Decline Development At The Lakeshore Property

LOCATION AND HISTORY The Lakeshore Copper property is located on the Papago Indian Reservation approximately 30 miles South of Casa Grande, Arizona. This major porphyry type deposit was discovered by El Paso Natural Gas Company in 1966. Following an extensive diamond drilling program, El Paso invited several mining companies, including Hecla, to examine the property with a view towards participation. Hecla's examination, and the attendant feasibility studies, led to agreements, which were finalized in September 1969, whereby Hecla would acquire a 50% interest in the property, and would act as operator. The Lakeshore deposit covers an area approximately 3,000 feet in width by 6,000 feet in length. It consists of an upper zone of disseminated copper oxides, averaging approximately 100' in thickness overlying a zone of disseminated copper sulfides up to 1,000 feet thick. Near the base of the disseminated ore is a blanket like zone of high grade copper sulfides, referred to as the tactite ore body. The mine is being developed to produce approximately 6,500 tons per day of oxide ore and 9,000 tons per day of sulfide ore. This represents a total daily production rate of 15,500 tons per day, which will be achieved by underground mining methods using rubbertired dieselpowered mining equipment. DEVELOPMENT LAYOUT The mine is being developed by two parallel 15° decline tunnels. The declines were collared 5,000 feet southeast of the ore body, and are being driven in a northwestery direction, to pass beneath the tactite ore zone. The declines will constitute the primary means of access to the underground workings. One decline (north