CERRO BAYO - CHILE
Positive Results at Cerro Bayo and Option Agreement for New Exploration Property
At Coeur’s Cerro Bayo mine in southern Chile, drilling continued on the Dagny and Fabiola vein systems, and continue to return excellent wide results at a new vein system – Delia – located approximately 500 meters south of the mine’s ore processing facilities.
A total of 26 drill holes and 4,696 meters of drilling were completed in the 4th quarter at Delia. Many of these drill holes cut wide veins of silver and gold mineralization that is expected to be an important contribution along with Dagny, Fabiola and other new veins in the district towards the development of a new, sustainable multi-year mine plan. Silver and gold mineralization at Delia now extends for over 1 kilometer onstrike and 80 to 100 meters vertically.
Also in Chile, Coeur completed an agreement for an option to purchase 100% of the Huantajaya silver property in northern Chile. The property covers over 624 hectares of prospective ground in one of the largest historic silver districts in the country. Huantajaya is located 15 kilometers east of the port city of Iquique and access to the property and local infrastructure are excellent. An aggressive surface geological and geophysical exploration program commenced in early 2009, to define drilling targets that are expected to be tested during the year.
The 2009 exploration budget for Chile is $4.2 million of which $3.9 million is devoted to Cerro Bayo.
There are numerous other epithermal veins located within the Cerro Bayo district which offer exploration and development opportunities. To date, we have discovered over 100 veins in the district. The Cerro Bayo District covers about 27,800 hectares (68,708 acres) of contiguous concessions in southern Chile. In addition, we control about 25,400 hectares (62.763 acres) of other concessions in Region XI.
