HECLA-MINING-COMPANY (HL) Hecla Reports 2003 Reserves
www.vheadline.com Posted: Tuesday, February 25, 2003 By: Press Releases
COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Feb. 25, 2003--Hecla Mining Company (NYSE:HL) today announced the results of its updated reserve calculations.
Hecla has significant gold and silver reserves and resources at its operating properties, as well as at several advanced exploration projects.
As of January 1, 2003, Hecla's proven and probable reserves stood at 769,205 ounces of gold and more than 40 million ounces of silver. The reserves are calculated at a price of $300 per ounce of gold and $4.75 per ounce of silver. These reserves are at currently operating underground gold and silver mines.
However, according to Hecla's President and Chief Operating Officer, Phillips S. Baker, Jr., this is not the whole picture for Hecla. "All of Hecla's reserves are at underground mines where proving reserves are expensive and often unnecessary. For example, the Lucky Friday silver mine in northern Idaho has been operating for more than 40 years, yet rarely have we seen more than three years' worth of proven and probable reserves at the mine. As you will see in the attached tables, Hecla's mineralized material and other resources make up a huge part of our future mining capabilities," said Baker. Most of the gold and silver included in these categories can be mined at low cost. In addition, there is good potential to increase Hecla's proven and probable reserves during 2003, based on the planned exploration program.
Proven and probable gold reserves have stayed roughly the same as last year's calculation, essentially replacing Hecla's mined production of 240,000 ounces of gold during the year. Ounces were taken out of the proven and probable category in the silver segment at Lucky Friday, primarily because a development decision has not yet been made to access the next lower level of the mine. However, tonnage in the mineralized material and other resources categories at all properties has increased significantly.
-0- *T ESTIMATED ORE RESERVES Proven and Probable
Gold Silver Lead Zinc Mine - (Hecla interest in %) Tons (oz/ton)(oz/ton) (%) (%)
Lucky Friday Unit - - - - - Greens Creek (29.73%) 2,095,703 0.13 14.9 4.2 11.4 San Sebastian 369,556 0.24 23.7 - - La Camorra 453,224 0.91 - - - ------------------------------------------------------------ TOTAL
Proven and Probable
Gold Silver Lead Zinc Mine - (Hecla interest in %) (ounces) (ounces) (tons) (tons)
Lucky Friday Unit - - - - Greens Creek (29.73%) 268,603 31,252,609 88,574 238,029 San Sebastian 88,269 8,761,109 - - La Camorra 412,332 - - -
TOTAL 769,205 40,013,718 88,574 238,029
Mineralized Material (5)
Gold Silver Lead Zinc Mine - (Hecla interest in %) Tons (oz/ton)(oz/ton) (%) (%)
San Sebastian Don Sergio (1) 147,286 0.43 2.5 - - San Sebastian (1) 17,798 0.14 11.7 - - La Camorra Canaima (2) 547,172 0.38 - - - Lucky Friday (3) 1,082,010 - 13.2 8.5 1.7
*T (1) In situ Francine vein and Don Sergio vein, diluted to assumed mining width and adjusted for expected mining recovery. (2) In situ resources, Lower and Middle veins, diluted and factored for mining recovery (90%). (3) In situ resources considered to be mineable with current mine plan, Gold Hunter 30, 80, and 110 veins, and Lucky Friday Vein; adjusted for dilution and mining recovery. -0- *T Other Resources (5)
Gold Silver Lead Zinc Mine - (Hecla interest in %) Tons (oz/ton)(oz/ton) (%) (%)
Lucky Friday (1) 5,351,440 - 11.8 6.1 2.5 Greens Creek (29.73%) (2) 810,237 0.13 17.0 4.9 11.3 La Camorra Block B (3) 430,259 0.62 - - - La Camorra (4) 211,428 0.56 - - -
*T (1) All identified resources above cutoff, Measured, Indicated and Inferred, diluted to assumed mining width, but not adjusted for mining recovery. (2) Inferred resources, Central West, SW, NWW, '9A', and 200S orebodies, factored for dilution and mining recovery. (3) Inferred in situ diluted resource, not factored for mining recovery. (4) Inferred resource, diluted (15%) and factored (95%) for mining recovery. (5) Securities and Exchange Commission guidelines do not allow the company to complete the calculation of tons multiplied by grade to equal contained ounces in the "mineralized material" and "other resources" categories. Hecla's exploration expenditures in 2002 were approximately $5.8 million, with about half of that occurring in the fourth quarter. Baker said, "Hecla has had excellent exploration results from our projects in Mexico near the San Sebastian mine, at Canaima, which is near the La Camorra gold mine in Venezuela and at Block B, also in Venezuela. Because of our large suite of exciting targets, we will be significantly increasing our exploration expenditures during 2004 with the focus of identifying more resources and moving more ounces into the proven and probable category."
Hecla released an update on recent exploration results on February 10, 2003. It can be accessed at Hecla's website under "news releases" at www.hecla-mining.com. Other Matters Hecla today announced that in the interest of conserving cash for exploration, development and acquisition opportunities, its board of directors has elected to defer the January 1, 2003, quarterly payment of dividends to the holders of Hecla Series B Cumulative Convertible Preferred Stock.
Hecla Mining Company, headquartered in Coeur d'Alene, Idaho, mines and processes silver and gold in the United States, Venezuela and Mexico. A 112-year-old company, Hecla has long been well known in the mining world and financial markets as a quality silver and gold producer. Hecla's common and preferred shares are traded on the New York Stock Exchange under the symbols HL and HL-PrB.
Statements made which are not historical facts, such as anticipated payments, litigation outcome, production, sales of assets, exploration results and plans, costs, prices or sales performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and 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, exploration risks and results, project development risks and ability to raise financing. Refer to the company's Form 10-Q and 10-K reports for a more detailed discussion of factors that may impact expected future results. The company undertakes no obligation and has no intention of updating forward-looking statements.
Cautionary Note to Investors - The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this news release, such as "resource," "other resources" and "inferred resources," that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. investors are urged to consider closely the disclosure in our Form S-1, File No. 333-100395. You can review and obtain copies of these filings from the SEC's website at www.sec.gov.
CONTACT: Hecla Mining Company Vicki J. Veltkamp, 208/769-4144 www.hecla-mining.com