Lucky Friday, one of the top seven primary silver mines in the world (based on silver equivalent ounces), celebrated its 75th anniversary in 2017. Thanks to the #4 Shaft project, the mine is expected to have another 20-30 years of mine life and will continue to provide quality jobs and community support to north Idaho.
Mine Type
Ownership
Silver
Lead
Zinc
***All metals reflect 2023 production
Lucky Friday is a deep underground silver, lead, and zinc mine located in the Coeur d’Alene Mining District in northern Idaho. The mine began operating in 1942. Hecla now controls 100% of the Gold Hunter deposit, also known as the Lucky Friday Expansion Area. At the Lucky Friday, we pioneered the Underhand Closed Bench (UCB) mining method. Watch our animation video to learn more about how UCB is increasing safety and productivity. In 2023, Lucky Friday is expected to produce 5.0 to 5.3 million ounces of silver.
The #4 Shaft Project, an internal shaft at the Lucky Friday Mine and a key growth project, reaches 9,600 feet below the surface. The #4 Shaft is an important part of Lucky Friday’s future as it provides access to the highest-grade ore in the mine’s history which is located in the Gold Hunter/Lucky Friday Expansion Area.
Hecla is the second-largest private employer in Shoshone County, Idaho.
The mine is located approximately one mile east of Mullan, in Shoshone County and 55 miles east of Coeur d’Alene along Interstate 90 (I-90) where the Silver Shaft head frame may be easily observed near exit ramp 69.
The plant has a full surface facility complete with a 1,000 tons of ore per day mill, which produces silver-lead and zinc concentrates. These concentrates are currently shipped for treatment via truck to Teck Cominco Metals Ltd. smelter in Trail, BC, Canada. All production is by underground methods, which include both underhand and overhand mining. The coarse mill tailing is mixed with cement and used as backfill. Production is via ramps and transfers, and substantially utilizes jumbo drills, mechanized mining, and truck haulage to the Silver Shaft. Access to the underground workings is via the 18-foot diameter, concrete lined, Silver Shaft.
Learn about Hecla’s Underhand Closed Bench (UCB) mining process and how this innovative method is increasing safety and productivity at the Lucky Friday Mine.
The Lucky Friday has a long history in north Idaho and will continue to mine essential minerals responsibly for years to come.
The safety and health of our workforce is our highest priority, and we strive for continuous improvement in our safety performance year over year. Continuous improvement for safety means providing training, interactive meetings, and regular briefings on updated regulations, guidelines, and techniques for management and workers. Hecla’s Take 5 Safety Focus program fosters continuous improvement by improving job site awareness and decreasing exposure to high and critical risk activities at each job site.
Company-wide, our All-Injury Frequency Rate (AIFR) was 1.22, ten percent below our target of 1.36. Our AIFR has declined by 80% since 2012.
Our safety strategy also focuses on visible and felt leadership as well as individual ownership of safety. We provide our employees with the safety training that is necessary to ensure a safe workplace. Our Hecla Safety and Health Management System reflects HMS process training and orientation to ensure that our training complies with the Mine Safety & Health Administration (MSHA) regulations in the United States.
At the 2022 Central Mine Rescue Competition held by the U.S. Mine Safety and Health Administration, Hecla’s Lucky Friday mine won the overall team trophy, and first place in three categories: Team Technician, Field Exercise, and First Aid.
In 2022, Hecla received the Robert E. Murray Innovation Award for pioneering the Underhand Closed Bench (UCB) mining method at Lucky Friday. The award, given by the Society for Mining, Metallurgy, & Exploration (SME), recognizes operations and organizations that implement cutting-edge technologies and innovative processes to advance the mining industry. The UCB method has dramatically increased both safety and productivity, achieving an AIFR of 1.57 (against the annual average of 2.10). In 2022, silver production increased by 24% using the UCB method to reach a record of 4.4 million ounces.
Hecla has been an integral part of the community and in many cases has employed generations of the same families. For mill operator Hayden Hogamier, Hecla has been a source of employment in his family for five generations, going back to two great-grandfathers who worked in the mine beginning in 1918.
Employees at Lucky Friday also give back to the Silver Valley by participating on local boards and in youth activities including the Idaho Chapter of Women in Mining, Wallace School Board, Wallace Public Library Board, Wallace Library Foundation Board, Silver Valley Wrestling Club, Wallace Youth Basketball League, Wallace Baseball League, Northwest Christian Teens, Mullan Community Library Foundation, and the Wallace Gyro Club.
We pride ourselves on being a strong community partner and that begins with engaging with community stakeholders. Hecla is a member of the Silver Valley Economic Development Corporation which includes participating in monthly meetings to provide input and understanding how issues in the Silver Valley could impact the community and Lucky Friday. We also work with the Wallace Chamber of Commerce and Silver Valley Chamber of Commerce on initiatives to promote local businesses and events.
The Hecla Charitable Foundation and employees at Lucky Friday have supported education, youth activities, community programs, and health services organizations through donations and volunteer efforts. Among our donations in 2022 were contributions of $4,500 to local food banks, over $6,000 to local programs supporting children in the Silver Valley, and over $8,000 to local organizations and events including TaTa’s Auction breast cancer fundraiser and the Sixth Street Melodrama local theater.
Hecla is the second-largest private employer in Shoshone Country, Idaho, which is home to the Lucky Friday mine. Today, we provide more than 400 direct jobs in the communities near our mine and 85% of new hires were from local communities. We recruit by attending job fairs, building relationships with a technical education center, and reaching out to colleges and vocational programs.
In 2022, our work at Lucky Friday had a direct economic impact of more than $146 million in wages, benefits, payment of taxes and license fees, purchase of goods and services, and local donations and contributions.
In 2022, we initiated a discharge reduction strategic planning effort at Lucky Friday, with a goal of reducing site-wide discharge by 35% in three years. This would be achieved by recycling more water on site to meet operational needs, with the ultimate goal of reducing the amount of water diverted, treated, and discharged. The Lucky Friday mine is engineering and testing a water recycling system that would replace a portion of the freshwater used to cool the underground with decant water, potentially reducing our freshwater usage by half.
A major part of being a supportive community partner is safely extracting metals and efficiently using natural resources. Hecla’s Environmental Management System (EMS) is a 13-element plan-do-check-act approach that ensures continuous improvement around issues including obligation registers, management of change, air quality, water and waste management, energy management, training, and reporting. This system promotes a culture of environmental awareness and innovation throughout the company.
One of Hecla’s largest sources of electricity is renewable hydropower, and we use as much hydroelectricity as our power suppliers can provide. Currently, the energy provider at Lucky Friday uses a mix of both hydropower and natural gas, with 60% of electricity sourced being renewable.
The Lucky Friday has also implemented several initiatives to lower GHG emissions through reduced use of diesel fuel. The development of the innovative Underhand Closed Bench (UCB) method for underground mining has improved the efficiency of our processes to operate in deep, high-stress, narrow-vein mining. Since the introduction of the UCB method our ratio of mining production per gallon of diesel used has improved. In addition, we have predominately used biodiesel for our underground equipment, and most of our underground drilling fleet minimizes diesel usage by running solely on electric power while drilling.
At Lucky Friday we use the hydroseeding method to revegetate disturbed areas, which best stabilizes the soil to prevent erosion. In addition to reclaiming tailings facilities, we also reclaim any drill pads or access roads that are built during mining operations.
Hecla is an industry leader in adopting the latest technologies to enhance the health and safety of our employees, improve environmental performance, and maximize mine-operating efficiency and productivity.
One example of innovation at Lucky Friday is the Underhand Closed Bench (UCB) method for underground mining to achieve better control of fault-slip seismic events that often occur in deep, high-stress, narrow-vein mining.
This method has been shown to successfully control the timing in which mine induced seismic energy is released. In comparison to the previous cut and fill technique, the UCB has eliminated prolonged seismic delays for miners to re-enter working places, reduced repair of areas damaged by seismic events, and improved productive mining time.
Hecla received the 2022 Robert E. Murray Innovation Award for pioneering the UCB mining method at Lucky Friday. The award, given by the Society for Mining, Metallurgy, & Exploration (SME), recognizes operations and organizations that implement cutting-edge technologies and innovative processes to advance the mining industry. The innovative UCB method has dramatically increased both safety and productivity, achieving an AIFR of 1.57 (against the annual average of 2.10). In 2022, silver production increased by 24% using the UCB method to reach a record of 4.4 million ounces.
Hecla's goal is to ensure that employees are able to manage and execute emerging technologies that make our workplace safer and more efficient. For example, we are working on advancing worker progression skill training in partnership with North Idaho College through TPC on-line training programs to equip the Lucky Friday hourly workforce in expanding their skills sets.
Lucky Friday is a deep underground silver, lead, and zinc mine located in the Coeur d’Alene Mining District in northern Idaho. The mine began operating in 1942 and celebrated its 80th anniversary in 2022. Thanks to the #4 Shaft project which is now complete and operational, the mine is expected to have another 20-30 years of mine life. Lucky Friday is located one mile east of Mullan, Idaho, and is adjacent to U.S. Interstate 90.
Careers
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Information with respect to proven and probable ore reserves, measured, and inferred resources is set forth below.
|
Tons |
Silver |
Gold |
Lead |
Zinc |
Silver |
Gold |
Lead |
Zinc | |
|---|---|---|---|---|---|---|---|---|---|
|
5,299
|
12.8 |
– |
8.0 |
3.8 |
67,595 |
–
|
424,080 |
201,280
| |
|
966 |
10.8 |
– |
7.1 |
2.9 |
10,411 |
– |
68,320
|
28,100 | |
|
6,265 |
12.5 |
–
|
7.9 |
3.7 |
78,006 |
–
|
492,400 |
229,380 | |
|
5,326
|
8.6 |
–
|
5.6 |
2.7 |
45,785
|
–
|
299,360
|
146,420 | |
|
1,011 |
8.0 |
–
|
6.0 |
2.7 |
8,136
|
–
|
60,200
|
26,910
| |
|
6,337
|
8.3 |
–
|
5.8 |
2.7 |
53,921
|
–
|
359,560 |
173,330 | |
|
3,600
|
7.8 |
–
|
5.9 |
2.8 |
27,934 |
–
|
211,340 |
100,630
|
Totals may not represent the sum of parts due to rounding.
(2) Mineral reserves are based on $17/oz silver, $1600/oz gold, $0.90/lb lead, $1.15/lb zinc, unless otherwise stated. All Mineral Reserves are reported in-situ with estimates of mining dilution and mining loss.
(4) The reserve NSR cut-off values for Lucky Friday are $241.34/ton for the 30 Vein and $268.67/ton for the Intermediate Veins; metallurgical recoveries (actual 2023): 96% for silver, 95% for lead, and 85% for zinc.
Note: All estimates are in-situ. Resources are exclusive of reserves.
(12) Mineral resources for operating properties are based on $1,750/oz gold, $21/oz silver, $1.15/lb lead, $1.35/lb zinc and $3.00/lb copper, unless otherwise stated. Mineral resources for non-operating resource projects are based on $1,700/oz for gold, $21.00/oz for silver, $1.15/lb for lead, $1.35/lb for zinc and $3.00/lb for copper, unless otherwise stated.
(14) The resource NSR cut-off values for Lucky Friday are $200.57/ton for the 30 Vein, $227.90/ton for the Intermediate Veins and $198.48/ton for the Lucky Friday Veins; metallurgical recoveries (actual 2023): 96% for silver, 95% for lead, and 85% for zinc.
Reporting requirements in the United States for disclosure of mineral properties as of December 31, 2020 and earlier are governed by the SEC’s Securities Act Industry Guide 7, entitled “Description of Property by Issuers Engaged or to be Engaged in Significant Mining Operations” (Guide 7). Effective January 1, 2021, the SEC has issued new rules rescinding Guide 7. Mining companies are not required to comply with the new rules until the first fiscal year beginning on or after January 1, 2021. Thus, the Company will be required to comply with the new rules when filing its Form 10-K for the fiscal year ended December 31, 2021. The Company is also a “reporting issuer” under Canadian securities laws, which require estimates of mineral resources and reserves to be prepared in accordance with Canadian National Instrument 43-101 (NI 43-101). NI 43-101 requires all disclosure of estimates of potential mineral resources and reserves to be disclosed in accordance with its requirements. Such Canadian information is included herein to satisfy the Company’s “public disclosure” obligations under Regulation FD of the SEC and to provide U.S. holders with ready access to information publicly available in Canada.
Reporting requirements in the United States for disclosure of mineral properties under Guide 7 compared to the new SEC rules (Item 1300 of Regulation S-K under the Securities and Exchange Act of 1934) and the requirements in Canada under NI 43-101 standards are substantially different. This document contains a summary of certain estimates of the Company, not only of Proven and Probable reserves within the meaning of Guide 7, but also of mineral resource and mineral reserve estimates estimated in accordance with the new SEC rules and definitional standards of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in NI 43-101. Under Guide 7, the term “reserve” means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination. The term “economically”, as used in the definition of reserve, means that profitable extraction or production has been established or analytically demonstrated to be viable and justifiable under reasonable investment and market assumptions. The term “legally”, as used in the definition of reserve, does not imply that all permits needed for mining and processing have been obtained or that other legal issues have been completely resolved. However, for a reserve to exist, Hecla must have a justifiable expectation, based on applicable laws and regulations, that issuance of permits or resolution of legal issues necessary for mining and processing at a particular deposit will be accomplished in the ordinary course and in a timeframe consistent with Hecla’s current mine plans. The terms “Measured resources”, “Indicated resources,” and “Inferred resources” are mining terms as defined in accordance with the new SEC rules and NI 43-101. These terms are not defined under Guide 7 and prior to January 1, 2021, were not normally permitted to be used in reports and registration statements filed with the SEC in the United States, except where required to be disclosed by foreign law. The term “resource” does not equate to the term “reserve”. Under Guide 7, the material described herein as “Indicated resources” and “Measured resources” would be characterized as “mineralized material” and is permitted to be disclosed in tonnage and grade only, not ounces. The category of “inferred resources” is not recognized by Guide 7. Investors are cautioned not to assume that any part or all of the mineral deposits in such categories will ever be converted into Proven or Probable reserves. “Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of such a “resource” will ever be upgraded to a higher category or will ever be economically extracted. Investors are cautioned not to assume that all or any part of a “resource” exists or is economically or legally mineable. Investors are also especially cautioned that the mere fact that such resources may be referred to in ounces of silver and/or gold, rather than in tons of mineralization and grades of silver and/or gold estimated per ton, is not an indication that such material will ever result in mined ore which is processed into commercial silver or gold.
(years ended December 31)
|
2019 |
2020 |
2021 |
2022 |
2023
| |
|---|---|---|---|---|---|
|
Silver (ounces) |
632,944 |
2,031,874 |
3,564,128 |
4,412,764
|
3,086,119
|
|
Lead (tons) |
4,098 | 12,727 |
23,137 |
29,233
|
19,543
|
|
Zinc (tons) | 2,052 | 6,298 |
9,969 |
12,436
|
7,944
|
In 2024, exploration drilling is planned to the east of the 30 Vein in an underexplored area between the Gold Hunter and the historic Lucky Friday Mine. Proven and probable reserves are currently 78 million ounces of silver, 492.4 thousand tons of lead and 229.4 thousand tons of zinc. Based on this current reserve base, Lucky Friday has a 19-year mining plan. Measured and indicated resources are 53.9 million ounces of silver, 359.6 thousand tons of lead and 173.3 thousand tons of zinc. Inferred resources include 27.9 million ounces of silver, 211.3 thousand tons of lead, and 100.6 thousand tons of zinc.
Our goal is to access more resources to further extend the mine life at Lucky Friday. Currently, we believe only one-third of the tons and one-half of the ounces that are contained underground at Lucky Friday are in the current mine life. Hecla sees great organic growth opportunities at Lucky Friday.
There have been two ore-bearing structures mined at the Lucky Friday Mine. The first, mined through 2001, was the Lucky Friday vein, a fissure vein typical of many in the Coeur d’Alene Mining District. The orebody is located in the Revett Formation, which is known to provide excellent host rocks for a number of orebodies in the Coeur d’Alene Mining District. The Lucky Friday vein strikes northeasterly and dips steeply to the south with an average width of six to seven feet. Its principal ore minerals are galena and tetrahedrite with minor amounts of sphalerite and chalcopyrite. The ore occurs as a single continuous orebody in and along the Lucky Friday vein. The major part of the orebody has extended from the 1,200-foot level to and below the 6,020-foot level.
The second ore-bearing structure, known as the Lucky Friday Expansion Area, is located in the Wallace Formation. It has been mined since 1997 pursuant to an operating agreement with Silver Hunter Mining Company (“Silver Hunter”), our wholly owned subsidiary. During 1991, we discovered several mineralized structures containing some high-grade silver ores in an area known as the Gold Hunter property, approximately 5,000 feet northwest of the then existing Lucky Friday workings. This discovery led to the development of the Gold Hunter property on the 4900 level. In 2008, through Silver Hunter, we completed the acquisition of all of the assets of Independence Lead Mines Company (“Independence”), including all future interest or royalty obligations to Independence and the mining claims pertaining to the operating agreement with Hecla Limited that was assigned to Silver Hunter.
The principal mining method at the Lucky Friday unit is ramp access, cut and fill. This method utilizes rubber-tired equipment to access the veins through ramps developed outside of the orebody. Once a cut is taken along the strike of the vein, it is backfilled with cemented tailings and the next cut is accessed, either above or below, from the ramp system.
There are three main phases to the mining process: development, production, and backfilling.
Development – the tunneling or accessing phase
Using plans from the geology and engineering departments, miners drive tunnels 12ft high by 12ft wide to access the various ore zones to be mined.
Production – the extraction phase
The method of extraction depends upon the geological nature of the orebody involved. Some of the narrower orebodies can be extracted using conventional mining methods (slushers and jackleg drills), mining as narrow as three feet. In other, more massive orebodies, mechanized mining methods are employed using large rubber-tired equipment to mine widths of up to 20 feet.
Backfilling – the replacement phase
The voids created during the production phase are filled up with a combination of mill waste (tailings) and cement. This “backfilling” process stabilizes the production voids and allows extraction of the ore beside, above, and even below the backfilled area.
Lucky Friday is the second largest private employer in Shoshone County, Idaho, and is an integral part of the community through volunteerism and investment. In 2023, we had a direct impact in neighboring communities (including Mullan, Wallace, and Kellogg) of more than $151 million, including over $42 million in wages, $11 million in taxes and fees, and $98 million in purchases from vendors.
