Apr 12 2018
Hecla Mining Company today announced preliminary silver and gold production results for the first quarter of 2018.
HIGHLIGHTS
- Silver production of 2.5 million ounces, and gold production of 57,808 ounces.
- Silver equivalent production of 10.7 million ounces and gold equivalent production of 134,903 ounces.2
- Lead production of 5,627 tons; zinc production of 15,211 tons.
- Throughput at Casa Berardi continues at a record pace.
- Entered into agreement to acquire Klondex Mines Ltd, with 3 high-grade Nevada gold mines, potentially adding 162,000 ounces of annual gold equivalent production.
- Received $31.6 million investment (C$40 million) from Ressources Quebec, a wholly owned subsidiary of Investissement Québec.
- Cash, cash equivalents and short-term investments of approximately $245 million at March 31, 2018, an increase of about $32 million over March 31, 2017.
"Our mines are performing well due to the strength of our operating teams and consistent and disciplined capital programs that have improved these longlived mines," said Phillips S. Baker, Jr., Hecla's President and CEO. "Greens Creek continues growing throughput, primarily due to increased efficiency at shift change as we utilize new technologies like remote monitoring systems and automated use of the LHD. Casa Berardi is now fully an underground and open pit mine and continues to set throughput records. San Sebastian's production is primarily from stockpiled open pit material as we transition to the underground. The cash position is the second highest in the past 6 years, and we expect to deploy it to acquire Klondex in the second quarter."
Greens Creek
At the Greens Creek mine, 1.9 million ounces of silver and 13,118 ounces of gold were produced. Lower gold production, when compared to the first quarter of 2017, was due to lower ore grades as a result of mine sequencing, partially offset by higher mill throughput. The mill operated at an average of 2,349 tons per day (tpd).
Lucky Friday
At the Lucky Friday mine, 99,780 ounces of silver were produced for the first quarter. Production is lower as compared to the first quarter of 2017 due to the ongoing strike by unionized employees. Limited production and capital improvements, performed by salaried staff, and limited shipments of concentrate occurred in the first quarter.
Casa Berardi
At the Casa Berardi mine, 40,177 ounces of gold were produced, including 10,655 ounces from the East Mine Crown Pillar pit, in the first quarter of 2018. The mine produced as expected, with an increase of 4,370 ounces compared to the first quarter of 2017. The mill operated at an average of 3,873 tpd, a quarterly record.
San Sebastian
At the San Sebastian mine, 0.5 million ounces of silver and 4,513 ounces of gold were produced in the first quarter of 2018. Although silver and gold production as compared to the first quarter of 2017 were lower, both still exceeded our estimates for the quarter due to the amount of higher-grade stockpile material processed. The mill operated at an average of 382 tpd.