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Gold/Mining/Energy : Gold and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: goldsheet who wrote (3321)	9/6/2002 8:33:16 AM
From: long-gone	Respond to of 4051

Hecla Finalizes Lease On Block B in Venezuela COEUR D'ALENE, Idaho, Sep 6, 2002 (BUSINESS WIRE) -- Hecla Mining Company (NYSE:HL)(NYSE:HL-PrB) and CVG-Minerven, the Venezuelan government-owned gold mining company, have finalized the lease agreement on Block B in Venezuela's prolific El Callao gold mining district. Hecla currently operates the La Camorra gold mine in Venezuela, a low-cost, high-grade mine that produced more than 86,000 ounces of gold in the first half of 2002 at an average total cash cost of $134 per ounce. Hecla's Chairman and Chief Executive Officer, Arthur Brown, said, "Block B is a very high quality property with identified resources that contains several promising exploration targets as well as numerous other historically operated gold mines which have exciting further potential. Our operations have performed very well in Venezuela and we look forward to increased production from this country. Block B is an excellent complement to the La Camorra gold mine and the other exploration targets we have developed in Venezuela. We see this as a very good opportunity to grow the company and add to our resource base in the near future." Block B is a 1,795 hectare land position (approximately seven square miles) in the heart of the historic El Callao gold district. Included in the land position are the Chile, Laguna and Panama mines, which produced more than 1.5 million ounces of gold between 1921 and 1946. These operations were narrow vein, high-grade underground mines which were shut down due to events surrounding the end of World War II and technical difficulties. Brown said, "These deposits are a perfect fit with Hecla's expertise in hardrock, narrow vein mining. The Venezuelan government has entered into this agreement with us in order to revive this historically rich mining area." Hecla will initially focus on the Chile mine, which produced more than 550,000 ounces of gold at an average ore grade of more than one ounce of gold per ton. A recent drilling program conducted by CVG-Minerven has already identified a resource below the old mine workings of approximately 245,000 ounces of gold at a grade of approximately 21.7 grams of gold per ton (about 0.63 ounce per ton). Hecla has initiated the permitting process and plans an extensive drilling program in the fourth quarter to confirm and expand the identified resource. Hecla has agreed to pay $500,000 upon signing the final agreement. Six months after signing, Hecla would pay $1.25 million to CVG-Minerven, with an additional $1 million payment in one year. These payments give Hecla the right to explore and develop Block B. CVG-Minerven would also receive a sliding royalty of 2% to 3% on any future production from the property. 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 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. Hecla's Home Page can be accessed on the Internet at: hecla-mining.com

To: goldsheet who wrote (3321)	9/18/2002 7:37:31 PM
From: russwinter	Read Replies (2) \| Respond to of 4051

Gold mine production levels unsustainable – GFMS Current gold mine production levels may not be sustainable because of depleted reserves at mature North American mine operations and a fall in new mines due on stream, a leading mine research group said on Monday. "Gold Fields Mineral Services (GFMS) now believe that the world's current mine production levels may not be sustainable," the company said. "Initial estimates for global gold mine production point to a significant fall during the first half of 2002...one of the major causes is that output tumbled in Indonesia," London-based GFMS said in a statement. Lower grades at mining operations in the US state of Nevada were expected to have left output "considerably lower" year-on-year to leave total US output at levels last recorded a decade ago. GFMS gave no figures on mine output levels, but said it would finalise and publish details of its survey at a presentation of its global gold survey on September 24. GFMS survey would support research by Toronto-based mining investment banking and research firm Beacon Group Advisors, which in April forecast global gold output falling this year for the first time in two decades, reflecting years of low prices and slashed exploration budgets. Beacon estimated that world supply of mined gold may could plummet by nearly 30% by 2010 unless bullion prices rally and prompt miners to bring untapped deposits on stream. Beacon Group's modeling showed global output below 60-million ounces by 2010, down from current levels around 83-million, if bullion prices averaged $275. Even projections based on a price of $300 and incorporating planned new mine developments showed output falling sharply after 2006 to post a 22% drop from current levels. – Reuters.