,815 104,720 50,640
Casa Berardi (3) 11,413 0.10 1,181
San Sebastian (2) 368 13.1 0.10 4,809 37
Total 20,709 110,754 1,943 329,600 665,030
Proven & Probable Reserves
Greens Creek (2) 7,550 11.9 0.10 3.0 8.1 90,130 725 224,880 614,390
Lucky Friday (2) 5,632 14.4 9.1 3.7 15,815 104,720 50,640
Casa Berardi (3) 13,871 0.11 1,494
San Sebastian (2) 368 13.1 0.10 4,809 37
Total 20,709 110,754 1,943 329,600 665,030
Measured Resources
Greens Creek (4) 341 9.1 0.09 2.4 8.3 3,086 30 8,090 29.42-
Lucky Friday (4,5) 7,371 7.6 4.9 2.7 55,947 361,590 200,280
Casa Berardi (6) 2,210 0.17 319
San Sebastian (4,7) - - -
Heva (8) 5,480 0.06 304
Hosco (8) 33,070 0.04 1,296
Rio Grande Silver (9)
Star (4,10)
Total 48,471 59,032 1,948 369,680 228,700
Indicated Resources
Greens Creek (4) 2,464 11.4 0.09 2.9 7.6 28,211 229 72,120 187,060
Lucky Friday (4,5) 2,344 8.2 5.3 2.5 19,202 123,120 58,160
Casa Berardi (6) 11,037 0.10 1,055
San Sebastian (4,7) 1,506 5.8 0.07 2.9 3.8 1.7 8,796 103 15,520 20,350 9,020
Heva (8) 5,570 0.07 369
Hosco (8) 31,620 0.04 1,151
Rio Grande Silver (9) 516 14.8 2.1 1.1 7,620 10,760 5,820
Star (4,10) 1,126 2.9 6.2 7.4 3,301 69,900 83,410
Total 56,182 67,128 2,907 291,420 354,800 9,020
Measured & Indicated Resources
Greens Creek (4) 2,805 11.2 0.09 2.9 7.7 31,296 259 80,210 215,480
Lucky Friday (4,5) 9,715 7.7 5.0 2.7 75,148 484,700 258,430
Casa Berardi (6) 13,246 0.10 1,373
San Sebastian (4,7) 1,506 5.8 0.07 2.9 3.8 1.7 8,796 103 15,520 20,350 9,020
Heva (8) 11,050 0.06 672
Hosco (8) 64,690 0.04 2,447
Rio Grande Silver (9) 516 14.8 2.1 1.1 7,620 10,760 5,820
Star (4,10) 1,126 2.9  – 6.2 7.4 3,301 69,900 83,410
Total 104,653 126,161 4,854 661,090 583,490 9,020
Inferred Resources
Greens Creek (4) 2,708 12.1 0.08 2.7 6.9 32,711 222 73,350 185,660
Lucky Friday (4,11) 2,820 8.7 6.3 2.7 24,646 178,970 75,270
Casa Berardi (6) 6,980 0.10 717
San Sebastian (4,12) 2,915 5.5 0.03 1.8 2.5 1.5 15,978 95 23,660 33,770 19,520
Heva (8) 4,210 0.08 350
Hosco (8) 7,650 0.04 314
Rio Grande Silver (13) 3,078 10.7 0.01 1.3 1.1 33,097 36 40,990 34,980
Star (4,14) 3,157 2.9 5.6 5.5 9,432 178,670 174,450
Monte Cristo (15) 913 0.3 0.14 271 131
Rock Creek (16) 100,086 1.5 0.7 148,736 658,680
Montanore (17) 112,185 1.6 0.7 183,346 759,420
Total 246,701 448,217 1,865 495,640 504,130 1,437,620
 

(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 $1.05 zinc, unless otherwise stated.
(3) Mineral reserves are based on $1200 gold, and a US$/CAN$ exchange rate of 1:1.37. Reserve diluted to an average of 34.7% to minimum width of 9.8 feet (3 m).
Reserves at Casa Berardi were determined by Jonathan Archambault-Giroux, P. Geo., Que., Real Parent, P.Geo. Que., Sylvain Picard, P. Eng., Que. and Alain Quenneville, P. Eng., Que. unless otherwise stated.
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
Open pit mineral reserves of the 160 and 134 Zones were estimated in January 2018 by Hecla Quebec and Mine Development Associates based on $1225 gold and a US$/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.
(4) Mineral resources are based on $1,350 gold, $21 silver, $0.95 lead, $1.10 zinc and $3.00 copper, unless otherwise stated.
(5) Measured and indicated resources from Gold Hunter and Lucky Friday vein systems are diluted and factored for expected mining recovery.
(6) Measured, indicated and inferred resources are based on $1350 gold and a US$/CAN$ exchange rate of 1:1.37.  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., Sylvain Picard, P. Eng., Que. and Alain Quenneville, P. Eng., Que. unless otherwise stated.
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
(7) 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 lead, zinc and copper grades are for 531,900  tons of copper indicated resource within the Middle Vein and the Hugh Zone of the Francine Vein.
(8) 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)
(9) 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.
(10) Indicated resources reported at a minimum mining width of 4.3 feet.
(11) Inferred resources from Gold Hunter and Lucky Friday vein systems are diluted and factored for expected mining recovery.
(12) 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 lead, zinc and copper grades are for 1,338,000 tons of inferred resource with the Middle Vein and the Hugh Zone of the Francine Vein.
(13) 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.
(14) Inferred resources reported at a minimum mining width of 4.3 feet.
(15) Inferred resource reported at a minimum mining width of 5.0 feet; resources based on $1,400 Au, $26.5 Ag.
(16) Inferred resource reported at a minimum thickness of 15 feet.
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’.
(17) Inferred resource reported at a minimum thickness of 15 feet.
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.

2017 Reserves & Resources PDF