Can you provide an overview of Hecla Mining’s portfolio and the importance of Québec for the company?

Hecla is the largest silver producer in the US. We have grown to a position where we produce 40% of all silver in the US. The acquisition in 2022 of Alexco Resource Corp, which holds the highest-grade silver deposit in the world, will make us the largest silver producer in Canada as well, producing close to 40% of all the silver in Canada. We expect to complete the transaction by Q3 2022.

Québec is a leading jurisdiction for mining, which explains why we have been present here for almost a decade with our Casa Berardi gold mine. We still see significant potential in the province to further our exploration and production presence. We already mine twice as many tons at Casa Berardi than we did in 2016.

To what extent does Casa Berardi embody the mining potential in Abitibi-Témiscamingue?

Hecla purchased Casa Berardi in 2013. Back then, initial work suggested the mine ought to be shut down. Since then, we have doubled production capacity and extended the mine life to 20 years. That is the type of opportunity the region provides. For that reason, we pay close attention to the activities of exploration companies in the region. At Casa Berardi, we plan to grow the number of tons that go through the mill, which we have made more reliable to increase production levels. The mine will produce 125,000 - 132,000 oz Au in 2022.

Can you expand on exploration activities at Opinaca/Wildcat in James Bay and the Heva-Hosco exploration property in Rouyn-Noranda?

Opinaca/Wildcat is currently going through an evaluation phase. Surface work is our priority at Heva-Hosco, as we are creating a geological model to evaluate further targets to drill. There is a huge resource sitting there, and the infrastructure available is tremendous.

How does Hecla factor ESG in its operations?

Silver is a crucial part of the solution towards the transition to green energy. Unlike other silver mines that exceed 1 million tons of ore production, our mines operate on a smaller scale and mine 400 – 900 Ktons of ore and produce around 100 - 300 tons silver. As a result, we inherently emit less greenhouse gases. This means we can invest in credits supporting sequestration of greenhouse gases. Hecla has now been net zero for scope 1 and 2 emissions for two years in a row, and we plan to tackle scope 3 before 2024.

We make sure the communities around us are fully engaged to create a joint dynamic from the early stages of a project.

What is your forecast for the long-term demand for silver?

The solar industry is going to be a big driver for demand. Today, about 10-15% of the total demand for silver is solar, representing 120 million oz/y. The US Energy Information Administration (EIA) suggests that solar energy will account for 50% of renewable energy generation by 2050 and that has the potential to increase the demand for silver in solar to half a billion oz/y. The US Inflation Reduction Act of 2022 also provides a lot of incentives for renewable energies.

How have the recent geopolitical tensions highlighted the importance of mining regionally?

Prior to the Ukraine-Russia war, the pandemic opened the public’s eyes on the need to shorten supply chains in the mining sector. Since February 2022, the war made political decision makers realize nations need to strengthen the supply of elements needed for national security. A notable shift has been in the Democrats’ narrative at the US Senate. Historically lukewarm to the idea of increasing mining activity in the US, they are now supporting critical minerals-linked discussions in a way they would have not considered in 2019.

What are the priorities for Hecla in the short term?

Our aim is to significantly grow our silver production from 12 million oz/y at present to 20 million oz/y. This will be achieved thanks to a new mining technique called the Underhand Closed Bench we developed at our Lucky Friday mine in Idaho. The Keno Hill operation in Yukon that will be in production at the end of 2023 will also contribute to that goal.