Hecla posts quarterly loss

Hecla Mining (HL-N) lost US$36 million (or 54 cents per share) in the third quarter, compared to a loss of US$2.7 million (5 cents per share) in the corresponding period in 1998.

The company was hit with a US$27.3-million charge for future environmental reclamation and remediation expenditures at the Bunker Hill superfund site in northern Idaho and at the Grouse Creek mine in central Idaho.

In addition, Hecla took a writedown of US$3.9 million against the value of its lawn and garden subsidiary, which it plans to sell.

However, the period was not without its bright spots, chief among which was the startup of the Camorra gold mine in Venezuela. At full production, it should produce as much as 80,000 oz. annually at a cash cost below US$200 per oz. Deep drilling is planned.

Meanwhile, the company has turned up encouraging ore-grade intercepts around the Rosebud gold-silver mine in Nevada. Based on a 16-ft. intercept grading 0.5 oz. gold and a 9-ft. interval of 0.25 oz., geologists believe they have found the feeder structure to the main deposit. Drilling is expected to resume shortly.

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