Hecla Mining expects disruptions at Keno Hill to continue 1H25

The company said, “Victoria Gold’s Eagle Mine heap leach pad incident in June 2024, although unrelated to Hecla and Keno Hill, caused the First Nation of Na-Cho Nyak Dun to express strong positions on mining activities within their Traditional Territory, where Keno Hill is located, including a call to halt all mining. This has slowed the Company’s permitting efforts as the Yukon Government is required to consult with the FNNND on permitting matters. Progress continues to be made on permitting, but significant challenges remain. Further, power curtailment by YEC at Keno Hill has continued into 2025, resulting in 8 days of operational stoppage as of this release. Disruptions are expected to continue through the first half of 2025, due to cold temperatures and YEC’s insufficient generating capacity relating to an out-of-service hydro-electric turbine that is not expected to be repaired until summer 2025. However, the Yukon Premier has committed resources to review and resolve the power deficit at Keno Hill in the coming months. Considering electrical reliability challenges, along with ongoing discussions with the Yukon Government and the FNNND regarding the Eagle Mine incident, we project 2025 silver production to remain comparable to 2024 levels, with growth expected to resume in 2026. “