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Hecla Mining announces record silver, gold and lead reserves

Mining News - Published on Mon, 18 Feb 2019

Image Source: SteelGuru
Hecla Mining Company reported the highest silver, gold and lead reserves in its 128-year history and provided an update on its exploration programs during the Q4 of 2018. Mr Phillips S Baker, Jr, President and CEO, said that "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. 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. 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."


Highlights

1. Reserve gains are from consistent long-term exploration programs and improved use of data.

2. 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.

3. asa 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.

4. 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.

5. 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.

Source :

Posted By : Rabi Wangkhem on Mon, 18 Feb 2019
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