The Keno Hill mine, in Yukon, Canada.
NYSE-listed Hecla Mining on Tuesday reported the highest silver reserves in its more than 130-year history, with reserves growing to more than 240-million ounces with the addition of almost 50-million ounces from Keno Hill, in Yukon.
On a consolidated basis, the company replaced 14-million ounces of silver produced during the year and increased proven and probable reserves by 21%, or 41-million ounces.
The increase was mostly owing to Keno Hill, which Hecla brought into its fold with the acquisition of Alexco Resources in an all-stock deal last year.
Hecla’s gold production of more than 180 000 oz was not replaced, while proven and probable reserves declined by 6% to 2.6-million ounces, owing to cost increases which increased the cut-off grade at Casa Berardi, in Quebec.
Zinc production was replaced and reserves increased by 4% to 944 000 t. Lead production of 55 000 t was replaced, with an increase of 7% to 785 000 t of reserves.
Reserve metal price assumptions for 2022 were $17/oz silver, $1 600/oz gold, $1.15/lb zinc, and $0.90/lb lead, unchanged from 2021.
Measured and indicated silver ounces increased by 6% to 219-million ounces with increases at Greens Creek, in Alaska, and the addition of Keno Hill which offset the decrease owing to conversion of material to reserves at Lucky Friday, in Idaho. Measured and indicated gold ounces also increased by 6% to 3.7-million ounces owing mostly to increases at Casa Berardi.
Inferred silver resources increased by 3% to 504-million ounces while inferred gold resources increased by 1% to 5.7-million ounces owing to increases at Greens Creek, Casa Berardi, and the inclusion of Keno Hill.
“In the past 15 years, we have replaced the 213-million ounces mined and yet have almost five times the reserves we had at the start of 2008. That is over 400-million ounces of silver that we have replaced and grown. We now have a half dozen silver properties to explore, primarily in the US and Canada, the most recent addition being the 88 square mile Keno Hill project in the Yukon,” said Hecla president and CEO Philips Baker.
He continued, “Keno Hill’s 2022 exploration results are particularly remarkable with only three targets drilled that all resulted in three meaningful, high-grade discoveries. This reflects the quality of the land position and the knowledge of the long-standing team who have taken their experience at Bermingham and applied it to the new targets. These initial results exceed our already high expectations for the exploration potential of the district.”
“Hecla has the largest silver reserve in the United States, the highest grade and largest primary silver reserve in Canada, the best silver exploration potential in both countries, and we produce 40% of all the silver mined in the United States and expect to produce the same percentage of Canada’s production next year.
“With silver’s importance in the energy transition to renewables, Hecla is well positioned long into the future,” Baker said.