Nevada

Hecla has exploration projects throughout the state of Nevada.

Nevada Exploration Projects

An image of Hecla Nevada Map

Aurora

Nevada, USA

The 12.6 square-mile Aurora property is located in the northeastern portion of the Bodie Hills in Mineral County, approximately 105 miles southeast of Reno. Aurora hosts potential for the discovery of epithermal gold-silver deposits. Historically, the property produced about 1.9 million ounces of gold from an anastomosing system of banded quartz-adularia-sericite epithermal veins.

Exploration

Hecla’s exploration efforts in the district are just getting started.  Only recently, in the long history of the Aurora district, has the land package been consolidated allowing unencumbered access throughout the district.  Previous exploration efforts left many targets untested or open for expansion. Systematically applying modern exploration tools with a 150-year robust historical dataset will certainly result in new discoveries.

Future Plans

There remains a strong upside potential for new discoveries in the under explored 12.6 square mile property based on the extent of the veins systems and the unexplored extensions beyond the previous mining. In 2022, exploration drilling is planned to test high-grade vein extensions from historic production areas and the Sawtooth Ridge target area.

An image of where Aurora Nevada is located.

Fire Creek

Nevada, USA

Fire Creek is located primarily in Lander County, approximately 63 miles west of Elko, overlooking Crescent Valley. The land position includes approximately 15,420 acres of unpatented federal lode mining claims, 1,110 acres of private fee land, and 230 acres of mineral leases. Collectively, the Fire Creek land package is approximately 17,000 acres. Fire Creek was placed on care and maintenance in the second quarter of 2021.

Exploration

Past production at Fire Creek exploited both high grade, quartz-carbonate epithermal veins and structurally controlled sulfide refractory mineralization. Significant potential still exists for both styles of mineralization to be discovered throughout the district with roughly 90% still untested with detailed modern geophysics, drilling or detailed geologic work.

Future Plans

Exploration strategies are being developed to advance the Fire Creek district in the next phase of discovery.

An image of where Fire Creek mine is located.

Production – Nevada Operations

(years ended December 31)

 

2019

2020

Silver (ounces)

181,741
37,443

Gold (ounces)

66,166

31,756

Historical
2016
2017
2018
Silver (ounces)
80,593
72,283
172,301
Gold (ounces)
101,286
107,143
32,887

Reserves & Resources

Information with respect to proven and probable ore reserves; and measured, indicated, and inferred resources is set forth below.

Mineral Reserves & Resources
(As of December 31, 2021 unless otherwise noted)

 

Tons (000)

Silver (oz/ton)

Gold (oz/ton)

Lead (%)

Zinc (%)

Silver (000 oz)
Gold (000 oz)
Lead (Tons)
Zinc (Tons)

Proven Reserves (1,2)

22
1.2

1.51

 
28
33

Probable Reserves (1,2)

37

0.6

0.56

 
23
21
Proven and Probable Reserves (1,2)
59
0.9
0.92
51
54
Measured Resources (3,4)
20
0.7
0.50
14
10
Indicated Resources (3,4)
113
1.0
0.45
114
51
M&I Resources (3,4)
134
1.0
0.46
128
61
Inferred Resources (3,4)
765
0.5
0.51
394
392

Note: All estimates are in-situ. Resources are exclusive of reserves. Totals may not represent the sum of parts due to rounding.
(1) Mineral reserves are based on $1,300 gold, $14.50 silver, $0.90 lead, $1.15 zinc, unless otherwise stated.

(2) Fire Creek mineral reserves are based on a cut-off grade of 0.433 gold equivalent oz/ton and incremental cut-off grade of 0.135 gold equivalent oz/ton. Unplanned dilution of 10% to 17% included depending on mining method.

(3) Mineral resources for Fire Creek, Hollister and Midas are reported using $1500/oz gold and $21/oz silver prices, unless otherwise noted. A minimum mining width is defined as four feet or the vein true thickness plus two feet, whichever is greater.

(4) Fire Creek mineral resources are reported at a gold equivalent cut-off grade of 0.283 oz/ton. Metallurgical recoveries: 90% gold, 70% silver.

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.

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 website 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.

Open Pit Inferred Resources
(As of December 31, 2021 unless otherwise noted)

 

Tons (000)

Silver (oz/ton)

Gold (oz/ton)

Lead (%)

Zinc (%)

Silver (000 oz)
Gold (000 oz)
Lead (Tons)
Zinc (Tons)

Inferred Resources (1)

74,584

0.1

0.03

 
5,232
2,178

Note: All estimates are in-situ. Resources are exclusive of reserves. Totals may not represent the sum of parts due to rounding.

(1) Inferred open-pit resources for Fire Creek calculated November 30, 2017 using gold and silver recoveries of 65% and 30% for oxide material and 60% and 25% for mixed oxide-sulfide material. Indicated Resources reclassified as Inferred for 2019.

Open pit resources are calculated at $1,400 gold and $19.83 silver and cut-off grade of 0.01 Au Equivalent oz/ton and is inclusive of 10% mining dilution and 5% ore loss.  Open pit mineral resources exclusive of underground mineral resources.

NI43-101 Technical Report for the Fire Creek Project, Lander County, Nevada; Effective Date March 31, 2018; prepared by Practical Mining LLC, Mark Odell, P.E. for Hecla Mining Company, June 28, 2018.

Hollister

Nevada, USA

The Hollister Mine is in the Ivanhoe Mining District in Elko County, approximately 80 miles northeast of Winnemucca and 18 miles southeast of the Midas Mine. The Hollister Mine is a large, very well preserved low-sulfidation, epithermal gold-silver deposit. Volcanic-hosted, low-grade gold has been extracted from two open pits. Drilling has led to the discovery of blind, high-grade veins that have produced gold and silver from ore averaging ~34 g/t Au (1.00 oz/ton) and 200 g/t Ag (5.83 oz/ton). Numerous targets have been identified throughout the district which will be added to the ever-growing project pipeline as they are advanced.

Exploration

In 2021, at Hollister, the development drift advanced at the Hatter Graben exploration area allowing completion of the first drillhole that targeted and confirmed multiple zones of banded quartz veins and veinlets south of the existing resource. In 2022 at Hollister, exploration of the Hatter Graben is expected with further development of the decline setting up exploration drilling to upgrade a portion of the current Hatter Graben resource and explore additional Hatter Graben veins both to the south and east of the current resource area. To date, 2,400 feet of development has been completed along with the necessary ventilation and dewatering infrastructure, additional footage is planned through the first half of 2022.

Future Plans

The Hatter Graben offers near-term potential within the district and future potential discoveries due to our advancing understanding of the controls of mineralization in the district through detailed mapping, sampling and evolution of the geologic model.

An image of where the Hollister Mine in Nevada is located.

Production – Nevada Operations

(years ended December 31)

 

2018

Silver (ounces)

172,301

Gold (ounces)

32,887

Historical
2017
Silver (ounces)
47,305
Gold (ounces)6,751

Resources

Information with respect to measured, indicated, and inferred resources is set forth below.

Mineral Resources
(As of December 31, 2021 unless otherwise noted)

Tons (000)

Ag (oz/ton)

Au (oz/ton)

Ag (000 oz)

Au (000 oz)

Measured (1,2)

18

4.9

0.59

87

10

Indicated (1,2)
70
1.9
0.58
130
40
Total M&I Resources (1,2)
88
2.5
0.58
217
51
Inferred Resources (1,2)
642
3.0
0.42
1,916
273

Note: All estimates are in-situ. Resources are exclusive of reserves. Totals may not represent the sum of parts due to rounding.
(1) Mineral resources for Fire Creek, Hollister and Midas are reported using $1500/oz gold and $21/oz silver prices, unless otherwise noted. A minimum mining width is defined as four feet or the vein true thickness plus two feet, whichever is greater.

(2) Hollister mineral resources, including the Hatter Graben are reported at a gold equivalent cut-off grade of 0.238 oz/ton. Metallurgical recoveries: 88% gold, 66% silver

Reporting requirements in the United States for disclosure of mineral properties as of December 31, 2020 and earlier are governed by 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). Effective January 1, 2021, the SEC has issued new rules rescinding Guide 7. Mining companies are not required to comply with the new rules until the first fiscal year beginning on or after January 1, 2021. Thus, the Company will be required to comply with the new rules when filing its Form 10-K for the fiscal year ended December 31, 2021. 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 included herein 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.

Reporting requirements in the United States for disclosure of mineral properties under Guide 7 compared to the new SEC rules (Item 1300 of Regulation S-K under the Securities and Exchange Act of 1934) 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, but also of mineral resource and mineral reserve estimates estimated in accordance with the new SEC rules and definitional standards of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in NI 43-101. Under Guide 7, the term “reserve” means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination. The term “economically”, as used in the definition of reserve, means that profitable extraction or production has been established or analytically demonstrated to be viable and justifiable under reasonable investment and market assumptions. The term “legally”, as used in the definition of reserve, does not imply that all permits needed for mining and processing have been obtained or that other legal issues have been completely resolved. However, for a reserve to exist, Hecla must have a justifiable expectation, based on applicable laws and regulations, that issuance of permits or resolution of legal issues necessary for mining and processing at a particular deposit will be accomplished in the ordinary course and in a timeframe consistent with Hecla’s current mine plans. The terms “Measured resources”, “Indicated resources,” and “Inferred resources” are mining terms as defined in accordance with the new SEC rules and NI 43-101. These terms are not defined under Guide 7 and prior to January 1, 2021, were 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.

Midas

Nevada, USA

Midas is a historic mining district with recorded gold and silver production beginning in the early 1900s. The Midas Property is located approximately 58 miles northeast of Winnemucca in Elko County and covers approximately 30,000 acres. It includes owned fee lands, unpatented mining claims, and seven lease agreements. The Midas Property includes the underground mine, the 1,200 tons per day Merrill Crowe processing facility, related support infrastructure, and mining and milling equipment. The Midas Mine is the largest known Au-Ag epithermal deposit along the Northern Nevada Rift (“NNR”). Detailed mapping and sampling have also led to identification of the Green Racer Sinter Discovery Outcrop, the first modern exploration on the East Graben Corridor.

Exploration

In 2022, exploration at Midas will focus on the two miles of strike length along the East Graben Corridor. Drilling will focus on wide-spaced offsets along the Racer structural corridor near intersections with the northeast oriented Owhyee structures, structural splays off the Racer structure (Vapor Trail), and the northern extension of Little Opai.

Future Plans

Currently, Hecla is focused on advancing the targets within the East Graben Corridor with systematic drilling, geologic modeling, and continued refinement of our understanding of the area with geophysics, remote sensing and detailed mapping.

An image of where Midas Nevada is located.

Production

(years ended December 31)

 

2015

2016

2017

Silver (ounces)

1,513,112
1,345,989
 
780,316
 

Gold (ounces)

28,838

29,824

34,343

Resources

Information with respect to measured, indicated and inferred resources is set forth below.

 

Mineral Resources
(As of December 31, 2021 unless otherwise noted)

Tons (000)

Ag(oz/ton)

Au(oz/ton)

Ag(000 oz)

Au(000 oz)

Measured (1,2)

2

7.6

0.68

14

1

Indicated (1,2)
76
5.7
0.42
430
32
Total M&I Resources (1,2)
78
5.7
0.43
444
33
Inferred Resources (1,2)
1,232
6.3
0.50
7,723
615

Note: All estimates are in-situ. Resources are exclusive of reserves. Totals may not represent the sum of parts due to rounding.
(1) Mineral resources for Fire Creek, Hollister and Midas are reported using $1500/oz gold and $21/oz silver prices, unless otherwise noted. A minimum mining width is defined as four feet or the vein true thickness plus two feet, whichever is greater.

(2) Midas mineral resources are reported at a gold equivalent cut-off grade of 0.237 oz/ton. Metallurgical recoveries: 90% gold, 70% silver. A gold-equivalent cut-off grade of 0.1 oz/ton and a gold price of $1700/oz used for Sinter Zone with resources undiluted.

Reporting requirements in the United States for disclosure of mineral properties as of December 31, 2020 and earlier are governed by 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). Effective January 1, 2021, the SEC has issued new rules rescinding Guide 7. Mining companies are not required to comply with the new rules until the first fiscal year beginning on or after January 1, 2021. Thus, the Company will be required to comply with the new rules when filing its Form 10-K for the fiscal year ended December 31, 2021. 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 included herein 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.

Reporting requirements in the United States for disclosure of mineral properties under Guide 7 compared to the new SEC rules (Item 1300 of Regulation S-K under the Securities and Exchange Act of 1934) 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, but also of mineral resource and mineral reserve estimates estimated in accordance with the new SEC rules and definitional standards of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in NI 43-101. Under Guide 7, the term “reserve” means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination. The term “economically”, as used in the definition of reserve, means that profitable extraction or production has been established or analytically demonstrated to be viable and justifiable under reasonable investment and market assumptions. The term “legally”, as used in the definition of reserve, does not imply that all permits needed for mining and processing have been obtained or that other legal issues have been completely resolved. However, for a reserve to exist, Hecla must have a justifiable expectation, based on applicable laws and regulations, that issuance of permits or resolution of legal issues necessary for mining and processing at a particular deposit will be accomplished in the ordinary course and in a timeframe consistent with Hecla’s current mine plans. The terms “Measured resources”, “Indicated resources,” and “Inferred resources” are mining terms as defined in accordance with the new SEC rules and NI 43-101. These terms are not defined under Guide 7 and prior to January 1, 2021, were 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.

Monte Cristo

Nevada, USA

The 10 square-mile Monte Cristo property is located in the historic Gilbert mining district on the northeastern side of the Monte Cristo Range in Esmeralda County, approximately 24 miles west-northwest of Tonopah. The property and surrounding area have been the focus of precious metal exploration and small-scale mining since the discovery of high-grade epithermal gold mineralization near the Gilbert town site in 1924.

Exploration

The Monte Cristo property is in the Walker Lane Structural Belt which hosts some of the highest grade and largest producing districts in Nevada, i.e., Comstock, Aurora-Borealis, Tonopah, Round Mountain, and Goldfield.  The epithermal systems in the districts described above show a variation of grades and mineralization distribution along district-wide structural trends.  Monte Cristo is a trend approximately six miles long that includes several targets with current drill intercepts of >0.1 oz/ton gold and >5 oz/ton silver. Rock chip sampling shows up to 0.46 oz/ton gold and up to 2.5 oz/ton silver in separate areas with no drill testing.

Future Plans

The Monte Cristo property package will continue to be systematically explored and evaluated during the next several years. This continued exploration and evaluation will include additional detailed geologic mapping, rock chip and soil sampling, continued target specific and district wide geologic cross-section generation and interpretation, drill testing of priority targets, and advancing lower priority targets to the drill testing stage.

An image of where Monte Cristo is located.