Page 6 - HMC_2017AR_Narrative_040218.indd

narrow-vein underground mining, in 2019.
We’re also implementing ventilation-on-demand at our Greens Creek mine. By mounting variable frequency
drives to our underground fans, we’re able to operate those fans at the right speeds at the right time, which in turn lowers our power consumption. Just one of these drives can save about $23,000 over the course of a single year – and we have 14 of them operating in a test (out of a total of 55) right now. We’re already saving money today, and can roll out this technology throughout Greens Creek and our other mines to potentially save even more in the future. In addition, these technologies are lowering our environmental footprint – reducing green- house gas emissions, potentially reducing the volume of non-ore material brought to the surface, and improving water management at our mines.
Other new technologies being introduced include battery-powered LHDs, semi-autonomous LHDs with surface controls, automated shaft and remote rock breakers, laser spectrometry to assist in exploration drilling, and computer-guided drills (for both development and production). Of particular interest at Casa Berardi is the 5,000-foot dedicated haulage 985 Drift. The first of two 40-tonne autonomous haul trucks is now in operation there, with the second arriving later this year. These driverless trucks enable the efficient haulage of rock underground with a lower capital investment, lower maintenance costs, and lower personnel costs, helping to improve the profitability of the mine.
Mining is more difficult than it has been in the past. Deposits are harder to work. You need increases in productivity just to remain profitable. Embracing innovation is therefore no longer a choice in our industry. And it’s coming at the right time relative to the demographics of our workforce. As younger people come in, they’re excited about 21st-century technologies that are making our mines safer, more productive, and environmentally responsible.
What’s really interesting to me is that all these innovations have come not only from Hecla executives,
but also in a bottom-up approach from the employees themselves – to resolve an issue, to find a solution to a problem, to deliver more value – creating an environment of mutual trust and collaboration. Wherever possible we implement them ourselves, both saving money and increasing our experience, which we can, in turn, leverage across our organization.
GREENS CREEK
Greens Creek had another stellar year, producing 8.4 million ounces of silver and 50,854 ounces of gold. The mill operated at a record average of 2,300 tons per day (tpd), about 15% greater than when we became the operator in 2008.
There’s a saying that great mines are made, not found. And that’s certainly been the case with Greens Creek. When it started, its grade was twice as high as it is today. Yet in the first five years of the mine, it lost money, consuming half a billion dollars through 1997. But from 1997 to 2017, it’s generated about $1.5 billion in free cash flow – and it’s still improving. Successful exploration drilling has more than replaced silver reserves mined during the year, helping to ensure this great story continues to be told into the future.
CASA BERARDI
At Casa Berardi, we produced 156,653 ounces of gold in 2017, including 37,922 ounces from the East Mine Crown Pillar pit. The mine produced 11,000 more ounces than in 2016, and the mill operated at an average of 3,551 tpd in 2017 – 825 more than 2016 and about 1,350 more than at acquisition. In fact, we set a monthly record in September with 3,913 tpd.
“OUR STRATEGY: ADDING VALUE THROUGH THE OWNERSHIP OF HIGH- QUALITY, LONG-LIVED ASSETS IN
GOOD MINING JURISDICTIONS.”
HL | 4