Ongoing Successful Effort To Increase Recoveries From Greens Creek

COEUR D’ALENE, ID - Hecla Mining Company reported first quarter results at the Greens Creek mine, 1.9 million ounces of silver and 14,022 ounces of gold were produced in the first quarter, compared to 2.5 million ounces and 15,981 ounces, respectively, in the first quarter of 2016. Lower silver and gold production was expected and was principally due to lower grades than the first quarter of 2016. The mill operated at an average of 2,190 tons per day (tpd) in the first quarter, in-line with the first quarter of 2016.

The cost of sales for the first quarter was $44.0 million, and the cash cost, after by-product credits, per silver ounce, was $0.65, compared to $44.9 million and $3.96, respectively, for the first quarter of 2016. The AISC, after by-product credits, was $3.86 per silver ounce for the first quarter compared to $7.03 in the first quarter of 2016. The per ounce silver costs were lower primarily due to higher base metals prices and lower silver production.

In the first quarter of 2017, as part of an ongoing and successful effort to increase recoveries from Greens Creek, the first staged-flotation-reactor was installed in the zinc rougher circuit. This unit will be commissioned in the second quarter and is expected to improve recoveries and to increase distribution of metals to concentrates with higher payable terms.

Drilling and assay results in the first quarter refined resources of the 9A, NWW, Southwest Bench, East Ore and West zones for possible conversion to reserves. Drilling of the 9A Zone intercepted mineralization comparable to the existing resource model although mineralization along the upper contact is more continuous than the model predicted. Intersections of the 9A Zone include 52.1 oz/ton silver, 0.03 oz/ton gold, 10.5% zinc and 5.3% lead over 21.7 feet and 60.5 oz/ton silver, 0.02 oz/ton gold, 15.1% zinc and 7.3% lead over 14.0 feet.

Drilling of the southern extension of the NWW Zone continues to define mineralization along the lower fold, spanning from the fold nose and along the upper limb. Mineralization is represented by multiple distinct bands of massive ores and mineralized argillites and has similar geometry and dimensions to the current resource model. Recent assay results include 87.1 oz/ton silver, 0.32 oz/ton gold, 15.4% zinc, and 7.5% lead over 27.9 feet and 48.0 oz/ton silver, 0.13 oz/ton gold, 22.2% zinc, and 13.1% lead over 11.7 feet. Drilling of the Upper Southwest Zone identified mineralization that extends north of previous mining in the zone and down to the upper limb of the NWW. Assay results include 35.0 oz/ton silver, 0.02 oz/ton gold, 5.9% zinc, and 3.2% lead over 15.0 feet.

Drilling of the East Ore Zone shows that north and south of a weakly mineralized gap in the middle of the model, the mineralization defines a “pinch and swell” configuration where some recent intersections match or exceed the resource model. Intersections include 33.8 oz/ton silver, 0.11 oz/ton gold, 3.2% zinc 1.0% lead over 11.9 feet. Recent drilling of the West Zone suggests mineralization is of similar extent and thickness along the nose and eastern limb. An extension to the resource model has been identified along the Maki Fault that is open at depth and along strike beyond the model.

For the surface exploration program, Hecla received the final "Finding of No Significant Impact" (FONSI) and "Notice to Proceed" from the U.S. Forest Service in April; however, due to heavy and late snowfall and required botany surveys, we have pushed the anticipated drilling startup to late June.

At the Lucky Friday Mine in Idaho silver production of 680,782 ounces decreased 30% over the prior year period mainly due to the strike by the union workers since March 13, 2017. Cost of sales for the first quarter was $14.5 million and the cash cost, after by-product credits, per silver ounce was $5.93, as compared to $18.5 million and $9.05, respectively, for the first quarter of 2016. The decrease in cash cost, after by-product credits, per silver ounce is primarily due to higher base metals prices. The AISC, after by-product credits, was $12.06 per silver ounce for the first quarter compared to $21.78 in the first quarter of 2016, with the decline due to the reduction in capital spending with the completion of the #4 Shaft as well as higher base metals prices.

During the strike, several necessary infrastructure projects have been undertaken, including a ventilation change on the new 6500 level and adding a pumping connection between the recently commissioned #4 Shaft and the Silver Shaft, nearly a mile apart.