For the third time this year, Hecla Mining (HL-N) has increased its 2002 production forecast. Gold output is now expected to ring in at 235,000 ounces, or 10% higher, and silver production at 8.2 million ounces, or 2.5% higher.
Hecla pulls its metals from the wholly owned La Camorra gold mine in Venezuela, San Sebastian silver-gold mine in Mexico, Lucky Friday silver-gold-lead-zinc mine in Idaho and 29.73%-owned Greens Creek silver-gold-zinc-lead mine in Alaska. Kennecott holds the remaining stake in Greens Creek and is also the mine’s operator.
In the first eight months of the year, the mines contributed 167,413 oz. gold and 5.7 million oz. silver to Hecla’s account. That is more than had been expected, prompting the latest revision.
Hecla also has reduced its 2002 cost projection: total cash costs should average US$140 per oz. gold produced and US$2.30 per oz. silver produced. Both projections assume that lead and zinc prices will remain at current levels.
In 2001, Hecla produced 194,742 oz. gold, about 7.4 million oz. silver, 28,378 tons lead and 23,664 tons zinc. La Comorra accounts for most of the company’s gold output, and San Sebastian and Greens Creek each account for twice as much silver production as Lucky Friday.
Total cash costs averaged US$133 per oz. gold, and total production costs, US$200 per oz. Similar costs for silver were US$3.52 and US$5.04 per oz., respectively.
Meanwhile, three of four holes recently drilled in the Don Sergio vein returned 2 oz., 1.7 oz. and 0.36 oz. over 6.56-ft. horizontal widths. Although grades in the fourth were insignificant, the core suggests that the vein continues across a small fault.
The Don Sergio vein lies near the producing Francine vein at San Sebastian. That vein, which is being mined from under ground workings, now accounts for all of the mine’s output, having replaced four surface veins that were mined out in the last quarter of 2001.
Exploration drilling continues.
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