Hecla Provides Update on Lucky Friday and Announces Hecla′s 2012 Production Estimate
Hecla Mining Company ('Hecla?) (NYSE:HL)
reports that in order to ensure safe and efficient operations for its
personnel, Hecla will develop a new haulage way to bypass the rock burst
that occurred at the Lucky Friday mine near Mullan, Idaho, on December
14. Creating the bypass and reestablishing mine production is expected
to be complete by the end of February 2012.
Hecla′s silver output remains within its previous estimates with 2011
production expected at more than 9 million ounces and cash cost
estimates remaining unchanged at approximately $1.00 per ounce, net of
by-products. For 2012, Hecla expects to increase silver production to
more than 9.5 million ounces including the loss of two months of
production at the Lucky Friday mine while the bypass is completed.
Phil Baker, Hecla′s President and Chief Executive Officer said: 'While
2011 has been a difficult year for Hecla and the Lucky Friday, ?the
previous 25 years at the Lucky Friday have been characterized by an
extraordinary safety record. Looking forward, our goal, which we will
relentlessly pursue, is to reestablish the same safety and operating
performance decades into the future. I am happy to report that everyone
who was injured on December 14 has been released from the hospital ?and
is on the road to recovery.?
Hecla will not repair the area where the rock burst occurred. Instead,
Hecla is planning a 750-foot bypass creating a new haulage way, which
will be a significant distance from where the rock burst occurred and in
a previously mined area reducing the risk of future rock bursts.
Hecla expects that a majority of Lucky Friday employees will stay at the
mine to work on the bypass or other Lucky Friday projects. Any remaining
qualified employees will be given the opportunity to work at Hecla′s
other properties.
Hecla closed the mine when the accident occurred on December 14 to
ensure employee safety, investigate the accident, and evaluate
alternative plans. Subsequently, the federal Mine Safety and Health
Administration ('MSHA?) issued an order closing the mine. Hecla is
working with MSHA to finalize the investigation and lift the closure
order to start the development of the new haulage way, resume
construction of the #4 Shaft, and work on other maintenance projects.
For up-to-date information and an earlier video message from our
President and CEO, Phil Baker, please visit Hecla′s homepage of the
website at www.hecla-mining.com.
Cautionary Statements
Statements made which are not
historical facts, such as strategies, plans, anticipated payments,
litigation outcome (including settlement negotiations), production,
sales of assets, exploration results and plans, costs, and prices or
sales performance are 'forward-looking statements' within the meaning of
the Private Securities Litigation Reform Act of 1995. Words such as
'may?, 'will?, 'should?, 'expects?, 'intends?, 'projects?, 'believes?,
'estimates?, 'targets?, 'anticipates? and similar expressions are used
to identify these forward-looking statements. 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,
environmental and litigation risks, operating risks, project development
risks, political risks, labor issues, ability to raise financing and
exploration risks and results. 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.
Hecla Mining Company
M?lanie Hennessey
Vice President ?
Investor Relations
Direct: 604-694-7729
Direct Main:
800-HECLA91 (800-432-5291)
hmc-info@hecla-mining.com
www.hecla-mining.com
