Greens Creek Produced 2.3 Million Ounces Of Silver In Third Quarter
COEUR D’ALENE, ID - Hecla Mining Company reported that at the Greens Creek in Alaska, drilling in the third quarter targeted the Deep 200 South, East Ore, Gallagher and the Upper Plate zones. Exploration drilling on the Deep 200 South Zone extended the 200 South Bench mineralization south of current resource. Drilling on the East Ore, Gallagher and Upper Plate zones upgraded and expanded the known resource. Strong assay results were also received from previous drilling on the East Ore, Gallagher and Upper Plate zones.
Drilling of the East Ore Zone compares favorably to previously modeled resource estimates at higher elevations and indicate expanded resources to the south and at depth. Drilling intercepted 75.1 oz/ton silver, 0.16 oz/ton gold, 5.32% zinc and 2.67% lead over 9.5 feet in an area without previously identified resources and another exploration drill hole intercepted 11.0 oz/ton silver, 0.13 oz/ton gold, 12.8% zinc and 7.3% lead over 7.7 feet within an area of no previously identified mineralization. Aggressive drilling of the East Ore Zone is planned to continue well into 2018 with the goal of confirming reserves and expanding the known resource.
Assays received for the Upper Plate Ore Zone further upgraded the existing resource and included 75.2 oz/ton silver, 0.09 oz/ton gold, 6% zinc and 3% lead over 5.4 feet. This Upper Plate mineralization is close to underground mine infrastructure and only 300 feet below the mine portal. Drilling of the Gallagher Zone identified new mineralization between current resources and included 11.6 oz/ton silver, 0.09 oz/ton gold, 5.2% zinc and 2.5% lead over 32.3 feet.
Surface drilling was completed on targets in the Gallagher, East Ore and 5250 zones. Drilling on the Gallagher Zone intersected mineralized sheared veins and breccia intervals of up to 100 feet thick containing higher-grade intervals of 1.5 to 4 feet wide that have up to 15% zinc and 4.0 oz/ton silver. This mineralized structure appears to be the same Klaus Shear identified within the mine workings east of the Gallagher fault. The mineralized Klaus Shear now extends 1,500 feet west of the mine and over 3,000 feet north to south. Drilling successfully intercepted the main mine horizon of the 5250 Zone over 2,000 feet south of the known resource showing promising alteration at the contact. Assays from the drilling of a number of holes on the Gallagher and 5250 zones are pending.
Greens Creek mine reported 2.3 million ounces of silver and 12,563 ounces of gold were produced in the third quarter with lower silver production resulted from lower grades due to mine sequencing. The mill operated at an average of 2,391 tons per day (tpd) in the third quarter, a record and 9% higher than the third quarter of 2016.
At the Lucky Friday Mine in Idaho, 88,298 ounces of silver were produced in the third quarter, compared to 887,364 ounces in the third quarter of 2016, with the decrease due to the ongoing strike by unionized employees. Limited production and capital improvements are being performed by salaried staff.
The Casa Berardi mine in Quebec, reported a record 44,141 ounces of gold were produced in the third quarter, including 8,949 ounces from the East Mine Crown Pillar (EMCP) pit, compared to 31,949 ounces in the third quarter of 2016, with the increase primarily due to higher ore throughput and gold grades. The mill operated at an average of 3,545 tpd in the third quarter, an increase of 26% over the third quarter of 2016 due to ramp up of the EMCP pit, and set a monthly throughput record of 3,913 tpd in September.
The AISC, after by-product credits, was $1,091 per gold ounce for the third quarter compared to $1,442 in the third quarter of 2016, primarily due to higher gold production, reduced stripping, and lower capital spending. The higher gold grades and production are expected to continue in the fourth quarter of 2017, combined with the reduced stripping costs at the EMCP pit, the improved cash cost, after by-product credits, and the AISC, after by-product credits, is anticipated to continue in the fourth quarter.
Automation of the 985 drift, which is under construction, is on track for commissioning by the end of the year, as are several other innovations such as the control room.
At the San Sebastian mine in Mexico, 880,885 ounces of silver and 6,342 ounces of gold were produced in the third quarter, compared to 975,610 ounces and 8,189 ounces, respectively, in the third quarter of 2016. The lower silver and gold production was expected with lower ore throughput and lower gold grades. The mill operated at an average of 397 tpd in the third quarter. Work is underway to transition from open pit mining and stockpile feeds to underground mining, which is expected to occur in early 2018. Construction of the ramp to connect the new portal to a ramp being driven from the existing workings continues, and the construction should be completed by year end. The Company has extended the mill agreement until the end of 2020.
“Exploration success continues at San Sebastian with the discovery of additional high-grade mineralization that has the potential to extend the mine life. When we restarted San Sebastian we had less than a two-year mine plan and now we see potential through 2020 and beyond. As well, new zones are emerging along both the Middle and Francine veins with similar mineralogy as the Hugh Zone, a 1.5 million ton polymetallic resource, so we see the underground sulphide deposit potentially growing to further extend mine life,” said Phillips S. Baker, Jr., President and CEO. “At Casa Berardi, the exploration confirms our view of the exploration potential we believed was possible when we acquired the property. The surface program is expanding the open pits and the underground is identifying new lenses with good grades. Finally, drilling at Greens Creek has discovered high-grade mineralization high up in the mine which could enhance Greens Creek’s already exceptional mine economics.”