"two highly prospective silver and gold"Coeur Signs Exploration Agreement on Properties in Argentina
Nov 20, 2006 9:00:00 AM
OEUR D'ALENE, Idaho, Nov. 20 /PRNewswire-FirstCall/ -- Coeur d'Alene Mines Corporation (NYSE: CDE, TSX: CDM) said today that is has signed an exploration agreement with Mirasol Resources Ltd., under which Coeur has obtained exclusive rights for up to four years to conduct exploration and evaluation work on two highly prospective silver and gold properties near Coeur's existing Martha mine operations in the Santa Cruz province of Argentina.
"These two properties are located in an area that's well known for having some of the highest-grade silver deposits in the world as well as world-class gold deposits," said Dennis E. Wheeler, Chairman, President, and Chief Executive Officer of Coeur. "We are particularly excited by this agreement because it dramatically and cost-effectively expands our exploration horizon in Santa Cruz and, in so doing, perfectly complements the drilling we are already doing on our own properties adjacent to the Martha mine."
In the event that Coeur determines that the properties warrant commercial production, the company has the option to enter into a joint venture with Mirasol in which Coeur would act as manager and have an interest of at least 51%, with further options to increase its managing joint venture interest.
The properties covered by the agreement are known as Sascha and Joaquin, both of which feature multiple vein systems in the same volcanic rocks that host Coeur's Martha deposit and other major precious metal deposits in the province. Samples collected to-date by Mirasol and Coeur, from surface exposures and trenches, have identified high grades of both silver and gold.
The Sascha property covers approximately 16 square kilometers and contains a 4.5 kilometer trend of classic, low-sulphidation quartz veins, which host bonanza silver and gold grades. Best surface samples include grades of 467 grams per tonne of silver and 160.0 grams per tonne of gold from surface outcrop.
The Joaquin property covers approximately 18 square kilometers and includes four discrete silver and gold targets that contain vein-hosted mineralization. Mineralized trends have shown values of up to 4,748 grams per tonne of silver and 46.9 grams per tonne of gold from surface outcrop and up to 848.6 grams per tonne silver and 1.4 grams per tonne gold from saw channel samples over 3.4 meters in width.
Coeur d'Alene Mines Corporation is one of the world's leading primary silver producers and a growing gold producer. The company has mining interests in Alaska, Argentina, Australia, Bolivia, Chile, and Nevada.