LITERATURE REVIEW — Hecla Mining boosts its silver production

During 1996, Hecla Mining (HL-N) produced 3 million oz. silver from its various operations, representing a 35% increase over the 2.2 million oz.

produced in the previous year.

Of last year’s total, about 828,000 oz. were taken from the Greens Creek mine in Alaska, which resumed production last summer, months earlier than originally planned. The underground operation also turns out gold, zinc and lead.

Hecla continues to explore and develop its Lucky Friday silver mine in northern Idaho. The program is expanding a new zone adjacent to the underground Lucky Friday main vein. More than 60 holes have tested the new structure, with results averaging 18 oz. silver over an 11-ft. width. The company notes that this is about twice the minable grade of the Lucky Friday main vein, and significantly wider.

Hecla produced 169,376 oz. gold for the year.

Despite the increase in silver production plus stable gold production, Hecla posted a loss of US$40 million for 1996, compared with a loss of US$109.8 million in the previous year.

The 1996 loss reflects a decision to suspend operations at the Grouse Creek gold mine in Idaho, a joint venture with Great Lakes Minerals (GKM-T). The mine failed to live up to expectations and was shut down last year.