Hecla Reports Exploration Results and Reserves

Second highest silver reserve and largest gold resource in company history

Hecla Mining Company (NYSE:HL) today reported exploration results and year end reserves. The exploration program has resulted in the second highest silver reserves and the largest gold resource in Hecla’s history. Drilling results include very high-grade and wide intercepts.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240213785221/en/

Figure 1: District geology with 2023 drill target locations. (Graphic: Business Wire)

“Hecla’s silver reserves are the second highest in our 133-year history at 238 million silver ounces and only 1% less than last year’s all-time highest reserve, and gold resource is the highest in our history,” said Phillips S. Baker, Jr., President and CEO. “The 2023 exploration program successfully expanded our reserves at Keno Hill and Lucky Friday and expanded mineralization at Greens Creek.”

Baker continued, “Keno Hill’s 2023 exploration provided an 11% increase in reserves, now 45% higher since the acquisition, and does not reflect much of the drilling reported this quarter, so we expect the reserve to grow. Drilling has intersected wider zones and higher grades – such as 54 ounces per ton silver over 39 feet – than are currently in the reserve model and has encountered high-grade mineralization more than 1,000 feet deeper than any previous drilling; both are changing the potential size of the deposit. At Greens Creek, Hecla's exploration efforts spanning 37 years consistently yield remarkable results in both grade and width across the four key metals: silver, gold, zinc, and lead, and we still have many potential targets to drill. It’s almost as if we get a jump in reserves every few years that further extends mine life.”

Baker concluded, “With the recent acquisition of ATAC and its massive 700 square mile land package, we now have 20 district-sized properties with excellent exploration potential to explore and grow our resource base, primarily in the U.S. and Canada. Hecla produces almost half of silver in the U.S., and we expect to be Canada’s largest silver producer in 2024. With half a million ounces of silver required to produce 1 gigawatt of solar, Hecla is playing a key role in mining the silver the world needs.”

EXPLORATION HIGHLIGHTS

Select drill highlights from the company’s exploration programs include the following drill holes, additional drill holes and details are included later in this release.

KENO HILL

• Footwall Vein: 54.0 oz/ton silver, 4.8% lead, and 2.5% zinc over 39.5 feet
  • Includes: 77.1 oz/ton silver, 8.1% lead, and 3.2% zinc over 11.4 feet; and
  • Includes: 122.1 oz/ton silver, 8.0% lead, and 6.5% zinc over 8.9 feet
• Footwall Vein: 58.6 oz/ton silver, 3.6% lead, and 4.3% zinc over 10.1 feet
• Main Vein: 32.7 oz/ton silver, 1.7% lead, and 1.7% zinc over 15.2 feet
  • Includes: 78.9 oz/ton silver, 3.9% lead, and 2.3% zinc over 5.8 feet
• Main Vein: 32.4 oz/ton silver, 8.3% lead, and 4.1% zinc over 9.2 feet
  • Includes: 114.9 oz/ton silver, 41.5% lead, and 8.4% zinc over 1.5 feet

GREENS CREEK

West Zone

• 63.4 oz/ton silver, 0.64 oz/ton gold, 8.3% zinc, and 4.3% lead over 26.04 feet
• 28.3 oz/ton silver, 0.08 oz/ton gold, 8.3% zinc, and 4.7% lead over 12.8 feet
• 35.2 oz/ton silver, 0.08 oz/ton gold, 10.0% zinc, and 6.3% lead over 27.3 feet

Upper Plate Zone

• 19.6 oz/ton silver, 0.05 oz/ton gold, 10.9% zinc and 5.4% lead over 27.9 feet
• 28.3 oz/ton silver, 0.01 oz/ton gold, 2.6% zinc and 1.3% lead over 23.9 feet

5250 Zone

• 18.7 oz/ton silver, 0.05 oz/ton gold, 11.4% zinc, and 3.6% lead over 26.8 feet

RESERVES & RESOURCES HIGHLIGHTS

• Silver reserves at 238 million ounces with additions at Keno Hill and Lucky Friday after depletion.
• Keno Hill reserves increased 10% to 55 million ounces, an increase of 45% since acquisition.
• Gold reserves decreased by 16% due to the strategic change to transition to a surface operation only at Casa Berardi.
• Measured and indicated gold reserves increased 21% and inferred gold resources increased 11% following the acquisition of ATAC Resources Ltd (“ATAC”).

YEAR-END 2023 RESERVES AND RESOURCES

On a consolidated basis, the Company replaced 11 million ounces of silver produced during the year. At the Lucky Friday and Keno Hill, production was replaced, and additional silver reserves were defined. Greens Creek saw a drop in silver reserves of 10% due to depletion and other changes not offset by drilling additions. The Company’s proven and probable gold reserves declined 16% to 2.1 million ounces due to having successfully implemented a strategic shift at Casa Berardi transitioning the operation to an open pit only operation.

Reserve metal price assumptions for 2023 were $17/oz silver, $1,650/oz gold, $1.15/lb zinc, and $0.90/lb lead, unchanged from 2022 except for gold, which was $1600/oz in the prior year.

Measured and indicated silver ounces are unchanged with increases at Greens Creek and Keno Hill which offset the decrease at Lucky Friday due to conversion to reserves. Measured and indicated gold ounces also increased 21% to 4.4 million ounces. Losses as a result of the current plan to only mine surface material at Casa Berardi were offset by additions from the acquisition of ATAC Resources Ltd. (ATAC) at the Osiris and Tiger projects in the Yukon.

Inferred silver resources decreased less than 1% to 504 million ounces with decreases at Greens Creek and Lucky Friday almost offset by additions at Keno Hill. Inferred gold resources increased 11% to 6.3 million ounces with decreases at Casa Berardi offset by the addition of the ATAC projects in the Yukon.

Resource metal price assumptions for 2023 were $21/oz silver, $1750/oz gold, $1.35/lb zinc and $1.15/lb lead, and $3.00/lb copper, unchanged from 2022 except for gold, which was $1700/oz in the prior year.

A breakdown of the Company’s reserves and resources is set out in Table A at the end of this news release.

EXPLORATION AND PRE-DEVELOPMENT UPDATE

Keno Hill, Yukon Territory

At Keno Hill, the underground definition and surface exploration drilling programs continued to be focused on extending mineralization, resource conversion in the high-grade Bermingham Bear Zone Veins (Bear, Footwall, and Main Vein Zones), and discovering and defining new mineral resources. During the fourth quarter, two underground drills completed over 12,800 feet of definition and geotechnical drilling, and two surface core drills completed over 14,400 feet of exploration drilling targeting the Deep Bermingham, Bermingham Townsite, Inca, and Coral Wigwam target areas (Figure 1).

Bermingham underground definition and exploration drilling in the three Bear Zone veins (Bear, Footwall, Main veins) continues to extend mineralization to the northeast, southeast, and down dip outside of the current reserve shapes (Figures 2, 3 and 4). Drilling in the Bear Vein identified strong vein mineralization between the Ursa and Splay faults where testing at higher elevations had no significant mineralization; this new drilling expands higher-grade mineralization between the faults and to the southwest near the Arctic fault zone. Drilling in the Footwall Vein intersected substantially wider and higher-grade mineralization than modeled to the southwest internal to the reserve shape. Drilling in the Main Vein intercepted strong mineralization at depth and along strike significantly increasing the strike and depth of high grade in this zone. Assay highlights include (reported widths are estimates of true width):

• Bear Vein: 21.4 oz/ton silver, 2.8% lead, and 0.5% zinc over 11.7 feet
  • Includes: 129.9 oz/ton silver, 14.8% lead, and 3.1% zinc over 1.6 feet
• Bear Vein: 25.5 oz/ton silver, 3.6% lead, and 1.2% zinc over 5.0 feet
• Footwall Vein: 54.0 oz/ton silver, 4.8% lead, and 2.5% zinc over 39.5 feet
  • Includes: 77.1 oz/ton silver, 8.1% lead, and 3.2% zinc over 11.4 feet; and
  • Includes: 122.1 oz/ton silver, 8.0% lead, and 6.5% zinc over 8.9 feet
• Footwall Vein: 58.6 oz/ton silver, 3.6% lead, and 4.3% zinc over 10.1 feet
• Main Vein: 32.7 oz/ton silver, 1.7% lead, and 1.7% zinc over 15.2 feet
  • Includes: 78.9 oz/ton silver, 3.9% lead, and 2.3% zinc over 5.8 feet
• Main Vein: 32.4 oz/ton silver, 8.3% lead, and 4.1% zinc over 9.2 feet
  • Includes: 114.9 oz/ton silver, 41.5% lead, and 8.4% zinc over 1.5 feet

Initial surface exploration drilling tested for continuity of the Bermingham vein system at depth intersected strong mineralization (87.2 oz/ton silver over 0.6 feet) 1,050 feet below the existing Deep Bermingham resource. This mineralized intercept resets and expands exploration potential in the district where previously high-grade silver mineralization was thought to occur only in the upper parts of the favorable Basil Quartzite host stratigraphy.

Surface exploration drilling continued targeting the Bermingham Townsite Vein and Townsite Vein Splay system intersected strong mineralization which continues to be open for expansion at depth. Assay highlights include (reported widths are estimates of true width):

• Townsite Vein Splay: 73.5 oz/ton silver, 1.4% lead, and 0.2% zinc over 4.6 feet

Surface exploration drilling targeting the Inca Vein located east of the Hector Calumet area testing for continuity from historic drillhole intercepts intersected strong silver mineralization with significant intercepts associated indium and zinc mineralization. Limited drilling to date has outlined a mineralized zone of over 800 feet of strike length and is open for expansion to the northeast and southwest along strike and up and down dip.

• Inca Vein 2: 4.7 oz/ton silver, 0.5% lead, 2.7% zinc, and 1.6 oz/ton indium over 22.6 feet
  • Includes: 42.9 oz/ton silver, 3.6 oz/ton lead, 21.9% zinc, and 14.9 oz/ton indium over 2.1 feet
• Inca Vein 2: 5.8 oz/ton silver, 0.2% lead, 1.6% zinc, and 0.9 oz/ton indium over 7.4 feet
  • Includes: 107.3 oz/ton silver, 4.6 oz/ton lead, 15.7% zinc, and 10.5 oz/ton indium over 0.4 feet

Greens Creek, Alaska

At Greens Creek, four underground drills completed over 38,000 feet of drilling in 79 drillholes focused on resource conversion and exploration that extends mineralization of known resources. Drilling was focused in the 9a, 200 South, East, West, Gallagher, and Gallagher Fault Block zones while assay results were received from drilling in the 200 South, 5250, East, Upper Plate, West, and 9a zones (Figure 5).

Underground drilling completed 25 drillholes in the 200 South Zone targeting the upper orebody and the deeper mine contact portions of the zone covering a strike length of 1,050 feet. Unexpected zones of mineralized ore lithologies were intersected early in a few of the drillholes before the targeted contact expanding mineralization in those areas. Highlights from this drilling include:

• 17.4 oz/ton silver, 0.02 oz/ton gold, 4.1% zinc, and 3.0% lead over 21.1 feet
• 11.4 oz/ton silver, 0.06 oz/ton gold, 3.1% zinc, and 1.5% lead over 7.0 feet

Drilling in the 5250 Zone targeted 150 feet of strike length in the upper portion of the resources intersected thick sequences of white baritic and massive sulfide ore lithologies above the modeled resources expanding mineralization in that area of the zone. Highlights from this drilling include:

• 18.7 oz/ton silver, 0.05 oz/ton gold, 11.4% zinc, and 3.6% lead over 26.8 feet

Additional assay results have been received from underground drilling in the northern, central, and eastern portion of the Upper Plate zone, targeting mineralization for upgrading and expanding resources over 900 feet of strike length. Results to date indicate that drilling is upgrading and expanding mineralization in the Upper Plate Zone. Highlights from this drilling include:

• 19.6 oz/ton silver, 0.05 oz/ton gold, 10.9% zinc and 5.4% lead over 27.9 feet
• 28.3 oz/ton silver, 0.01 oz/ton gold, 2.6% zinc and 1.3% lead over 23.9 feet

Strong assay results received from underground drilling in the West Zone extend mineralization at the lower mine contact over 400 feet to the west of previous intercepts and infills a 200-foot gap in drilling in the central ore band (Figure 6). Highlights from this drilling include:

• 63.4 oz/ton silver, 0.64 oz/ton gold, 8.3% zinc, and 4.3% lead over 26.04 feet
• 28.3 oz/ton silver, 0.08 oz/ton gold, 8.3% zinc, and 4.7% lead over 12.8 feet
• 35.2 oz/ton silver, 0.08 oz/ton gold, 10.0% zinc, and 6.3% lead over 27.3 feet

Detailed complete drill assay highlights can be found in Table B at the end of the release.

ABOUT HECLA

Founded in 1891, Hecla Mining Company (NYSE: HL) is the largest silver producer in the United States. In addition to operating mines in Alaska, Idaho, and Quebec, Canada, the Company is developing a mine in the Yukon, Canada, and owns a number of exploration and pre-development projects in world-class silver and gold mining districts throughout North America.

Cautionary Statements Regarding Estimates and Forward-Looking Statements, Including 2024 Outlook

Statements made or information provided in this news release that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws, and "forward-looking information" within the meaning of Canadian securities laws. When a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. Forward-looking statements often address our expected future business and financial performance and financial condition and often contain words such as “anticipate,” “intend,” “plan,” “will,” “could,” “would,” “estimate,” “should,” “expect,” “believe,” “project,” “target,” “indicative,” “preliminary,” “potential” and similar expressions. Forward-looking statements in this news release may include, without limitation: (i) the Company expects fourth quarter 2023 exploration drilling should grow the reserves at Keno Hill; (ii) the Company expects to grow its resource base, primarily in the U.S. and Canada; (iii) the Company expects to be Canada’s largest silver producer in 2024; and (iv) the Company will play a key role in mining the silver the world needs for decades to come. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect, which could cause actual results to differ from forward-looking statements. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s projects being consistent with current expectations and mine plans; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) certain price assumptions for gold, silver, lead and zinc; (v) prices for key supplies being approximately consistent with current levels; (vi) the accuracy of our current mineral reserve and mineral resource estimates; (vii) 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; (viii) sufficient workforce is available and trained to perform assigned tasks; (ix) weather patterns and rain/snowfall within normal seasonal ranges so as not to impact operations; (x) relations with interested parties, including Native Americans, remain productive; and (xi) factors do not arise that reduce available cash balances.

In addition, material risks that could cause actual results to differ from forward-looking statements include, but are not limited to: (i) gold, silver and other metals price volatility; (ii) operating risks; (iii) currency fluctuations; (iv) increased production costs and variances in ore grade or recovery rates from those assumed in mining plans; (v) community relations; (vi) conflict resolution and outcome of projects or oppositions; (vii) litigation, political, regulatory, labor and environmental risks; (viii) exploration risks and results, including that mineral resources are not mineral reserves, they do not have demonstrated economic viability and there is no certainty that they can be upgraded to mineral reserves through continued exploration; (ix) the failure of counterparties to perform their obligations under hedging instruments; (x) we take a material impairment charge on any of our assets; and (xi) inflation causes our costs to rise more than we currently expect. For a more detailed discussion of such risks and other factors, see the Company’s 2023 Annual Report on Form 10-K, to be filed with the Securities and Exchange Commission (“SEC”) on February 15, 2024. The Company does not undertake any obligation to release publicly, revisions to any “forward-looking statement,” including, without limitation, outlook, to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement. Continued reliance on “forward-looking statements” is at investors’ own risk.

Cautionary Statements to Investors on Reserves and Resources

This news release uses the terms “mineral resources”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”. Mineral resources that are not mineral reserves do not have demonstrated economic viability. You should not assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. Further, inferred mineral resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically, and an inferred mineral resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a mineral reserve. We report reserves and resources under the SEC’s mining disclosure rules (“S-K 1300”) and Canada’s National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) because we are a “reporting issuer” under Canadian securities laws. Unless otherwise indicated, all resource and reserve estimates contained in this press release have been prepared in accordance with S-K 1300 as well as NI 43-101.

Qualified Person (QP)

Kurt D. Allen, MSc., CPG, VP - Exploration of Hecla Mining Company and Keith Blair, MSc., CPG, Chief Geologist of Hecla Limited, who serve as a Qualified Person under S-K 1300 and NI 43-101, supervised the preparation of the scientific and technical information concerning Hecla’s mineral projects in this news release. Technical Report Summaries (each a “TRS”) for each of the Company’s Greens Creek and Lucky Friday properties are filed as exhibits 96.1 and 96.2 respectively, to the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and are available at www.sec.gov. A TRS for each of the Company’s Casa Berardi and Keno Hill properties will be filed as exhibits 96.3 and 96.4, respectively, to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 to be filed on February 15, 2024 and will then be available at www.sec.gov. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of analytical or testing procedures for (i) the Greens Creek Mine are contained in its TRS and in a NI 43-101 technical report titled “Technical Report for the Greens Creek Mine” effective date December 31, 2018, (ii) the Lucky Friday Mine are contained in its TRS and in its technical report titled “Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA” effective date April 2, 2014, (iii) Casa Berardi will be contained in its TRS titled “Technical Report Summary on the Casa Berardi Mine, Northwestern Quebec, Canada” effective date December 31, 2023 and are contained in its NI 43-101 technical report titled “Technical Report on the mineral resource and mineral reserve estimate for Casa Berardi Mine, Northwestern Quebec, Canada” effective date December 31, 2018, (iv) Keno Hill will be contained in its TRS titled “S-K 1300 Technical Report Summary on the Keno Hill Mine, Yukon, Canada” and are contained its NI 43-101 technical report titled “Technical Report on Updated Mineral Resource and Reserve Estimate of the Keno Hill Silver District” effective date April 1, 2021, and (v) the San Sebastian Mine, Mexico, are contained in a technical report prepared for Hecla titled “Technical Report for the San Sebastian Ag-Au Property, Durango, Mexico” effective date September 8, 2015. Also included or to be included in each TRS and the four technical reports is a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant factors. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures are contained in technical reports prepared for Klondex Mines Ltd. for (i) the Fire Creek Mine (technical report dated March 31, 2018), (ii) the Hollister Mine (technical report dated May 31, 2017, amended August 9, 2017), and (iii) the Midas Mine (technical report dated August 31, 2014, amended April 2, 2015). Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures are contained in technical reports prepared for ATAC Resources Ltd. for (i) the Osiris Project (technical report dated July 28, 2022) and (ii) the Tiger Project (technical report dated February 27, 2020). Copies of these technical reports are available under the SEDAR profiles of Klondex Mines Unlimited Liability Company and ATAC Resources Ltd., respectively, at www.sedar.com (the Fire Creek technical report is also available under Hecla’s profile on SEDAR). Mr. Allen and Mr. Blair reviewed and verified information regarding drill sampling, data verification of all digitally collected data, drill surveys and specific gravity determinations relating to all the mines. The review encompassed quality assurance programs and quality control measures including analytical or testing practice, chain-of-custody procedures, sample storage procedures and included independent sample collection and analysis. This review found the information and procedures meet industry standards and are adequate for Mineral Resource and Mineral Reserve estimation and mine planning purposes.

Table A

Mineral Reserves – 12/31/2023 ⁽¹⁾

Mineral Resources - 12/31/2023 (8)

Table B

Assay Results – Q4 2022

View source version on businesswire.com: https://www.businesswire.com/news/home/20240213785221/en/