PALMAREJO
Exploration in Mexico during 2009 focused in and around the Palmarejo mine. Coeur controls a large block of mining concessions totaling 12,100 Hectares, which encompasses the Palmarejo mine, the Guadalupe Project, as well as other prospects within a highly prospectable ground at the center of the Sierra Madre epithermal belt.
Effective year-end 2009, Coeur announced new mineral reserves and resources for the Palmaejo District, totaling 90.5 million ounces of silver and 1.1 million ounces of gold which represents an increase of 45% and 42 % in gold and silver reserves, respectively, compared to year-end 2008 .
The new reserves are net of (after) 2009 surface and underground mine production totaling over 1.05 million tonnes grading 1.24 grams/tonne of gold and 148 grams/tonne of silver. Two ore deposits comprise the mineral reserves; Palamarejo and Guadalupe. The Palmarejo deposit is a surface and underground mine in the north-central part of the large Palmarejo District. Guadalupe is located approximately 6 kilometers southeast of the current Palmarejo mine and processing facilities. In 2009, the Company drilled over 136,000 feet (41,400 meters) of core at Palmarejo and plans to continue drilling at both areas in and anticipates commencement of underground development of Guadalupe’s reserves in 2010.
The entire Palmarejo District is held in 46.9 square miles, with multiple trends and targets. In the second half of 2009, the Company’s exploration team discovered two near targets near to Guadalupe – called La Antena and La Higuera – both of which we explorae further in 2010. The full budget for Mexico exploration in 2010 is $9. million, of which over 90% will be devoted to the Palmarejo District.
- • Also in 2009 we focused on identifying new targets and refining others. The result of that work is the discovery of the La Antena and La Higuera veins and anomalies near to Guadalupe and new gold anomalies from surface sampling at La Patria about 1.5 km SW of Guadalupe. We have plans for follow-up on all these targets in 2010 with a budget of $4.5 M.
The entire Palmarejo District is held in 46.9 square miles, with multiple trends and targets. Guadalupe and Chapotillo – one of five zones within the immediate Palmarejo mine – wasbeen the main areas of focus for drilling in 2009, with over 18,000 meters of core drilling through September of this year.
