May
10, 2004
Hecla Gold will develop Mina
Isidora in Venezuela
(Business Wire) - "Hecla Mining Company
announced plans to develop the Mina Isidora gold
mine on the Block B lease in eastern Venezuela's
El Callao gold district. Production is expected
as early as the end of 2005. Full commercial production
of about 360 tonnes per day is expected to be
achieved in the second quarter of 2006.
Annual production rates of between 75,000 to 115,000
ounces of gold at cash costs between $150 to $185
per ounce are estimated for the first five years
of full production, with the current mine plan
running to 2012. Relatively little capital is
needed to develop the mine, because construction
of a processing mill will not be necessary. The
ore will be trucked about 70 miles south to Hecla's
La Camorra mill.
Hecla's Board of Directors gave the go-ahead to
the approximately $30 million development plan.
The identified resource at the Mina Isidora deposit
has grown steadily since drilling commenced. At
December 2003, reported proven and probable reserves
at Mina Isidora were 327,303 ounces of gold. A
new resource block model based on definition drilling
in the fourth quarter of 2003 and the first quarter
of 2004 has increased proven and probable reserves
by 29%, to 421,234 ounces.
The total estimated mineable resource at Mina
Isidora has increased from year-end 2003 to 932,000
tons at a grade of 0.59 ounce of gold per ton.
Hecla Mining Company President and Chief Executive
Officer Phillips S. Baker, Jr., said, 'We acquired
this property in late 2002. At that time, it had
nothing but exploration targets. By 2005, we expect
it will be a 100,000-ounce per year gold mine.
This is another example of Hecla's ability to
take a project from exploration to production
in very short time frames. There are a couple
of reasons for this.
First, we are the largest gold miner in Venezuela,
which means we get exposure to prime opportunities.
Second, the quality of the geology in Venezuela's
gold mining districts is phenomenal, and we have
an excellent land position in both the El Callao
district as well as the El Dorado gold district,
where our La Camorra gold mine is located. Mina
Isidora is just the first of many new projects
we expect to be able to develop here.'
