Coeur drills new mineralization at Bayo, Martha (January 30, 2006)

Exploration drilling by Coeur d’Alene Mines (CDM-T, CDE-N) around its Cerro Bayo and Martha mines in Chile and Argentina, respectively, has outlined new gold- and silver-mineralized zones.

A 17-hole program at Cerro Bayo in southern Chile has revealed a new structure called the Cascada vein system, southeast of known resources on two other vein systems (Lucero and Javiera). Cascada consists of a main vein and two smaller veins sub-parallel to it, and eight holes have defined a mineralized zone 210 metres along strike and 110 metres vertically. It is open along strike to the south and downdip.

The mineralized length of the core intersections varies from 0.4 to 4.3 metres, with gold grades of 2.7 to 32.5 grams per tonne and silver grades of 50 to 1,011 grams per tonne. The best intersection ran 32.5 grams gold and 1,011 grams silver per tonne over 2 metres; the longest, 15.1 grams gold and 135 grams silver over 4.3 metres.

Coeur also did further drilling on an earlier discovery, the Marcela Sur vein, defining a mineralized zone about 700 long and 80 metres vertically. An exploration drift is being advanced on Marcela Sur from Lucero.

Coeur’s drill program also defined new mineralization in the Betty Oeste vein at the Martha mine in Argentina, about 1 km north of existing mining operations. A 6-hole drill program defined a zone 160 metres in strike length and 40 metres high.

Grades in the vein are typically over 1,000 grams silver per tonne, with low-grade gold credits. The mineralized intersections are 0.3 to 0.9 metres long.

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