Lucky Friday boosts Hecla silver reserves

MULLAN, Idaho – A 2003 decision to develop lower levels of the Lucky Friday Mine has paid off with a doubling of the mine’s silver ore reserves, Hecla Mining Co. reported Monday.

Reserves are estimates of ore that a company can profitably mine in the future. The Lucky Friday’s proven and probable reserves doubled from a year ago, to 17.2 million ounces of silver – enough to keep the mine operating at least through 2013, officials said. The mine near Mullan, Idaho, employs 153.

“We see this mine as a cornerstone of Hecla’s silver production for many years to come,” said Phil Baker, Hecla’s president and chief executive officer.

Developing the lower levels boosted the Lucky Friday’s production in time to take advantage of higher metals prices. Silver is currently trading near $9.70 per ounce – a $3 increase over the past 12 months. Lead and zinc prices have also risen.The Lucky Friday is the deepest operating silver mine in the U.S., with a shaft reaching 6,200 feet below the surface, according to Hecla. Drilling will begin this year to identify even deeper ore reserves, Baker said.

Hecla’s reserve report comes just a week after Coeur d’Alene Mines announced that it might sell its Galena Mine and reinvest the money in more profitable Latin American operations. The Galena and the Lucky Friday are the two remaining operating mines in Idaho’s Silver Valley.