Hecla’s Silver Production Increased 25% In Third Quarter

COEUR D'ALENE, ID - Hecla Mining Company (NYSE:HL) today announced preliminary production results for the third quarter ending September 30, 2014.

All three of our mines performed strongly in the third quarter, reporting higher production of silver, gold, lead, and zinc over the prior year, and we expect 2014 silver production to be at the high end of our previous guidance of 9.5 to 10 million ounces,  said Phillips S. Baker, Jr., Hecla’s President and CEO. During the quarter we continued to advance our capital projects, including #4 Shaft at Lucky Friday, focused our exploration in Mexico and made the final payment of our Superfund settlement, and still ended the quarter with about $222 million in cash, unchanged from the end of the second quarter.

At Greens Creek in Alaska third quarter production of 1.9 million ounces of silver exceeded the second quarter production of 1.7 million ounces as well as the third quarter 2013 production of 1.8 million ounces and remains at the high end of the mines expected annual production range of 6.5 to 7.0 million ounces of silver. The mill operated at an average of 2,221 tons per day (tpd) for the quarter.

The third quarter production at Lucky Friday in Idaho, was 972,995 ounces of silver, an increase of more than 103% over the third quarter of 2013, reflects the impact of the mine now operating at full production levels. Silver production increased by 19% over the second quarter. Due to the strong production in the third quarter, the Company now expects annual silver production at Lucky Friday to be between 3 million and 3.2 million ounces in 2014. The fourth quarter production is expected to be lower than the third quarter due to mine sequencing. The mill operated at an average of 858 tpd for the quarter.

#4 Shaft, a key growth project, is excavated to the 7500 level, and work continues on the 7500 level shaft station. The project is more than 73% complete with projected completion expected in the third quarter of 2016 at a total cost of approximately $215 million.

At Casa Berardi in Quebec, third quarter gold production of 28,977 ounces is comparable to the second quarter production of 28,623 ounces. The mill operated at an average of 2,242 tpd for the quarter.

During the quarter, the West Mine Shaft deepening project reached functional completion with the removal of the bulkhead dividing the operating shaft and the deepened section. This changeover required the shaft to be intermittently closed over a 22-day period, which impacted production for the quarter. Production in the fourth quarter is expected to increase as the shaft resumes normal operations, and the Company is maintaining its 125,000 ounce annual gold production guidance for the mine. In 2015, the Company expects to drive a drift from the newly constructed 1010 station to the 118 and 123 ore zones, facilitating materials handling, ventilation, and exploration.