Hecla preps for Epiroc Mobile Miner at Lucky Friday; second Sandvik auto truck for Casa Berardi

In its Q2 2018 results, Hecla reports that preparations for the introduction of its Epiroc Mobile Miner 40V, which the miner refers to as a Remote Vein Miner (RVM), expected in late 2019, continues to be a major focus at Lucky Friday silver/lead/zinc mine in Idaho. “The RVM project is proceeding as expected and has the potential to revolutionise how the Lucky Friday is mined, making it a safer and more efficient operation. In addition, limited production and capital improvements continue to be performed by salaried staff.”

Production has been limited since March 13, 2017 due to an ongoing strike and now the focus is completing the development necessary to accommodate the RVM in 2019. Research and development spending was $2.3 million for the quarter, with completion of the design and procurement phase of the RVM project. Fabrication of the machine started at the end of the second quarter and is expected to be complete in the fourth quarter of 2018, and a testing phase in Sweden during the first half of 2019 is planned. The machine is expected to be delivered to Lucky Friday in late 2019. Expectations for 2018 research and development spending have declined to $6-$10 million from $12-$16 million, as investment in the RVM project are expected to be capitalised going forwards.

Elsewhere, at the Casa Berardi gold mine in Quebec, the automated 985 drift project is working well, with the autonomous haul truck running better and with higher availability than originally anticipated. The second 40 t Sandvik autonomous haul truck is expected to be delivered later this year. Operating two autonomous trucks is expected to result in operating savings of several million dollars a year.