Hecla Secures Second San Sebastian Mill
February 26 2018 - 3:00AM
Business Wire
Enables processing of sulphide ore to increase
metal production and extend mine life
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20180226005516/en/
Hecla Mining CompanyMike Westerlund, 800-HECLA91
(800-432-5291)Vice President, Investor
Relationshmc-info@hecla-mining.comwww.hecla-mining.com
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