Greens Creek Reaches All Time High Silver Reserves At 125 Million Ounces

COEUR D'ALENE, ID - “Hecla Mining Company’s silver reserves are near our all time high with Greens Creek reaching 125 million ounces, that mine’s second highest since 2002, and Lucky Friday’s 75 million ounces giving it a reserve mine life in excess of 15 years,” said Phillips S. Baker, Jr., President and CEO. “Since 2008, Hecla has, through exploration, added 239 million silver ounces in reserves, replacing production while also growing resources. We see further growth in reserves, resources, and production from our exciting exploration program. With the increasing need for silver to contribute to the transition to cleaner energy, Hecla has both the largest silver reserve and production in the United States which positions us to meet demand long into the future.”

2021 proven and probable silver reserves were the second highest in Hecla’s history at 200 million ounces. The Company not only replaced silver production (15.2 million silver ounces contained), but also increased proven and probable reserves by 6%, or 11.5 million ounces over 2020. Gold production was also replaced (244,680 gold ounces contained) and proven and probable reserves increased 14% to 2.7 million ounces. Zinc production of 71,000 tons was replaced and reserves increased 2% to a total of 907,000 tons. Lead production of 49,000 tons was nearly replaced with a slight decrease of 1% to 735,000 tons.

Measured and indicated silver ounces decreased 9% to 207 million ounces, from its record level in 2020, due to conversion to reserves at Greens Creek and Lucky Friday. Measured and indicated gold ounces decreased 6% to 3.5 million ounces due to conversion to reserves at Casa Berardi and Greens Creek.

Inferred silver resources increased 8% to 491 million ounces while inferred gold resources increased 2% to 5.6 million ounces due to increases at Greens Creek, Lucky Friday, San Sebastian in Mexico, and Midas in Nevada.

At Greens Creek, in Alaska, 2021 production across all four metals was replaced and silver, gold, zinc, and lead reserves increased by 12%, 14%, 11%, and 11%, respectively, over 2020 reserves. Measured and indicated silver resources at year-end 2021 were 107 million ounces, a 7% decrease over 2020 due to conversion to reserves. Inferred silver resources increased 18% given renewed exploration drilling and increased metal prices to a total of 27.5 million ounces. two underground core drills focused on resource conversion in the 9A and 200 South zones and exploration in the 200 South and Gallagher Fault Block zones. Highlights from the 9A drilling include intercepts containing 29.2 oz/ton silver, 0.39 oz/ton gold, 19.0% zinc, and 10.6% lead over 8.0 feet and 19.2 oz/ton silver, 0.14 oz/ton gold, 10.5% zinc, and 6.4% lead over 14.0 feet. Drilling in the 200 South Zone targeted expanding and upgrading resources in the central and southern portions of the zone. While numerous assay results are pending, highlights include intercepts containing 60.0 oz/ton silver, 0.02 oz/ton gold, 8.6% zinc and 4.1% lead over 4.6 feet and 25.7 oz/ton silver, 0.23 oz/ton gold, 2.0% zinc, and 1.0% lead over 6.0 feet. Underground definition drilling will focus on upgrading resources in the West, East, Southwest, Gallagher, and 200 South ore zones while underground exploration drilling will focus on extending mineralization along strike to the south for the 200 South, Gallagher, and Gallagher Fault Block zones in addition to targeting the westward extension of the East Ore Zone above the Klaus Shear and an offset segment of the West Zone. Surface exploration drilling will be focused on advancing the understanding of the geology and discovery of new mineral zones in the Lil’Sore trend and Lil’Sore Prospect target areas and extending mineralization in the near mine 5250 and Upper Plate zones.

Casa Berardi in Candada, reported 2021 mining depletion was replaced and gold reserves increased 16%, or an addition of 242,000 ounces over 2020 to 1.8 million ounces. The increase is mostly due to additions at the 160 Open Pit. Measured and indicated gold resources decreased 16% overall from 2020 (-89% open pit and -4% underground) to 1.1 million ounces due to conversion to reserves and higher cut-off grades given increased mining costs. Reserve conversions were mostly seen in the 160 Open Pit zones. Inferred gold resources declined 17% from 2020 given conversion to higher resource classes and reserves.

Underground definition drilling will focus on the following areas: 1) the 118 and 119 zones expanding resources to the west and east of the current reserves, 2) the high-grade plunge at depth and to the east in the Lower 123 Zone in addition to infilling the gap between the Lower 123 and Upper 123 zones, and 3) upgrading resource at depth in the 148 Zone. Exploration drilling will focus on testing the high-grade up and/or down plunge extensions of the 113, 116, 118, 123, 128, 134, 146 and 148 zones as defined from the recent 3D geological modeling and targeting completed in 2021. In addition to these underground exploration programs within the mining lease at Casa Berardi, surface sonic drilling is planned for initial testing of regional target areas in the west, central, and east claim blocks along the Casa Berardi Break. This drilling will enhance historic till sampling in addition to mapping the subsurface bedrock lithologies, alteration, and structures. More than a quarter of the total expenditures in 2022 are planned for Casa Berardi (16%) and Greens Creek (11%) exploration. Exploration at both Casa Berardi and Greens Creek is focused on replacing production and expansion of high-grade underground reserves and resources through drill testing and conversion of inferred resource to reserves.

Drilling in the East Mine targeted upgrading and expanding mineralization in the 146 and 148 zones. Many assay results are pending; results received to date from the 146 Zone drilling consists of wide zones of low-grade gold mineralization with narrow internal high-grade intervals. Similarly, drilling in the 148 Zone expanded mineralization to the south of the Casa Berardi fault zone with intercepts including 0.13 oz/ton gold over 26.2 feet with narrow internal higher-grade intervals.

At the Lucky Friday, in Idaho, proven and probable reserves are currently 75 million ounces of silver (3% lower from 2020), 452,440 tons of lead and 181,020 tons of zinc. Measured and indicated silver resources decreased 8% to 80 million ounces over 2020; lead and zinc measured and indicated resources decreased 6% and 4%, respectively. Decrease in measured and indicated resources is due to conversion to reserves. Inferred resources significantly increased year-over-year and include 42 million ounces of silver (+65%), 311,850 tons of lead (+62%) and 129,600 tons of zinc (+55%). Increase in inferred resources is mostly due to additions in the upper portions of the 30 Vein adjacent to reserve blocks; drilling plans are in place to better define these resources in order to convert them to reserve.

Drilling at Midas intersected narrow, high-grade gold and silver mineralization along the Sinter Structure, and identified two new mineralized structures, the Racer and Hanging Wall (HW1) Structures. Recent drillhole intersections in the Sinter Structure include 0.25 oz/ton gold and 63.9 oz/ton silver over 0.9 feet estimated true thickness. Mineralization is hosted in quartz carbonate veining which is locally fractured and crushed due to post-mineral fault movement. Sinter mineralization has been intersected over 3,200 feet of strike length and continues to be open for expansion both along strike and dip.

Our first drillhole testing the Racer Structure returned significant assay results of 0.84 oz/t gold and 0.6 oz/t silver over 1.9 feet estimated true thickness. This structure is characterized by intense argillization and brecciation with localized calcite and quartz veinlets. Mineralization remains open along strike and up and down dip.

HW1, a new low angle hanging wall structure has also been identified through geologic interpretation between the Racer and Sinter Structures. Intercepts to date on the HW1 structure include 1.22 oz/ton gold and 0.7 oz/ton silver over 0.8 feet estimated true thickness and 0.03 oz/ton gold and 9.4 oz/ton silver over 2.6 feet estimated true thickness. The orientation and grade distribution along the structure is currently being investigated.

Nevada exploration is expected to be 30% of the total planned expenditures, with drilling programs at Hollister, Midas, and Aurora, in addition to detailed mapping, sampling, and target generation at all three projects.

At Hollister, exploration of the Hatter Graben is expected with further development of the decline setting up exploration drilling to upgrade a portion of the current Hatter Graben resource and explore additional Hatter Graben veins both to the south and east of the current resource area. Pre-development spend in 2022 will primarily be focused on advancing the Hatter Graben decline and is estimated at 8% of the total expenditures. To date 2,400 feet of development has been completed along with the necessary ventilation and dewatering infrastructure, additional footage is planned through the first half of 2022. The development drift advanced at the Hatter Graben exploration area allowing completion of the first drillhole that targeted and confirmed multiple zones of banded quartz veins and veinlets south of the existing resource. Intercepts from this initial drillhole include 1.27 oz/ton gold and 1.1 oz/ton silver over 0.9 feet estimated true thickness and 0.23 oz/ton gold and 7.7 oz/ton silver over 1.0 foot estimated true thickness.

Exploration at San Sebastian included deeper drill testing in both the El Bronco and El Toro vein systems in addition to drill testing of four Short Vertical Reverse Circulation (SVRC) anomalies and geologic studies. Assay results from the deeper drilling confirm vein continuity at depth at both El Bronco and El Tigre and intersected a new hanging wall vein at El Tigre.

Exploration at Midas will focus on the two miles of strike length along the Eastern Graben Corridor. Drilling will focus on wide-spaced offsets along the Racer structural corridor near intersections with the northeast oriented Owhyee structures, structural splays off the Racer structure (Vapor Trail), and the northern extension of Little Opal.

Aurora reported that drilling is planned to test high-grade vein extensions from historic production areas and the Sawtooth Ridge target area.

San Sebastian represents 8% of the planned exploration spend, focusing on evaluating both near surface and deeper precious metal mineralization. Core drilling is planned to target deeper mineralization in the Middle, North, Francine, El Toro, El Tigre, and El Bronco vein systems. Core drilling will also target deeper high-grade mineralization in the La Roca district which represents a fully preserved epithermal system with strong acid sulfate alteration at the surface. In addition, a Short Vertical Reverse Circulation (SVRC) drilling program north of the San Sebastian Mine area and into the southern portion of the La Roca district will focus on defining new near-surface targets under cover.

Exploration programs are planned to be reinitiated in both the Creede district in Colorado and Republic district in Washington, and combined, accounts for approximately 10% of the total expenditures with field work and surface drilling programs in both districts. At Creede, drilling will focus on surface drilling of the North Bulldog target testing previous narrow high-grade mineralization deeper in the more favorable volcanic sequence which was historically the best host to mineralization. We also plan to initiate underground access and rehabilitation of the main level in the Bulldog mine to eventually provide platforms for underground drilling of the prospective veins.

Analytical turnaround times for assay results from the ISO-certified analytical laboratories were delayed during 2021 due to COVID-19 related staffing issues, increased sample load, and supply chain issues. Currently there are 14,000 samples pending assays with about 80% from Nevada. To support drill targeting, we use ¼ core sample with secondary labs. Final assays will continue to be delayed in 2022.

Hecla has withdrawn the Plan of Operations for Rock Creek and Montanore from consideration by the United States Forest Service (USFS). These plans were prepared by each project’s prior owner and do not have the data necessary for Hecla to formulate a modern mine plan. The Company intends to submit a new Plan of Operations for just the Montanore site that will be limited to geologic and environmental evaluation activities only. If approved and subsequent data collection and analysis activities suggest development of a mine is feasible and economic, then a new Plan of Operations for construction and development at Montanore would be submitted to the USFS. While no activities beyond care and maintenance are currently planned for Rock Creek, mineral and other property rights there will not be impacted.