Apr 2 2019
Hecla Mining Company, a leading low-cost U.S. silver producer, has announced that it is filing a National Instrument (NI) 43-101 Technical Report on the Casa Berardi Mine in Quebec and the Greens Creek Mine in Alaska.
Report Highlights
Greens Creek
- Reserves are computed based on the assumption that the price of one ounce of silver is $14.50
- The existing Proven and Probable Reserve of 107.1 million silver ounces is the highest since 2008—the same year during which Hecla Mining Company procured 100% of the mine
- Without including any kind of resources, the Life of Mine Plan, or LOM, extends production to 2030
- Both Indicated and Measured Resources are 97.4 million silver ounces
- There is considerable exploration potential
- At roughly present prices and based simply on reserves, the mine is anticipated to create $802 million of free cash flow over the LOM plan with an after-tax Net Present Value of $638 million at a discount rate of 5%
- Approximately 20% more cash flow can be expected in the next five years when compared to the $72 million averaged over the past five years
Casa Berardi
- Reserves are computed based on the assumption that a price of one ounce of gold is $1,200
- Proven and Probable Reserves of gold increased by about 28% to 1.91 million ounces
- The proposed West Mine Crown Pillar as well as Principal pits—the highest-grade pits of Casa Berardi, experienced significant reserve increases
- Without including any kind of resources, the LOM extends production to 2034
- Both Indicated and Measured Resources are 1.2 million gold ounces
- There is considerable exploration potential
- Based only on reserves and at roughly present prices, the mine is anticipated to create $535 million (CAN$712 million) of free cash flow over the LOM plan with an after-tax Net Present Value of $325 million (CAN$432 million) at a discount rate of 5%
The economic engine and two largest mines of Hecla, Greens Creek (50% of Hecla’s revenues) and Casa Berardi (35% of Hecla’s revenues), have made a remarkable achievement in materially increasing reserves in mines that have operated for decades. These Technical Reports highlight the thoughtful work that has gone into documenting the resources, building the mine plans, optimizing each mine’s reserves and providing strong cash flow. The analysis of capital and operating costs shows these mines are very robust, and that a 15% increase in metals prices could mean about 60% higher Life of Mine cash flow based on reserves at conservative assumptions. We have substantial resources, which, when combined with the exploration potential outlined in the report, highlight significant opportunities to further improve and extend the reserve LOM at both mines.
Phillips S. Baker, Jr., President and CEO, Hecla Mining Company
The Casa Berardi Mine and the Greens Creek Mine were major contributors to record Hecla Mining Company’s gold and silver reserves and owing to the material increases in reserves, generated new NI 43-101 Technical Reports.