LATIN AMERICA — Hecla Mining advances projects in Mexico, Peru

Idaho-based Hecla Mining (HL-N) has commenced drilling on two properties, in Mexico and Peru, while beginning exploration on a third, in Chile.

Drills are turning at the Noche Buena property in the northwestern Mexican state of Sonora, where 38 reverse-circulation holes and five core holes have already been completed.

Hecla plans to drill an additional 70 shallow reverse-circulation holes, totalling 1,200 metres, in an effort to expand the currently identified resource.

Hecla can earn a 70% interest in the 7,600-ha property from Dakota Mining (DKT-T).

Hecla’s wholly owned La Choya gold mine lies 40 km to the north, and, should Noche Buena be deemed worthy of development, personnel and equipment could be transferred from that operation, thereby lowering capital costs.

Mining at La Choya is expected to continue through to the end of the year, with residual leaching scheduled to wind down by mid-1999.

Farther south, at the Alto Dorado project in northwestern Peru, the company is testing several targets in a 10-hole, 1,500-metre drilling program, results from which are pending.

Recently the company collected nearly 3,500 chip and soil samples over two alteration zones that contain five areas of gold mineralization. Individual rock samples ran as high as 3.6 grams gold per tonne, with channel samples returning up to 2.3 grams.

Hecla staked the 14,800-ha property last year. It is situated 130 km southeast of Trujillo in the belt of volcanic rocks that hosts the Yanacocha and Pierina gold deposits.

Meanwhile, in the Maricunga district of northern Chile, Hecla has entered into an agreement with a private company to acquire an option on the Cacique gold property. In return, Hecla is required to make unspecified cash payments and complete work programs leading up to a feasibility stage.

The 1,200-ha property lies 15 km south of the Refugio gold mine and occurs in a ring of precious metals deposits around the Joabeche volcanic complex. Previous drilling by Anglo American in the late 1980s encountered significant intercepts from a 13-hole program, including 46 metres grading 3.5 grams gold, 58 metres of 1.6 grams, and 22 metres of 4 grams.

Hecla plans to begin mapping, sampling and trenching at Cacique in September, with drilling to follow if warranted.