Enables processing of sulphide ore to increase metal production and
extend mine life
COEUR D’ALENE, Idaho--(BUSINESS WIRE)--
Hecla Mining Company (NYSE:HL)
today announced that it has entered into a toll milling agreement (“the
agreement”) with Excellon Resources Inc. (“Excellon”) (TSX:EXN) in which
sulphide ore from San Sebastian would be trucked 26 miles to Excellon’s
Miguel Auza flotation mill facility, in Zacatecas, Mexico, for
processing.
Under the terms of the agreement, Excellon will provide 440 tons per day
of milling capacity to Hecla and, in due course, the mill will be
upgraded to include a copper flotation circuit.
“This is a significant step towards extending the life of the San
Sebastian mine, and is in keeping with our strategy of maximizing the
cash flow and minimizing capital investment by using third-party
facilities,” said Phillips S. Baker, Jr., Hecla’s President and CEO. “We
will take a bulk sample in the third quarter and if it is positive could
begin mining sulphide ore next year. San Sebastian sulphides have the
potential for five years of mine life and considerable upside with the
recent exploration discoveries. We hope to mine oxides and sulphides
concurrently since this agreement does not impact the current
arrangement where oxide ore from shallower depths of the mine is being
processed at the third-party owned Velardeña mill.”
The five-year agreement is subject to due diligence, the successful
processing of a 4,400-ton bulk sample of sulphide ore from the
polymetallic Hugh Zone this summer, and receipt of any regulatory
approvals and third-party consents. Hecla has an option to extend the
agreement for an additional two years.
ABOUT HECLA
Founded in 1891,Hecla Mining Company (NYSE:HL)
is a leading low-cost U.S. silver producer with operating mines in
Alaska, Idaho and Mexico, and is a growing gold producer with an
operating mine in Quebec, Canada. The Company also has exploration and
pre-development properties in seven world-class silver and gold mining
districts in the U.S., Canada, and Mexico, and an exploration office and
investments in early-stage silver exploration projects in Canada.
Cautionary Statements Regarding Forward Looking Statements
Statements made or information provided in this news release that are
not historical facts are "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of Canadian securities
laws. Words such as “may”, “will”, “should”, “expects”, “intends”,
“projects”, “believes”, “estimates”, “targets”, “anticipates” and
similar expressions are used to identify these forward-looking
statements. Such forward-looking statements or forward-looking
information include statements or information regarding the success of
the bulk sample program of San Sebastian sulphide ore and the ability to
begin mining sulphide ore in 2019. The material factors or assumptions
used to develop such forward-looking statements or forward-looking
information include that the Company’s plans for development and
production will proceed as expected and will not require revision as a
result of risks or uncertainties, whether known, unknown or
unanticipated, to which the Company’s operations are subject.
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, litigation, regulatory and
environmental 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 10K 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180226005516/en/
Hecla Mining Company
Mike Westerlund, 800-HECLA91 (800-432-5291)
Vice
President, Investor Relations
hmc-info@hecla-mining.com
www.hecla-mining.com
Source: Hecla Mining Company