Mining News: News Nuggets: Hecla posts strong start to 125th year

Hecla Mining Company April 14 reported record silver production of 4.64 million ounces in the first quarter, a 61 percent increase over the 2.88 million oz. produced in the first quarter of 2015. Additionally, gold production climbed 37 percent to 55,688 oz.; zinc production rose 7.9 percent to 17,364 tons; and lead production increased by 12 percent to 11,038 tons. As a result, Hecla produced a record 12.03 million silver-equivalent oz. during the first quarter. Much of the increase is attributable to the 1.2 million oz. of silver and 9,329 oz. of gold produced at the recently re-opened San Sebastian mine in Mexico, which produced its first doré on Dec. 22. The Greens Creek mine in Southeast Alaska produced 2.46 million oz. of silver and 15,981 oz. of gold in the first quarter, 21 percent higher than the 2.04 million oz. of silver and 4.9 percent higher than the 15,239 oz. of gold produced during the first quarter of 2015. Hecla said higher throughput and recoveries contributed to this increased silver and gold production, with silver additionally benefiting from grades that were about 2 oz./ton higher than anticipated and which are expected to moderate as the year progresses. The mill operated at an average of 2,252 tons per day in the first quarter. The Lucky Friday mine in Idaho produced 977,084 oz. of silver during the first quarter, 17 percent higher than the 836,719 oz. produced in the prior-year period. The Casa Berardi mine in Quebec produced 30,377 oz. of gold during the first quarter, 20 percent higher than the 25,411 oz. produced in the prior year period. “For the first quarter of 2016, our 125th year of operations, we produced a record 4.6 million oz. of silver and 12 million silver-equivalent oz.,” said Hecla President and CEO Phillips Baker, Jr. “We believe the first-quarter silver-equivalent production will be the highest for the year, due to grades that were higher than those expected for the remainder of the year. Our strategy of growing production through the downturn in prices is now allowing us to reap a larger benefit from the recent higher prices.”

- Shane Lasley