HL is far from just in ID anymore!
Hecla Announces 40% Increase in 2002 San Sebastian Silver Production Estimates
Decreases Cash Costs
COEUR D'ALENE, Idaho, Apr 15, 2002 (BUSINESS WIRE) -- Hecla Mining Company (NYSE: HL chart, msgs) & (NYSE: HL-PrB chart, msgs) today announced an increase in San Sebastian's estimated 2002 production to 2.8 million ounces of silver, a 40% increase over previously estimated production of 2.0 million ounces.
Gold production from San Sebastian is expected to increase by 28% to 32,000 ounces in 2002, compared to a previous estimate of 25,000 ounces. This dramatic increase in the 2002 estimate is due to higher than expected production from San Sebastian in the first quarter, as well as additional definition drilling results. The increased production estimates and higher by-product credits have led to a decrease in the anticipated average total cash cost per ounce of silver at San Sebastian in 2002, to about $2.00 per ounce.
Hecla's estimate for 2002 silver production from all operations has increased by one million ounces, to approximately 7.5 million ounces. The average total cash costs are expected to be about $3 per ounce in 2002, more than a 50 cent per ounce decrease from 2001.
SAN SEBASTIAN
Hecla reported that the San Sebastian silver mine, located in central Mexico, produced more than 765,000 ounces of silver and more than 9,000 ounces of gold during the first three months of 2002, confirming the property's potential and far exceeding expectations. As a result of this outstanding performance, the 2002 annual silver production estimate for San Sebastian was revised upward by 40%. The average silver grade mined at San Sebastian during the first three months was about 25 ounces of silver per ton and the average gold grade was approximately 0.31 ounce of gold per ton, both of which are approximately reserve grade. Hecla President and Chief Operating Officer Phil Baker said, "San Sebastian has gone from a start-up operation to a significant cash flow generator in less than a year."
San Sebastian continues to return exciting exploration results, with the latest delineation-drilling program on the Francine Vein increasing the number of tons available to mine by about 50% and boosting the silver and gold resource estimates by 21%. Baker said, "This mine is already a success story. With very little capital investment, Hecla has been able to develop a production plan that is expected to take this mine to the middle of 2005, and we've only just begun our exploration program here."
Baker said the rest of the Saladillo concession surrounding the San Sebastian mine is also a very prospective exploration territory with 14 veins already identified. Positive results have been received from the first phase of drilling on the Cerro Pedernalillo area, located four miles south of the current mining operation on the Francine Vein. Consequently, Hecla will focus even more attention on Cerro Pedernalillo with a 33-hole shallow drilling program.
LA CAMORRA, GREENS CREEK AND LUCKY FRIDAY
The La Camorra gold operation, an underground mine in Venezuela, produced about 40,000 ounces of gold during the first three months of 2002. The average grade of gold mined in the first quarter was 0.8 ounce of gold per ton, approximately the reserve grade.
La Camorra's underground exploration program also continues to return excellent results from drilling on the Main Vein. Assay results from the first hole drilled showed high-grade gold intercepts averaging about 0.94 ounce per ton (32.06 grams of gold per ton) over a two-meter width at a depth of about -560 meters elevation, which is about 230 meters deeper than where the current mining is taking place. A confirmation assay from an offset hole averaged 1.33 ounces of gold per ton (45.65 grams of gold per ton) over a two-meter width. The mid-to-deep level exploration program at La Camorra is scheduled to continue on both the Main and Betzy veins through November 2002.
Baker said production from Hecla's Lucky Friday and Greens Creek mines for the first quarter was as anticipated, with those mines on track to produce a total of at least 4.5 million ounces of silver during 2002 for Hecla's account.
Hecla Mining Company, headquartered in Coeur d'Alene, Idaho, mines and processes silver and gold in the United States, Venezuela and Mexico. A 111-year-old company, Hecla has long been well known in the mining world and financial markets as a primary silver producer. Hecla's common and preferred shares are traded on the New York Stock Exchange under the symbols HL and HL-PrB.
Hecla's Home Page can be accessed on the Internet at: hecla-mining.com
Statements made which are not historical facts, such as anticipated payments, 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, 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.
Contact:
Hecla Mining Company, Coeur d'Alene
Vicki J. Veltkamp, 208/769-4144
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