Hecla board approves completion of Lucky Friday mine project

Hecla Mining Company announced Monday that its Board of Directors has approved the completion of the #4 Shaft Project at the Lucky Friday mine. Hecla is also reporting progress on its Star mine in the Silver Valley.

"Hecla is now positioned to significantly grow production over the next five years," said Hecla's President and Chief Executive Officer, Phillips S. Baker Jr.

The Lucky Friday #4 Shaft Project received final Board of Directors' approval:

• Exploratory drilling at Lucky Friday identified high-grade mineralization in the Silver Fault and intense alteration to the west

• Rehabilitation of the Star drift has been initiated and work is in progress to re-establish power and ventilation.

• Equity mine portal and ventilation successfully re-opened and preparations are under way for underground drilling.

• Underground drilling at Greens Creek continues to refine and extend mineralization at the south perimeter of the Gallagher zone.

• A scoping study has been initiated to re-evaluate the Hugh Zone and integrate this with a study on the nearby Andrea Vein.

"With approval of the #4 Shaft Project, developments at the Greens Creek mine and the scoping studies in the Silver Valley, San Juan Silver and San Sebastian properties, we have a goal of 15 million ounces of annual silver production by 2016," Baker said. "We believe our strong financial position combined with cash flow generation from Greens Creek and Lucky Friday would be sufficient to cover our settlement obligations, sustaining capital expenditures, pre-development projects and exploration programs."