UPDATE 1-Hecla Q1 profit up; cuts '07 gold production outlook

(Recasts, adds details, outlook )

Aug 8 (Reuters) - Hecla Mining Co. (HL.N) posted significantly higher quarterly earnings, helped by one-time gains, but cut its full-year gold production outlook due to a temporary suspension of operations at its mine in Venezuela.

The precious metals company now expects full-year 2007 gold production of between 115,000 ounces and 120,000 ounces.

It had previously estimated gold production for the year to be 128,000 ounces.

Earlier in May, Hecla said it halted gold mining at Mina Isidora in Venezuela as local residents blocked access to the mine asking it to address issues, such as community infrastructure and unemployment in the rural area around the mine.

The company still expects silver production for 2007 to be about 6 million ounces. Silver operations contributed more than 70 percent to the company's latest second-quarter sales.

Shares of the company rose about 4 percent to $7.83 in morning trade on the New York Stock Exchange. QUARTERLY RESULTS

For the second quarter, the company reported earnings of 20 cents a share, compared with 8 cents a share in the year-ago quarter.

The latest second-quarter results include a pre-tax gain of $63.8 million, a $44.7 million increase in the accrual for potential environmental liabilities, a $6.1 million charge for foreign exchange transactions and a tax benefit.

While, the year ago-period results included a $4.4 million pre-tax gain on the sale of a property.

Analysts, on average, were expecting the company to earn 6 cents a share, before any special items, in the second quarter, according to Reuters Estimates.

Total sales for the quarter rose 5.5 percent to $60.1 million.

Hecla shares were down about 1.44 percent this year before Wednesday's rise, underperforming the S&P 1500 metal and mining industry index .15GSPMTM, which is up about 18.6 percent this year. (Reporting by Hezron Selvi in Bangalore)