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    ISIN: US4227041062 · WKN: 854693 · Symbol: HCL
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     Ja Nein
      Avatar
      schrieb am 05.11.02 14:44:05
      Beitrag Nr. 1 ()
      Hecla Reports Record La Camorra Production, Positive Net Income, Increased Gross
      Profit and Cash Flow in Third Quarter

      COEUR D`ALENE, Idaho, Nov 5, 2002 (BUSINESS WIRE) -- Increased gold and silver
      production, lower costs and higher precious metals prices boosted Hecla Mining
      Company`s (NYSE:HL) net income, gross profit and cash flow from operations in
      the third quarter and the first nine months of 2002, compared to the same
      periods last year.

      Hecla`s net income in the third quarter more than doubled, to $1.5 million, or 2
      cents per share before preferred stock dividends, compared to a net loss of $2.5
      million in the third quarter of 2001. Gross profit rose even more dramatically,
      from $270,000 in the third quarter of 2001 to $6.4 million in the third quarter
      of this year. Cash flow increased significantly to $8.1 million in the third
      quarter of 2002, from $1.4 million in last year`s third quarter.

      For the first nine months of 2002, Hecla`s net income was $6.8 million, or 9
      cents per share before preferred stock dividends, compared to $5.5 million in
      the first nine months of last year which included a $12.7 million gain from the
      sale of discontinued operations. Gross profit is up significantly, to $18
      million in the first nine months, compared to $3.5 million in the same period
      last year. Similarly, cash flow from operating activities increased from $5.4
      million during last year`s first nine months to $14.6 million in the first nine
      months of 2002.

      Hecla Chairman and Chief Executive Officer Arthur Brown said, "Hecla`s
      operations continued to perform beautifully in the third quarter. We are
      extremely pleased with all results. Improvements in net income, gross profit,
      cash flow, production and costs during the first nine months of this year are
      further evidence of Hecla`s turnaround and future."



      HIGHLIGHTS

      -- 26% increase in gold production quarter-on-quarter, 36%

      increase in the first nine months, while maintaining a low

      average cash cost of $130 per ounce of gold year-to-date

      -- 16% increase in silver production quarter-on-quarter, 9%

      increase in the first nine months

      -- 41% decrease in the average total cash cost of silver

      quarter-on-quarter, 36% decrease in the first nine months

      -- Further increases in 2002 production estimates

      -- Significant increases in gross profit, net income and cash

      flow both quarter-on-quarter and year-to-date

      -- Strengthened balance sheet

      -- Cash and cash equivalents more than doubled from December 31,

      2001

      -- New V.P. on board, one director steps down

      -- Successful conversion of the majority of preferred stock to

      common stock

      OPERATIONS

      Based on outstanding performance at its operations, Hecla has increased 2002
      production estimates and now anticipates producing at least 235,000 ounces of
      gold at an average total cash cost of under $140 per ounce and about 8.2 million
      ounces of silver at an average total cash cost per ounce of less than $2.30,
      assuming by-product metals prices remain fairly constant.

      In the first nine months of the year, Hecla produced a total of 187,028 ounces
      of gold at an average total cash cost of $130 per ounce. The La Camorra mine in
      Venezuela contributed nearly 134,000 ounces of gold during the first nine
      months, and had record production in the third quarter, with 47,814 ounces
      produced. The ore grade at La Camorra remains very high, at more than 1 ounce
      per ton during the third quarter. Increased tonnage mined due to efficiencies in
      equipment use and availability contributed to record production at La Camorra.
      Phil Baker, Hecla`s president and chief operating officer, said, "La Camorra
      continues to be an excellent, low-cost gold producer with six quarters of more
      than 39,000 ounces of production at an average total cash cost per ounce of gold
      below $140. This solid foundation makes us enthusiastic about continuing to
      develop La Camorra and the surrounding concessions."

      Hecla produced 6.4 million ounces of silver during the first nine months of
      2002, at an average total cash cost of $2.22 per ounce. The San Sebastian mine
      in Mexico, now in full production, contributed 822,757 ounces of silver and
      10,112 ounces of gold during the third quarter, at an extremely low average
      total cash cost of $1.11 per ounce of silver. The ore grade at San Sebastian
      during the third quarter averaged more than 24 ounces of silver per ton and
      nearly a third of an ounce of gold per ton. For the first nine months, San
      Sebastian has produced nearly 2.5 million ounces of silver and close to 30,000
      ounces of gold at an average total cash cost of $1.29 per ounce of silver. Baker
      said, "San Sebastian has exceeded our expectations in every way, far
      outdistancing our initial operating plans at this property. Our operating
      methodology worked through any uncertainties we had at the start of this project
      to make this property a world-class silver producer into 2003 and beyond."

      The Greens Creek mine in Alaska, in which Hecla holds a 30% interest, produced
      approximately 2.5 million ounces of silver for Hecla during the first nine
      months of the year, with 827,201 of those ounces mined in the third quarter.
      Greens Creek costs are significantly lower than a year ago, with a third quarter
      total cash cost of $1.93 per ounce of silver, compared to $2.52 in the same
      period a year ago. Greens Creek has also contributed more than 23,000 ounces of
      gold for Hecla`s account this year.

      The Lucky Friday mine in northern Idaho continues to be Hecla`s highest cost
      mine, although it has been successful in lowering costs from a year ago. Despite
      contending with lower ore grades compared to last year, the Lucky Friday managed
      to produce 1.4 million ounces of silver in the first nine months of the year at
      an average total cash cost per ounce of $4.65, compared to $4.95 per ounce the
      year before.



      EXPLORATION

      Exploration expenditures rose to $1.3 million in the third quarter of this year,
      as Hecla concentrates on several promising targets. Exploration costs are
      expected to increase in the fourth quarter and into 2003 as the company explores
      for more ore in prospective areas surrounding the San Sebastian mine, at La
      Camorra and Block B in Venezuela and at the Hollister Block
      exploration/development project in Nevada.

      On exploration results company-wide, Baker said, "Continued encouraging results
      at most of our exploration sites give us good reason for optimism that one, two
      or more of these sites could turn into a new mine for Hecla or an expansion of
      reserves at existing properties. This stable of exploration prospects is the
      best Hecla has had access to in a long time." Hecla also distributed information
      today in a separate news release concerning its exploration projects, which can
      be accessed at the company`s website at www.hecla-mining.com.



      FINANCIAL

      Hecla`s financial condition continued to improve during the first nine months of
      2002, with a healthy current ratio of 1.55:1. The company`s cash position has
      increased to $17.8 million at September 30, 2002, compared to $7.6 million at
      the end of 2001. Total debt, related mainly to the purchase of La Camorra and
      the mill at San Sebastian, was down to $13.8 million at the end of the third
      quarter, compared to $19 million at the end of 2001.

      During the third quarter, Hecla successfully converted a majority of its
      Preferred B stock to common stock. Reflected in Hecla`s third quarter 2002 net
      income applicable to common shareholders is a noncash dividend to preferred
      shareholders that accounts for the inducement to exchange preferred shares into
      common shares at a higher exchange ratio of common stock to preferred stock than
      provided by the stated conversion terms of the preferred stock. This is a
      one-time, noncash dividend that does not affect total shareholders` equity. As a
      result of the exchange, approximately 67% of the total number of preferred
      shares were tendered, with approximately 750,000 shares of the Preferred B stock
      remaining issued and outstanding. Future annual preferred dividends of
      approximately $5.4 million were eliminated by the exchange. Also eliminated were
      undeclared but accumulated dividends of approximately $10.8 million.



      OTHER

      In September, Hecla announced that Ronald W. Clayton joined the company as Vice
      President -- U.S. Operations. Clayton has more than 22 years of operational and
      management experience in the mining industry. He had previously spent 13 years
      with Hecla as manager of various mining properties and was vice president of
      operations when he left.

      In October, Hecla accepted the resignation of one of its newest members of the
      board of directors. David Christensen, a director and research analyst with
      Credit Suisse First Boston, resigned his position on the board to avoid any
      appearance of potential conflict of interest with his newly accepted position
      with CSFB. Christensen had taken the position with CSFB subsequent to his
      election to Hecla`s Board of Directors in May 2002.

      During the third quarter, Hecla decided to pursue a more favorable avenue to
      resolve the United States and State of Idaho governments` claims for clean-up
      costs and natural resource damages related to historic mining practices in
      northern Idaho`s Coeur d`Alene Basin. As a result, the company, the United
      States and the State of Idaho are no longer pursuing the agreement in principle
      originally drafted in August 2001.

      Hecla Mining Company, headquartered in Coeur d`Alene, Idaho, mines and processes
      silver and gold in the United States, Venezuela and Mexico. A 111-year-old
      company, Hecla has long been well known in the mining world and financial
      markets as a quality silver and gold producer. Hecla`s common and preferred
      shares are traded on the New York Stock Exchange under the symbols HL and
      HL-PrB.

      Statements made which are not historical facts, such as anticipated payments,
      litigation outcome, production, sales of assets, exploration results and plans,
      costs, prices or sales performance are "forward-looking statements" within the
      meaning of the Private Securities Litigation Reform Act of 1995, and involve a
      number of risks and uncertainties that could cause actual results to differ
      materially from those projected, anticipated, expected or implied. These risks
      and uncertainties include, but are not limited to, metals price volatility,
      volatility of metals production, exploration risks and results, project
      development risks and ability to raise financing. Refer to the company`s Form
      10-Q and 10-K reports for a more detailed discussion of factors that may impact
      expected future results. The company undertakes no obligation and has no
      intention of updating forward-looking statements.

      Hecla Mining Company news releases can be accessed on the Internet at:
      http://www.hecla-mining.com.



      HECLA MINING COMPANY

      (dollars in thousands, except per share, per ounce and

      per pound amounts - unaudited)

      Third Quarter Ended Nine Months Ended

      ----------------------- --------------------------

      Sept. 30, Sept. 30, Sept. 30, Sept. 30,

      HIGHLIGHTS 2002 2001 2002 2001

      ----------------------------------------------------------------------

      FINANCIAL DATA

      ----------------------------------------------------------------------

      Sales of products $ 27,790 $ 22,501 $ 79,836 $ 63,479

      Gross profit 6,414 270 18,005 3,480

      Income (loss) from

      operations 3,132 (2,138) 9,023 (4,671)

      Net income (loss) 1,533 (2,456) 6,774 5,524

      Basic and diluted

      loss per common

      share (1) (0.20) (0.06) (0.20) (0.01)

      Cash flow provided

      by operating

      activities 8,068 1,424 14,647 5,432

      ----------------------------------------------------------------------

      SALE OF PRODUCTS BY SEGMENT

      ----------------------------------------------------------------------

      Gold operations $ 13,807 $ 10,634 $ 37,118 $ 28,741

      Silver operations 13,983 11,867 42,718 34,738

      ----------- ----------- ----------- --------------

      Total sales $ 27,790 $ 22,501 $ 79,836 $ 63,479

      ----------------------------------------------------------------------

      GROSS PROFIT (LOSS) BY SEGMENT

      ----------------------------------------------------------------------

      Gold operations $ 5,690 $ 3,090 $ 13,836 $ 7,819

      Silver operations 724 (2,820) 4,169 (4,339)

      ----------- ----------- ----------- --------------

      Total gross

      profit $ 6,414 $ 270 $ 18,005 $ 3,480

      OTHER DATA

      ----------------------------------------------------------------------

      EBITDA BY SEGMENT (2)

      ----------------------------------------------------------------------

      Gold operations $ 8,910 $ 5,484 $ 22,854 $ 14,828

      Silver operations 3,398 (47) 12,734 3,584

      ----------- ----------- ----------- --------------

      Total EBITDA $ 12,308 $ 5,437 $ 35,588 $ 18,412

      ----------------------------------------------------------------------

      PRODUCTION SUMMARY -- TOTALS

      ----------------------------------------------------------------------

      Gold - Ounces 65,301 51,841 187,028 137,993

      Silver - Ounces 2,079,418 1,798,696 6,422,988 5,897,153

      Lead - Tons 3,974 7,030 13,294 24,476

      Zinc - Tons 6,162 6,157 19,529 17,908

      Average cost per

      ounce of gold

      produced:

      Cash operating

      costs ($/oz.) 121 128 130 134

      Total cash costs

      ($/oz.) 121 128 130 134

      Total production

      costs ($/oz.) 191 190 199 201

      Average cost per

      ounce of silver

      produced (3):

      Cash operating

      costs ($/oz.) 2.25 3.93 2.14 3.43

      Total cash costs

      ($/oz.) 2.34 3.95 2.22 3.45

      Total production

      costs ($/oz.) 3.76 5.60 3.69 4.88

      ----------------------------------------------------------------------

      AVERAGE METAL PRICES

      ----------------------------------------------------------------------

      Gold - Realized

      ($/oz.) 305 283 302 280

      Gold - London Final

      ($/oz.) 314 274 306 269

      Silver - Handy &

      Harman ($/oz.) 4.70 4.28 4.65 4.41

      Lead - LME Cash

      (cents/pound) 19.5 21.3 20.8 21.5

      Zinc - LME Cash

      (cents/pound) 34.7 37.5 35.4 42.0

      (1) For the quarters and nine months ended September 30, 2002 and

      2001, preferred stock dividends for $18.6 million and $2.0

      million, respectively, and $22.6 million and $6.0 million,

      respectively, were not declared. The preferred dividends are

      not included in the determination of net income; however, they

      are included in determining income (loss) applicable to common

      shareholders and earnings per share. The 2002 amounts include

      a one-time, noncash dividend of approximately $17.6 million

      incurred in July 2002 related to the completion of an exchange

      offering, whereby approximately 1.55 million preferred shares

      were converted into approximately 10.8 million common shares.

      Including the effects of preferred stock dividends, losses

      applicable to common shareholders totaled $17.0 million and

      $4.5 million, respectively, for the three months ended

      September 30, 2002 and 2001, and $15.8 million and $0.5

      million, respectively, for the nine months ended September 30,

      2002 and 2001.

      (2) EBITDA represents earnings before interest, income taxes,

      depreciation, depletion, amortization and items classified as

      other operating expenses not occurring at the operating site.

      The company believes EBITDA is helpful in understanding cash

      flow generated from operations that is available for income

      taxes, debt service, capital expenditures, and other nonsite

      operating expenses.

      (3) During the third quarter and the first nine months of 2002,

      approximately $0.2 million and $0.6 million, respectively, of

      costs were classified as care-and-maintenance costs and

      excluded from the determination of the costs per ounce at the

      Lucky Friday mine. Including the care-and-maintenance costs,

      the cash operating, total cash and total production costs per

      ounce total $2.34, $2.44 and $3.85, respectively, for the

      third quarter and $2.23, $2.32 and $3.78, respectively, for

      the nine months ended September 30, 2002.

      HECLA MINING COMPANY

      Consolidated Condensed Statements of Operations

      (dollars and shares in thousands, except

      per share amounts -- unaudited)

      Third Quarter Ended Nine Months Ended

      ------------------- --------------------

      Sept. 30, Sept. 30, Sept. 30, Sept. 30,

      2002 2001 2002 2001

      --------- --------- --------- ----------

      Continuing Operations:

      Sales of products $ 27,790 $ 22,501 $ 79,836 $ 63,479

      --------- --------- --------- ----------

      Cost of sales and other

      direct

      production costs 15,482 17,064 44,248 45,067

      Depreciation, depletion and

      amortization 5,894 5,167 17,583 14,932

      --------- --------- --------- ----------

      21,376 22,231 61,831 59,999

      --------- --------- --------- ----------

      Gross profit 6,414 270 18,005 3,480

      --------- --------- --------- ----------

      Other operating expenses:

      General and administrative 1,493 1,654 5,137 4,976

      Exploration 1,257 455 2,987 1,749

      Depreciation and

      amortization 22 67 90 203

      Provision for closed

      operations

      and environmental matters 510 232 768 1,223

      --------- --------- --------- ----------

      3,282 2,408 8,982 8,151

      --------- --------- --------- ----------

      Income (loss) from operations 3,132 (2,138) 9,023 (4,671)

      --------- --------- --------- ----------

      Other income (expense):

      Interest and other income 367 1,425 1,461 2,525

      Miscellaneous, net (933) (662) (842) (1,510)

      Interest expense (437) (662) (1,374) (3,279)

      --------- --------- --------- ----------

      (1,003) 101 (755) (2,264)

      --------- --------- --------- ----------

      Income (loss) from continuing

      operations,

      before income taxes 2,129 (2,037) 8,268 (6,935)

      Income tax provision (56) - - (168) - -

      --------- --------- --------- ----------

      Income (loss) from continuing

      operations 2,073 (2,037) 8,100 (6,935)

      Discontinued operations, net

      of income tax (540) (419) (1,326) 12,459

      --------- --------- --------- ----------

      Net income (loss) $ 1,533 $ (2,456) $ 6,774 $ 5,524

      ========= ========= ========= ==========

      Basic and diluted loss per

      common share (1) $ (0.20) $ (0.06) $ (0.20) $ (0.01)

      ========= ========= ========= ==========

      Weighted average number of

      common

      shares outstanding 86,031 70,946 78,294 68,194

      ========= ========= ========= ==========

      (1) For the quarters and nine months ended September 30, 2002 and

      2001, preferred stock dividends for $18.6 million and $2.0

      million, respectively, and $22.6 million and $6.0 million,

      respectively, were not declared. The preferred dividends are

      not included in the determination of net income; however, they

      are included in determining income (loss) applicable to common

      shareholders and earnings per share. The 2002 amounts include

      a one-time, noncash dividend of approximately $17.6 million

      incurred in July 2002 related to the completion of an exchange

      offering, whereby approximately 1.55 million preferred shares

      were converted into approximately 10.8 million common shares.

      Including the effects of preferred stock dividends, losses

      applicable to common shareholders totaled $17.0 million and

      $4.5 million, respectively, for the three months ended

      September 30, 2002 and 2001, and $15.8 million and $0.5

      million, respectively, for the nine months ended September 30,

      2002 and 2001.

      HECLA MINING COMPANY

      Consolidated Balance Sheets

      (dollars and shares in thousands -- unaudited)

      Sept. 30, Dec. 31,

      2002 2001

      ----------------------------------------------------------------------

      ASSETS

      ----------------------------------------------------------------------

      Current assets:

      Cash and cash equivalents $ 17,795 $ 7,560

      Accounts and notes receivable 10,354 6,648

      Inventories 14,024 10,868

      Other current assets 1,754 1,426

      Net assets of discontinued operations 375 2,714

      ---------- ----------

      Total current assets 44,302 29,216

      Investments 98 69

      Restricted investments 6,378 6,375
      Avatar
      schrieb am 05.11.02 17:32:58
      Beitrag Nr. 2 ()
      1A-Minengesellschaft... wie wir ja alle wissen

      ... und dazu passt noch dies...


      BW0108 NOV 05,2002 5:05 PACIFIC 08:05 EASTERN


      ( BW)(ID-HECLA-MINING-2)(HL) Hecla Reports Good Exploration Progress
      in Mexico and Venezuela

      Business Editors

      COEUR D`ALENE, Idaho--(BUSINESS WIRE)--Nov. 5, 2002--Encouraging
      results at Hecla Mining Company`s (NYSE:HL) (NYSE:HL-PrB) Cerro
      Pedernalillo silver/gold exploration project are painting a picture of
      a potentially economic ore deposit. Cerro Pedernalillo is located in
      central Mexico, on Hecla`s San Sebastian property.
      The Don Sergio vein is a steeply dipping quartz vein contained
      within a zone of silicified and hornfelsed wall rock and hydrothermal
      breccias. During the third quarter, 13 drill holes were completed on
      the Don Sergio vein portion of Cerro Pedernalillo, where an ore shoot
      is beginning to emerge at the southern end of the known vein, just
      north of where it plunges under post mineral volcanic cover. Of these
      most recent 13 drill holes, five intersected gold-silver
      mineralization exceeding mining cut-off grades. To date, Hecla has
      drilled 31 holes in the Don Sergio vein, with 23 inside the boundaries
      of the projected ore shoot and eight holes drilled outside the
      boundaries. The included table shows that several of the holes drilled
      within the ore shoot assayed at a gold equivalent grade of more than
      15 grams per tonne (nearly 1/2 ounce of gold equivalent per ton).
      Hecla`s drilling program on the Don Sergio vein will continue through
      the fourth quarter.
      -0-
      *T

      DON SERGIO VEIN
      CERRO PEDERNALILLO PROJECT
      DURANGO, MEXICO

      ----------------------------------------------------------------------
      DRILL HOLE INTERCEPTS

      Gold
      Holes in From To Width Gold Silver Equivalent
      Ore Shoot in in meters grams/ grams/ grams/
      meters meters horizontal tonne tonne tonne

      CP002 15.2 17 2 4.4 28 4.8
      CP003 15.5 16.8 2 6.4 69 7.4
      CP004 12.8 14.4 2 2.2 23 2.5
      CP005 14.0 14.7 2 3 12 3.2
      CP006 14.8 15.5 2 1.2 15 1.4
      CP007 10.4 11.7 2 15 34 15.5
      CP008 9.4 11.2 2 4.6 55 15.4
      CPO15 No Significant Values
      CP016 45.4 47.1 2 3.6 31 4.1
      CP017 67.2 68.5 2 4.6 147 6.8
      CP018 47.0 50.0 2.2 19.2 77 20.3
      CP019 101.8 103.0 2 16.2 106 17.8
      CP020A 122.8 127.6 2 7.2 104 8.7
      CP039 241.8 245.7 2 4.9 168 7.4
      CP040 No Significant Values
      CP041 51.4 53.5 2 35.2 78 36.4
      CP042 No Significant Values
      CP054 110 112.2 2 60 424 66.3
      CP055 180.6 181.7 2 42.6 343 47.7
      CP056 Did Not Cut Vein - Vein Faulted Out of Section
      CP057 186.4 188.3 2 10.2 123 12
      CP058 99.4 101.2 2 7.2 38 7.8
      CP059 No Significant Values

      Holes Not in
      Ore Shoot

      CP001 16.5 18.5 2 3.1 26 3.5
      CP021 No Significant Values
      CP022 No Significant Values
      CP023 No Significant Values
      CP024 78.5 79.5 2.5 37 3
      CP043 No Significant Values
      CP050 Did Not Reach Vein - Hole Lost Before Intercept
      CPO60 No Significant Values

      Note: The gold and silver values are averaged over a minimum 2
      meter horizontal width.
      *T

      On San Sebastian`s Francine vein, where mining is currently taking
      place, a program to explore Francine vein extensions to the southeast
      and at depth is underway. Of 24 holes drilled, five have intersected
      gold-silver mineralization that averaged better than seven grams per
      tonne gold equivalent over a minimum horizontal width of two meters.
      Hecla`s President and Chief Operating Officer Phil Baker said:
      "Hecla has a healthy stable of promising exploration targets, and we
      are getting some good results from our drilling programs. There is
      good potential that one or more of our targets will be able to
      supplement production at current mines or become a new, major producer
      on its own. Some of the assays being returned on projects in both
      Mexico and Venezuela are extremely high grade. Our job now is to
      expand these deposits and, if economically mineable, put them into
      production as soon as possible."

      VENEZUELA

      Hecla`s currently most promising target at the La Camorra gold
      mine in Venezuela is on the Canaima concession, where an inferred
      resource of 150,000 ounces of gold has been identified for some time.
      Canaima is a mineralized shear zone that hosts several high-grade
      sub-parallel veins. In-fill core drilling commenced at Canaima in
      October 2002, and exciting high-grade assays have since been received
      for the first hole of the program (SC-56) and confirmed previous
      high-grade intercepts and vein widths in nearby holes. Hole SC-56
      intercepted the major footwall vein with assays averaging 54 grams of
      gold per tonne (1.58 ounces of gold per ton) over a horizontal true
      width of 6.5 meters. Holes drilled previously by Monarch Resources in
      this area also intercepted the footwall vein with grades ranging
      between 12 to 31 grams of gold per tonne (0.35 to 0.91 ounce of gold
      per ton) over horizontal true widths between four and 11 meters. The
      majority of the Canaima gold resources are on the major footwall vein
      and veins in the immediate hanging wall. Excellent intercepts of
      hangingwall veins ranged between six and 80 grams of gold per tonne
      (0.18 to 2.34 ounces of gold per ton) over horizontal widths between
      one and two meters. Assays reported are uncapped and visible gold was
      observed in Hecla`s most recent hole as well as in those previously
      drilled by Monarch. Drilling at Canaima will continue through the
      fourth quarter of 2002.
      Underground mid-level exploration drilling to explore La Camorra`s
      Main and Betzy veins at depth continued in the third quarter.
      Sufficient success has been encountered to warrant continuation of the
      down-dip and deep exploration program. However, underground
      exploration drilling consisting of three holes on the Betzy vein West
      Flank returned sub-economic mineralization, and that program has
      concluded in favor of other, more promising, targets. Underground
      exploration drilling has now commenced on the West Flank target,
      located on the Main vein.

      NEVADA

      Work continues on the Hollister Block joint venture gold project
      in Nevada, where the permitting phase is underway. The project is on
      schedule, with permitting expected to be completed in about eight to
      10 months. The underground exploration work will begin immediately
      following completion of permitting.
      Baker said, "Increasing Hecla`s gold and silver resource is a high
      priority and our exploration programs are an important strategy to
      achieve that objective. We expect to spend approximately $6 million
      this year on exploration, with even more planned for next year. In
      addition, we`ll continue to look at property acquisitions or mergers
      that will add value and resources."

      Hecla Mining Company, headquartered in Coeur d`Alene, Idaho, mines
      and processes silver and gold in the United States, Venezuela and
      Mexico. A 111-year-old company, Hecla has long been well known in the
      mining world and financial markets as a quality silver and gold
      producer. Hecla`s common and preferred shares are traded on the New
      York Stock Exchange under the symbols HL and HL-PrB.
      Statements made which are not historical facts, such as
      anticipated payments, litigation outcome, production, sales of assets,
      exploration results and plans, costs, prices or sales performance are
      "forward-looking statements" within the meaning of the Private
      Securities Litigation Reform Act of 1995, and involve a number of
      risks and uncertainties that could cause actual results to differ
      materially from those projected, anticipated, expected or implied.
      These risks and uncertainties include, but are not limited to, metals
      price volatility, volatility of metals production, exploration risks
      and results, project development risks and ability to raise financing.
      Refer to the company`s Form 10-Q and 10-K reports for a more detailed
      discussion of factors that may impact expected future results. The
      company undertakes no obligation and has no intention of updating
      forward-looking statements.

      --30--SAM/se*

      CONTACT: Hecla Mining Company, Coeur d`Alene
      Investor and Public Relations:
      Vicki J. Veltkamp, 208/769-4144
      http://www.hecla-mining.com
      http://www.businesswire.com/cnn/hl.shtml

      KEYWORD: IDAHO NEVADA MEXICO VENEZUELA INTERNATIONAL LATIN AMERICA
      INDUSTRY KEYWORD: MINING/METALS
      SOURCE: Hecla Mining Company


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