EX-99 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm

Exhibit 99.1

 

 

 

NEWS RELEASE

 

HECLA REPORTS RECORD SILVER RESERVES FOR

9TH YEAR IN A ROW

 

FOR IMMEDIATE RELEASE:

February 12, 2015

 

COEUR D'ALENE, IDAHO -- Hecla Mining Company (NYSE:HL) today reported the results from another successful year of exploration, achieving record silver reserves despite the use of reduced metals prices for the calculation, and net of 2014 silver production.

 

HIGHLIGHTS (Comparisons to 12/31/13)¹

 

 

●

Proven and probable silver reserve levels of 173 million ounces, the highest level in Company history, increasing for the 9th consecutive year.

 

 

●

Measured and indicated silver resources increased by 10.3%, and inferred resources increased by 2.5%.

 

 

●

Proven and probable gold reserves fell by 1.5% to 2.1 million ounces.

 

 

●

Measured and indicated gold resources were unchanged, and inferred gold resources increased 7.2%.

 

 

●

Proven and probable gold reserves were calculated using $17.25 silver, $1,225 gold, $0.95 lead and $0.90 zinc.

 

 

●

At San Sebastian, Mexico, total silver equivalent indicated resources increased 46% and inferred resources increased 18%. High-grade, near surface resources have been identified.

 

 

●

Exploration and pre-development expenditures in 2015 are projected to be a combined $18 million, $1 million less than 2014 levels.

 

Proven and Probable Reserves1

  
   

2014 Silver

(oz)

    

% Change
from 2013

    

2014 Gold

(oz)

     % Change
from 2013		  

Greens Creek

     94,021,000    

+1.6

       739,000    

+ 4.1

  

Lucky Friday

     78,902,000    

+2.1

       -       -  

Casa Berardi

     -       -       1,337,000       -4.1  

Total

     172,923,000    

+1.9

       2,076,000       -1.5  

 

“It is a testament to the quality of our projects that we added silver reserves for the ninth consecutive year using one of the lowest price assumptions in the industry and after producing 11.1 million ounces of silver,” said Phillips S. Baker, Jr., Hecla’s President and CEO. “The growth in our measured and indicated resources gives us confidence that we can continue to add reserves in the future. Of particular note is the 46% increase in indicated resources at San Sebastian, especially the presence of high-grade material near surface.”

 

 

(1)

A breakdown of the Company’s reserves and resources is set out in Table A at the end of this news release.

  

 
1
 

 

RESERVES & RESOURCES (Comparisons to 12/31/13)

 

Hecla replaced mined silver and added additional reserves and silver resources (measured, indicated and inferred) this year. For silver, total proven and probable reserves increased 1.9% to 173 million ounces, measured and indicated resources increased 10.3% to 165 million ounces and inferred resources increased 2.5% to 146 million ounces. Proven and probable gold reserves decreased by 1.5% to 2.1 million ounces, measured and indicated gold resources were unchanged at 4.7 million ounces and inferred resources increased 7.2% to 1.9 million ounces of gold.

 

After replacing 2014 production at Greens Creek, both silver and gold reserves increased in spite of using reduced metals prices for the calculation. This replacement of precious metal reserves at Greens Creek has been a trend that has continued for the last 11 years. The primary addition came from the net conversion of 575,500 tons of resource material to reserve, mostly in the Deep 200 South, 200 South and Northwest West (NWW) zones. The gold grade of these tons is 70% higher than last year’s reserves, and the silver grade is almost 40% higher. Measured and indicated resources decreased at Greens Creek by 3.5% to 9.1 million ounces of silver due to the conversion of some of that resource to reserve at Deep 200 South and 200 South. Inferred resources increased by 48% to 47 million ounces of silver, mostly from the NWW, 200 South and East Ore zones.

 

At Lucky Friday, there was a 2.1% increase in proven and probable silver reserves to 78.9 million ounces this year at 1.3 oz/ton higher average silver grade and 0.8% higher lead grade. The total measured and indicated resources increased 7.7% to 125 million silver ounces, and inferred resources decreased 25% to 41.2 million silver ounces. Reserve additions are due to conversion of resources that are in the LOM (Life of Mine) model and incorporate material from intermediate veins that provide “shadow” stopes for extraction of the 30 Vein.

 

At Casa Berardi, there was a loss of 4.1% in the proven and probable reserve to 1.34 million gold ounces. Mining losses in the 113 and 124 zones were partially offset by reserve additions in the 118, 123 and the East Mine Crown Pillar open pit. Estimates of measured and indicated resources decreased by 5.0% to 1.35 million gold ounces, and inferred resources increased by 0.5% to 604,100 gold ounces.

 

At San Sebastian, the East Francine Vein has an inaugural silver equivalent indicated resource of 4.5 million ounces at an average grade of 0.22 oz/ton gold and 64.1 oz/ton silver and an inferred resource of 2.6 million silver equivalent ounces at an average grade of 0.20 oz/ton gold and 18.5 oz/ton silver. All of this resource is within 100 meters of surface. The North Vein has an inaugural silver equivalent indicated resource of 4.9 million ounces at an average grade of 0.10 oz/ton gold and 4.5 oz/ton silver and inferred resource of 1.2 million silver equivalent ounces at an average grade of 0.09 oz/ton gold and 4.2 oz/ton silver. All of this resource is within 150 meters of surface. The Middle Vein has a new silver equivalent indicated resource of 13.9 million silver equivalent ounces at an average grade of 0.06 oz/ton gold and 13.1 oz/ton silver and inferred resource of 0.5 million ounces at an average grade of 0.01 oz/ton gold and 6.2 oz/ton silver, an increase of 13% in indicated resource ounces and a nearly 5-fold increase in inferred resource ounces over 12/31/13 levels. Most of this resource is within 250 meters of surface.

 

The mineral reserves of all properties in Table A are based on $17.25 per oz of silver, $1,225.00 per oz of gold, $0.95 per pound of lead, and $0.90 per pound of zinc. The ratio between $US and $Canadian is 1:1.10. Mineral resources and San Sebastian silver equivalency calculations are based on $20 per ounce of silver, $1,300 per ounce of gold, $0.95 per pound of lead, $0.90 per pound of zinc, and $3.00 per pound of copper (Hugh Zone at San Sebastian contains indicated resource of 8,400 tons of copper grading 1.7% and inferred resource of 18,860 tons of copper grading 1.5%).

  

 
2
 

 

EXPLORATION AND PRE-DEVELOPMENT

 

Expenditures

 

Exploration expenditures (including corporate development) for the fourth quarter and full year periods were $4.6 million and $17.7 million, respectively. Exploration expenditures in the fourth quarter were primarily for underground and surface drilling at Casa Berardi, underground drilling on the NWW, West Wall and Gallagher Fault Block at Greens Creek and surface drilling at San Sebastian.

 

Pre-development expenditures totaled $0.72 million in the fourth quarter and $1.97 million for the full-year 2014. Pre-development expenditures in the fourth quarter were primarily for infrastructure, engineering, metallurgy and permitting studies at the San Sebastian project in Mexico, and permitting applications for the San Juan Silver property in Creede, Colorado.

 

The Company expects that its total spending on pre-development and exploration in 2015 will be $18 million, about $1 million less than 2014 levels.

 

San Sebastian - Mexico

 

As reported in the Hecla press release on January 21, 2015, there has been significant drilling success over the past 18 months on the near-surface East Francine, Middle and North veins at the San Sebastian project in central Mexico. The newly discovered East Francine Vein is the faulted extension of the past-producing, high-grade Francine Vein which from 2001 to 2005 was one of the highest-grade producers in Mexico.

 

The East Francine Vein has currently been traced for 350 meters (1,200 feet) along strike and to 110 meters (360 feet) of depth and mainly consists of oxide mineralization. Drilling during the third and fourth quarters (see Hecla press releases dated September 11, 2014 and January 21, 2015) has intersected some spectacular intersections including 1.54 oz/ton gold and 288.6 oz/ton silver over 10.5 feet, 1.05 oz/ton gold and 204 oz/ton silver over 18.1 feet, and 1.40 oz/ton gold and 382 oz/ton silver over 11.9 feet.

 

The North Vein has a mineralized trend that extends over 1,025 meters (3,360 feet) along strike and 183 meters (600 feet) to depth and remains open along strike in both directions and at depth. North Vein mineralization is typically gold dominant with lesser silver with recent high-grade intercepts including 0.39 oz/ton gold and 4.9 oz/ton silver over 7.8 feet, and 0.40 oz/ton gold and 4.2 oz/ton silver over 7.8 feet (see Hecla press release dated January 21, 2015). The Middle Vein has been traced for nearly two kilometers (6,560 feet) along strike and to a depth of over 300 meters (984 feet). Drill results in the second and third quarters included intervals such as 0.40 oz/ton gold and 84.1 oz/ton silver over 9.5 feet, 0.43 oz/ton gold and 79.1 oz/ton silver over 7.4 feet (see Hecla press releases dated July 31 and September 11, 2014). The near-surface portion of both the North and Middle veins contains mineralization that may be suitable to open pit mining.

 

Building on this success, the 2015 San Sebastian exploration budget is $3.0 million, and will utilize two or three drills over the year with the goal of expanding the East Francine and North veins near-surface resources further to the southeast. In addition, a number of parallel veins have been defined by RAB (Rotary Air Blast) drilling and trenching and will be evaluated this year.

  

 
3
 

 

Preliminary Economic Assessment (PEA)

 

A PEA level study of mining options is underway by AMC Consultants of Vancouver, BC. This study is looking into various combinations of shallow open pits and underground mining. In addition, M3 Engineering and Technology Corp. of Tucson, Arizona is reviewing metallurgical options for the project. The Company anticipates completion of the PEA in the third quarter.

 

Greens Creek - Alaska

 

At Greens Creek, definition drilling replaced or added reserves at the NWW and Deep 200 South. Definition and exploration drilling made progress in refining the NWW and West Wall resources, extending the Deep 200 South trend and defining a potential resource at the Gallagher Fault Block area. Drilling of the Deep 200 South in the past few years has defined three stacked folds of high-grade mineralization that represent up to 600 feet of down-dip continuity. The 200 South and Deep 200 South zones currently represent a mineralization trend that extends over 3,000 feet along strike and over 1,000 feet of dip. Recent drill intersections of the Deep 200 South include 49.8 oz/ton silver, 0.08 oz/ton gold, 3.4% zinc and 1.6% lead over 11.1 feet and 30.5 oz/ton silver, 0.05 oz/ton gold, 15.5% zinc and 8.0% lead over 13.9 feet. Drill intersections continue to be very encouraging, and mineralization remains open to the south. See more complete drill assay highlights in Table B at the end of the release.

 

Definition drilling tested the lower limits of both folds of the NWW Zone and confirmed the fold limbs below the current resource. Recent drilling of the NWW Zone includes 21.0 oz/ton silver, 0.34 oz/ton gold, 30.3% zinc and 8.4% lead over 14.9 feet and 25.8 oz/ton silver, 0.00 oz/ton gold, 1.9% zinc and 1.0% lead over 8.0 feet. Drill intercepts of the West Wall Zone suggest thicker and more consistent mineralization than currently modeled, and intercepts including 29.9 oz/ton silver, 0.23 oz/ton gold, 19.7% zinc and 6.7% lead over 11.0 feet are 400 feet further down dip then the previous resource model. See more complete drill assay highlights in Table B at the end of the release.

 

An aggressive underground drilling program is anticipated at Greens Creek in 2015 with plans for three drills to be active all year. Definition drilling is budgeted at $5.8 million and includes 126,700 feet that concentrate on the Lower NWW, Deep 200 South, East Ore, Deep Southwest and 9a zones and will consist mainly of in-fill drilling in order to develop mine plans in all of these areas. Exploration drilling includes 46,000 feet of drilling and budgeted at $2.4 million in order to test for mineralization: 1) along the Deep 200 South, 5250 and 9a zones trends, 2) down-plunge of the Central West and East ore zones, and 3) along the Southwest Bench upper contact and Gallagher Fault Block area. A planned 10,000 foot surface drilling program should continue to evaluate a broadly defined, mineralized stockwork veins and horizons at Killer Creek which is about a mile west-northwest of the mine. This surface program is also expected to assess the High Sore target which has surface base metal mineralization and is less than a mile southeast of the mine.

 

Casa Berardi - Quebec

 

At Casa Berardi, five drills have been operating underground in an effort to refine current resources and stope designs in the 118, 123 and 124 zones and an exploration drill has extended mineralization down plunge on the 113 Zone. In-stope and definition drilling of the lower 118 Zone intersected a 10 to 30 foot wide shear zone that includes mineralized intervals of 0.54 oz/ton gold over 25.9 feet and 0.48 oz/ton gold over 23.3 feet and is open to the west and above. Drilling from the 550, 770 and 830 levels has confirmed continuity of high-grade mineralization in the 123 Zone including intersections of 0.76 oz/ton gold over 24.3 feet and 1.35 oz/ton gold over 16.1 feet. The lenses of the 123 Zone represent at least 1,100 feet of continuous down-dip mineralized with an average strike length of 500 feet.

  

 
4
 

 

Drilling of the 124 Zone from surface and the 250 and 290 levels continue to give good results and has intersected zones of high-grade gold including 0.91 oz/ton gold over 42.3 feet and 0.39 oz/ton over 37.4 feet. The 124 Zone extends from near-surface in the Principale area to continuous depths up to 1,000 feet. Exploration drilling from the 810 level of the 113 Zone has extended gold mineralization both north and south of the Casa Berardi Fault trend for 350 feet down plunge. Recent drill results include 0.46 opt gold over 14.8 feet to the north of the fault and current drilling will investigate the down-plunge in the vicinity of the Casa Berardi Fault. Surface drilling has targeted the gold mineralization trend along the Casa Break to the east between the 124 and 140 zones. See more complete drill assay highlights in Table B at the end of the release.

 

An aggressive underground and surface drilling program is anticipated at Casa Berardi in 2015, with plans for six or seven drills to be active underground most of the year and two drills to be working on surface. In-stope and definition drilling is expected to concentrate on the 118, 123, and 124 zones, consisting mainly of in-fill drilling in an effort to develop mine plans in all of these areas. About 80,000 feet of planned exploration drilling budgeted at $3.9 million is proposed and will be split into three strategic areas (East Mine area, Principale area and West Mine) based on a target ranking system. The West Mine targets include the South West and Lower Inter areas and targets in the Principale include the 123 (Golden Pond) and 124 zones along the Casa Berardi Fault. At the East Mine drilling is expected to focus on the 157 Zone.

 

Lucky Friday - Idaho

 

At Lucky Friday, drilling from the 6200-56 Ramp station upgraded the 30 Vein and intermediate vein resources (4, 20, 41, 50, 70 and 90 Veins) between the 6500 to 7800 levels from inferred to indicated category below the planned advance of 15 and 16 stopes. Drill intersections continue to include high-grade silver, lead and zinc intercepts, providing further evidence of potentially higher-grade mineralization to depth. The drill results include: 47.2 oz/ton silver, 5.1% zinc and 34.2% lead over 7.7 feet (30 Vein), 45.6 oz/ton silver, 0.2% zinc and 14.0% lead over 7.8 feet (4 Vein), and 24.5 oz/ton silver, 1.9% zinc and 10.8% lead over 7.4 feet (20 Vein). See drill assay highlights in Table B at the end of the release. Due to the large reserve at Lucky Friday and current lack of exploration drill platforms, the drills have been demobilized, and no drilling is currently planned in 2015.

 

San Juan Silver - Colorado

 

Work is being completed on water discharge permits and on an amendment to the 5-Year Plan of Operations (POO) for surface exploration drilling. Upon receipt of the permits and the amended POO, and improved market conditions, the Company expects to commence underground rehabilitation in order to establish drill platforms. Inspections and reporting for Storm Water Management Plans and Spill Prevention Control and Countermeasure Plans continue.

 

 
5
 

 

Silver Valley - Idaho; Republic - Washington

 

In the Silver Valley, 3D modelling, geologic reconnaissance and target identification on the Lucky Friday – Golconda Mineral Belt are being advanced as part of a multi-year program. Compilation of recent and historic drilling and underground sampling continues at Republic, where Hecla last operated in 1994. The principal focus is completion of a resource estimate of surface-mineable mineralization on the Knob Hill target.

 

About Hecla

 

Hecla Mining Company (NYSE:HL) is a leading low-cost U.S. silver producer with operating mines in Alaska and Idaho, and is a growing gold producer with an operating mine in Quebec, Canada. The Company also has exploration and pre-development properties in five world-class silver and gold mining districts in the U.S., Canada, and Mexico, and an exploration office and investments in early-stage silver exploration projects in Canada.

 

Cautionary Statements Regarding Forward-Looking Statements

 

Statements made or information provided in this news release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of Canadian securities laws. Words such as “may”, “will”, “should”, “expects”, “intends”, “projects”, “believes”, “estimates”, “targets”, “anticipates” and similar expressions are used to identify these forward-looking statements. Such forward-looking statements or forward-looking information include statements or information regarding estimates of the Company’s mineral resources and mineral reserves, projected exploration and pre-development expenditures to be incurred in 2015; exploration drilling at Greens Creek, Lucky Friday and San Sebastian; and metallurgical testwork and PEA at San Sebastian. The material factors or assumptions used to develop such forward-looking statements or forward-looking information include that the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated, to which the Company’s operations are subject, as well as metals prices and exchange rate assumptions noted at the end of Table A relevant to mineral reserve and resourced estimates.

 

Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to, metals price volatility, volatility of metals production and costs, litigation, regulatory and environmental risks, operating risks, project development risks, political risks, labor issues, ability to raise financing and exploration risks and results; including that mineral resources are not mineral reserves, they do not have demonstrated economic viability and there is no certainty that they can be upgraded to mineral reserves through continued exploration, and with respect to Hecla’s non-operating and exploration properties, that few properties that are explored are ultimately developed into producing mines. Refer to the Company's Form 10-K and 10-Q reports for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation and has no intention of updating forward-looking statements other than as may be required by law.

 

Cautionary Statements to Investors on Reserves and Resources

 

Reporting requirements in the United States for disclosure of mineral properties are governed by the SEC and included in the SEC's Securities Act Industry Guide 7, entitled “Description of Property by Issuers Engaged or to be Engaged in Significant Mining Operations” (Guide 7). However, the Company is also a “reporting issuer” under Canadian securities laws, which require estimates of mineral resources and reserves to be prepared in accordance with Canadian National Instrument 43-101 (NI 43-101). NI 43-101 requires all disclosure of estimates of potential mineral resources and reserves to be disclosed in accordance with its requirements. Such Canadian information is being included here to satisfy the Company's “public disclosure” obligations under Regulation FD of the SEC and to provide U.S. holders with ready access to information publicly available in Canada.

  

 
6
 

 

Reporting requirements in the United States for disclosure of mineral properties under Guide 7 and the requirements in Canada under NI 43-101 standards are substantially different. This document contains a summary of certain estimates of the Company, not only of proven and probable reserves within the meaning of Guide 7, which requires the preparation of a “final” or “bankable” feasibility study demonstrating the economic feasibility of mining and processing the mineralization using the three-year historical average price for any reserve or cash flow analysis to designate reserves and that the primary environmental analysis or report be filed with the appropriate governmental authority, but also of mineral resource and mineral reserve estimates estimated in accordance with the definitional standards of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in NI 43-101. The terms “measured resources”, “indicated resources,” and “inferred resources” are Canadian mining terms as defined in accordance with NI 43-101. These terms are not defined under Guide 7 and are not normally permitted to be used in reports and registration statements filed with the SEC in the United States, except where required to be disclosed by foreign law. The term “resource” does not equate to the term “reserve”. Under Guide 7, the material described herein as “indicated resources” and “measured resources” would be characterized as “mineralized material” and is permitted to be disclosed in tonnage and grade only, not ounces. The category of “inferred resources” is not recognized by Guide 7. Investors are cautioned not to assume that any part or all of the mineral deposits in such categories will ever be converted into proven or probable reserves. “Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of such a “resource” will ever be upgraded to a higher category or will ever be economically extracted. Investors are cautioned not to assume that all or any part of a “resource” exists or is economically or legally mineable. Investors are also especially cautioned that the mere fact that such resources may be referred to in ounces of silver and/or gold, rather than in tons of mineralization and grades of silver and/or gold estimated per ton, is not an indication that such material will ever result in mined ore which is processed into commercial silver or gold.

 

Qualified Person (QP) Pursuant to Canadian National Instrument 43-101

 

Dean McDonald, PhD. P.Geo., Senior Vice President - Exploration of Hecla Mining Company, who serves as a Qualified Person under National Instrument 43-101, supervised the preparation of the scientific and technical information concerning Hecla’s mineral projects in this news release. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures for the Greens Creek Mine are contained in a technical report prepared for Hecla and Aurizon Mines Ltd. titled “Technical Report for the Greens Creek Mine, Juneau, Alaska, USA” effective date March 28, 2013, and for the Lucky Friday Mine are contained in a technical report prepared for Hecla titled “Technical Report on the Lucky Friday Mine Shoshone County, Idaho, USA” effective date April 2, 2014, and for the Casa Berardi Mine are contained in a technical report prepared for Hecla titled "Technical Report on the Mineral Resource and Mineral Reserve Estimate for the Casa Berardi Mine, Northwestern Quebec, Canada" effective date March 31, 2014 (the "Casa Berardi Technical Report"). Also included in these three technical reports is a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors. Copies of these technical reports are available under Hecla's profile on SEDAR at www.sedar.com.

 

The current Casa Berardi drill program was performed on core sawed in half and included the insertion of blanks and standards of variable grade in every 24 core samples. Standards were generally provided by Analytical Solutions Ltd. and prepared in 30 gram bags. Samples were sent to the Swastika Laboratories in Swastika, Ontario, a registered accredited laboratory, where they were dried, crushed, and split for gold analyses. Analysis for gold was completed by fire assay with AA finish. Gold over-limits were analyzed by fire assay with gravimetric finish. Data received from the lab were subject to validation using in-built program triggers to identify outside limit blank or standard assays that require re-analysis. Over 5% of the original pulps and rejects are sent for re-assay to ALS Chemex in Val d’Or, Quebec, for quality control.

 

Dr. McDonald reviewed and verified information regarding drill sampling, data verification of all digitally collected data, drill surveys and specific gravity determinations relating to the Casa Berardi mine. The review encompassed quality assurance programs and quality control measures including analytical or testing practice, chain-of-custody procedures, sample storage procedures and included independent sample collection and analysis. This review found the information and procedures meet industry standards and are adequate for Mineral Resource and Mineral Reserve estimation and mine planning purposes.

  

 
7
 

 

 

For further information, please contact:

 

Michael Westerlund

Vice President - Investor Relations

800-HECLA91 (800-432-5291)

Investor Relations

Email: hmc-info@hecla-mining.com

Website: http://www.hecla-mining.com

  

 
8
 

 

Table A: Reserves and Resources - 12/31/2014

 

Proven Reserves

  
           

Silver

    

Gold

    

Lead

    

Zinc

    

Silver

    

Gold

    

Lead

    

Zinc

  

Asset

  

Tons (000)

    

(oz/ton)

    

(oz/ton)

    

%

    

%

    

(000 oz)

    

(000 oz)

    

(Tons)

    

(Tons)

  

Greens Creek (a)

     4.7       15.7       0.10       3.7       9.2       74       0.5       180       440  

Lucky Friday (a)

     3,840       13.7       -       8.3       2.6       52,556       -       318,610       98,230  

Casa Berardi (1)

     1,606       -       0.15       -       -       -       237       -       -  

Total

     5,450                                       52,630       238       318,790       98,670  
                                                                         

Probable Reserves

  
           

Silver

    

Gold

    

Lead

    

Zinc

    

Silver

    

Gold

    

Lead

    

Zinc

  

Asset

  

Tons (000)

    

(oz/ton)

    

(oz/ton)

    

%

    

%

    

(000 oz)

    

(000 oz)

    

(Tons)

    

(Tons)

  

Greens Creek (a)

     7,691       12.2       0.10       3.1       8.3       93,947       738       240,670       639,490  

Lucky Friday (a)

     2,043       12.9       -       7.4       2.2       26,346       -       151,590       44,910  

Casa Berardi (1)

     7,806       -       0.14       -       -       -       1,100       -       -  

Total

     17,540                                       120,293       1,838       392,260       684,400  
                                                                         

Proven and Probable Reserves

  
           

Silver

    

Gold

    

Lead

    

Zinc

    

Silver

    

Gold

    

Lead

    

Zinc

  

Asset

  

Tons (000)

    

(oz/ton)

    

(oz/ton)

    

%

    

%

    

(000 oz)

    

(000 oz)

    

(Tons)

    

(Tons)

  

Greens Creek

     7,696       12.2       0.10       3.1       8.3       94,021       739       240,850       639,930  

Lucky Friday

     5,883       13.4       -       8.0       2.4       78,902       -       470,200       143,140  

Casa Berardi

     9,412       -       0.14       -       -       -       1,337       -       -  

Total

     22,990                                       172,923       2,076       711,050       783,070  

 

Measured Resources

  
           

Silver

    

Gold

    

Lead

    

Zinc

    

Silver

    

Gold

    

Lead

    

Zinc

  

Asset

  

Tons (000)

    

(oz/ton)

    

(oz/ton)

    

%

    

%

    

(000 oz)

    

(000 oz)

    

(Tons)

    

(Tons)

  

Greens Creek (b)

     -       -       -       -       -       -       -       -       -  

Lucky Friday (2)(b)

     14,433       5.7       -       3.9       2.2       81,716       -       555,960       316,560  

Casa Berardi (3)

     1,838       -       0.18       -       -       -       330       -       -  

Heva (4)

     5,480       -       0.06       -       -       -       304       -       -  

Hosco (4)

     33,070       -       0.04       -       -       -       1,296       -       -  

San Sebastian (5)(b)

     -       -       -       -       -       -       -       -       -  

Rio Grande Silver (6)(b)

     -       -       -       -       -       -       -       -       -  

Star (7)(a)

     -       -       -       -       -       -       -       -       -  

Total

     54,821                                       81,716       1,930       555,960       316,560  
                                                                         

Indicated Resources

  
           

Silver

    

Gold

    

Lead

    

Zinc

    

Silver

    

Gold

    

Lead

    

Zinc

  

Asset

  

Tons (000)

    

(oz/ton)

    

(oz/ton)

    

%

    

%

    

(000 oz)

    

(000 oz)

    

(Tons)

    

(Tons)

  

Greens Creek (b)

     823       11.0       0.12       3.5       8.0       9,062       102       28,720       66,170  

Lucky Friday (2)(b)

     7,674       5.6       -       3.9       2.1       43,307       -       299,560       163,250  

Casa Berardi (3)

     9,552       -       0.11       -       -       -       1,016       -       -  

Heva (4)

     5,570       -       0.07       -       -       -       369       -       -  

Hosco (4)

     31,620       -       0.04       -       -       -       1,151       -       -  

San Sebastian (5)(b)

     2,417       8.2       0.07       -       -       19,838       171       14,570       18,980  

Rio Grande Silver (6)

     516       14.8       -       2.1       1.1       7,620       -       10,760       5,820  

Star (7)(b)

     1,074       3.0       -       6.4       7.6       3,221       -       68,700       81,200  

Total

     59,246                                       83,048       2,808       422,310       335,420  
                                                                         

Measured & Indicated Resources

  
           

Silver

    

Gold

    

Lead

    

Zinc

    

Silver

    

Gold

    

Lead

    

Zinc

  

Asset

  

Tons (000)

    

(oz/ton)

    

(oz/ton)

    

%

    

%

    

(000 oz)

    

(000 oz)

    

(Tons)

    

(Tons)

  

Greens Creek (b)

     823       11.0       0.12       3.5       8.0       9,062       102       28,720       66,170  

Lucky Friday (2)(b)

     22,107       5.7       -       3.9       2.2       125,023       -       855,520       479,810  

Casa Berardi (3)

     11,391       -       0.12       -       -       -       1,346       -       -  

Heva (4)

     11,050       -       0.06       -       -       -       672       -       -  

Hosco (4)

     64,690       -       0.04       -       -       -       2,447       -       -  

San Sebastian (5)(b)

     2,417       8.2       0.07       -       -       19,838       171       14,570       18,980  

Rio Grande Silver (6)

     516       14.8       -       2.1       1.1       7,620       -       10,760       5,820  

Star (7)(b)

     1,074       3.0       -       6.4       7.6       3,221       -       68,700       81,200  

Total

     114,067                                       164,764       4,738       978,270       651,980  

 

Inferred Resources

  
           

Silver

    

Gold

    

Lead

    

Zinc

    

Silver

    

Gold

    

Lead

    

Zinc

  

Asset

  

Tons (000)

    

(oz/ton)

    

(oz/ton)

    

%

    

%

    

(000 oz)

    

(000 oz)

    

(Tons)

    

(Tons)

  

Greens Creek (b)

    3,452       13.6       0.09       2.8       6.6       46,881       315       97,180       229,240  

Lucky Friday (8)(b)

     5,359       7.7       -       5.4       1.8       41,152       -       289,420       98,890  

Casa Berardi (3)

     3,710       -       0.16       -       -       -       604       -       -  

Heva (4)

     4,210       -       0.08       -       -       -       350       -       -  

Hosco (4)

     7,650       -       0.04       -       -       -       314       -       -  

San Sebastian (9) (b)

     3,721       4.2       0.03       -       -       15,744       129       22,550       32,070  

Rio Grande Silver (10)

     3,078       10.7       0.01       1.3       1.1       33,097       36       40,990       34,980  

Star (11)(b)

     2,957       3.1       -       5.9       5.6       9,128       -       173,500       166,100  

Monte Cristo (12)

     913       0.3       0.14       -       -       271       131       -       -  

Total

     35,051                                       146,273       1,879       623,640       561,280  

 

 
9
 

  

Note: All estimates are in-situ except for the proven reserve at Greens Creek which is in a surface stockpile. Resources are exclusive of reserves.

 

(a)

Mineral reserves are based on $1,225 gold, $17.25 silver, $0.95 lead, and $0.90 zinc, unless otherwise stated.

(b)

Mineral resources are based on $1,300 gold, $20 silver, $0.95 lead, $0.90 zinc and $3.00 copper, unless otherwise stated.

(1)

Mineral reserves are based on $1,225 gold and a US$/CAN$ exchange rate of 1:1.1 Reserve diluted to an average of 23.7% to minimum width of 3 meters.

  Open pit mineral reserves of the East Mine were estimated in August 2013 based on $1,300 gold and a US$/CAN$ exchange rate of 1:1. Reserve diluted to 20%.
  Open pit mineral reserves of the Principal Mine were estimated in February 2011 based on $950 gold and a US$/CAN$ exchange rate of 1:1. Reserve diluted to 10%.

(2)

Measured and indicated resources from Gold Hunter and Lucky Friday vein systems are diluted and factored for expected mining recovery.

(3)

Measured, indicated and inferred resources are based on $1,300 gold and a US$/CAN$ exchange rate of 1:1.1. Underground resources are reported at a minimum mining width of 2 to 3 meters.

  Open pit mineral resources of the Principal Mine were estimated based on $950 gold and a US$/CAN$ exchange rate of 1:1.
  Open pit mineral resources of the 160 Zone were based on $1,250 gold and a US$/CAN$ exchange rate of 1:1, Resources diluted to 12%.

(4)

Measured, indicated and inferred resources are based on $1,300 gold and a US$/CAN$ exchange rate of 1:1. The resources are in-situ without dilution and material loss. Resource model completed in 2011.

(5)

Indicated resources reported at a minimum mining width of 2.0 meters for Hugh Zone and 1.5 meters for Andrea Vein, Middle Vein, and North Vein. East Francine resources reported at actual vein width.    
San Sebastian Hugh Zone also contains 8,400 tons of copper at 1.7% Cu within 492,700 tons of indicated resource. 

(6)

Indicated resources reported at a minimum mining width of 6.0 feet for Bulldog; resources based on $26.5 Ag, $0.85 Pb, and $0.85 Zn.

(7)

Indicated resources reported at a minimum mining width of 4.3 feet.

(8)

Inferred resources from Gold Hunter and Lucky Friday vein systems are diluted and factored for expected mining recovery.

(9)

Inferred resources reported at a minimum mining width of 2.0 meters for Hugh Zone and 1.5 meters for Andrea Vein, Middle Vein, and North Vein. East Francine resources reported at actual vein width.

  San Sebastian Hugh Zone also contains 18,860 tons of copper at 1.5% within 1,244,100 tons of inferred resource.

(10)

Inferred resources reported at a minimum mining width of 6.0 feet for Bulldog, 5.0 feet for Equity & North Amethyst veins; resources based on $1,400 Au, $26.5 Ag, $0.85 Pb, and $0.85 Zn.

(11)

Inferred resources reported at a minimum mining width of 4.3 feet.

(12)

Inferred resource reported at a minimum mining width of 5.0 feet; resources based on $1,400 Au, $26.5 Ag.

 

* Totals may not represent the sum of parts due to rounding.

  

 
10
 

 

Table B: Drill Assay Results

 

Greens Creek (Alaska)

 

Zone

Drill Hole Number

Drill Hole Azm/Dip

Sample From

Sample To

True Width (feet)

Silver (oz/ton)

Gold (oz/ton)

Zinc (%)

Lead (%)

Depth From Mine Portal (feet)

Deep 200 South Exploration

GC3877

171/-58

170.20

171.60

1.4

11.84

0.01

15.60

8.42

-1416

 

 

 

258.00

272.00

13.9

30.53

0.05

15.51

7.99

-1494

 

GC3879

201/-50

198.90

204.80

4.9

33.25

0.09

1.00

0.45

-1423

 

 

 

263.50

279.00

5.3

30.94

0.05

7.45

4.00

-1477

 

 

 

673.00

676.30

3.2

19.92

0.00

0.40

0.20

-1794

 

GC3882

124/-55

630.40

645.40

14.7

21.81

0.10

1.22

0.86

-1794

Gallagher Fault Block Exploration

GC3895

243/25

713.30

716.20

2.6

7.21

0.27

15.03

7.18

-965

Deep 200 South Definition

GC3858

063/-66

783.60

794.90

11.1

49.77

0.08

3.37

1.57

-1359

 

 

 

963.10

974.00

5.4

9.91

0.31

4.99

3.90

-1523

 

GC3857

63/-59

1077.90

1080.00

2.1

58.68

0.87

7.33

4.86

-1572

Northwest West Definition

GC3869

243/-75

0.00

6.00

5.9

23.14

0.23

10.00

1.84

-421

 

 

 

123.50

126.00

2.4

635.60

0.53

2.04

0.86

-539

 

 

 

129.80

131.80

1.9

47.51

0.05

10.10

4.59

-545

 

 

 

145.00

146.10

1.1

37.55

0.07

13.00

6.37

-559

 

 

 

160.50

161.50

1.0

13.40

0.04

6.67

2.89

-575

 

 

 

174.90

179.70

4.7

19.94

0.06

11.30

7.21

-588

 

GC3870

063/-31

58.10

63.10

4.3

14.16

0.07

3.74

1.66

-439

 

 

 

166.10

171.90

5.0

103.04

0.10

6.65

3.60

-494

 

 

 

221.70

230.70

8.7

7.34

0.23

22.36

4.10

-523

 

GC3873

63/-45

87.50

94.00

5.9

20.38

0.11

7.72

3.53

-471

 

GC3876

063/-17

21.60

22.60

1.0

8.26

0.06

8.62

4.62

-413

 

 

 

106.30

121.30

14.2

17.51

0.12

3.76

1.83

-437

 

 

 

136.50

138.00

1.4

25.27

0.09

15.12

3.05

-446

 

 

 

204.00

212.00

8.0

25.85

0.00

1.93

1.00

-465

 

 

 

287.00

292.00

5.0

16.71

0.00

5.83

0.81

-487

 

 

 

316.50

323.00

6.5

14.68

0.00

5.90

2.88

-495

 

GC3878

063/-38

27.00

27.30

0.2

20.67

0.05

12.49

7.18

-425

 

 

 

73.30

75.00

1.5

15.06

0.12

20.20

7.19

-454

 

 

 

86.20

91.80

4.8

27.80

0.15

10.69

4.83

-462

 

GC3880

063/-51

34.40

35.30

0.6

24.47

0.03

16.25

8.47

-436

 

 

 

92.50

95.70

2.9

33.83

0.18

8.66

4.31

-550

 

GC3881

243/75

116.00

116.50

0.3

18.64

0.11

19.43

9.12

-523

 

 

 

171.20

177.60

3.2

17.42

0.09

3.98

2.05

-572

 

GC3884

063/-24

150.60

151.40

0.7

28.45

0.07

26.31

10.99

-465

 

 

 

365.40

371.90

6.1

10.19

0.28

17.63

4.64

-550

 

GC3886

063/-14

186.60

188.40

1.4

19.70

0.05

5.21

1.78

-449

 

GC3888

063/-32

119.60

121.20

1.5

21.45

0.11

19.64

8.08

-472

 

 

 

138.40

140.50

1.9

42.40

0.35

16.18

5.71

-480

 

GC3889

063/-44

120.70

124.40

3.5

12.35

0.06

8.92

3.64

-491

 

GC3890

063/-80

93.40

97.00

3.2

18.08

0.10

10.20

4.39

-503

 

 

 

139.20

143.30

3.7

49.38

0.19

10.19

5.21

-547

 

GC3892

063/20

381.60

383.00

1.1

11.02

0.01

5.78

3.17

-256

 

GC3893

063/-63

130.90

132.90

2.0

58.07

0.18

19.88

9.79

-526

 

GC3894

243/-70

171.60

176.80

3.9

40.91

0.17

18.47

7.38

-576

 

 

 

182.90

186.40

2.6

39.91

0.12

8.80

4.17

-582

 

GC3896

063/-13

361.00

376.00

14.9

21.03

0.34

30.28

8.41

-468

West Wall Definition

GC3873

63/-45

501.00

505.00

4.0

19.49

0.65

18.74

4.00

-762

 

 

 

509.20

512.00

2.8

18.91

0.10

17.15

3.62

-768

 

GC3878

063/-38

528.60

541.60

11.0

29.91

0.23

19.69

6.71

-735

 

GC3884

063/-24

607.20

612.90

5.3

6.82

0.15

23.23

6.48

-646

 

 

 

616.10

616.90

0.7

177.43

0.32

13.61

1.99

-649

 

 

 

619.30

620.30

0.9

7.75

0.05

20.58

5.48

-651

 

GC3889

063/-44

520.60

522.50

1.9

12.95

0.04

9.25

4.24

-761

 

GC3888

063/-32

559.60

566.80

6.7

4.23

0.04

27.01

5.41

-694

 

 

 

575.50

577.00

1.4

24.92

0.07

25.38

9.32

-700

 

 
11
 

 

Casa Berardi (Quebec)

 

Zone

Drill Hole Number

Drill Hole Section

Drill Hole Azm/Dip

Sample From

Sample To

True Width (feet)

Gold (oz/ton)

Depth From Mine Surface (feet)

Lower 118 (118-10)

CBP-0770-089

12010

192/38

182.4

196.9

11.8

0.44

-2394.4

(118-10)

CBP-0770-091

11950

230/10

183.7

207.7

23.3

0.48

-2464.5

(118-10)

CBP-0770-098

11980

180/56

150.9

182.1

19.0

0.24

-2372.3

(118-10)

CBP-0770-099

11950

234/21

177.2

205.4

25.9

0.54

-2469.1

Upper 123 (123-05)

CBP-0550-006

12450

178/-23

152.6

182.1

28.2

0.35

-1853.4

(123-05)

CBP-0550-010

12450

157/29

85.3

105.0

17.1

0.27

-1743.7

(123-05)

CBP-0550-014

12450

158/-38

239.5

308.4

55.1

0.27

-1964.4

(123-05)

CBP-0550-018

12450

192/64

131.2

152.2

9.2

0.32

-1658.4

(123-05)

CBP-0550-019

12450

194/52

114.8

141.1

17.7

0.35

-1689.1

(123-05)

CBP-0550-026

12420

162/16

122.7

153.9

29.9

0.37

-1755.2

(123-05)

CBP-0550-030

12420

162/31

121.4

149.9

24.6

0.28

-1723.2

(123-05)

CBP-0550-034

12450

198/39

117.8

142.1

19.7

0.33

-1711.6

Lower 123 (123-01)

CBP-0770-068

12395

181/-12

424.2

437.3

13.1

1.07

-2572.7

(123-01)

CBP-0770-102

12370

180/42

490.8

510.8

16.1

1.35

-2185.9

(123-01)

CBP-0770-103

12370

180/62

499.7

515.1

10.8

1.24

-2092.1

(123-11)

CBP-0770-105

12400

181/-20

470.8

495.4

24.3

0.76

-2627.7

Lower 123 (123-05)

CBP-0830-012

12275

184/-11

165.0

184.1

18.7

0.43

-2738.9

(123-04)

CBP-0830-015

12275

184/-2

275.6

299.5

24.0

0.29

-2696.4

(123-03)

CBP-0830-021

12275

175/-14

160.4

173.9

13.1

0.49

-2745.4

(123-03)

CBP-0830-023

12275

174/-29

190.3

210.0

17.7

0.48

-2804.3

Principal (124-16)

CBP-0250-025

12680

186/25

222.8

269.0

42.3

0.91

-684.9

(124-16)

CBP-0250-026

12680

186/31

211.6

253.6

37.7

0.35

-675.8

(124-16)

CBP-0250-027

12680

186/36

264.1

306.8

37.4

0.39

-636.7

Principal (124-81)

CBP-0290-0152

12380

180/23

106.3

130.6

22.6

0.27

-892.2

(124-84)

CBP-0290-0154

12390

179/-55

164.0

192.6

17.1

0.25

-1088.3

(124-22)

CBP-0290-0161

12370

1/34

172.9

186.0

11.5

0.32

-846.1

(124-22)

CBP-0290-0178

12375

43/12

120.4

142.4

21.7

0.35

-923.1

113

CBW-1065

11700

360/-80

1732.3

1748.0

15.1

0.12

-4110.2

113

CBW-1065

11700

360/-80

2731.3

2746.1

14.8

0.46

-4693.2

 

Lucky Friday (Idaho)

 

Zone

Drill Hole Number

Drill Hole Azm/Dip

Sample From

Sample To

True Width (feet)

Ag (oz/ton)

Zinc (%)

Lead (%)

Mine Level

Elevation (feet)

4

GH74-04

180.1/-25.2

1021.2

1030.3

7.8

45.6

0.2

14

7149

-3769

20

GH74-04

180.1/-25.2

990.7

997.6

5.9

11.5

8.4

8

7136

-3756

20

GH74-05

177.3/-38.1

1153.9

1164.8

9.9

30.7

12.7

22.5

7364

-3984

20

GH74-06

162.3/-39.3

1239.6

1250

8.2

14.9

1.4

8.4

7421

-4041

20

GH75-12

175.3/-53.4

1347.7

1357.4

7.4

24.5

1.9

10.8

7648

-4268

30

GH73-09

194.4/-30.2

990

1001

8.4

16.1

6.5

16.3

7159

-3779

30

GH74-03

168/-52.2

1531.6

1540.2

6

16.1

5.4

7

7857

-4477

30

GH74-04

180.1/-25.2

956.1

965

7.7

47.2

5.1

34.2

7122

-3742

30

GH74-05

176.0/-39.0

1130

1139.9

8.5

27.6

5.1

18.2

7349

-3969

30

GH74-06

162.3/-39.3

1201.7

1217.3

12.6

28.4

7.1

19.5

7399

-4019

30

GH76-07

191.6/-27.2

1094.5

1110.9

15

27.8

6.1

19.8

7276

-3896

30

GH77-04

174.7/-42.3

1211.6

1222.9

9.6

10.6

7.5

8.9

7462

-4082

41

GH74-03

168/-52.2

1484.5

1495.7

7.9

19.8

3.8

14

7821

-4441

41

GH74-05

176.0/-39.0

1118.6

1126.1

7.4

12.4

5.9

9.1

7341

-3961

50

GH75-12

174.7/-53.8

1282.6

1300.6

13.5

9.6

7.9

7.8

7599

-4219

70

GH76-08

198.7/-49.8

1660.7

1671

6.1

19.5

5.4

18.2

8016

-4636

90

GH77-04

173.3/-48.0

944.3

953

6.4

22.6

0.5

8.1

7274

-3894

 

 

12