Continued Strong Silver Performance Reflective Of Outperformance At Greens Creek

COEUR D'ALENE, ID - Phillips S. Baker, Jr., Hecla’s President and CEO said,“Our strong silver production reflects the continued outperformance of Greens Creek, which had higher grades and recoveries during the quarter as expected. San Sebastian is continuing to perform as expected as we continue the bulk sample test of the sulfide material. We expect gold production to be higher at both Casa Berardi and in Nevada in the second half of the year, particularly the fourth quarter. With the increase in the gold and silver prices we have purchased puts that assure a minimum price for our projected gold and silver sales through the end of the first quarter of next year. San Sebastian is continuing to perform as expected as we continue the bulk sample test of the sulfide material. We expect gold production to be higher at both Casa Berardi and in Nevada in the second half of the year, particularly the fourth quarter.”

At the Greens Creek mine, 2.4 million ounces of silver and 13,256 ounces of gold were produced in the quarter which is the most silver production in three years. The higher silver production, when compared to the second quarter of 2018, was due to higher ore grades as a result of mine sequencing. The mill operated at an average of 2,301 tons per day (tpd).

The Casa Berardi mine reported 28,892 ounces of gold produced in the quarter, including 2,658 ounces from the East Mine Crown Pillar pit. The decrease in gold ounces compared to the second quarter of 2018 was expected due to lower grades and lower mill throughput and recovery as a result of adjustments to mill components that continued into the second quarter. The mill operated at an average of 3,820 tpd. Production of gold is expected to be higher in the second half of 2019 as installation of the new carbon in leach (CIL) drivetrain was completed in May and the in-pit crushing of stockpiled material comes on-line.

At the San Sebastian mine, 0.5 million ounces of silver and 3,547 ounces of gold were produced in the second quarter. Silver and gold production were lower compared to the second quarter of 2018 due to lower ore grades, as expected. The mill operated at an average of 504 tpd.

The Nevada operations reported 12,695 ounces of gold and 49,450 ounces of silver produced. Ore was processed at an average of 642 tpd (combined Midas and Aurora mills).

At the Lucky Friday mine, 127,147 ounces of silver were produced in the quarter. There was limited production and capital improvements, performed by salaried staff, and limited shipments of concentrate in the second quarter due to the ongoing strike.