Hecla Mining has recalled all employees from the Lucky Friday Mine in Mullan, with plans to ramp up production in the first quarter of 2013.

The mine is the largest in Shoshone County, is a major employer, and has been shut down by the federal Mine Safety and Health Administration order since January.

The progress was disclosed by Hecla Tuesday morning in its third-quarter earnings report and subsequent conference call.

Hecla's results disappointed Wall Street and the stock lost 41 cents, or 6.48 percent, on the day.

Hecla CEO Phillips Baker Jr. said during the earnings call the company is making excellent progress at the Lucky Friday Mine. Rehab work on the Silver Shaft has reached the 5700 level, with about 400 feet to go, according to the company.

"Therefore, we have recalled all employees and begun preparatory work for sinking of the No. 4 shaft," Baker said.

The Silver Shaft, according to Hecla, is also being upgraded for potential future capacity increases. It is the primary access to the Lucky Friday.

On the 5900 level, according to the press release announcing the company's earnings, crews are developing a bypass around a rockburst-prone area. Employees have received safety training, including new techniques in risk assessment and accident prevention, the company said.

The company reported spending $90 million to date on the No. 4 shaft, with $200 million budgeted for the total project. When complete, the shaft will reach to the 8,800 level.

Also on Tuesday, Hecla reported that installation of a new hoist at the Star mine has begun.

The hoist will access the No. 5 shaft.

Also at the Star rehabilitation of the main level and the secondary escape ramp to the surface are complete as is development of a 750-foot exploration drift. Exploration drilling has also begun on the new drift on the southeast extension of the Morning and Noonday veins.

The Star is reporting good results with the best grading 29 ounces per ton silver and a combined 8.9 percent combined lead and zinc over a 10-foot width, according to the company. Drilling form underground and the surface confirm progressively higher silver grades to the southwest, where the vein is still open, according to Hecla.

The company expects to produce 2 million ounces of ore from the Lucky Friday silver mine in 2013, 3 million in 2014 and 5 million by 2017, Baker said.

Ninety percent of the employees have already returned to work at the Lucky Friday, which represents Shoshone County's largest payroll, Baker said. This includes 54 salaried and 200 hourly employees who will be working by the end of the year.

The silver shaft at Lucky Friday has essentially been rebuilt, and "will be the lifeline" to take the mine into the future, he said.

Environmental assessment work continues at the company's Bulldog Mine in Creede, Colo., with a U.S. Forest Service assessment expected in early 2013.

The Green Creek mine in Alaska produced 1.6 million ounces of silver in the quarter, up from 1.4 million ounces a year ago. Green Creek is expected to produce six million ounces this year.

Hecla announced a third quarter dividend of 2 cents per share of common stock. It reported a net loss of $1 million to shareholders. Lower metals prices from a year ago impacted results.

Hecla reported cash and cash equivalents of $232 million on Sept. 30.