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Hecla says production at its Lucky Friday silver mine won't resume until end of 2023 due to repairs

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(Kitco News) - Silver and gold producer Hecla Mining (NYSE: HL) announced today that the previously reported fire at the Lucky Friday mine has been extinguished, normal ventilation has been established, and the workforce has been recalled.

On August 21, 2023, the company reported that a fire caused fall of ground in the Lucky Friday mine’s #2 shaft, a secondary egress, at an unused station that was under repair.

Hecla said in a statement today that the company is bringing the mine back into production by developing a new secondary egress to “bypass the damaged portion of the shaft.”

However, Hecla anticipates that this work will suspend production for the remainder of 2023. The mine has produced 3 million ounces of silver as of the end of July 2023.

Currently, the company does not expect a material change to 2024 consolidated silver production guidance.

Importantly, the company said it has property insurance with an underground sub-limit of $50 million, adding it believes this policy will cover most of the property damage and business interruption, less the deductible.

Lucky Friday is one of the top seven primary silver mines in the world (based on silver equivalent ounces) located in Idaho, USA.

Founded in 1891, Hecla Mining is the largest silver producer in the United States. In addition to operating mines in Alaska, Idaho, and Quebec, Canada, the company is developing a mine in the Yukon, Canada, and owns a number of exploration and pre-development projects throughout North America.

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