Phil Baker CEO HECLA MINING
Since when has Hecla Mining have been operating in Alaska and Idaho?
Hecla began operating in Alaska and Idaho 133 years ago, and since then, we have continuously operated within a four or five-mile radius from our starting point. Greens Creek, which has been operational since 1987, has experienced a significant increase in silver production. In 2023, we anticipate producing 9.8-10 million oz. This growth primarily results from our efforts to expand the ore we mine and process, with our current daily rate now at 2,600 t. This expansion has led to lower production costs, establishing Green Creek as one of the most cost-efficient silver mines globally.
The Lucky Friday mine, operational since 1942, faced production challenges due to a labor strike by the union, which significantly reduced output. Fortunately, we resolved the strike in 2020, and since then, we have consistently increased production thanks to the adoption of a new mining method for which we recently obtained a patent. This transformation is propelling the mine toward becoming a 5 million oz/y producer, doubling its traditional output.
What are some of Hecla’s exploration projects in the US?
Our most advanced project is in Montana, where we have access to an extensive deposit of over 300 million oz of silver across two deposits, along with a substantial 3 billion lb of copper. This project is now called the Libby Exploration project, and we aim to advance from resource to reserve; subsequently, we will seek permission to commence mining operations.
In Colorado, we have made significant progress on the Bulldog deposit. However, we are actively negotiating with the government to ensure that our additional efforts do not lead to any unexpected liabilities. In Nevada, we have substantial exploration projects underway, and we are steadily advancing on those as well. Additionally, we are currently in the process of developing a mine in Yukon, in Keno Hill.
Mitchell Krebs President and CEO COEUR MINING
Can you give an overview of Coeur Mining’s activities and milestones achieved over the past year?
Coeur Mining is on track to produce between 10 million and 12 million oz of silver and 300,000 to 350,000 oz of gold in 2023. When we acquired the Wharf mine in Western South Dakota in 2015 for US$99 million, it had an approximate five-year mine life. Today, it still has a mine life of eight years, and we have taken out nearly US$400 million of free cash flow from this asset.
Coeur’s Palmarejo mine in Mexico is our largest mine, producing approximately 7 million oz/y of silver and about 110,000 oz/y of gold.
Can you elaborate on Coeur’s expansion activities at the Rochester mine?
By the end of August 2023, the Rochester expansion was 99% complete. We are enthusiastic about ramping up the Rochester mine, which is expected to deliver mining and processing rates approximately 2.5x higher than historical levels. We expect to reach a run-rate processing rate of approximately 32 million t/y in the first quarter of 2024.
With a lot of exploration to be conducted in the coming years, we hope to further extend and enhance the current 13 year mine life.
What is Coeur’s exploration strategy?
Over the past five years, we have invested approximately US$250 million into exploration, which has added close to 8 million gold equivalent oz across all categories – reserves are up by approximately a third, measured and indicated resources are up by about 80%, and inferred resources are up by 26%.
Most of our exploration investment is done around our existing infrastructure, which tends to be lower risk and higher return. This year, we will spend nearly US$50 million, with approximately 60% spent at Kensington in Alaska and the high-grade Silvertip polymetallic deposit located in British Columbia.