Hecla Reaffirmed As A Buy From Jefferies

Hecla Mining Co.

had a "lucky" Friday, where Hecla "focused on developing new shaft at this [Denver] mine. The 4,000 feet long shaft with capacity of 1,200 tpd could go as deep as 8,800 feet below surface. Management expects completion of shaft in 2014. Capital requirement for this project is $150-$200 million. This project has the potential to extend life-of-mine and make Lucky Friday a 5 million ounces/year producer. We note final decision on the shaft is yet to be made; expect update from management in the next few months," according to Jefferies. Jefferies maintains its Buy rating and $7 price target. Hecla Mining Co. closed yesterday at $6.27.