40% increase in reserve tons: 26% more gold and
8% more silver ounces
Resources in all categories also increased
Hecla Mining Company (NYSE:HL) today reported the highest
silver, gold and lead reserves in its 128-year history and provided
an update on its exploration programs during the fourth quarter of
2018.
Highlights
- Reserve gains are from consistent
long-term exploration programs and improved use of data.
- Greens Creek, which generates
approximately 50% of Hecla’s revenues, increased reserve tons 23%,
silver ounces 19%, gold ounces 16%, zinc tons 15%, and lead tons
17%, giving a mine life from reserves alone of approximately 11
years.
- Casa Berardi, which generates
approximately 35% of Hecla’s revenues, increased reserve tons 70%,
and gold ounces 28% with the expansion of Principal pit and the
addition of the new West Mine Crown Pillar (WMCP) pit.
- Reserves grew while using price
assumptions of $14.50/oz silver (expected to be among the lowest in
the industry), $1,200/oz gold, $1.15/lb zinc and $0.90/lb lead; all
below current spot prices (Figure 1).
“Reserves in stable jurisdictions are a mining company’s most
important asset. Hecla now has the largest reserve in its 128-year
history and its largest single year increase because of
exploration. The increase reflects the quality of the districts we
control; our long-term, consistent strategy; and the capturing and
use of all the data that long-lived mines have,” said Phillips S.
Baker, Jr., President and CEO. “We have achieved this while the
industry has generally seen declining reserves and we were able to
use among the most conservative price assumptions in the industry
because of the strong economics of these deposits.”
“It is particularly important that this growth comes at Greens
Creek and Casa Berardi, who generate approximately 85% of our
revenue and most of our operations’ free cash flow. These mines are
Hecla’s best,” Mr. Baker added. “But we expect our other mines to
do the same over the next few years. We are working hard at San
Sebastian to extend the oxide mine life and to put the sulfides
into production. We are just starting our work in Nevada, reducing
the reserve to better reflect the geology, with the goal of
building a solid base for consistent production.”
Key Reserve and Resource Statistics (2018 compared to
2017)
- Record proven and probable gold
reserves of 2.85 million ounces, an increase of 26% (Figure
2).
- Record proven and probable silver
reserves of 191 million ounces, an increase of 8% (Figure 3).
- Record proven and probable lead
reserves of 774,000 tons, an increase of 5%. Proven and probable
zinc reserves of 931,730 tons, an increase of 11% and the highest
since 2009.
- The silver reserve of 107.1 million
ounces at Greens Creek is the highest since it was 100% acquired in
2008. Gold reserves at Casa Berardi increased approximately 28% to
1.91 million ounces, the highest since 1990.
- Measured and indicated gold ounces
increased 44% to 7.0 million ounces, a gain of 2.15 million
ounces over 2017. Measured and indicated silver ounces increased
65% to a record 208 million ounces, an increase of 82 million
ounces over 2017.
- Inferred gold resources increased 96%
to 3.6 million ounces and a gain of 1.8 million ounces. Inferred
silver resources increased 4% to 465 million ounces and a gain of
17 million ounces.
Exploration
- Greens Creek:
- Underground drilling continues to
expand high-grade, near-surface resources at the Upper Plate and
East Ore zones and add to mineralized trends along the Deep 200
South, Southwest Bench and Lower Southwest zones.
- Casa Berardi:
- Underground drilling was able to
upgrade and expand reserves and resources in the 118, 121, 123,
124, 125, 128 and 160 zones and confirm further potential at depth
and to the east and west.
- Surface drilling completed on the West
Mine Crown Pillar (WMCP) extended the resource to the west.
Step-out drilling of the 128-129 zones east of the proposed
Principal pit and near the proposed 160 pit has defined high-grade
extensions.
- San Sebastian:
- Drilling at the West Francine, El Toro
(South) and Esperanza veins continue to define near-surface, oxide
mineralization.
- Nevada:
- Underground drilling at Fire Creek is
identifying extensions to the Vonnie, Joyce, Karen and Honey Runner
high-grade veins/structures in the Spiral 2, 3 and 4 areas.
- Underground drilling at Hollister is
identifying new mineralization in the West Gloria, East Clementine
and Gwenivere areas.
“The 2018 exploration program was very successful at not only
our mines but at some of our exploration properties. However, for
2019 the focus will be on San Sebastian, Casa Berardi and Nevada,
of which Nevada is estimated to be about half of the budget,” said
Mr. Baker. “We believe that after a few years of committed
exploration there, we could see results similar to what was
achieved in 2018.”
RESERVES AND RESOURCES
Hecla more than replaced gold production in 2018 (318,901 gold
ounces contained) as reserves increased by 26% over 2017, and gold
reserve prices were calculated at $1,200/oz. Silver production in
2018 (12.9 million silver ounces contained) was also more than
replaced as reserves increased by 8%, despite using $14.50/oz for
the reserve calculation. In the last 11 years, Hecla has not
only replaced silver production but added another 200 million
ounces through exploration (Figure 4). Both zinc and lead
production were replaced and reserves increased by 11% and 5%,
respectively.
Measured and indicated gold ounces increased 44% to 7.0 million
ounces, a gain of 2.15 million ounces over 2017 due to
increases at Greens Creek and the acquisition of the Nevada
properties. Measured and indicated silver ounces increased 65% to a
record 208 million ounces, an increase of 82 million ounces over
2017 due to a large increase at Greens Creek, San Sebastian and the
addition of the Nevada properties. Inferred gold resources
increased 96% to 3.6 million ounces and a gain of 1.8 million
ounces primarily due to the acquisition of the Nevada properties.
Inferred silver resources increased 4% to 465 million ounces, a
gain of 17 million ounces due to increases at San Sebastian, Greens
Creek, and the acquisition of Nevada properties.
Greens Creek
At Greens Creek, the 845,398 tons processed at the mill in 2018
contained 10.3 million ounces of silver, 79,087 ounces of gold,
63,116 tons of zinc, and 23,656 tons of lead. Silver, gold and base
metal production was replaced, and silver, gold, zinc, and lead
reserves increased by 18.7%, 15.8%, 14.9%, and 16.8%, respectively,
over 2017 reserves. The current silver reserve of 107.1 million
ounces is the highest since 2008, the year Hecla acquired 100% of
the mine. The current gold reserve of 840k ounces is the highest
since 2009. Increases in silver and gold reserves at the 200 South,
Gallagher, West, 9A, and Southwest zones were partially offset by
reductions of silver and gold reserves in the 5250 Zone caused by
mine depletion.
Measured and indicated resources increased by 66,134,100 silver
ounces (211%) and 467,700 gold ounces (181%) over 2017 with
additions in the West, Southwest, 9A, and 200 South zones and
losses in the Gallagher and East zones due to conversion to
reserves. New drilling and remodeling of areas historically mined
at higher cutoffs were responsible for the increases in Measured
and indicated resources. Inferred resources increased by 3,271,900
silver ounces (10%) and decreased by 3,200 gold ounces (-1%) due to
large conversions to indicated resources or reserves in the 200
South, Upper Plate and East Ore zones.
A new NI 43-101 Technical Report is expected within 45 days. The
optimized mine plan accelerates access to higher-grade ore, and
allows some of the highest-margin reserves to be extracted in the
earlier years of the mine plan. It also utilizes more of the
existing workings during the next four years which reduces the
planned development investment required. In addition, the increase
in reserves is expected to extend the mine life by about three
years to 2030.
Casa Berardi
At Casa Berardi, the 1,375,718 tons processed at the mill
contained approximately 162,744 ounces of gold, with 744,952 tons
(54%) of the milled tonnage coming from underground and 630,776
tons (46%) of the milled tonnage coming from the East Mine Crown
Pillar (EMCP) open pit. Gold reserves increased approximately 28%
to 1.91 million ounces and reserve tonnage at Casa Berardi
increased 71% to 23.7 million tons over 2017. Depletion decreased
underground reserve ounces in the 104 (Lower Inter), 113, 118, 123
and 124 zones. This was offset by reserve additions in the west
extension of the EMCP as well as 134 and 160 pits. Substantial
reserve increases occurred in the proposed WMCP and Principal pits
where some underground reserves were incorporated into an expanded
pit. There was an overall reduction in underground reserves of
176,400 gold ounces and an increase of open pit reserves of 589,600
gold ounces compared to 2017.
Measured and indicated gold resources decreased 12% from 2017
levels as gains from underground drilling of the 119 and 123 zones
and 134 and 160 open pits were offset by decreases at the 107
(South West), 108 (Inter), 111, 113, 115, 117, 118, 121, 124, and
160 underground. The largest decreases were a result of
incorporation of the 107 (South West) and 160 underground to open
pit reserves. Inferred gold resources decreased 9% from 2017 levels
as increases at the 105, 116, 124, 134, 146, 157, and 160
(underground and open pit) zones were offset by losses to inferred
resources in the 107 (South West) 108 (Inter) 118, 119, 121, 123,
148, and 160 underground and open pit zones by conversion to
indicated resources. Significant losses to inferred resources in
the 107 and 108 zones were due to resource upgrades and
incorporation into the new WMCP pit. A new NI-43-101 Technical
Report is expected within 45 days.
San Sebastian
At San Sebastian, the 156,733 tons processed at the mill
contained 2.04 million ounces of silver and 14,979 ounces of
gold. Reserves are currently 2.8 million ounces of silver and
22,500 ounces of gold. At the end of the year there was an ore
stockpile containing 84,700 silver ounces and 1,800 ounces of gold.
The total underground reserves in the Middle Vein are 2.33 million
ounces silver and 11,900 ounces gold and represent 83% and 53% of
the silver and gold reserves, respectively. The total open pit
reserves in the North Vein are 377,600 ounces silver and 8,800
ounces gold and represent 14% and 39% of the silver and gold
reserves, respectively.
Due to significant definition drilling, the indicated resources
increased from 2017 by 67% for silver to 14.7 million ounces, 11%
for gold to 114,700 ounces, 110% for zinc to 42,710 tons, 96% for
lead to 30,410 tons, and 119% for copper to 19,780 tons. Indicated
Resources are separated into ‘Oxide’ and ‘Polymetallic’ mineral
styles; oxide is cyanide-amenable material and polymetallic is
base-metal-sulfide-rich material amenable to a flotation milling
process. Polymetallic resources were defined and extended at depth
on the Francine and Middle Veins during 2018. Polymetallic
mineralization has zinc, lead and copper and represents 54% of the
silver and 17% of the Measured and indicated gold resources. The
inferred resource increased from 2017 by 44% for silver to 22.9
million ounces and 50% for gold to 142,700 ounces due to new
material being added along the Middle Vein and in the East Francine
areas. Lead, zinc and copper decreased by 62%, 64% and 11%,
respectively, as a direct result of conversion of polymetallic
mineralization in the Francine Vein from inferred to indicated.
Open pit mining continued in 2018 in the expanded North pit to
the west and at depth and an additional smaller ‘satellite pit’ to
the west and mining of this pit is expected to continue into 2020.
New high-grade, precious metal resources on the Professor and East
Francine veins are being evaluated for underground mine design and
scheduling. Possible conversion of polymetallic veins in the
Francine Vein to reserves will be dependent on metallurgical
testing of the bulk sample and stope optimizations. The material
from the bulk sample will be used for metallurgical studies and a
viability test at a nearby mill, where the processing of
polymetallic sulfide ores from San Sebastian is planned.
Lucky Friday
At Lucky Friday, the 17,309 tons processed at the mill contained
approximately 186,609 ounces of silver, 673 tons of zinc and
1,131 tons of lead. Reserves are currently 81.0 million ounces
of silver, 510,800 tons of lead and 225,260 tons of zinc and are
essentially unchanged relative to 2017. Measured and indicated
resources have increased 3% for silver to 77.4 million ounces, 3%
for lead to 499,070 tons and 4% for zinc to 265,970 tons. Inferred
resources remained relatively unchanged year-over-year and include
24.8 million ounces of silver, 181,180 tons of zinc and 74,340 tons
of lead.
Fire Creek
At Fire Creek, the 47,573 tons processed at the mill for Hecla
in 2018 contained approximately 17,993 ounces of gold and 22,482
ounces of silver. Reserves at Fire Creek are 69,300 ounces gold and
56,900 ounces of silver and are a reduction from the second quarter
of 2018 primarily due to model changes that interpret the veins to
be thinner (47% of reduction), mining depletion (29% of reduction),
and increased costs resulting in higher cut-off grades (17% of
reduction). Measured and indicated underground resources are
215,200 ounces of gold and 197,900 ounces of silver and inferred
resources are 298,700 ounces of gold and 288,400 ounces of
silver.
Hollister
At Hollister, the 32,286 tons processed at the mill for Hecla in
2018 contained approximately 11,779 ounces of gold and 106,056
ounces of silver. Reserves at Hollister are 7,600 ounces of gold
and 82,400 ounces silver and are a reduction from the second
quarter 2018 primarily due to mining depletion, but also due to
removal of material because of thinner vein interpretations.
Additional reserve reductions were made as a result of recent
identification of fault offsets in the West Gloria area; this
material may come back into the reserve once the structural geology
and offset magnitudes are interpreted and drill tested. Measured
and indicated resources are 181,900 ounces of gold and 770,200
ounces of silver and inferred resources are 222,700 ounces of gold
and 1.7 million ounces of silver.
A breakdown of the Company’s reserves and resources is set out
in Table A at the end of this news release.
EXPLORATION
Exploration (including corporate development) expenses were $8.3
million, and $35.9 million for the fourth quarter and full
year 2018, respectively. This represents an increase of 41% and 53%
over the fourth quarter and full year 2017. These increases were
primarily the result of the addition of exploration near the Nevada
Operations, increased exploration at San Sebastian, Casa Berardi
and Greens Creek and initial exploration at the Kinskuch project in
British Columbia and the Little Baldy project in northern
Idaho.
Greens Creek – Alaska
At Greens Creek, drilling in the fourth quarter and strong assay
results have upgraded and expanded the Deep 200 South, East Ore,
Upper Plate and Southwest Bench zone resources. Exploration
drilling focused on the Deep 200 South Zone and Lower Southwest
Zone (Figure 5). Drilling of the Deep 200 South Zone
confirmed three flat-lying, high-grade lenses that are folded to
the west and has enabled portions of bench mineralization to be
upgraded to an indicated resource category. Recent intersections
include 180.4 oz/ton silver, 0.36 oz/ton gold, 14.0% zinc and
7.2% lead over 5.3 feet and 81.5 oz/ton silver, 0.40 oz/ton gold,
1.1% zinc and 0.6 lead over 5.0 feet. Near the mine portal
elevation, drilling of the Upper Plate Zone to the northwest
has defined at least two flat-lying zones that are folded to the
east (Figure 6). In combination with surface drilling earlier in
the year, this resource expanded further to the west and north.
Definition drilling results indicate a thickening of the upper and
middle mineralization horizons toward the Southwest D Fault from
the east. Recent results include 11.4 oz/ton silver, 1.04 oz/ton
gold, 2.2% zinc and 1.6% lead over 14.2 feet and 34.2 oz/ton
silver, 0.01 oz/ton gold, 2.5% zinc and 1.5% lead over 4.9
feet.
In the East Ore Zone, intersections from drilling at the
north end, including 38.5 oz/ton silver, 0.11 oz/ton gold,
7.4% zinc and 3.5% lead over 6.1 feet and 29.5 oz/ton silver,
0.11 oz/ton gold, 3.6% zinc and 1.3% lead over 8.4 feet,
confirm previously modeled resource estimates, particularly at
lower and higher elevations. Drilling has expanded this northern
portion of the zone deeper by over 150 feet. The focus of the first
quarter in 2019 underground drilling is on the Lower Southwest,
Deep 200 South, 9A, and East Ore zones. Later in 2019 additional
drilling targeting of the Northwest West and Upper Plate zones is
planned.
More complete drill assay highlights from Greens Creek can be
found in Table B at the end of this release and a presentation
showing drill intersection locations is available at the following:
http://ir.hecla-mining.com/interactive/newlookandfeel/4130678/Hecla-Q4-2018-ExplorationUpdate.pdf.
Casa Berardi – Quebec
During the fourth quarter, up to six underground drills were
used to refine stope designs, expand reserves and resources in the
118, 121, 123, 124, 125, and 128 zones and confirm further
potential at depth and to the east and west (Figure 7). Up to four
drills on surface completed in-fill and exploration drilling at the
West Mine Crown Pillar (WMCP), the 128-129 zones east of the
Principal pit and near the proposed 160 pit (Figure 7). The WMCP
pit represents the latest in a series of existing and proposed open
pits (Figure 8) along the Casa Berardi Fault or Deformation Zone.
The cross section in Figure 9 shows where underground resources
were brought into the WMCP pit.
At the Lower 118 Zone, drilling confirmed the continuity
of multiple mineralized lenses to the west and at depth outside the
current resource boundary. Recent intersections continue to expand
this resource, including 0.63 oz/ton gold over 13.1 feet and
2.69 oz/ton gold over 2.6 feet. This drilling suggests the
zone is open at depth below the 1200-level and to the west. Near
the top of the 123 Zone (Figure 10), step-out drilling to
the east show the continuity of high-grade mineralization down
plunge for 400 feet from surface. Drilling from the 710-790 levels
have extended gold mineralization at depth and further to the west
with intersections of 0.39 oz/ton gold over 10.8 feet and 0.35
oz/ton gold over 8.9 feet. Drilling from the 970 level, at the
bottom of the mine, confirmed multiple lenses and suggests these
mineralized lenses plunge east at depth and remain open for
exploration.
High in the mine, drilling has targeted the east extension of
the 124 Zone that is down-plunge of the Principal pit
mineralization. Drilling below the 290-level continues to show the
down-dip potential of the 124 lenses to depth. Further east,
drilling of the 128-129 zones is defining a high-grade,
steeply-plunging series of lenses that have been defined vertically
for 600 feet and may extend below the 290 level. Recent drill
intersections include 0.35 oz/ton gold over 10.2 feet and 1.25
oz/ton gold over 1.6 feet.
Definition drilling has commenced at the 300-level of the
East Mine to refine the depth extensions of the 160
Zone below the pit shells (Figure 11). Drilling has defined
broad intervals of mineralization including 0.21 oz/ton gold over
20.3 feet and 0.16 oz/ton gold over 19.9 feet. This mineralization
is steeply plunging to the west and is open to depth. Drilling of
the WMCP to evaluate open pit potential west of the West
Shaft has upgraded the current inferred resource to reserves that
are part of a newly defined open pit reserve. The recent results
below show that the near-surface, mineralized structures extends
both beyond the western extent of the WMCP pit.
In the first quarter of 2019, underground drilling is expected
to expand and refine the 118 and 123 zones lower in the mine and
the 124-128 zones closer to surface. Underground exploration
drilling is planned to evaluate the lower extension of the 113 Zone
and the 128 Zone. Surface drilling programs are planned at the
western extension of the WMCP and the 128-129 zones to define
and expand underground mining potential east of the Principal area
along the Casa Berardi Fault.
More complete drill assay highlights from Casa Berardi can be
found in Table B at the end of the release and a presentation
showing drill intersection locations is available at the following:
http://ir.hecla-mining.com/interactive/newlookandfeel/4130678/Hecla-Q4-2018-ExplorationUpdate.pdf.
San Sebastian - Mexico
During the quarter, three core drill rigs and one reverse
circulation (RC) drill operated at San Sebastian. One underground
drill rig completed in-fill drilling in the central and upper
portions of the oxide zone along the Middle Vein. Exploration
drilling with two core rigs was directed toward shallower oxide
mineralization along the West Francine, Esperanza veins and the
recently discovered El Toro (South) Vein (Figure 12). At the
Middle Vein, in-fill drilling within the oxide zone
intercepted vein intervals with similar grade and width to the
previous exploration drilling results in this area. Strong drill
results include 66.9 oz/ton silver and 0.22 oz/ton gold over
5.8 feet, and 42.4 oz/ton silver and 0.11 oz/ton gold over 4.7
feet. At the West Francine Vein, located about 1,000 feet
west of any past drilling on the Francine Vein (Figure 12) core
drilling has extended this mineralization about 400 feet along
strike and a recent drill hole at the eastern end returned 9.5
oz/ton silver 0.02 oz/ton gold over 1.4 feet. Mineralization in
this area is open laterally and at depth and follow-up, offset
drilling is in progress.
The El Toro (South) Vein is located approximately halfway
between the Andrea Vein resource area to the southeast and the
Esperanza Vein to the northwest (Figure 12). Based on its location
and orientation, this vein may represent the link between these two
known veins with a total prospective strike length of over eight
miles. Recent core drilling includes intersections of 9.8 oz/ton
silver and 0.13 oz/ton gold over 11.8 feet,4.1 oz/ton silver and
0.13 oz/ton gold over 10.0 feet, and 6.0 oz/ton silver and
0.04 oz/ton gold over 5.4 feet (Figure 13). Exploration drilling
continues at the Esperanza Vein area, about a mile and a
half west of the mine area. This drilling has defined a wide vein
up to 30 feet wide but initial assay results have been poor.
Drilling has shifted to the northwest where there are strong
geochemistry anomalies along the trend of the vein.
Drilling will continue during the first quarter to evaluate
near-surface oxide mineralization at the West Francine Vein, El
Toro (South) and Esperanza Vein areas. A grid pattern of vertical
holes for sampling overburden and bedrock using an RC drill rig has
begun to better define the geochemistry along the Esperanza to
Andrea vein corridor (Figure 14).
More complete drill assay highlights from San Sebastian can be
found in Table B at the end of this release and a presentation
showing drill intersection locations is available at the following:
http://ir.hecla-mining.com/interactive/newlookandfeel/4130678/Hecla-Q4-2018-ExplorationUpdate.pdf.
Nevada
Fire Creek
There were up to four drill rigs operating underground at Fire
Creek in the fourth quarter with definition drilling focusing on
upper and lower portions of Spiral 4, upper portions of
Spiral 3, and up-dip of Spiral 2 mineralization
(Figure 15). One drill rig is evaluating the upper portions of
Spiral 3 along the Honey Runner, Karen, Hui Wu and Joyce structures
and will attempt to extend mineralization along strike to the
Spiral 2 sills. A narrow, high-grade intercept of 2.79 oz/ton gold
over 0.7 feet is within a larger, lower-grade envelope of 0.76
oz/ton gold over 5.0 feet. Other high-grade intercepts in Spiral 3
include 0.64 oz/ton gold over 7.8 feet and 4.08 oz/ton gold over
2.0 feet (Figure 16).
Two drills are evaluating the upper and lower portions of Spiral
4. The drill targeting the southern up-dip extents of the Vonnie,
Vein 6, Joyce, and Vein 8 has defined multiple narrow, gold-bearing
structures that persist into the upper extents of the Spiral 4
area. Recent intersections include 0.22 oz/ton gold over 10.0 feet
and 0.20 oz/ton gold over 3.3 feet. The sill drill completed
additional definition drilling in Spiral 2 on the Joyce Vein and
Vein 39 that expanded mineralization up-dip. The 2019 underground
drill program at Fire Creek is designed to upgrade and expand
resources at Spirals 2, 3, 4 and 9 and the Titan and North zones
(Figure 17).
Surface exploration rigs evaluated the Zeus (Figure 18)
and Far View targets for high-grade, gold-bearing
structures. Intercepts along strike of the Zeus target encountered
multiple structures with strong argillic clay alteration that had
intercepts of 0.21 oz/ton gold over 2.0 feet and 0.18 oz/ton gold
over 2.3 feet. Drilling identified a new structure to the southwest
that graded 0.18 oz/ton gold over 3.4 feet. A new vein, grading
0.17 oz/ton gold over 4.5 feet was also identified to the northeast
on a new structure between Zeus and the Spiral 10 veins.
Hollister
Up to three rigs were active in the West Gloria, East
Clementine and Gwenivere areas during the fourth
quarter. The West Gloria drilling program from the end of the 5265
Level targeted the extension of the Gloria veins to the west where
previous drilling had identified veins (Figure 19). Drill results
along the West Gloria structure below the level define numerous
high-grade veins including 0.32 oz/ton gold and 6.1 oz/ton silver
over 11.6 feet and 0.25 oz/ton gold and 10.2 oz/ton silver
over 5.5 feet. Additional in-fill drilling is required to determine
the continuity of these higher-grade veins. The East
Clementine program (Figures 19 and 20) targeted up-dip
extensions of the 233 and 243 veins to follow up on high-grade
intersections near the unconformity. Three intercepts, including
1.78 oz/ton gold and 7.5 oz/ton silver over 1.7 feet, on the
233 Vein have delineated a mineable resource close to current
workings on the 5190 level. Another intercept, 0.60 oz/ton gold and
0.10 oz/ton silver over 5.0 feet, extended mineralization
about 150 feet to the east on the 243 Vein, close to the
unconformity (Figure 21).
The Gwenivere program (Figure 19) was designed to offset
two historical surface reverse circulation (RC) intercepts. Initial
drilling intersecting multiple structures had a significant assay
interval of 1.35 oz/ton gold and 0.29 oz/ton silver over 3.5 feet.
One hole was collared in Muck Bay 2 on the 5050 level and directed
to the southeast. This hole intersected multiple dykes and
transducers were installed to monitor the hydrology. Additional
underground drilling in the Central Hollister, Gwenivere and West
Gloria areas is planned to continue through the first quarter of
2019.
More complete drill assay highlights from Nevada (Fire Creek and
Hollister) can be found in Table B at the end of this release and a
presentation showing drill intersection locations is available at
the following:
http://ir.hecla-mining.com/interactive/newlookandfeel/4130678/Hecla-Q4-2018-ExplorationUpdate.pdf.
ABOUT HECLA
Founded in 1891, Hecla Mining Company (NYSE:HL) is a leading
low-cost U.S. silver producer with operating mines in Alaska, Idaho
and Mexico, and is a growing gold producer with operating mines in
Quebec, Canada and Nevada. The Company also has exploration and
pre-development properties in eight world-class silver and gold
mining districts in the U.S., Canada, and Mexico.
Cautionary Statements Regarding Forward Looking
Statements
Statements made or information provided in this news release
that are not historical facts are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 and "forward-looking information" within the meaning of
Canadian securities laws. Words such as “may”, “will”, “should”,
“expects”, “intends”, “projects”, “believes”, “estimates”,
“targets”, “anticipates” and similar expressions are used to
identify these forward-looking statements. The material factors or
assumptions used to develop such forward-looking statements or
forward-looking information include that the Company’s plans for
development and production will proceed as expected and will not
require revision as a result of risks or uncertainties, whether
known, unknown or unanticipated, to which the Company’s operations
are subject.
Forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from those projected, anticipated, expected or implied. These risks
and uncertainties include, but are not limited to, metals price
volatility, volatility of metals production and costs, litigation,
regulatory and environmental risks, operating risks, project
development risks, political risks, labor issues, ability to raise
financing and exploration risks and results. Refer to the Company's
Form 10K and 10-Q reports for a more detailed discussion of
risk factors that may impact expected future results. The Company
undertakes no obligation and has no intention of updating
forward-looking statements other than as may be required by
law.
Cautionary Statements to Investors on
Reserves and Resources
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). Although the SEC has recently issued new
rules rescinding Guide 7, the new rules are not binding until
January 1, 2022, and at this time the Company still reports in
accordance with 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 included herein 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
document contains a summary of certain estimates of the Company,
not only of proven and probable reserves within the meaning of
Guide 7, 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. Under Guide 7, 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. 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.
Qualified Person (QP) Pursuant to
Canadian National Instrument 43-101
Dean McDonald, PhD. P.Geo., Senior Vice President - Exploration
of Hecla Mining Company, who serves as a Qualified Person under
National Instrument 43-101, supervised the preparation of the
scientific and technical information concerning Hecla’s mineral
projects in this news release, including with respect to the newly
acquired Nevada projects. Information regarding data verification,
surveys and investigations, quality assurance program and quality
control measures and a summary of sample, analytical or testing
procedures for the Greens Creek Mine are contained in a technical
report prepared for Hecla titled “Technical Report for the Greens
Creek Mine, Juneau, Alaska, USA” effective date March 28, 2013, and
for the Lucky Friday Mine are contained in a technical report
prepared for Hecla titled “Technical Report on the Lucky Friday
Mine Shoshone County, Idaho, USA” effective date April 2, 2014, for
the Casa Berardi Mine are contained in a technical report prepared
for Hecla titled "Technical Report on the Mineral Resource and
Mineral Reserve Estimate for the Casa Berardi Mine, Northwestern
Quebec, Canada" effective date March 31, 2014 (the "Casa Berardi
Technical Report"), and for the San Sebastian Mine are contained in
a technical report prepared for Hecla titled "Technical Report for
the San Sebastian Ag-Au Property, Durango, Mexico" effective date
September 8, 2015. Also included in these four technical reports is
a description of the key assumptions, parameters and methods used
to estimate mineral reserves and resources and a general discussion
of the extent to which the estimates may be affected by any known
environmental, permitting, legal, title, taxation, socio-political,
marketing or other relevant factors. Information regarding data
verification, surveys and investigations, quality assurance program
and quality control measures and a summary of sample, analytical or
testing procedures for the Fire Creek Mine are contained in a
technical report prepared for Klondex Mines titled “Technical
Report for the Fire Creek Project, Lander County, Nevada, dated
March 31, 2018; the Hollister Mine dated May 31, 2017, amended
August 9, 2017; and the Midas Mine dated August 31, 2014, amended
April 2, 2015. Copies of these technical reports are available
under Hecla's and Klondex’s profiles on SEDAR at www.sedar.com.
Dr. McDonald reviewed and verified information regarding drill
sampling, data verification of all digitally-collected data, drill
surveys and specific gravity determinations relating to the Casa
Berardi mine. The review encompassed quality assurance programs and
quality control measures including analytical or testing practice,
chain-of-custody procedures, sample storage procedures and included
independent sample collection and analysis. This review found the
information and procedures meet industry standards and are adequate
for Mineral Resource and Mineral Reserve estimation and mine
planning purposes.
Table A: Reserves and Resources
– 12/31/18(1)
Proven Reserves Tons
Silver Gold Lead
Zinc Copper Silver
Gold Lead Zinc
Copper Asset (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 Tons Silver
Gold Lead Zinc
Copper Silver Gold
Lead Zinc Copper Asset
(000) (oz/ton) (oz/ton)
% % % (000
oz) (000 oz) (Tons)
(Tons) Tons 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 and
Probable Reserves Tons
Silver Gold Lead
Zinc Copper Silver
Gold Lead Zinc
Copper Asset (000)
(oz/ton) (oz/ton) %
% % (000 oz) (000
oz) (Tons) (Tons)
Tons 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 -
(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 $1200 gold, $14.50 silver, $0.90
lead, $1.15 zinc, unless otherwise stated. (3) Mineral reserves are
based on $1200 gold and a US$/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 $1225
gold and a US$/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 $1225
gold and a US$/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. 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.
Measured Resources Tons
Silver Gold Lead
Zinc Copper Silver
Gold Lead Zinc
Copper Asset (000)
(oz/ton) (oz/ton) %
% % (000 oz) (000
oz) (Tons) (Tons)
Tons 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 48,778
62,249 2,172 379,040 236,190
-
Indicated
Resources Tons Silver
Gold Lead Zinc
Copper Silver Gold
Lead Zinc Copper Asset
(000) (oz/ton) (oz/ton)
% % % (000
oz) (000 oz) (Tons)
(Tons) Tons Greens Creek (6) 7,128
13.2 0.10 3.1 8.1 -
94,197 690 218,950 577,650 - Lucky
Friday (6,7) 2,498 8.0 - 5.2 2.5
- 20,049 - 128,830 61,480
- Casa Berardi (8) 10,797 - 0.08 -
- - - 906 - - -
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) 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 Tons Silver
Gold Lead Zinc
Copper Silver Gold
Lead Zinc Copper Asset
(000) (oz/ton) (oz/ton)
% % % (000
oz) (000 oz) (Tons)
(Tons) Tons 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
Tons Silver Gold
Lead Zinc Copper
Silver Gold Lead
Zinc Copper Asset (000)
(oz/ton) (oz/ton) %
% % (000 oz)
(000 oz) (Tons) (Tons)
Tons 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 0.34 -
- - 1,723 198 - -
- 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
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. (6) Mineral resources are
based on $1350 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,
June28, 2018 (14) Measured, indicated and inferred resources were
estimated in 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 lead 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 $1400 Au, $26.5 Ag, $0.85 Pb, and $0.85 Zn. (20)
Inferred resource reported at a minimum mining width of 5.0 feet;
resources based on $1400 Au, $26.5 Ag. (21) Inferred resource 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'.
Table B – Assay
Results – Q4 2018 Greens Creek (Alaska)
Zone
Drill Hole Number Drillhole Azm/Dip
Sample From Sample To True
Width (feet) Silver (oz/ton) Gold
(oz/ton) Zinc (%) Lead (%)
Depth FromMine
Portal(feet)
Deep 200 South GC5004 243/-72
189.5 198.4 8.8
10.7 0.02 6.9 3.7
-1466 GC5004
243/-72 219.0 237.0
17.8 43.8 0.03 4.4
1.8 -1494 GC5004
243/-72 260.0 276.0
15.4 58.1 0.01
2.6 1.1 -1529
GC5004 243/-72 340.0
341.5 1.4 12.1
0.17 9.1 4.7 -1579
GC5004 243/-72
440.0 441.0 0.8
30.7 0.02 0.7 0.3
-1699 GC5004
243/-72 663.5 665.0
1.4 22.3 0.05 0.4
0.3 -1914 GC5007
243/-86 206.5 212.7
5.7 19.2 0.05
3.2 1.6 -1487
GC5007 243/-86 225.0
229.0 4.0 14.7
0.01 2.0 0.4 -1504
GC5007 243/-86
371.8 373.3 1.3
18.9 0.02 0.4 0.2
-1651 GC5013
263/-65 195.7 198.0
2.2 26.8 0.02 1.7
0.7 -1457 GC5013
263/-65 200.5 207.0
6.3 50.8 0.04
3.2 1.6 -1462
GC5013 263/-65 211.7
213.7 2.0 12.1
0.01 8.8 4.5 -1471
GC5013 263/-65
257.0 260.0 2.8
72.0 0.02 6.8 4.4
-1512 GC5018
243/-55 281.0 283.5
1.9 21.7 0.01 9.8
5.0 -1509 GC5018
243/-55 606.5 610.5
4.0 20.3 0.20
0.8 0.4 -1773
GC5022 243/-47 415.0
416.0 0.8 68.6
0.26 1.6 0.8 -1583
GC5022 243/-47
449.5 455.0 5.3
180.4 0.36 14.0
7.2 -1609 GC5030
63/-74 598.5 601.0
1.6 13.6 0.04 3.5
3.0 -1859 GC5030
63/-74 657.0 664.0
6.9 18.2 0.08 4.2
2.2 -1916 GC5044
243/-73 179.0 190.5
11.0 24.0 0.01
1.5 0.8 -1453
GC5044 273/-73 235.0
238.0 3.0 16.7
0.03 1.7 0.6 -1505
GC5044 273/-74
671.5 695.7 24.0
28.8 0.11 2.2 1.2
-1782 GC5044
243/-74 720.0 725.0
4.5 16.0 0.26 0.7
0.6 -1922 GC5047
243/-63 193.5 208.0
12.7 24.8 0.00
2.3 1.1 -1453
GC5047 243/-63 222.5
235.0 12.3 31.2
0.01 0.7 0.3 -1479
GC5047 243/-63
366.0 394.0 22.5
64.4 0.02 5.0 2.4
-1605 GC5059
63/-87 479.0 482.0
3.0 18.7 0.04 0.3
0.1 -1761 GC5073
243/-83 479.6 484.6
5.0 81.5 0.40
1.1 0.6 -1759
GC5073 243/-83 663.0
678.0 14.9 14.6
0.10 0.7 0.3 -1939
GC5076 243/-73
522.0 524.5 2.1
17.5 0.03 7.3 3.8
-1782 GC5076
243/-73 684.0 715.0
29.9 44.6 0.18 2.5
1.2 -1937 GC5079
243/-62 210.0 218.0
7.8 36.1 0.02
5.7 2.6 -1470
GC5079 243/-62 231.0
233.5 1.5 15.3
0.05 0.3 0.2 -1488
GC5079 243/-62
271.5 286.5 13.1
13.4 0.04 5.8 2.7
-1525 GC5079
243/-62 294.0 298.4
4.4 13.3 0.01 4.3
1.9 -1544 GC5079
243/-63 317.5 319.5
1.7 22.0 0.01
0.4 0.2 -1566
GC5083 243/-53 583.0
588.0 3.8 16.2
0.02 0.4 0.2 -1753
Upper Plate GC5048 241/26
611.5 616.0 1.5
14.8 0.09 2.2 1.2
266 GC5054 239/37
263.5 267.4 2.7
19.1 0.01 4.7 5.3
161 GC5054 239/37
363.5 365.0 1.1
18.0 0.02 10.2 6.1
221 GC5054 239/37
389.5 390.5 0.8
15.2 0.01 12.1 4.7
237 GC5057 235/56
199.0 204.0 4.9
34.2 0.01 2.5 1.5
166 GC5057 235/56
321.6 322.7 0.9
18.0 0.02 24.2
11.1 266 GC5060
230/70 195.0 202.5
7.4 39.8 0.01 5.9
4.0 188 GC5060
230/70 284.5 293.5
8.6 13.6 0.01 7.1
3.6 270 GC5062
222/51 199.9 204.3
3.7 20.5 0.00 2.1
0.9 156 GC5062
222/51 316.0 328.0
11.4 21.4 0.05 2.6
0.9 242 GC5066
91/78 204.0 208.0
4.0 12.1 0.02 4.6
2.4 207 GC5066
91/78 240.5 243.5
3.0 13.5 0.02 12.3
9.8 243 GC5088
252/60 153.0 171.5
14.2 11.4 1.04 2.2
1.6 134 GC5088
252/60 290.5 297.0
6.0 18.9 0.02 14.1
7.0 252 GC5093
248/41 238.0 243.0
2.4 23.2 0.01 2.5
1.1 152 GC5093
248/41 364.0 368.0
2.9 24.5 0.02 14.7
5.2 232 GC5093
248/41 381.0 382.0
0.8 16.1 0.01 5.8
2.5 243 GC5095
247/35 243.5 244.5
0.6 35.5 0.03 10.1
4.5 138 GC5099
246/28 286.5 290.0
1.9 29.5 0.13 8.4
3.4 133 East Ore
GC5009 59/-6 350.5
353.5 2.4 29.2
0.22 3.1 0.3 600
GC5012 56/-41
268.0 269.0 1.0
18.7 0.10 11.9 5.0
457 GC5012 56/-41
289.0 294.5 5.3
24.1 0.42 5.3 1.5
444 GC5017 68/3
370.0 371.8 1.5
11.1 0.29 25.9 8.6
647 GC5024 243/-47
306.0 310.0 4.0
41.4 0.09 4.0 1.6
493 GC5027 71/-49
303.5 305.0 1.5
19.6 0.08 18.4 4.3
403 GC5028 81/-71
314.5 315.5 1.0
12.5 0.05 35.0 9.4
333 GC5029 76/-1
368.5 369.5 0.8
13.9 0.12 6.7 3.4
631 GC5032 91/-31
331.0 332.0 0.9
77.8 0.30 16.2 6.1
336 GC5034 82/0
396.2 400.0 3.7
99.7 0.28 4.4 1.6
636 GC5035 82/-14
368.0 374.7 6.6
11.1 0.18 18.0 6.0
542 GC5053 46/-1
353.0 356.3 3.0
22.0 0.16 6.2 3.1
618 GC5056 46/-10
343.0 344.3 1.3
15.2 0.16 10.5 6.7
569 GC5058 39/13
400.0 407.0 6.1
38.5 0.11 7.4 3.5
704 GC5061 39/4
366.2 369.2 2.6
26.0 0.14 2.7 1.4
641 GC5072 79/11
418.0 422.5 4.1
13.4 0.41 18.4 3.5
710 GC5074 35/14
403.0 412.0 8.0
20.6 0.08 2.0 1.1
719 GC5075 51/17
410.4 418.0 6.4
11.3 0.36 31.4
19.8 736 GC5084
48/20 443.0 449.3
5.6 30.1 0.20 17.6
9.8 772 GC5089
36/-6 354.0 355.0
1.0 37.3 0.28 11.3
5.4 593 GC5090
36/-6 367.5 372.0
4.3 28.7 0.22 5.8
2.7 648 GC5094
247/35 308.0 313.0
4.8 28.6 0.26 9.9
4.6 533 GC5096
51/-31 296.0 304.5
8.4 29.5 0.11 3.6
1.3 486 GC5100
27/-26 280.5 285.5
4.6 18.2 0.32 2.4
1.1 507
Casa Berardi (Quebec)
Zone
Drill Hole Number Drill Hole Section
Drill Hole Azm/Dip Sample From
Sample To True Width (feet) Gold
(oz/ton)
Depth FromMine
Surface(feet)
Lower 123 - 710-790 Area CBP-0750-017
12107 270/16 108.0
111.0 8.5 0.12
2402 123 CBP-0750-017
12099 270/16 115.5
118.5 8.5 0.29
2396 123 CBP-0750-017
12094 270/16 120.8
124.6 10.8 0.39
2392 123 CBP-0750-018
12180 260/-18 35.7
36.0 0.8 0.41 2523
123 CBP-0750-018 12129
260/-18 90.0 90.7
1.8 0.27 2580 123
CBP-0750-020 12139 246/-15
81.0 87.0 8.9
0.35 2553 Lower 123 - 970-1010 Area
CBP-0970-037 12500 182/21
171.5 174.5 7.1
0.12 3104 123
CBP-0970-038 12511 183/9
203.0 204.6 3.7
0.16 3217 123
CBP-0970-041 12532 179/-6
226.8 228.4 3.3
0.18 3299 123
CBP-0970-043 12463 172/43
152.6 160.9 22.5
0.18 3141 Upper Principal 124
CBP-0766 12785 180/-19
70.8 73.5 8.5 0.10
1007 East Mine 160 - 210-270 Area
CBE-0122 15892 22/27
231.0 235.6 7.9
0.12 703 160 CBE-0122
15896 22/27 243.2
245.0 2.7 0.20 687
160 CBE-0122 15901
22/27 254.2 258.5
6.6 0.12 677 160
CBE-0122 15907 22/27
267.0 271.5 6.8
0.11 666 160 CBE-0122
15923 22/27 308.0
311.4 8.5 0.13 633
160 CBE-0123 15856
22/19 209.7 213.0
8.1 0.31 793 160
CBE-0123 15891 22/19
215.2 223.5 19.9
0.16 785 160 CBE-0124
15827 3/10 187.5
196.2 26.2 0.10
882 160 CBE-0124 15834
3/10 220.5 223.7
9.2 0.12 870 160
CBE-0124 15836 3/10
231.0 232.5 4.3
0.14 867 160 CBE-0124
15840 3/10 249.0
252.0 8.6 0.13 861
160 CBE-0124 15848
3/10 285.0 288.0
8.5 0.12 851 160
CBE-0125 15747 340/18
183.3 187.0 10.6
0.09 809 160 CBE-0125
15723 340/18 286.5
287.7 20.3 0.21
731 160 CBE-0127 15708
327/10 207.0 208.0
3.1 0.14 873 160
CBE-0127 15703 327/10
222.9 223.7 2.5
0.15 867 WMCP Pit
CBF-105-017 11149 180/-61
221.4 242.0 33.1
0.03 664 105-111
CBF-105-018 11052 360/-47
146.3 161.8 37.7
0.02 366 105-111
CBF-105-019 11055 180/-60
159.0 174.7 23.9
0.03 489 105-111
CBF-105-019 11056 180/-60
181.5 188.4 9.8
0.12 542 105-111
CBF-105-020 11054 180/-56
137.0 183.0 80.0
0.05 450 105-111
CBF-105-022 11159 180/-45
128.2 132.0 9.2
0.03 311 105-111
CBF-105-022 11158 180/-45
165.0 168.0 7.2
0.04 394 Lower 118
CBP-0757 11954 6/-60
247.7 254.0 13.1
0.63 3862 118 CBP-0757
11954 6/-60 247.7
248.7 2.6 1.11
3855 118 CBP-0757 11954
6/-60 248.7 249.7
2.6 2.69 3858 118
CBP-0757 11957 6/-60
271.0 281.0 20.7
0.11 3925 118 CBP-0757
11957 6/-60 271.0
272.0 2.6 0.35
3914 Upper 124-128 CBP-0771
12848 180/-32 72.3
75.0 7.9 0.11 1053
124-128 CBP-0771 12848
180/-32 90.0 93.0
8.5 0.11 1078 124-128
CBP-0771 12810 180/-32
439.8 440.4 2.0
0.32 1335 124-128
CBP-0771 12808 180/-32
449.1 450.8 4.9
0.19 1338 Principal 128
CBS-18-882 12811 360/-55
418.5 421.5 7.5
0.11 995 128 CBS-18-883
12797 360/-56 552.8
557.5 10.2 0.35
1334 128 CBS-18-883 12796
360/-56 552.8 553.5
1.6 1.25 1152 128
CBS-18-884 12795 360/-52
511.6 513.6 5.6
0.20 1092 128 CBS-18-884
12795 360/-52 511.6
512.6 2.6 0.36
1151 128 CBS-18-885 12777
360/-55 653.7 657.0
6.2 0.28 1539 128
CBS-18-885 12777 360/-55
653.7 654.3 1.3
0.90 1538 128 CBS-18-885
12775 360/-55 684.7
686.2 3.9 0.17
1599
San Sebastian (Mexico)
Zone Drill Hole Number
Sample From (ft) Sample To (ft)
Width (feet) True Width (feet) Gold
(oz/ton) Silver (oz/ton) Zinc (%)
Lead (%) Copper (%)
Depth From
Mine Surface(feet)
El Toro Vein SS-1687 217.6
223.1 5.5 5.4
0.04 6.0 0.0 0.0
0.0 147 SS-1693
275.2 285.8 10.5
10.0 0.13 4.1 0.0
0.0 0.0 192
SS-1706 164.6 176.4
11.8 11.3 0.13 9.8
0.0 0.0 0.0
117 Middle Vein SS-MV-101-002
131.6 138.8 7.2
5.8 0.22 66.9 0.0
0.0 0.0 356
SS-MV-101-004 111.9 119.8
8.0 6.4 0.11 29.2
0.0 0.0 0.0
344 SS-MV-101-007 158.6
164.7 6.1 3.7
0.05 25.6 0.0 0.0
0.0 247
SS-MV-101-008 184.5 191.9
7.3 4.4 0.03 10.7
0.0 0.0 0.0
417 SS-MV-101-012 146.3
153.0 6.6 5.3
0.33 18.1 0.0 0.0
0.0 643
SS-MV-101-015 172.5 180.3
7.8 4.7 0.11 42.4
0.0 0.0 0.0
713 SS-MV-101-016 144.2
151.3 7.1 4.2
0.13 22.7 0.0 0.0
0.0 639
SS-MV-101-018 158.7 166.8
8.1 4.9 0.16 24.6
0.0 0.0 0.0
673 West Francine Vein SS-1669
874.0 876.0 2.0
1.4 0.02 9.5 0.1
0.0 0.0 652
Fire Creek (Nevada)
Zone Drill Hole Number Drill
Hole Azm/Dip Sample From (feet) Sample
To (feet) Width (feet) True Width
(feet) Gold (oz/ton) Silver
(oz/ton)
Depth FromMine
Portal(feet)
Spiral 3 FCU-1010 110/18
15 18 3 2.7
0.19 0.3 -383
FCU-1010 110/18 76
79 3 2.7 0.13
0.3 -364 FCU-1010
110/18 300 306
6 5.3 0.10 0.3
-294 FCU-1010
110/18 334 339.5
5.5 5.0 0.76 1.3
-284 includes 334
338.5 4.5 3.1
0.30 0.3 -284
includes 338.5 339.5
1 0.7 2.79 5.9
-283 FCU-1010
110/18 348 357.5
9.5 6.6 0.19 1.1
-279 FCU-1011
103/25 8.1 11 2.9
2.7 0.41 1.2
-384 FCU-1011 103/25
16.5 21.5 5
4.6 0.19 0.6 -380
FCU-1011 103/25
197.9 199 1.1
Unknown 0.13 0.3
-304 FCU-1011 103/25
277 298 21
19.3 0.15 0.4 -266
FCU-1011 103/25
317.2 319.5 2.3
1.7 0.19 0.3 -253
FCU-1011 103/25
321.6 322.2 0.6
0.4 0.13 0.3 -252
FCU-1011 103/25
341.5 345.6 4.1
3.0 0.35 0.7 -243
FCU-1012 84/35 0
7.6 7.6 7.3
0.12 0.3 -386
FCU-1012 84/35 30.5
34 3.5 3.2 0.26
0.3 -370 FCU-1012
84/35 30.5 31
0.5 0.5 0.16 0.3
-370 FCU-1012
84/35 31 34 3
2.7 0.27 0.3
-369 FCU-1012 84/35
82 85 3 2.8
0.12 0.3 -340
FCU-1012 84/35 183
187 4 3.6 0.24
0.3 -282 FCU-1018
110/9 12.8 16
3.2 2.9 0.12 0.3
-386 FCU-1018
110/9 22 27 5
4.5 0.18 0.3
-384 FCU-1019 102/14
10 13 3 2.9
0.13 0.3 -385
FCU-1019 102/14 13.5
15.2 1.7 1.6
0.16 0.3 -385
FCU-1019 102/14 67
70.5 3.5 3.3 0.31
0.3 -371 FCU-1019
102/14 252 259.5
7.5 Unknown 0.20
0.3 -326 FCU-1019
102/14 292 295 3
2.9 0.35 0.6
-317 includes 292
293.5 1.5 1.4 0.11
0.3 -317 includes
293.5 295 1.5
1.4 0.59 0.8 -317
FCU-1019 102/14
335.5 337.8 2.3
1.8 0.20 0.8 -307
FCU-1019 102/14
352 352.6 0.6 0.5
0.10 0.3 -303
FCU-1019 102/14 353.2
354.4 1.2 0.9
0.12 0.3 -302
FCU-1026 93/25 20
21 1 Unknown 0.11
0.3 -379 FCU-1026
93/25 57 64.5
7.5 Unknown 0.16
0.3 -362 FCU-1030
110/9 13.6 20 6.4
Unknown 0.18 0.5
-385 FCU-1030 110/9
128.7 131 2.3
1.8 0.12 0.3 -368
FCU-1030 110/9
268.2 269 0.8 0.7
0.28 0.3 -346
FCU-1030 110/9 271.4
272 0.6 Unknown
0.11 0.3 -345
FCU-1030 110/9 307.5
309.8 2.3 Unknown
4.08 2.9 -340
includes 307.5 308.5
1 0.9 1.58 1.5
-340 includes
308.5 309.3 0.8
0.7 9.69 6.2 -340
FCU-1030 110/9
309.3 309.8 0.5
Unknown 0.12 0.3
-340 FCU-1030 110/9
325.5 329.5 4
2.8 0.16 0.3 -337
FCU-1030 110/9
336.2 337.5 1.3
0.9 0.11 0.3 -335
FCU-1030 110/9 366
377 11 7.8
0.64 0.4 -330
includes 366 370 4
2.8 1.10 0.7
-330 includes 370
373 3 2.1 0.19
0.3 -330 includes
373 377 4
2.8 0.52 0.3 -329
Spiral 4 FCU-1006 105/-30
93 98 5 4.4
0.11 0.3 -233
FCU-1006 105/-30 103
105.5 2.5 2.2 0.10
0.3 -238 FCU-1006
105/-30 136 140.3
4.3 3.3 0.20 1.7
-255 FCU-1007
99/-48 72 74.8 2.8
2.1 0.15 0.3
-241 FCU-1007 99/-48
222.6 223.4 0.8
0.6 0.11 0.3 -352
FCU-1007 99/-48
289 303.5 14.5
10.0 0.22 0.4 -407
includes 289 290
1 0.5 1.48
1.6 -402 FCU-1007
99/-48 360.9 362
1.1 0.6 0.17 0.3
-455 FCU-1007
99/-48 379 382 3
1.5 0.10 0.3
-469 FCU-1007 99/-48
397 401 4
Unknown 0.12 0.3
-483 FCU-1020 76/-36
497 499 2
Unknown 0.10 0.3
-387 FCU-1020 76/-36
566 567 1
0.9 0.22 0.3 -427
FCU-1020 76/-36
576 577 1 0.9
0.21 0.3 -433
FCU-1020 76/-36 600.3
601.2 0.9 0.7
0.23 0.8 -447
FCU-1020 76/-36 663.8
666.5 2.7 Unknown
0.22 1.0 -485
FCU-1020 76/-36 672
674 2 Unknown 0.11
0.3 -490 FCU-1020
76/-36 692 694
2 1.5 0.10 0.3
-501 FCU-1020
76/-36 743 745 2
Unknown 0.09 0.8
-531 FCU-1020 76/-36
752 755 3
2.4 0.10 0.8 -537
FCU-1024 69/-24
516.2 518.5 2.3
Unknown 0.21 0.3
-304 FCU-1026 93/25
16 21 5
Unknown 0.16 0.3
-380 FCU-1026 93/25
16 20 4
Unknown 0.17 0.3
-380 Zeus FCC-0128
248/-56 887.6 893
5.4 2.0 0.21 0.2
-39 FCC-0128
248/-56 900 903.6
3.6 2.3 0.18 0.1
-49 FCC-0112
102/-57 1178.4 1182
3.6 2.4 0.10 0.1
-54 FCC-0113
69/-55 1544.5 1549
4.5 4.5 0.17 0.2
-331 FCC-0117
240/-51 1669.5 1676.3
6.8 3.1 0.15 0.1
-681
Hollister (Nevada)
Zone Drill Hole Number Drill Hole
Azm/Dip Sample From (feet) Sample To
(feet) Width (feet) True Width
(feet) Gold (oz/ton) Silver
(oz/ton)
Depth
FromMine Surface(feet)
East Clementine HUC-00036 025/39
407.7 411.0 3.3
2.4 0.23 0.1 -137
HUC-00059 002/07
91.0 92.7 1.7 1.7
1.78 7.5 -388
HUC-00060 315/-17 68.0
68.7 0.7 0.5
0.40 3.3 -423
HUC-00060 047/-18 150.6
151.8 1.2 0.8 2.05
7.5 -450 HUC-00063
016/49 228.3 233.0
4.7 3.6 0.16 0.3
-226 HUC-00063
016/49 310.0 315.0
5.0 5.0 0.60 0.10
-164 HUC-00063
016/49 319.0 322.0
3.0 2.3 2.07 0.6
-158 Including
319.0 320.2 1.2
0.9 4.42 1.1 -158
Including 320.2
322.0 1.8 1.4 0.51
0.3 -159 Gwenivere
HUC-00018 036/06 113.0
116.5 3.5 Unknown
1.35 0.3 -159 West Gloria
HUC-00068 285/00 300.7
302.3 1.6 0.6
0.07 32.1 -292
HUC-00068 285/00 380.4
381.3 0.9 0.4 0.13
40.0 -292
HUC-00070A 000/-02 114.4
126.0 11.6 11.6
0.32 6.1 -296
HUC-00070B 000/-02 111.0
116.5 5.5 5.5 0.25
10.2 -296
Including 111.0 113.0
2.0 2.0 0.18 1.9
-296 Including
113.0 114.0 1.0
1.0 0.05 1.9 -296
Including 114.0
115.0 1.0 1.0 0.80
5.0 -296 Including
115.0 116.5 1.5
1.5 0.11 30.3 -296
HUC-00073 50/28
121.5 124.8 3.3
1.5 0.77 10.9 -231
Including 121.5
123.5 2.0 0.9 0.28
5.8 -231 Including
123.5 124.8 1.3
0.6 1.53 18.7 -231
Surface Hatter Graben HSC-00005
17/-62 1100.5 1103.0
2.5 Unknown 0.00
13.1 -896 HSC-00006
321/-49 1543.1 1544.0
0.9 0.6 0.10
10.8 -955 HSC-00006
321/-49 1657.2 1658.0
0.8 0.5 0.11
0.1 -1041 HSC-00006
321/-49 1970.3 1970.8
0.5 0.3 0.28
0.8 -1277 HSC-00006
321/-49 2267.3 2268.0
0.7 0.5 0.12
0.2 -1501 HSC-00006
321/-49 2270.6 2273.5
2.9 2.1 0.19
1.7 -1505 Including
2272.6 2273.5 0.9
0.6 0.52 3.8 -1505
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190214005236/en/
Mike WesterlundVice President - Investor Relations800-HECLA91
(800-432-5291)Investor RelationsEmail:
hmc-info@hecla-mining.comWebsite: http://www.hecla-mining.com
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