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Hecla Mining Co HL

Alternate Symbol(s):  HL.P.B

Hecla Mining Company discovers, acquires and develops mines and other mineral interests and produces and market concentrates containing silver, gold and other metals, carbon material containing silver and gold, and unrefined dore containing silver and gold. Its segments include Greens Creek, Lucky Friday, Keno Hill, Casa Berardi and Nevada Operations. The Company produces zinc, silver and precious metals flotation concentrates at Greens Creek and silver and zinc flotation concentrates at Lucky Friday. At Greens Creek, it also produces gravity concentrate containing payable silver, gold and lead. It also produces unrefined gold and silver bullion bars (dore) and loaded carbon and precipitates at Casa Berardi, which are shipped to refiners before sale of the metals to precious metal traders. Keno Hill is located in the Keno Hill Silver District in Canada's Yukon Territory. Nevada Operations consists of four land packages in northern Nevada totaling approximately 110 square miles.


NYSE:HL - Post by User

Post by HuskySWon May 10, 2024 1:23pm
68 Views
Post# 36033959

Keno Hill (HL's wild child) Need to crack the code.

Keno Hill (HL's wild child) Need to crack the code. Looks like HL Keno Hill will be using Mr. Mark Board's UCB method, underground conditions probably rougher that expected for sure at 2000+ ft will get interesting.   The plan will be finished this year and in place end of 2025.  As for cracking the code it will be exciting to see the results, old pen and paper methods vs computer modeling, which will be more effective and cost efficient? The safety issue does cause concern, even before HL got involved ground movement was well recorded along with dewatering issues.  Hopefully the UCB method solves a lot of this.  IMO The low grade (mixed stock pile?) and current tonnage is a major concern, no net no mine.

Phils comments from Q1 transcript.

Keno Hill is improving. And we are learning and trying to do everything through the lens of safety and environmental improvement.

And we are making it safer. Our injury frequency rate is down 41%, but it is still too high. Like every operation, we have a two-pronged approach where we're trying to change behavior, and then we're also engineering and designing out risks. And so, for behavior, we initiated a 10-step action plan to implement the best practices in training, reporting investigations of accidents and supervision.

The program is about 40% complete, and it's resulted in increased morale and has promoted a culture of transparency. So, we actually have had more significant potential incidents or as many as we had a year ago, but there's been more reporting. And the point of this is the key to a safe site is really having no fear in telling what is really happening. And the team is responding well to that.

This is where we're making, I think, great progress. On the design side, we're focused on modifications to environmental controls to bring it to Hecla standards. And our standards in many cases exceed the legal requirements. And I'm struck by a comment that Brian Erickson, who's a longtime Greens Creek leader -- some of you probably have met him on tours of Greens Creek, and he's now, well in June, start overseeing both Greens Creek and Keno Hill.

And he rattled off a list of things not legally required but that we need to do in order to meet Hecla standards. Now, it's going to -- like Greens Creek, it's going to be a long process. I mean, we're still improving our standards at Greens Creek, a 37-year-old mine. But the geology at Keno and our culture warrants it.

So, for the next year or so, our focus is on better monitoring, getting more fulsome hydrologic studies, and making the water treatment plant upgrades. And design improvements are also being made operationally to make the mine more predictable and efficient, which makes it safer and more productive. There are a number of things, but the biggest is the cemented tails batch plant, which is going to allow underhand mining at Bermingham. And whenever you have the challenging ground conditions like we have at Keno, nothing could make it safer or more productive than having miners mining under a constructed back, the underhand method allows you to do.

This plan's going to be finished by year-end, and full conversion to underhand mining will happen by the end of next year. So, we're at 277 tons per day, and this is all from the Bermingham deposit, about 30% more than last quarter. We still have too much variability in how much we mine in millage day, but it's getting a lot better, and we're seeing even more consistency in April and into May. At the start of my comments on Keno, I said we're learning.

And what immediately comes to mind is that particularly in the shoulder seasons, in order to manage the clay from Bermingham, we need the hard rock from Flame & Moth deposit to make the crusher run better. So, despite Flame & Moth being lower grade, and when I say lower grade, I think it's like 24 ounces per ton so it's not super low grade, a portion of our feed's going to come from it in order to make crushing better. And you'll start to see that in the next few months. With 600,000 ounces that we've done this quarter, we're confident we're gonna hit our production numbers, reach commercial and full production probably before year-end, but only if we're making the mine safer and more environmentally compliant.

Now, let me go to why Keno's life we think is gonna be longer than the current 11-year mine life. And it's the exploration results we're seeing. So, if you go to Slide 14, last quarter, I highlighted high-grade intercepts at Bermingham, including one which was 54 ounces per ton over 39.5 feet, as well as an intercept which was 1,000 feet deeper than any previous drilling. And it provided the evidence that high-grade silver mineralization can be hosted within the full depth of the 3,000-foot favorable basal quartzite host rock unit.

Now, we've continued drilling. And the results we shared today are just as exciting where there were two additional intercepts in the footwall vein, one of which was 55.4 ounces per ton over nearly 41 feet and the second was 51.2 ounces per ton over almost 40 feet. These are multiples of the sort of widths of what we normally see. These holes are near existing infrastructure, and they exceed our model's expectations.

We also have two surface exploration drills that we've just started turning -- targeting the 3,000-foot strike length and 2,000 foot of dip length on the Bermingham vein system to test that deeper basal quartzite host. There's also other drilling targets outside of Bermingham to see if we have cracked the code for how this system is in place. We expect to be here for decades to come.
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