Hecla Files NI43-101 Technical Reports for Keno Hill and Casa Berardi Mines
REPORT HIGHLIGHTS
-
Silver Proven and Probable reserves of 55 million silver ounces, an increase of 45% over the reserves identified at the time of the acquisition in
September 2022 , and an increase of 10% over year-end 2022. -
Reserves are calculated at a price assumption of
$17 per ounce of silver. - Measured and Indicated resources are 34 million silver ounces, exclusive of reserves, and inferred resources are 32 million ounces, an increase of 5% and 25% over year-end 2022, respectively.
- 11-year reserve mine plan, silver production of 52.9 million ounces based on current reserves.
-
Current reserves expected to generate
$420 million of free cash flow with after-tax Net Present Value (“NPV”) of$305 million at$22 silver and 5% discount rate.1
-
Gold Proven and Probable reserves decreased 21% to 1.3 million ounces due to the strategic decision to transition
Casa Berardi to an open pit only operation. -
Reserves calculated at price assumption of
$1,650 per gold ounce for open-pit and$1,850 /oz for underground. - Measured and Indicated gold resources of 0.8 million ounces, exclusive of reserves.
- 14-year open pit reserve mine plan with production of 1.04 million ounces of gold.
-
Current reserves expected to generate
$602 million of free cash flow over LOM with an after-tax NPV of$356 million at$1,950 gold price and 5% discount rate.2
Additional details regarding the reserves and resources at Keno Hill and
Endnotes
1 |
|
|
2 |
|
ABOUT HECLA
Founded in 1891,
QUALIFIED PERSON (QP)
Table A
Mineral Reserves –
Proven Reserves (1) |
|||||||||||
Asset |
Location |
Ownership |
Tons
|
Silver
|
Gold
|
Lead
|
Zinc
|
Silver
|
Gold
|
Lead
|
Zinc
|
|
|
100.0% |
9 |
11.3 |
0.08 |
3.5 |
8.4 |
100 |
1 |
310 |
740 |
|
|
100.0% |
5,299 |
12.8 |
- |
8.0 |
3.8 |
67,595 |
- |
424,080 |
201,280 |
Casa Berardi Underground (2,5) |
|
100.0% |
55 |
- |
0.12 |
- |
- |
- |
7 |
- |
- |
|
|
100.0% |
4,240 |
- |
0.09 |
- |
- |
- |
379 |
- |
- |
|
|
100.0% |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Total |
|
|
9,603 |
|
|
|
|
67,695 |
387 |
424,390 |
202,020 |
Probable Reserves (7) |
|||||||||||
Asset |
Location |
Ownership |
Tons
|
Silver
|
Gold
|
Lead
|
Zinc
|
Silver
|
Gold
|
Lead
|
Zinc
|
|
|
100.0% |
10,009 |
10.5 |
0.09 |
2.5 |
6.6 |
105,122 |
880 |
250,270 |
657,990 |
|
|
100.0% |
966 |
10.8 |
- |
7.1 |
2.9 |
10,411 |
- |
68,320 |
28,100 |
Casa Berardi Underground (2,5) |
|
100.0% |
175 |
- |
0.15 |
- |
- |
- |
26 |
- |
- |
|
|
100.0% |
11,384 |
- |
0.08 |
- |
- |
- |
859 |
- |
- |
|
|
100.0% |
2,069 |
26.6 |
0.01 |
2.8 |
2.5 |
55,068 |
13 |
58,170 |
52,380 |
Total |
|
|
24,603 |
|
|
|
|
170,601 |
1,778 |
376,760 |
738,470 |
Proven and Probable Reserves |
|||||||||||
Asset |
Location |
Ownership |
Tons
|
Silver
|
Gold
|
Lead
|
Zinc
|
Silver
|
Gold
|
Lead
|
Zinc
|
|
|
100.0% |
10,018 |
10.5 |
0.09 |
2.5 |
6.6 |
105,222 |
881 |
250,580 |
658,730 |
|
|
100.0% |
6,265 |
12.5 |
- |
7.9 |
3.7 |
78,006 |
- |
492,400 |
229,380 |
Casa Berardi Underground (2,5) |
|
100.0% |
230 |
- |
0.14 |
- |
- |
- |
33 |
- |
- |
|
|
100.0% |
15,624 |
- |
0.08 |
- |
- |
- |
1,238 |
- |
- |
|
|
100.0% |
2,069 |
26.6 |
0.01 |
2.8 |
2.5 |
55,068 |
13 |
58,170 |
52,380 |
Total |
|
|
34,206 |
|
|
|
|
238,296 |
2,165 |
801,150 |
940,490 |
(1) |
The term “reserve” means an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted. The term “proven reserves” means the economically mineable part of a measured mineral resource and can only result from conversion of a measured mineral resource. See footnotes 8 and 9 below. |
|
(2) |
Mineral reserves are based on |
|
(3) |
The reserve NSR cut-off values for |
|
(4) |
The reserve NSR cut-off values for |
|
(5) |
The average reserve cut-off grades at Casa Berardi are 0.11 oz/ton gold underground and 0.03 oz/ton gold for open pit. Metallurgical recovery (actual 2023): 85% for gold; US$/CAN$ exchange rate: 1:1.3. Underground mineral reserves at Casa Berardi were based on a gold price of |
|
(6) |
The reserve NSR cut-off value at Keno Hill is |
|
(7) |
The term “probable reserves” means the economically mineable part of an indicated and, in some cases, a measured mineral resource. See footnotes 9 and 10 below. |
|
Totals may not represent the sum of parts due to rounding |
Mineral Resources -
Measured Resources (9) |
|||||||||||||
Asset |
Location |
Ownership |
Tons
|
Silver
|
Gold
|
Lead
|
Zinc
|
Copper
|
Silver
|
Gold
|
Lead
|
Zinc
|
Copper
|
|
|
100.0% |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
|
100.0% |
5,326 |
8.6 |
- |
5.6 |
2.7 |
- |
45,785 |
- |
299,360 |
146,420 |
- |
Casa Berardi Underground(12,15) |
|
100.0% |
1,099 |
- |
0.21 |
- |
- |
- |
- |
234 |
- |
- |
- |
|
|
100.0% |
67 |
- |
0.03 |
- |
- |
- |
- |
2 |
- |
- |
- |
|
|
100.0% |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
|
100.0% |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
|
100.0% |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
|
100.0% |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
|
100.0% |
18 |
4.9 |
0.59 |
- |
- |
- |
87 |
10 |
- |
- |
- |
Midas (18,21) |
|
100.0% |
2 |
7.6 |
0.68 |
- |
- |
- |
14 |
1 |
- |
- |
- |
Heva (22) |
|
100.0% |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Hosco (22) |
|
100.0% |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Star (12,23) |
|
100.0% |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Rackla - Tiger Underground (29) |
|
100.0% |
881 |
- |
0.09 |
- |
- |
- |
- |
75 |
- |
- |
- |
Rackla - |
|
100.0% |
32 |
- |
0.06 |
- |
- |
- |
- |
2 |
- |
- |
- |
Rackla - Osiris Underground (30) |
|
100.0% |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Rackla - |
|
100.0% |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Total |
|
|
7,425 |
|
|
|
|
|
45,886 |
324 |
299,360 |
146,420 |
- |
Indicated Resources (10) |
|||||||||||||
Asset |
Location |
Ownership |
Tons
|
Silver
|
Gold
|
Lead
|
Zinc
|
Copper
|
Silver
|
Gold
|
Lead
|
Zinc
|
Copper
|
|
|
100.0% |
8,040 |
13.9 |
0.10 |
3.0 |
8.0 |
- |
111,526 |
800 |
239,250 |
643,950 |
- |
|
|
100.0% |
1,011 |
8.0 |
- |
6.0 |
2.7 |
- |
8,136 |
- |
60,200 |
26,910 |
- |
Casa Berardi Underground (12,15) |
|
100.0% |
3,154 |
- |
0.19 |
- |
- |
- |
- |
603 |
- |
- |
- |
|
|
100.0% |
205 |
- |
0.03 |
- |
- |
- |
- |
5 |
- |
- |
- |
|
|
100.0% |
4,504 |
7.5 |
0.006 |
0.9 |
3.5 |
- |
33,926 |
26 |
41,120 |
157,350 |
- |
|
|
100.0% |
1,453 |
6.5 |
0.09 |
- |
- |
- |
9,430 |
135 |
- |
- |
- |
|
|
100.0% |
1,187 |
5.5 |
0.01 |
1.9 |
2.9 |
1.2 |
6,579 |
16 |
22,420 |
34,100 |
14,650 |
|
|
100.0% |
114 |
1.0 |
0.46 |
- |
- |
- |
113 |
53 |
- |
- |
- |
|
|
100.0% |
70 |
1.9 |
0.58 |
- |
- |
- |
130 |
40 |
- |
- |
- |
Midas (18,21) |
|
100.0% |
76 |
5.7 |
0.42 |
- |
- |
- |
430 |
32 |
- |
- |
- |
Heva (22) |
|
100.0% |
1,266 |
- |
0.06 |
- |
- |
- |
- |
76 |
- |
- |
- |
Hosco (22) |
|
100.0% |
29,287 |
- |
0.04 |
- |
- |
- |
- |
1,202 |
- |
- |
- |
Star (12,23) |
|
100.0% |
1,068 |
3.0 |
- |
6.4 |
7.7 |
- |
3,177 |
- |
67,970 |
82,040 |
- |
Rackla - Tiger Underground (29) |
|
100.0% |
3,116 |
- |
0.10 |
- |
- |
- |
- |
311 |
- |
- |
- |
Rackla - |
|
100.0% |
960 |
- |
0.08 |
- |
- |
- |
- |
76 |
- |
- |
- |
Rackla - Osiris Underground (30) |
|
100.0% |
5,135 |
- |
0.12 |
- |
- |
- |
- |
604 |
- |
- |
- |
Rackla - |
|
100.0% |
960 |
- |
0.13 |
- |
- |
- |
- |
128 |
- |
- |
- |
Total |
|
|
61,606 |
|
|
|
|
|
173,447 |
4,107 |
430,960 |
944,350 |
14,650 |
Measured & Indicated Resources |
|||||||||||||
Asset |
Location |
Ownership |
Tons
|
Silver
|
Gold
|
Lead
|
Zinc
|
Copper
|
Silver
|
Gold
|
Lead
|
Zinc
|
Copper
|
|
|
100.0% |
8,040 |
13.9 |
0.10 |
3.0 |
8.0 |
- |
111,526 |
800 |
239,250 |
643,950 |
- |
|
|
100.0% |
6,337 |
8.3 |
- |
5.8 |
2.7 |
- |
53,921 |
- |
359,560 |
173,330 |
- |
Casa Berardi Underground (12,15) |
|
100.0% |
4,253 |
- |
0.20 |
- |
- |
- |
- |
837 |
- |
- |
- |
|
|
100.0% |
272 |
- |
0.03 |
- |
- |
- |
- |
7 |
- |
- |
- |
|
|
100.0% |
4,504 |
7.5 |
0.006 |
0.9 |
3.5 |
- |
33,926 |
26 |
41,120 |
157,350 |
- |
|
|
100.0% |
1,453 |
6.5 |
0.09 |
- |
- |
- |
9,430 |
135 |
- |
- |
- |
|
|
100.0% |
1,187 |
5.5 |
0.01 |
1.9 |
2.9 |
1.2 |
6,579 |
16 |
22,420 |
34,100 |
14,650 |
|
|
100.0% |
114 |
1.0 |
0.46 |
- |
- |
- |
113 |
53 |
- |
- |
- |
|
|
100.0% |
88 |
2.5 |
0.58 |
- |
- |
- |
217 |
50 |
- |
- |
- |
Midas (18,21) |
|
100.0% |
78 |
5.7 |
0.43 |
- |
- |
- |
444 |
33 |
- |
- |
- |
Heva (22) |
|
100.0% |
1,266 |
- |
0.06 |
- |
- |
- |
- |
76 |
- |
- |
- |
Hosco (22) |
|
100.0% |
29,287 |
- |
0.04 |
- |
- |
- |
- |
1,202 |
- |
- |
- |
Star (12,23) |
|
100.0% |
1,068 |
3.0 |
- |
6.4 |
7.7 |
- |
3,177 |
- |
67,970 |
82,040 |
- |
Rackla - Tiger Underground (29) |
|
100.0% |
3,997 |
- |
0.10 |
- |
- |
- |
- |
386 |
- |
- |
- |
Rackla - |
|
100.0% |
992 |
- |
0.08 |
- |
- |
- |
- |
78 |
- |
- |
- |
Rackla - Osiris Underground (30) |
|
100.0% |
5,135 |
- |
0.12 |
- |
- |
- |
- |
604 |
- |
- |
- |
Rackla - |
|
100.0% |
960 |
- |
0.13 |
- |
- |
- |
- |
128 |
- |
- |
- |
Total |
|
|
69,031 |
|
|
|
|
|
219,333 |
4,431 |
730,320 |
1,090,770 |
14,650 |
Inferred Resources (11) |
|||||||||||||
Asset |
Location |
Ownership |
Tons
|
Silver
|
Gold
|
Lead
|
Zinc
|
Copper
|
Silver
|
Gold
|
Lead
|
Zinc
|
Copper
|
|
|
100.0% |
1,930 |
13.4 |
0.08 |
2.9 |
6.9 |
- |
25,891 |
154 |
55,890 |
133,260 |
- |
|
|
100.0% |
3,600 |
7.8 |
- |
5.9 |
2.8 |
- |
27,934 |
- |
211,340 |
100,630 |
- |
Casa Berardi Underground (12,15) |
|
100.0% |
1,475 |
- |
0.22 |
- |
- |
- |
- |
332 |
- |
- |
- |
|
|
100.0% |
828 |
- |
0.08 |
- |
- |
- |
- |
64 |
- |
- |
- |
|
|
100.0% |
2,836 |
11.2 |
0.003 |
1.1 |
1.8 |
- |
31,791 |
9 |
32,040 |
51,870 |
- |
|
|
100.0% |
3,490 |
6.4 |
0.05 |
- |
- |
- |
22,353 |
182 |
- |
- |
- |
|
|
100.0% |
385 |
4.2 |
0.01 |
1.6 |
2.3 |
0.9 |
1,606 |
5 |
6,070 |
8,830 |
3,330 |
|
|
100.0% |
764 |
0.5 |
0.51 |
- |
- |
- |
393 |
392 |
- |
- |
- |
|
|
100.0% |
74,584 |
0.1 |
0.03 |
- |
- |
- |
5,232 |
2,178 |
- |
- |
- |
|
|
100.0% |
642 |
3.0 |
0.42 |
- |
- |
- |
1,916 |
273 |
- |
- |
- |
Midas (18,21) |
|
100.0% |
1,232 |
6.3 |
0.50 |
- |
- |
- |
7,723 |
615 |
- |
- |
- |
Heva (22) |
|
100.0% |
2,787 |
- |
0.08 |
- |
- |
- |
- |
216 |
- |
- |
- |
Hosco (22) |
|
100.0% |
17,726 |
- |
0.04 |
- |
- |
- |
- |
663 |
- |
- |
- |
Star (12,23) |
|
100.0% |
2,851 |
3.1 |
- |
5.9 |
5.9 |
- |
8,795 |
- |
168,180 |
166,930 |
- |
San Juan Silver (12,25) |
|
100.0% |
2,570 |
14.9 |
0.01 |
1.4 |
1.1 |
- |
38,203 |
34 |
49,400 |
39,850 |
- |
|
|
100.0% |
913 |
0.3 |
0.14 |
- |
- |
- |
271 |
131 |
- |
- |
- |
|
|
100.0% |
100,086 |
1.5 |
- |
- |
- |
0.7 |
148,736 |
- |
- |
- |
658,680 |
|
|
100.0% |
112,185 |
1.6 |
- |
- |
- |
0.7 |
183,346 |
- |
- |
- |
759,420 |
Rackla - Tiger Underground (29) |
|
100.0% |
30 |
- |
0.05 |
- |
- |
- |
- |
2 |
- |
- |
- |
Rackla - |
|
100.0% |
152 |
- |
0.07 |
- |
- |
- |
- |
10 |
- |
- |
- |
Rackla - Osiris Underground (30) |
|
100.0% |
5,919 |
- |
0.09 |
- |
- |
- |
- |
530 |
- |
- |
- |
Rackla - |
|
100.0% |
4,398 |
- |
0.12 |
- |
- |
- |
- |
514 |
- |
- |
- |
Total |
|
|
341,383 |
|
|
|
|
|
504,190 |
6,304 |
522,920 |
501,370 |
1,421,430 |
Note: All estimates are in-situ except for the proven reserves at |
||
(8) |
The term "mineral resources" means a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled. |
|
(9) |
The term "measured resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a measured mineral resource has a higher level of confidence than the level of confidence of either an indicated mineral resource or an inferred mineral resource, a measured mineral resource may be converted to a proven mineral reserve or to a probable mineral reserve. |
|
(10) |
The term "indicated resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an indicated mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an indicated mineral resource has a lower level of confidence than the level of confidence of a measured mineral resource, an indicated mineral resource may only be converted to a probable mineral reserve. |
|
(11) |
The term "inferred resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an inferred mineral resource has the lowest level of geological confidence of all mineral resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an inferred mineral resource may not be considered when assessing the economic viability of a mining project and may not be converted to a mineral reserve. |
|
(12) |
Mineral resources for operating properties are based on |
|
(13) |
The resource NSR cut-off values for |
|
(14) |
The resource NSR cut-off values for |
|
(15) |
The average resource cut-off grades at Casa Berardi are 0.12 oz/ton gold for underground and 0.03 oz/ton gold for open pit; metallurgical recovery (actual 2023): 85% for gold; US$/CAN$ exchange rate: 1:1.3. |
|
(16) |
The resource NSR cut-off value at Keno Hill is |
|
(17) |
Indicated resources for most zones at |
|
(18) |
Mineral resources for |
|
(19) |
|
|
(20) |
|
|
(21) |
Midas mineral resources are reported at a gold equivalent cut-off grade of 0.237 oz/ton. Metallurgical recoveries: 90% for gold and 70% for silver. A gold-equivalent cut-off grade of 0.1 oz/ton and a gold price of |
|
(22) |
Measured, indicated and inferred resources at Heva and Hosco are based on |
|
(23) |
Indicated and Inferred resources at the Star property are reported using a minimum mining width of 4.3 feet and an NSR cut-off value of |
|
(24) |
Inferred open-pit resources for |
|
(25) |
Inferred resources reported at a minimum mining width of 6.0 feet for Bulldog and an NSR cut-off value of |
|
(26) |
Inferred resource at |
|
(27) |
Inferred resource at |
|
(28) |
Inferred resource at the |
|
(29) |
Mineral resources at the |
|
(30) |
Mineral resources at the |
|
Totals may not represent the sum of parts due to rounding |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240328606021/en/
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