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Hecla’s Greens Creek mine in southeast Alaska is one of the largest and lowest-cost primary silver mines in the world. It produced
7.8 million ounces of silver in 2014 at a cash cost, after by-product credits, per silver ounce of $2.89 (a non-GAAP measure). Production in 2015 is expected to be 7.3 million ounces.
Greens Creek holds current proven and probable reserves of
94 million ounces of silver, 739,000 ounces of gold reserves, as well as 240,850 tons of lead and 639,930 tons of zinc. There are an additional 9.1 million ounces of silver measured and indicated resources and
46.9 million ounces of silver inferred resources. Measured and indicated gold resources measure 102,000 ounces; inferred gold resources measure 315,000 ounces.
The mine has been operating for more than 25 years, generating $4.4 billion in total revenue and significant free cash flow. In fact, Greens Creek accounted for almost half of Hecla’s revenue in 2014, a
Greens Creek Mine, Alaska, USA
year of steady performance in production, recovery, and costs.
The mine’s reliability and consistency is due not only to the quality and diversity of the deposit, but also to the ongoing investment in infrastructure to decrease operating risks. And, of course, to Scott Hartman’s team that continues to improve in planning and execution – yielding efficiencies in overall costs.
In addition to the tailings facility expansion – for which all major permits are in place – 2015 will see a sizeable definition drilling program at Greens Creek that should further boost resources and reserves and continue to extend the mine life. As both the size and the quality of the resource has grown, a significant development program is underway to prepare those areas for production in the future. We’re optimistic this should generate significant increases in reserves over the next three years. Production-wise, planned changes in the mill in the coming year should yield recovery improvements as well.
strength through production
GREENS CREEK BY THE NUMBERS
acquired:
28.0% in 1987; 29.7% in 1994
100% in 2008
2014 production:
silver – 7.8 M oz
gold – 58,753 oz
production to date:
silver – 191.4 M oz
gold – 1.4 M oz
lead – 0.5 M tons
zinc – 1.4 M tons
total revenue to date:
$4.4 billion
mine life:
9 years
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