To ensure safe and efficient operations for its personnel, Hecla Mining Co. said this morning it will develop a new haulage way to bypass the rock burst that occurred at the Lucky Friday mine in northern Idaho on Dec. 14. Creating the bypass and reestablishing mine production is expected to be complete by the end of February 2012.
Hecla’s silver output remains within its previous estimates with 2011 production expected at more than 9 million ounces and cash cost estimates remaining unchanged at about $1.00 per ounce, net of by-products. For 2012, Hecla said it expects to increase silver production to more than 9.5 million ounces, including the loss of two months of production at the Lucky Friday mine while the bypass is completed.
“While 2011 has been a difficult year for Hecla and the Lucky Friday, the previous 25 years at the Lucky Friday have been characterized by an extraordinary safety record,” said Phil Baker, president and CEO.
“Looking forward, our goal, which we will relentlessly pursue, is to reestablish the same safety and operating performance decades into the future,” he said. “I am happy to report that everyone who was injured on Dec. 14 has been released from the hospital and is on the road to recovery.”
Hecla said it will not repair the area where the rock burst occurred. Instead, the company is planning a 750-foot bypass creating a new haulage way, which will be a significant distance from where the rock burst occurred and in a previously mined area, reducing the risk of future rock bursts.
Hecla said it expects that a majority of Lucky Friday employees will stay at the mine to work on the bypass or other Lucky Friday projects. Any remaining qualified employees will be given the opportunity to work at Hecla’s other properties.
Hecla closed the mine when the accident occurred to ensure employee safety, investigate the accident and evaluate alternative plans. Subsequently, MSHA issued an order closing the mine. Hecla said it is working with MSHA to finalize the investigation and lift the closure order to start the development of the new haulage way, resume construction of the No. 4 Shaft, and work on other maintenance projects.
