Coeur eyes potential at Rochester mine

Denver — Recently completed drilling by Coeur d’Alene Mines (CDE-N) could extend the life of the Rochester silver-gold mine in northern Nevada.

The company drilled 161 holes in a reverse-circulation program exceeding 61,500 ft. Targets were drilled around the perimeter of the open pit, as well as farther afield.

Initial results returned values consistently above the average reserve grade of 1.77 oz. silver-equivalent per ton. Significant high-grade mineralization was encountered in hole 126, drilled less than 400 ft. from the southeastern edge of the pit. The hole returned 70 ft. of 7.2 oz. silver-equivalent. This mineralization, starting at a depth of 100 ft. below the surface, is considered minable by open-pit methods. Farther down the hole was another 70-ft. interval, this one grading 1.96 oz. silver-equivalent.

Other significant intervals include:

– 130 ft. of 2.1 oz. silver-equivalent starting at the surface in hole 140;

– 90 ft. of 2.6 oz. starting at the surface in hole 148; and

– 220 ft. of 3.2 oz. starting at 130 ft. below surface in hole 160.

At the Nevada Packard property, 1.5 miles south of the main pit, Coeur completed 73 drill holes totalling 23,920 ft. Highlights include:

– 70 ft. of 3.6 oz. silver-equivalent per ton;

– 110 ft. of 5.1 oz. per ton;

– 130 ft. of 2.4 oz. per ton; and

– 70 ft. of 7.1 oz. per ton.

To date, the drilling has extended previously known mineralization laterally and at depth. Also, new mineralization was encountered in zones to the east and west.

“During the past two years, our geologists have made great strides in understanding and recognizing the key factors that control mineralization, particularly at depth at Rochester and at Nevada Packard,” says Coeur Chairman Dennis Wheeler. “We are confident this will lead to substantial additions to reserves and resources.”

Rochester began production in 1986 and has so far produced 80 million oz. silver and 894,000 oz. gold. At the end of 1999, the mine had reserves of 48.3 million tons averaging 1.09 oz. silver and 0.01 oz. gold per ton; that translates into 52.5 million oz. silver and 381,000 oz. gold, enough for five more years of operation. The property has additional resources of 46.4 million tons grading 0.82 oz. silver and 0.01 oz. gold per ton.

Coeur plans to drill an additional 40,000 ft. at Rochester and Nevada Packard in 2001.

Recently, Coeur was informed that its shares failed to meet several requirements for continued listing on the New York Stock Exchange. Although total market capitalization is US$37 million, it is required to maintain a minimum of US$50 million. Also, the shares must maintain a minimum price of US$1 per share, whereas, over the past decade, they have fallen to as low as US81 each, owing to sluggish silver prices.

The company has submitted a plan to the NYSE for the continued listing of its shares.