Coeur Announces Discovery of Two Significant Vein Systems at South American Mines
COEUR D'ALENE, Idaho, Jan. 4 /-- Coeur d'Alene Mines Corporation (NYSE: CDE; TSX: CDM), the world's largest primary silver producer and a growing gold producer, announced today that exploration activity in the fourth quarter of 2005 at its Cerro Bayo mine in Chile and at the Martha mine in Argentina has resulted in discovery of two new, high-grade silver and gold bearing vein systems that the company expects will add to its mineral resources and, ultimately, mineral reserves.
Dennis E. Wheeler, Chairman, President and Chief Executive Officer of Coeur, said, "This most recent exploration work is tremendously positive news for our Cerro Bayo and Martha mines -- and bodes well for a significant increase in mineral resources and reserves and a continued extension of mine life. Even before consideration of these latest vein systems, Cerro Bayo reserves & resources had increased nearly 200% since 2001, and Martha reserves and resources had more than tripled since 2002. We are confident that our ongoing exploration program will continue to yield additional discoveries of new ore-bearing veins."
Cerro Bayo Results
At Cerro Bayo, exploration southeast of the company's current underground mining operations at the Lucero and Javiera veins has discovered the new Cascada vein system, a zone of low-sulphidation silver and gold mineralization hosted in a main vein and two sub-parallel veins. To date, a total of 3,973 meters of core drilling in 17 holes has been completed on the Cascada system. Eight of these holes, with a total of 1,938 meters, define a continuous mineralized zone 210 meters long and 110 meters high. The new mineralized system remains open to the south and at depth and in the sub-parallel veins encountered thus far. Results from the recent core drilling into the new mineralized zone are as follows.
Cascada Vein System - Cerro Bayo District, Chile
Drill Mineralized Intercept
Hole From To Length Au (g/t) Ag (g/t)
Number (Meters) (Meters) (Meters)
MH-61 175.6 177.6 2.0 32.52 1,011
MH-62 200.1 203.0 2.9 5.63 61
MH-63 185.0 188.4 3.4 2.74 50
MH-64 261.7 262.1 0.4 3.71 141
MH-65 173.4 177.5 4.1 3.57 146
MH-67 136.8 138.8 2.0 8.24 127
MH-68 212.2 216.5 4.3 15.13 135
MH-70 243.8 245.4 1.6 11.44 171
In addition, the company has continued definition drilling of the Marcela Sur vein discovery announced at the end of the third quarter. The high-grade silver and gold horizons in the new vein and sub-parallel vein splays, which are covered by post-mineral sediments, are nearly 700 meters long and 80 meters high. A total of 6,747 meters of core drilling in 34 drill holes has been completed on the Marcela Sur system to date. The company recently commenced driving a drift from the Lucero mining operation to access the new vein system.
Martha Results
At Martha, fourth-quarter exploration defined a new zone of high-grade silver mineralization, in the Betty Oeste vein, approximately 1,000 meters north of existing Martha/R4 mining operations. To date, a total of 1,861 meters of core drilling in 17 holes has been completed on the Betty Oeste system. Six holes, with a total of 837 meters, define a continuous mineralized horizon 160 meters long and 40 meters high. The system remains open to the west and east. Results from core drilling completed thus far in the mineralized horizon are as follows.
Betty Oeste Vein - Martha District, Argentina
Drill Mineralized Intercept
Hole From To Length Au (g/t) Ag (g/t)
Number (Meters) (Meters) (Meters)
M-398 113.6 114.2 0.6 3.15 2,582
M-399 116.8 117.7 0.9 0.00 2,096
M-401 130.2 131.0 0.8 0.00 2,792
M-402 130.3 130.6 0.3 0.10 626
M-413 101.4 102.0 0.6 0.15 1,214
M-414(*) 67.9 68.3 0.3 0.40 1,176
M-419 109.1 109.5 0.4 0.00 1,759
Hole M-414 is a high grade intercept above the mineralized horizon.
Exploration activities are continuing at Cerro Bayo and Martha to further define the new results and in search for additional gold and silver-bearing veins.
Coeur d'Alene Mines Corporation is the world's largest primary silver producer and a growing gold producer. The Company has mining interests in Alaska, Argentina, Australia, Bolivia, Chile, Nevada, and Idaho.
Investor Contact
Scott Lamb
Vice President of Investor Relations
208-665-0777
Cautionary Statement
Company press releases may contain numerous forward-looking statements within the meaning of securities legislation in the United States and Canada relating to the Company's silver and gold mining business. Such statements are subject to numerous assumptions and uncertainties, many of which are outside the Company's control. Operating, exploration and financial data, and other statements in this document are based on information the Company believes reasonable, but involve significant uncertainties as to future gold and silver prices, costs, ore grades, estimation of gold and silver reserves, mining and processing conditions, currency exchange rates, and the completion and/or updating of mining feasibility studies, changes that could result from the Company's future acquisition of new mining properties or businesses, the risks and hazards inherent in the mining business (including environmental hazards, industrial accidents, weather or geologically related conditions), regulatory and permitting matters, risks inherent in the ownership and operation of, or investment in, mining properties or businesses in foreign countries, as well as other uncertainties and risk factors set out in the Company's filings from time to time with the SEC and the Ontario Securities Commission, including, without limitation, the Company's reports on Form 10-K and Form 10-Q. Actual results and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. The Company disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.
Donald J. Birak, Coeur's Senior Vice President of Exploration, is the qualified person, per Canadian National Instrument 43-101, responsible for the preparation of the scientific and technical information in this news release. Mr. Birak has reviewed the available data and procedures and believes the calculation of information contained herein was conducted in a professional and competent manner.
Source: Coeur d'Alene Mines Corporation
CONTACT: investors, Scott Lamb, Vice President of Investor Relations of Coeur d'Alene Mines Corporation, +1-208-665-0777
Web site: http://www.coeur.com/
