Overview

In 2020, Hecla’s Greens Creek mine produced 10.5 million ounces of silver at an average cash cost per ounce of $5.49 (1). Hecla currently produces silver from two silver mines, Greens Creek and  Lucky Friday. The Lucky Friday mine produced 2.0 ounces of silver in 2020. Lucky Friday union members ratified the collective bargaining agreement in January 2020; a ramp-up to historical production was reached in the fourth quarter of 2020. The Casa Berardi gold mine produced 121,493 ounces of gold in 2020 at an average cash cost per ounce of $1,131 (1). In 2020, the San Sebastian mine produced 954,772 ounces of silver and production was completed in the fourth quarter. The Nevada operations produced 31,756 ounces of gold in 2020; Fire Creek is expected to be placed on care and maintenance in the second quarter of 2021.

(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

North America Property Map

Western Region  |  Eastern Region

 

Reserves & Resources
(As of December 31, 2020 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) 3 21.8 0.10 3.7 7.8 70 0.3 120 250
Lucky Friday (2) 4,393 14.2 - 8.8 4.1 62,290 386,210 180,060
Casa Berardi - Open Pit (3) 4,437 - 0.09 - 410
Casa Berardi - Underground (3) 1,038 - 0.15 - 158
Fire Creek (2,4) 62 0.4 0.48 - - - 28 30 - - -
Total 9,933 62,388 598 386,330 180,310
Probable Reserves
Greens Creek (2) 8,975 12.4 0.09 2.8 7.3 111,333 827 254,840 652,170
Lucky Friday (2) 1,372 10.7 - 7.2 3.9 14,702 - 99,170 53,190
Casa Berardi - Open Pit (3) 9,763 - 0.08 - 744 - -
Casa Berardi - Underground (3) 1,533 - 0.15 - 231 - -
Fire Creek (2,4) 1 0.9 0.71 - - - 1 1 - - -
Total 21,643 126,036 1,802 354,010 705,360
Proven & Probable Reserves
Greens Creek (2) 8,978 12.4 0.09 2.8 7.3 - 111,404 828 254,960 652,240 -
Lucky Friday (2) 5,764 13.4 - 8.4 4.0 - 76,992 - 485,380 223,250 -
Casa Berardi - Open Pit (3) 14,200 - 0.08 - - - - 1,153 - - -
Casa Berardi - Underground (3) 2,571 - 0.15 - - - - 389 - - -
Fire Creek (2,4) 63 0.5 0.48 - - - 29 31 - - -
Total 31,576           188,424 2,400 740,340 895,670 -
Measured Resources
Greens Creek (5) 297 12.9 0.11 3.1 10.3 - 3,837 33 9,310 30,500 -
Lucky Friday (5,6) 9,007 7.6 - 4.8 2.4 - 68,543 - 30,950 218,740 -
Casa Berardi - Open Pit (7) 824 - 0.09 - - - - 71 - - -
Casa Berardi - Underground (7) 2,231 - 0.15 - - - - 331 - - -
San Sebastian (5,8) - - - - - - - - - - -
Fire Creek (5,9) 20 0.7 0.50 - - - 14 10 - - -
Hollister (5,10) 18 4.9 0.59 - - - 87 10 - - -
Midas (5,11) 2 7.6 0.68 - - - 14 1 - - -
Heva (12) - - - - - - - - - - -
Hosco (12) - - - - - - - - - - -
Rio Grande Silver (13) - - - - - - - - - - -
Star (14) - - - - - - - - - - -
Total 12,399           72,495 456 440,260 249,240 -
Indicated Resources
Greens Creek (5) 8,599 12.9 0.10 3.0 8.2 - 110,844 848 256,790 708,520 -
Lucky Friday (5,6) 2,275 7.8 - 5.3 2.2 - 17,844 - 120,390 50,970 -
Casa Berardi - Open Pit (7) 1,621 - 0.06 - - - - 97 - - -
Casa Berardi - Underground (7) 5,424 - 0.14 - - - - 750 - - -
San Sebastian (5,8) 2,541 5.9 0.06 1.9 2.9 1.2 14,985 149 22,420 34,100 14,650
Fire Creek (5,9) 114 1.0 0.45 - - - 114 51 - - -
Hollister (5,10) 70 1.9 0.58 - - - 130 40 - - -
Midas (5,11) 76 5.0 0.37 - - - 3,064 229 - - -
Heva (12) 1,266 - 0.06 - - - - 76 - - -
Hosco (12) 29,287 - 0.04 - - - - 1,202 - - -
Rio Grande Silver (13) 516 14.8 - 2.1 1.1 - 7,620 - 10,760 5,820 -
Star (14) 1,126 2.9 - 6.2 7.4 - 3,301 - 69,900 83,410 -
Total 52,913           155,266 3,245 480,260 882,620 14,650
Measured & Indicated Resources
Greens Creek (5) 8,895 12.9 0.10 3.0 8.3 - 114,681 881 266,110 739,020 -
Lucky Friday (5,6) 11,282 7.7 - 4.9 2.4 - 86,386 - 551,340 269,710 -
Casa Berardi - Open Pit (7) 2,445 - 0.07 - - - - 168 - - -
Casa Berardi - Underground (7) 7,656 - 0.14 - - - - 1,081 - - -
San Sebastian (5,8) 2,541 5.9 0.06 1.9 2.9 1.2 14,985 149 22,420 34,100 14,650
Fire Creek (5,9) 134 1.0 0.46 - - - 128 61 - - -
Hollister (5,10) 88 2.5  0.58 - - - 217 51 - - -
Midas (5,11) 78  5.7 0.43 - - - 444 33 - - -
Heva (12) 1,266 - 0.06 - - - - 76 - - -
Hosco (12) 29,287 - 0.04 - - - - 1,202 - - -
Rio Grande Silver (13) 516 14.8 - 2.1 1.1 - 7,620  - 10,760 5,820 -
Star (14) 1,126 2.9 - 6.2 7.4 - 3,301 -  69,900 83,410 -
Total 65,312           227,760 3,701 920,530 1,132,060 14,650
Inferred Resources
Greens Creek (5) 1,767 13.2 0.08 2.8 7.0 - 23,370 145 49,670 123,480 -
Lucky Friday (5,6) 3,069 8.3 - 6.3 2.7 - 25,359 - 192,200 83,350 -
Casa Berardi - Open Pit (7) 9,229                    - 0.06 - - - - 508 - - -
Casa Berardi - Underground (7) 2,447 - 0.18 - - - - 445 - - -
San Sebastian (5,15) 2,923 5.9 0.05 1.6 2.3 0.9 17,188 133 6,070 8,830 3,330
Fire Creek (5,9) 765 0.5 0.51 - - - 394 392 - - -
Fire Creek  - Open Pit (16) 74,584 0.1 0.03 - - - 5,232 2,178 - - -
Hollister (5,10) 642 3.0 0.42 - - - 1,916 273 - - -
Midas (5,11) 1.057 5.0 0.40 - - - 5,280 424 - - -
Heva (12) 2,787 - 0.08 - - - - 216 - - -
Hosco (12) 17,726 - 0.04 - - - - 663 - - -
Rio Grande Silver (17) 3,078 10.7 0.01 1.3 1.1 - 33,097 36 40,990 34,980 -
Star (14) 3,157 2.9 - 5.6 5.5 - 9,432 - 178,670 174,450 -
Monte Cristo (18) 913 0.3 0.14 - - - 271 131 - - -
Rock Creek (19) 100,086 1.5 - - - 0.7 148,736 - - - 658,680
Montanore (20) 112,185 1.6 - - - 0.7 183,346 - - - 759,420
     Total 336,416           453,621 5,543 467,300 425,090 1,421,430
 

(footnotes)
Note: All estimates are in-situ except for the proven reserves 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 $1300 gold, $16.00 silver, $0.90 lead, $1.15 zinc, unless otherwise stated.  The NSR cut-off grades are $205/ton for Greens Creek, $216.19 for the 30 Vein and $230.98 for the Intermediate Veins at Lucky Friday.

(3)  Mineral reserves are based on $1300 gold and a US$/CAN$ exchange rate of 1:1.35. Reserve diluted to an average of 18% or 23% depending on mining method. The average cut-off grades at Casa Berardi are 0.100 oz/ton gold (3.46 g/tonne) for underground mineral reserves and 0.025 oz/ton gold (0.85 g/tonne) for open pit mineral reserves.

(4)  Fire Creek mineral reserves are based on a cut-off grade of 0.482  gold equivalent oz/ton and incremental cut-off grade of 0.106 gold equivalent oz/ton. Unplanned dilution of 10% to 17% included depending on mining method.

(5)  Mineral resources are based on $1500 gold, $21 silver, $1.15 lead, $1.35 zinc and $3.00 copper, unless otherwise stated.  Cut-off grades are as above unless otherwise stated.

(6)  Measured and indicated resources from Gold Hunter and Lucky Friday vein systems are diluted and factored for expected mining recovery using NSR cut-off grades of $170.18 for the 30 Vein, $184.97 for the Intermediate Veins and $207.15 for the Lucky Friday Vein.

(7)  Measured, indicated and inferred resources are based on $1,500 gold and a US$/CAN$ exchange rate of 1:1.35.  Underground resources are reported at a minimum mining width of 6.6 to 9.8 feet (2 m to 3 m).  The average cut-off grades at Casa Berardi are 0.087 oz/ton gold (3.0 g/tonne) for underground mineral resources and 0.025 oz/ton gold (0.85 g/tonne) for open pit mineral resources.

(8)  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 using a cut-off grade of $90.72/ton ($100/tonne).

San Sebastian lead, zinc and copper grades are for 1,187,000 tons of indicated resource within the Middle Vein and the Hugh Zone of the Francine Vein.

(9)  Fire Creek mineral resources are reported at a gold equivalent cut-off grade of 0.238 oz/ton. The minimum mining width is defined as four feet or the vein true thickness plus two feet, whichever is greater.

(10)  Hollister mineral resources, including the Hatter Graben,  are reported at a gold equivalent cut-off grade of 0.238 oz/ton. The minimum mining width is defined as four feet or the vein true thickness plus two feet, whichever is greater.

(11)  Midas mineral resources are reported at a gold equivalent cut-off grade of 0.237 oz/ton. The minimum mining width is defined as four feet or the vein true thickness plus two feet, whichever is greater.

(12)  Measured, indicated and inferred resources are based on $1,500 gold. The resources are in-situ without dilution and material loss at a cut-off grade of 0.01 oz/ton gold (0.33 g/tonne) for open pit and 0.088 oz/ton gold (3.0 g/tonne) for underground.

(13)  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 and a cut-off grade of 6.0 silver equivalent oz/ton.

(14)  Indicated and Inferred resources reported using $21 silver, $0.95 lead, $1.10 lead minimum mining width of 4.3 feet and a cut-off grade of $100/ton.

(15)  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 using a cut-off grade of $90.72/ton ($100/tonne).

       San Sebastian lead, zinc and copper grades are for 385,000 tons of inferred resource within the Middle Vein and the Hugh Zone of the Francine Vein.

(16)  Inferred open-pit resources for Fire Creek calculated November 30, 2017 using gold and silver recoveries of 65% and 30% for oxide material and 60% and 25% for mixed oxide-sulfide material.  Indicated Resources reclassified as Inferred for 2019.

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, June28, 2018

(17)  Inferred resources reported at a minimum mining width of 6.0 feet for Bulldog and a cut-off grade of 6.0 equivalent oz/ton silver and 5.0 feet for Equity and North Amethyst vein at a cut-off grade of $50/ton and $100/ton; based on $1400 Au, $26.5 Ag, $0.85 Pb, and $0.85 Zn.

(18)  Inferred resource reported at a minimum mining width of 5.0 feet; resources based on $1400 Au, $26.5 Ag using a 0.06 oz/ton gold cut-off grade.

(19)  Inferred resource at Rock Creek reported at a minimum thickness of 15 feet and a cut-off grade of $24.50/ton NSR 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’.

(20)  Inferred resource at Montanore reported at a minimum thickness of 15 feet and a cut-off grade of $24.50/ton NSR and adjusted given mining restrictions defined by U.S. Forest Service, Kootenai National Forest, Montana DEQ in December 2015 ‘Joint Final EIS, 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.

2020 Reserves & Resources PDF