Coeur extends high-grade

Vancouver — Idaho-based Coeur d’Alene Mines (CDE-N) has extended the high-grade gold-silver mineralization on the Lucero vein at its Cerro Bayo project, some 9 miles east of the closed Fachinal mine in southern Chile.

The infill drill program successfully increased the strike length of the vein and confirmed the grades to depth of 400 ft. below the surface. Coeur fails to break down the individual values, electing to report the combination of gold and silver values into a gold equivalent format. With drill holes separated by 50-to-80 ft., highlights from the latest drilling include:

• Hole 319 — 6.2 ft. grading 0.45 oz gold equivalent per ton from 168.5 ft. down-hole, 3.9 ft. grading 0.57 oz gold equivalent from 517.5 ft. down-hole and 7.1 ft. grading 2.19 oz gold equivalent from 542.2 ft. down-hole.
• Hole 320 — 3.8 ft. grading 0.84 oz gold equivalent from 320.4 ft. down-hole,
• Hole 322 — 3 ft. grading 6.3 oz gold equivalent from 347.1 ft. down-hole,
• Hole 323 — 3.5 ft. grading 0.95 oz gold equivalent from 385.8 ft. down-hole and 6 ft. grading 0.43 oz gold equivalent from 415.6 ft. down-hole,
• Hole 325 — 11 ft. grading 0.31 oz gold equivalent from 342.9 ft. down-hole,
• Hole 326 — 3.2 ft. grading 0.63 oz gold equivalent from 237.3 ft. down-hole,
• Hole 328 — 9.1 ft. grading 0.41 oz gold equivalent from 437.5 ft. down-hole,
• Hole 329 — 5 ft. grading 0.38 oz gold equivalent from 155.5 ft. down-hole,
• Hole 331 — 5.6 ft. grading 2.42 oz gold equivalent from 389.9 ft. down-hole, and
• Hole 334 — 7.4 ft. grading 1.79 oz gold equivalent from 570.1 ft. down-hole.

Moving 80 ft. east of the Lucero vein, one of the holes cut 6.2 ft. grading 0.45 oz gold equivalent at the Luz Eliana vein.

Mineralization on the property is hosted by a series of parallel to sub-parallel vein systems. Based on the results, the company is planning to expand the next round of drilling to include a number of previously untested veins. So far, the combined Cerro Bayo zone has been outlined over 8,200 ft. along strike and up to 3,300 ft. in width. At last count, the property held reserves of 582,000 tons averaging 0.18 oz. gold and 9.7 oz. silver, and resources of 585,000 tons grading 0.08 oz gold and 5 oz. silver. An updated resource calculation is expected by October.

The project holds the promise of breathing new life into the nearby Fachinal gold mine, which Coeur closed last year after the third quarter total cash costs came in at US$413 gold per oz.