LETTER TO THE EDITOR — Hecla sets the record straight over Mexico’s Fortuna property

Enough is enough! I cannot sit back and watch a company’s reputation maligned by inaccurate reporting. Your article (T.N.M., March 11/96) reported that Hecla Mining missed what War Eagle Mining discovered on the Fortuna property in Mexico’s Sonora state. Hecla did not miss, and I think a review of public information will show that the facts need to be put in perspective.

War Eagle reported a discovery in February 1995 and said its 29-hole, 8,750-ft., reverse-circulation drill program had identified two zones, Central and Northwest, 1.5 miles apart. It also said fire assay was used and grades were remarkably consistent.

Assay results were released from six holes (26-31). Grades ranged from 7.42 to 32.2 oz. silver per ton and 0.051 to 0.435 oz. gold over widths ranging between 20 and 140 ft. The average was 20.5 oz. silver and 0.11 oz. gold over a width of 47.5 ft. Hecla saw potential and entered into an agreement with War Eagle to earn a 60% interest. The June 1995 agreement called for Hecla to begin exploration, consisting of 12,000 ft. of diamond drilling, surface exploration and a detailed control survey.

In September, War Eagle issued a progress report. No assay results were released by War Eagle in this report and none were, or have since been, released by Hecla. War Eagle, however, reported that Hecla’s recent drill holes “confirmed the discovery zones continue to depth. However, the assay results have not confirmed the same silver values previously reported. The discovery zones are oxidized and altered fracture zones. War Eagle and Hecla employed different drilling techniques and equipment, which may have caused different sample recoveries and therefore different assay results of the silver ore.”

War Eagle decided to extend the program to include five more reverse-circulation drill holes in the discovery zones. These were to employ the original drill program’s equipment and methods used by War Eagle, with Hecla’s approval.

In October 1995, War Eagle announced results from a third-phase drill program. These holes (51 to 55) twinned previous holes in the South, Central and Northwest zones. Hecla agreed to their location, and its staff was present at all times during drilling, sample collection and delivery of the samples to the laboratory in Hermosillo.

War Eagle reported that three holes (51, 54 and 55) returned encouraging intersections. A closer inspection however, shows that none of the holes duplicated their previously reported high-grade mineralized intercepts. Hole 51, in the South zone, intersected 20 ft. grading 2.02 oz. silver and 0.379 oz. gold from 100 to 120 ft. This hole twinned hole 12 drilled during an earlier War Eagle drill program. Hole 51, however, did not confirm a zone grading 36.1 oz. silver and 0.1 oz. gold from 260-350 ft. in hole 12. Holes 52 and 53 twinned hole 27 (in the Central zone) and hole 28 (in the Northwest zone), respectively, and reportedly encountered weakly mineralized zones.

Hole 27 had reportedly encountered a zone grading 18.2 oz. silver and 0.047 oz. gold from 150 to 290 ft, and hole 28 had intersected another zone, grading 32.2 oz. silver and 0.073 oz. gold from 370 to 400 ft. Hole 54, in the Northwest zone, was also unable to duplicate a zone grading 20.95 oz.

silver and 0.065 oz. gold previously intersected from 200 to 230 ft. in twin hole 29. Hole 54 did intersect a low-grade zone, from 30 to 40 ft., grading 1.85 oz. silver and 0.16 oz. gold. Finally, hole 55, in the Northwest zone, intersected a mineralized zone, from 90 to 110 ft, grading 6.65 oz. silver and 0.154 oz. gold. Hole 55, however, did not confirm the high-grade zone intersected in previous twin hole 30. Hole 30 had reportedly encountered a mineralized zone, from 130 to 180 ft., grading 7.42 oz. silver and 0.435 oz.

gold.

Following the release of these results, Hecla terminated its interest in the joint venture.

In February 1996, War Eagle reported results from a 9-hole,

reverse-circulation drill program (56 to 64). These holes encountered mineralized intercepts ranging in grade from 6.5 to 31.4 oz. silver and 0.02 to 0.621 oz. gold over widths ranging from 10 to 70 ft. The average of the mineralized intercepts is 22.95 oz. silver and 0.1 oz. gold over a width of 36 ft. War Eagle said these results confirmed the continuity and direction of the South and Northwest zones and that holes previously drilled by “a third party” were parallel, rather than perpendicular, to the zones.

I do not know how a statement can be made that Hecla missed when there is no public record of where Hecla drilled. Also, when one misses, isn’t there supposed to be a target? I think the results of War Eagle’s twin drill holes speak for themselves. A map showing the location of the holes drilled on the property would also be revealing.

Barry Devlin, Hecla Mining Company