Hecla in its Q1 2020 results says it recently reached agreement with Nevada Gold Mines to process a 30,000 ton bulk sample of Fire Creek ore at one or more of their refractory ore processing facilities.

The agreement makes it possible for the company to move forward with a program to test larger scale long-hole stoping of Fire Creek’s Type 2 ore (refractory ore) and is expected to help establish recovery rates in their process. Mining of the bulk sample is planned over the rest of 2020 with processing of the ore continuing into early 2021.

The test is a staged, low-risk way to investigate opportunities to lower Fire Creek’s cost structure in an effort to realize value from the existing approximately 543,000 ton inferred resource (0.512 oz/ton gold; 0.543 oz/ton silver). The bulk sample is expected to be self-funding.

In addition, Hecla is advancing studies in support of continuing production at Fire Creek. Results from the recently completed hydrology study suggest that the existing water rights, water related permits, and water treatment infrastructure may be adequate to support a conceptual mine plan being developed for the resource. Results from the bulk mining and processing test will be used to refine the conceptual mine plan and economic analysis in 2021.

The Fire Creek mine, which Hecla acquired in July 2018, is located primarily in Lander County, Nevada, approximately 63 miles west of Elko, Nevada, overlooking Crescent Valley.