Mine Type
Ownership
Silver
Lead
Zinc
***All metals reflect 2021 production
|
Tons
(000) |
Silver
(oz/ton) |
Gold
(oz/ton) |
Lead
(%) |
Zinc
(%) |
Silver
(000 oz) |
Gold
(000 oz) |
Lead
(Tons) |
Zinc
(Tons) | |
|---|---|---|---|---|---|---|---|---|---|
| Proven Reserves (2, 6) |
–
|
– |
–
|
– |
– |
– |
– |
– |
– |
| Probable Reserves (2, 6)
|
2,197
|
22.5 |
0.01
|
2.4 |
2.2 |
49,473
|
13 |
52,520 |
49,320 |
| Proven & Probable Reserves (2, 6)
|
2,197 |
22.5 |
0.01
|
2.4 |
2.2 |
49,473 |
13 |
52,520 |
49,320 |
| Measured Resources (12, 16) |
– |
– |
– |
– |
– |
– |
– |
– |
– |
| Indicated Resources (12, 16) |
4,601
|
8.0
|
0.007
|
1.0
|
4.0
|
32,288
|
29
|
39,540
|
163,130
|
| Measure & Indicated Resources (12, 16) |
4,601 |
8.0 |
0.007 |
1.0 |
4.0 |
32,288 |
29 |
39,540
|
163,130 |
| Inferred Resources (12, 16) |
2,441 |
10.4 |
0.003 |
0.9 |
2.1 |
25,478 |
8 |
22,380 |
51,000 |
(1) The term “reserve” means an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted. The term “proven reserves” means the economically mineable part of a measured mineral resource and can only result from conversion of a measured mineral resource. See footnotes 7 and 8 below.
(2) The term “probable reserves” means the economically mineable part of an indicated and, in some cases, a measured mineral resource. See footnotes 8 and 9 below.
Mineral Reserves reported are dated May 26, 2021 and do not include depletion since that time.
Mineral reserves are based on $21.35/oz silver, $1603/oz gold, $0.92/lb lead, $1.08/lb zinc and US$:CA$ of 0.775.
Mineral Reserves are reported herein based on an NSR cutoff value using estimated metallurgical recoveries, assumed metal prices and smelter terms, which include payable factors, treatment charges, penalties, and refining charges.
The Bellekeno, Lucky Queen, Flame & Moth and Bermingham deposits are incorporated into the current mine plan supported by disclosure in the news release dated May 26, 2021 entitled “Alexco Announces 22% Increase to Silver Reserves; Updated Technical Report Demonstrates Robust Economics at Keno Hill”.
Reserves are reported based on NSR cutoff of CA$/tonne of $365 for Bellekeno, $460 for Lucky Queen, $350 for Bermingham and Flame and Moth.
Totals may not represent the sume of parts due to rounding.
Between 1913 and 1989, Keno Hill produced over 200 Moz of silver with average grades of 44 oz/t, making it the second-largest historical silver producer in Canada. Today, it boasts significant Mineral Resources at grades far higher than most of the world’s primary silver producers.
There has been active exploration and development of the Keno Hill Silver District since 2006. During that time, there has been several significant discoveries including the Flame and Moth and Bermingham deposits that form the backbone of Hecla Yukon’s current mining operations. This exploration success at the Bermingham and Flame & Moth deposits demonstrates the potential to continue growing the District’s mineral resource.
Under a unique contractual agreement with the Government of Canada, Hecla can explore, develop, and produce from historic and newly discovered deposits within the District. The Government of Canada indemnifies the potential liabilities associated with the historic operations in the District under the terms and conditions of the commercial agreement subject to the requirement for ERDC to develop, permit and implement the Site Reclamation Plan.
The addition of Alexco Resource increases Hecla’s silver exposure by increasing proven and probable silver reserves 19% to 237 million ounces, measured, and indicated resources 24% to 257 million ounces and inferred resources 7% to 523.7 million ounces.
The Keno Hill Silver District is in the central Yukon, which is characterized by subarctic continental climate with cold winters and warm summers. Annual precipitation averages 28 cm and half of this falls as snow, which starts to accumulate in October and remains until May or June. The landscape of the District is characterized by rolling hills and mountains with a relief of up to 1,600 m, the highest of which is Keno Hill at 1,975 m.
Mineralization in the District is of the polymetallic silver-lead-zinc vein type where multiple pulses of hydrothermal fluids or fluid boiling, probably related to repeated reactivation and breccia formation along the host fault structures, have formed a series of vein stages with differing mineral assemblages and textures. Supergene alteration may have further changed the nature of the mineralogy in the veins. Much of the supergene zone may have been removed due to glacial erosion. In general, common gangue minerals include (manganiferous) siderite and, to a lesser extent, quartz, and calcite. Silver predominantly occurs in argentiferous galena and argentiferous tetrahedrite (freibergite).
In some assemblages, silver is also found as native silver, in polybasite, stephanite, and pyrargyrite. Lead occurs in galena and zinc in sphalerite, which can be either an iron-rich or iron-poor variety. Other sulphides include pyrite, pyrrhotite, arsenopyrite, and chalcopyrite. The Keno Hill mining camp has long been recognized as a polymetallic silver-lead-zinc vein district with characteristics similar to other well-known mining districts in the world.
